Consumer Sector Update for 01/17/2018: TIF, DAN, FAF

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Top Consumer Stocks

WMT +1.33%

MCD +0.63%

DIS +0.59%

CVS -0.13%

KO +0.84%

Consumer stocks were broadly higher Wednesday, with shares of consumer staples companies in the S&P 500 adding more than 1.2% in value in afternoon trading while shares of consumer discretionary firms in the S&P 500 were posting a slightly less than 0.3% gain.

In industry news:

Same-store sales during the week ended Jan. 13 rose 2.6% over year-ago levels, extending the deceleration in growth to a third week, according to the Redbook survey of larger chain retailers. Last week’s rise was the slowest rate since Nov. 11. Sales so far during January were down 0.3% compared with the same period in December, marking the first negative reading for that metric in four weeks.

Among consumer stocks moving on news:

+ Tiffany & Co. ( TIF ) climbed to a record high on Wednesday, rising to a best-ever $110.17 a share, after the jewelry and specialty retailer raised its FY17 guidance following an 8% increase in global net sales during the two months ended Dec. 31 compared with year-ago levels. The company is now expecting net sales last year to rise about 4% over FY16, up from its prior forecast expecting growth in the low single percentage digits. It also increased the outlook for adjusted FY17 per-share earnings to $3.75.

In other sector news:

– Dana ( DAN ) rose Wednesday after the auto-parts company increased its quarterly cash dividend by 66.7% over its most recent distribution to $0.10 per share and authorized a new, $100 million stock buyback program. It also reported a preliminary 24% rise in FY17 sales to $7.2 billion, topping the $7.14 billion consensus call. Its preliminary call for FY17 EBITDA was $835 million, roughly in-line with the $837.4 million Street view.

– Ford Motor Company ( F ) shares were in the ditch Wednesday after issuing preliminary adjusted FY17 net income of $1.45 to $1.70 per share, straddling the Capital IQ consensus expecting $1.59 per share. Keeps Q1 regular and supplemental dividends unchanged at $0.15 and $0.13 per share, respectively.

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