Consumer Sector Update for 01/29/2018: DG,DPS,NBEV,PEP,DEO,MDLZ

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Top Consumer Stocks

WMT +1.17%

MCD -0.07%

DIS -0.45%

CVS +1.79%

KO -1.52%

Consumer stocks reversed course this afternoon, giving back small gains from earlier in Monday trading, with shares of consumer staples companies in the S&P 500 falling nearly 0.3% this afternoon while shares of consumer discretionary firms in the S&P 500 were climbing less than 0.2%.

Among consumer stocks moving on news:

Dollar General ( DG ) gained just over 2% on Monday, touching a session high of $105.82 a share, after the discount retailer said it is encouraging new suppliers and other firms that have not sold products to the company over the past 18 months to ask for an invitation to attend the company’s innovation and supplier diversity summit in April. The event aims to pair potential new vendors with respective Dollar General buyers and category managers, it said. The event is open to suppliers selling beauty, personal care and over-the-counter and wellness goods as well as general merchandise and other non-food or grocery products.

In other sector news:

+ Dr Pepper Snapple Group Inc ( DPS ) effervesced Monday, rising over 32% to a best-ever $126.63 a share, after the soft-drink bottler today agreed to a $18.7 bln merger offer from privately held Keurig Green Mountain. The proposed transaction calls for Dr. Pepper investors receiving $103.75 for each of their shares through a special dividend payment, an 8.5% premium to Friday’s closing price. Keurig owner JAB Holding Company, along with its partners, will make a $9 bln equity investment in the deal and will retain a majority stake in the combined companies while Mondelez International ( MDLZ ), JAB’s partner in Keurig, will hold between 13% to 14% in the firm. Dr Pepper investors will own another 13% of the company.

+ New Age Beverages ( NBEV ) jumped almost 10% Monday morning, reaching a session high of $4.12 a share, after the bottled tea and energy-drink seller today said it was partnering with Simple Again to bring its products to juice bars and health clubs throughout the United States.

– Pepsico ( PEP ) was falling Monday, dropping over 1% to a session low of $119.96 a share, after analysts at SunTrust today began coverage for the soft-drink company with a Hold investment rating and a $125 price target.

– Diageo (DEO) dropped over 2% to a session low of $145.02 a share on Monday after analysts at RBC Capital Markets lowered their investment recommendation for the food conglomerate to Sector Perform from Outperform.

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