Sector Update: Consumer Stocks Softer Late Afternoon
Consumer stocks were lower late Monday afternoon, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) falling 0.5% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) decreasing 0.6%.In corporate news, Toyota (TM) and Honda (HMC) could get stuck with the bill if President Trump's 50% tariff on Canadian car imports go into effect on Jan. 1 as proposed, Reuters reported. Toyota and Honda could be forced to shut down some production lines, according to the late Sunday report, which cited analysts. If the tariffs go into effect, the two automakers will likely try to redirect vehicles built in Canada to other markets and look for ways to make up supply for the US market, analysts told the media outlet. Toyota shares were up 1.1%, and Honda was adding 0.2%.The Federal Trade Commission plans to file a lawsuit alleging that Amazon.com (AMZN) deceived advertisers by covertly raising the minimum price they had to pay to place ads on its retail platform promoting their products, The Wall Street Journal reported Monday, citing agency officials. A bipartisan group of over 20 state attorneys general will join the FTC in the lawsuit, which will be filed in a Seattle federal court, the report said, citing the officials. Amazon shares were down 2.4%.Herbalife (HLF) CEO Stephan Gratziani will step down, effective Oct. 31, the company said. The company said that it is reaffirming its guidance for Q3 and the full-year, previously provided on Aug. 5. It still expects Q3 net sales growth of 0.5% to 4.5% year-over-year along with adjusted earnings before interest, taxes, depreciation, and amortization of $160 million to $180 million. Herbalife shares were falling 12%.GameStop (GME) shares rose past 3% after the company said it expects Q2 net income of $290 million to $310 million, up from $168.6 million a year earlier.
