Consumer Companies Lower on Growth Fears -- Consumer Roundup

FeaturesDow Jones Newswires

Shares of retailers and other consumer-services companies ticked down amid persistent fears about the sector's growth.

Consumer shares are likely to underperform in "a late cycle environment," warned analysts at brokerage Morgan Stanley in a research note. This environment is characterized by "a tight labor market -- especially skilled labor, elevated consumer confidence, and the beginning stages of credit quality deterioration," they said. "While certain consumer-related economic measures remain strong, stocks tend to price in that strength well before the macro data actually tops."

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Unilever agreed to buy South Korean cosmetics company Carver Korea for $2.7 billion, the latest in a string of skin-care acquisitions.

Jeereddi Partners and Purple Mountain Capital Partners, which together own 2.4% of Tuesday Morning's shares, are urging the Dallas retailer to replace Chief Executive Steven Becker.

Rob Curran, rob.curran@dowjones.com

(END) Dow Jones Newswires

September 25, 2017 16:56 ET (20:56 GMT)