Consumer Sector Update for 01/24/2018: RCL,SRT,AMZN,JAX

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Top Consumer Stocks

WMT -0.75%

MCD -0.62%

DIS +0.22%

CVS +0.52%

KO +0.59%

Consumer stocks were starting to add to slight declines Wednesday afternoon, with shares of consumer staples companies in the S&P 500 sinking over 0.2% in afternoon trading while shares of consumer discretionary firms in the S&P 500 were falling nearly 0.4%.

Among consumer stocks moving on news:

+/- Royal Caribbean Cruises ( RCL ) sailed to a record high on Wednesday, rising at one point almost 6% to a best-ever $134.76 a share, after the vacation ocean-liner company reported above-consensus Q4 results. On both a GAAP and non-GAAP basis, the company earned $1.34 per share during the three months ended Dec. 31, up from $1.23 per share during the same quarter last year and beating the Capital IQ consensus by $0.03 per share. Revenue grew 4.7% year over year to $2.0 billion, also topping the $1.97 billion analyst mean. Looking forward, Royal Caribbean is modelling adjusted FY18 earnings in a range of $8.55 to $8.75 per share. The Street is at $8.65 per share.

In other sector news:

+ StarTek ( SRT ) rallied Wednesday, increasing almost 33% to a session high of $13.71 a share, after the customer-engagement company disclosed issuing an eight-year warrant to ( AMZN ) to buy up 4 million shares of its common stock at $9.96 apiece. According to a regulatory filing detailing the companies’ agreement, the warrant will vest after Amazon pays StarTek up to $600 million for commercial services provided to the ecommerce giant under an existing contract. If Amazon fully exercised the warrant, it would own about 19.9% of StarTek.

– J. Alexander’s ( JAX ) was falling Wednesday, dropping almost 3% to a session low of $9.93 a share after the restaurant chain said shareholders owning around 20% of the company’s stock have already signaled their support for its proposed acquisition of Ninety Nine Restaurant & Pub. The company is urging all shareholder vote in favor of the deal.

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