Sector Update: Consumer Stocks Decline Thursday Afternoon

MT Newswires Live03-20 01:37

Consumer stocks were lower Thursday afternoon, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) down 0.9% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) falling 1.3%.

In corporate news, Uber (UBER) will invest up to $1.25 billion in Rivian Automotive (RIVN) through 2031 to support the development of a fleet of Rivian R2 robotaxis that will be exclusive to Uber's platform, the companies said. Uber shares were down 1.3%, and Rivian gained 1%.

Tesla (TSLA) shares fell 2.8%. The company's "degradation detection" system is being investigated by the US auto safety regulator for its effectiveness in identifying degraded road conditions, the regulator said Wednesday. The probe by the US Office of Defects Investigation will assess the driver-assistance system's ability to detect reduced roadway visibility and alert drivers with enough time to respond.

Nike's (NKE) turnaround is "taking longer than expected" as its fiscal Q3 global trends appeared soft and Q4 outlook unlikely to signal a "meaningful" sequential improvement in sales growth, UBS Securities said in a Thursday note. UBS lowered its price target on Nike to $58 from $62, and maintained the neutral rating. Nike shares were down 0.7%.

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