Consumer Cos Up Amid Signs of Lower Mortgage Rates -- Consumer Roundup
Shares of retailers and other consumer-services companies rallied as a slide in Treasury yields boded well for the housing market. Bets that the Federal Reserve will cut rates in the relatively near future, following weakness in a number of data, including Friday's May jobs report, send 10-year yields near the 2% level for the first time in nearly two years. Many bank loans, including mortgages, are bench-marked to Treasury yields. One firm said the perception that the U.S. economy is still slowing due to the effects of the trade war may be false, however. "In our view, the economy continues to accelerate following a tariff-induced slump," said strategists at Swiss bank UBS, in a note to clients. "The May employment report was weak, but that signal is not corroborated by other measures of activity." Shares of meat-substitute maker Beyond Meat rose by more than 25% after it forecast robust growth in 2019 sales. Elliott Management agreed to buy the largest U.S. book-store chain Barnes & Noble for about $683 million in cash, as the hedge fund firm doubled down on a bet that readers would not abandon books altogether for digital formats. Energy-drinks specialist Monster Beverages is considering branching out into hard Seltzer and other alcoholic beverages as it faces competition in its core business.
-Rob Curran, firstname.lastname@example.org