Consumer Company Stocks Climb as J.C. Penney Sales Rise - Consumer Roundup
Shares of retailers and other consumer-services companies rose amid relief about the prospects for department stores. Shares of J.C. Penney surged after the chain store posted quarterly revenue and same-store sales growth that topped Wall Street estimates, a pleasant surprise that came after a late-October warning that its quarterly growth would be hurt by promotional activity designed to shift stubborn inventory. Investors have fled the bricks-and-mortar retail sub-sector recently as Amazon.com's incursion on the business shows no sign of abating. The University of Michigan said its preliminary reading on consumer sentiment was 97.8 in November, down from 100.7 in October, which was the highest reading since 2004. Fears that Airbnb would lay waste to the hotel industry may be overdone, according to a survey conducted by one brokerage. A Morgan Stanley survey "suggests Airbnb adoption is slowing in the US/Europe as awareness peaks and privacy/safety issues rise," said analysts at the brokerage, in a note to clients.
-Rob Curran, rob.curran@dowjones.com
(END) Dow Jones Newswires
November 10, 2017 16:25 ET (21:25 GMT)