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

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Top Consumer Stocks

WMT +0.96%

MCD -0.02%

DIS -0.15%

CVS +1.94%

KO -0.81%

Consumer stocks were edging higher Monday, with shares of consumer staples companies in the S&P 500 rising less than 0.1% in afternoon trading while shares of consumer discretionary firms in the S&P 500 were climbing more than 0.4%.

Among consumer stocks moving on 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 said it has agreed to a $18.7 billion 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 billion 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.

In other sector news:

+ 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 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 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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