Key Consumer Sector Insights for September 4–8, 2017
Market and consumer sector’s performance
The S&P 500 Index (SPY) (SPX-Index) finished the week ending September 8 with a slight fall of 0.61%. The consumer discretionary sector fell last week due to the fall in Hasbro (HAS) and Mattel (MAT) stock.
Cruise companies Royal Caribbean Cruises (RCL) and Carnival (CCL) saw their stock fall as the threat of Hurricane Irma in the Caribbean impacted the sector. The S&P 500 Consumer Discretionary Index fell 1.1% last week. On the other hand, the S&P 500 Consumer Staples Index rose 0.09% last week.
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Consumer ETFs didn’t gain much last week—the Consumer Discretionary Select Sector SPDR Fund (XLY) fell 1.0% on a weekly basis, while the SPDR S&P Retail ETF (XRT) rose 0.96% and the Consumer Staples Select Sector SPDR ETF (XLP) rose 0.22% last week.
As of September 8, the S&P 500 Index (9.9%) has outperformed the S&P 500 Consumer Discretionary Index (9.3%) and the S&P 500 Consumer Staples Index (6.2%) on a year-to-date basis.
On September 7, Newell Brands (NWL) announced that it entered into a definitive agreement to acquire Chesapeake Bay Candle. The company will acquire Chesapeake Bay Candle from its founders. The deal will be an all-cash transaction valued at $75 million. Chesapeake Bay Candle is a leading developer, manufacturer, and marketer of premium candles and other home fragrance products. It will be part of Newell Brands’ Live segment. The deal is expected to be complete in 4Q17.
On September 6, as part of its ongoing efforts to increase shareholder returns, Royal Caribbean Cruises announced a 25% increase in its dividend. The increased quarterly dividend of $0.60 per common share will be paid on October 11, 2017, to shareholders of record at the close of business on September 22, 2017.
On September 5, Tyson Foods (TSN) announced its plans to build a $320 million poultry complex in eastern Kansas. Consumers’ demand for chicken has increased. The complex is scheduled to start production in mid-2019. It will employ ~1,600 people. The complex is expected to generate an annual economic benefit of $150 million for the state of Kansas. The food and agriculture sector accounts for 45% of the state’s economy. The stock rose 1.3% last week.