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Sector Update: Consumer Stocks Mixed in Afternoon Trading

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Consumer stocks were mixed Tuesday afternoon, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) falling 1% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) increasing 0.1%.

In sector news, Redbook US same-store sales rose by 10.5% from a year earlier in the week ended June 27 after a 10.0% year-over-year increase in the previous week. Redbook noted that there was an increase in demand for seasonal products such as air conditioners, fans, pool and beach equipment, swimwear, and other summer apparel.

Separately, US retailers are placing China orders four to six weeks earlier than usual to build Black Friday and Christmas inventories ahead of potential US tariff hikes, Reuters reported, citing shipping executives. Frontloaded shipments have tightened container capacity on China-US routes, with spot rates from Shanghai to New york and Los Angeles rising week over week and year over year, maritime consultancy Drewry said.

In corporate news, Patrick Industries (PATK) and LCI Industries (LCII) have entered into a definitive agreement to merge in an all-stock deal, the companies said Tuesday. Patrick Industries shares fell past 5%, and LCI rose 4.5%.

Philip Morris International (PM) shares were down 0.5% after it said Tuesday the US Food and Drug Administration issued Modified Risk Tobacco Product orders for 20 variants of ZYN nicotine pouch products.

Ford (F) is recalling 741,195 US vehicles due to a transmission defect that may impair the park system, posing a risk of vehicles rolling away, Reuters reported, citing the US National Highway Traffic Safety Administration. Ford shares were shedding 0.8%.

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