Consumer Cyclicals Enjoy Another Solid Advance Tuesday

Consumer stocks were mostly higher Tuesday afternoon, with shares of consumer staples companies in the S&P 500 posting a 0.4% gain while shares of consumer discretionary firms in the S&P 500 were increasing almost 1.0%.

In company news, Hertz Global Holdings (HTZ) rallied Tuesday following reports billionaire investor Carl Icahn was talking with other potential buyers about a possible takeover of rental-car company.

Icahn – through his Icahn Enterprises (IEP), High River LP and other investment vehicles – more than doubled his stake in Hertz after its shares plunged in early November after the company disappointed Wall Street with below-consensus quarterly earnings and a subpar outlook. He purchased over 15 million shares, boosting his ownership interest to nearly 29.3 million shares, or 35.3% of its outstanding stock, according to recent regulatory filings.

HTZ shares were up more than 10% at $25.08 each, slipping slightly from a session high of $25.20 a share. IEP shares also were edging higher in late trade, rising about 0.3% to $47.88 apiece.

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