Cantor Morning News

Equities snapped back after being down 4% for the week coming into Friday. Consumer Discretionary stocks have underperformed for the entire month being down 2.4% vs Consumer Staples that are only down 1% in the same period. This week retail will focus around the important August Retail Same Store Sales releases.

Macro/Technicals

SPX: 1064.59; +1.66%
RLX: 405.82; +1.13%
RTH: 88.78; +.69%
XLY: 30.69; 1.62%
XLP: 26.69; +.64%
VIX: 24.45; -10.67%

Leaders: TZOO, CWTR, BEBE, ZQK, HZO, LIZ, PIR
Laggards: JCG, HPOL, TIF, SHLD, PSUN, GES, URBN

Sector News, M&A, Capital Raises

To save on taxes, roll your own cigarettes – WSJ. But be aware that regulators and cigarette manufacturers are onto your game. Tobacco retailers are using high-speed rolling machines to produce a carton of cigarettes for $21, which is less than half the price of a carton of Marlboros outside of Chicago. But employees at the stores are putting "pipe tobacco" into the machines, because pipe tobacco has an excise tax that is only 11% of the tax on tobacco normally used for cigarettes. The trick can either involve falsely labeling cigarette tobacco, or producing "pipe tobacco" that is remarkably similar to cigarette tobacco. The treasury says designing new regulations to differentiate the two types of tobacco may take months. Since the tax on cigarette tobacco was raised 14 months ago, such tobacco's sales volumes in the US have dropped 60%, while the volume of pipe tobacco sold has more than tripled.

GMCR Barron’s Trader column is again cautious on Green Mountain Coffee noting its lofty valuation, high expectations and potential for increasing coffee costs to pressure margins.

Top Events/Earnings Calendar

Events

JAKK JAKKS Pacific w/ Needham in NYC

Earnings

PRE:

POST: CLCT, WINN

Cantor Flows

Flows

Consumer Staples: DMND, GMCR, JJSF, SLE

Consumer Discretionary: AMZN, FRED, JCG, KSWS, MW, OMX, PSUN, WMT

Consumer Services: ABTL, LOV

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