Consumer stocks struggled as sector ETFs extended losses, but Carnival, Mattel and Stitch Fix rallied on strong bookings, takeover interest and an analyst upgrade.
- XLP fell 1.86% for a seventh straight week, while XLY dropped 0.47% for an eighth.
- Carnival gained 15.8% on strong Q3 results, record bookings and a higher price target.
- Faraday Future fell 23% after announcing a proposed robotics deal with AIxCrypto.
Consumer stocks faced pressure last week as macroeconomic concerns kept major sector ETFs in the red, while company-specific catalysts drove gains in Carnival Corp. (CCL), Mattel (MAT) and Stitch Fix (SFIX). Meanwhile, Faraday Future (FFAI), DraftKings (DKNG) and Flutter Entertainment (FLUT) dropped amid deal uncertainty and mounting regulatory pressure on online betting.
During the week of Sept. 28 to Oct. 2, consumer-focused ETFs trailed the broader market. The Consumer Staples Select Sector SPDR Fund (XLP) fell 1.86%, its seventh straight weekly decline. The Consumer Discretionary Select Sector SPDR Fund (XLY) dropped 0.47%, marking an eighth consecutive weekly loss.
The SPDR S&P 500 ETF Trust (SPY) slipped 0.2%, while the tech-heavy Invesco QQQ Trust (QQQ) gained 0.68%. Consumer prices rose 0.4% in August, lifting the annual inflation rate to 3.4%, as a 3.9% jump in gasoline prices drove the headline gain amid escalating Middle East tensions.
Carnival, Mattel, Stitch Fix Among Leading Gainers
Carnival stock gained 15.8% during the week after its strong fiscal third-quarter (Q3) 2026 results and record bookings continued to support investor confidence. The cruise operator’s revenue per available room increased 2.4%, beating its forecast by more than 1 percentage point. Customer deposits reached a record $7.6 billion, up $500 million from last year.
Freedom Broker raised Carnival’s price target to $36 from $35 and kept a Buy rating, saying better cost control and strong 2027 bookings support a more positive outlook.
Mattel stock surged 14.9% as takeover speculation fueled buying interest. Authentic Brands Group has privately discussed a potential acquisition that could value the toy maker above $20 per share, implying a deal worth at least $6 billion.
Stitch Fix stock jumped 21% on a weekly basis after Mizuho upgraded it to ‘Neutral’ from ‘Underperform’. The firm cut its price target to $2.50 from $3, though. Mizuho said the stock’s short thesis has fully played out. Shares are down more than 50% this year, and the analyst sees limited downside from current levels.
The firm also pointed to the growing use of GLP-1 weight loss drugs as a potential support. Customers moving through more frequent apparel sizing changes, it said, create a “good base of business” for Stitch Fix.
Faraday Future, DraftKings And Flutter Slide
Faraday Future Intelligent Electric stock plunged 23% during the week after announcing a non-binding agreement involving an all-stock acquisition of AIxCrypto’s robotics assets. The proposed deal would move the company’s robotics operations into a new entity called FF EAI Robotics Ecosystem Inc., raising investor concerns about the company’s strategic direction.
DraftKings stock fell 15.5% as competition from prediction-market platforms such as Kalshi and Polymarket added to pressure on the online betting industry. Regulatory concerns also weighed on sentiment.
Flutter Entertainment, the owner of FanDuel, dropped 10% after Brazil implemented a ban on online sports betting. Flutter suspended its Brazilian business and warned that an extended shutdown could reduce 2026 revenue by about $70 million while lawmakers review the decision.
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