What's Happening With Tobacco Major Philip Morris Shares On Tuesday?
Portfolio Pulse from Shivani Kumaresan
Philip Morris International Inc. (NYSE:PM) is trading lower in premarket after its affiliate, Swedish Match North America LLC (SMNA), received a subpoena from the Attorney General of D.C. regarding the sale of flavored nicotine pouches. SMNA has suspended online sales of ZYN products and is conducting a review. The inquiry could lead to substantial financial liabilities. Philip Morris stock has gained over 7% in the last 12 months. Investors can gain exposure via Consumer Staples Select Sector SPDR Fund (NYSE:XLP) and Vanguard Consumer Staples ETF (NYSE:VDC).
June 18, 2024 | 12:37 pm
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NEGATIVE IMPACT
Philip Morris International Inc. (NYSE:PM) is facing a legal challenge as its affiliate, SMNA, received a subpoena regarding the sale of flavored nicotine pouches in D.C. This has led to a suspension of online sales of ZYN products and could result in substantial financial liabilities.
The subpoena and potential financial liabilities create uncertainty and negative sentiment around Philip Morris, leading to a short-term decline in stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Vanguard Consumer Staples ETF (NYSE:VDC) might experience a slight negative impact due to its exposure to Philip Morris, which is under legal scrutiny for flavored nicotine pouches.
VDC holds Philip Morris, and the legal challenges faced by PM could slightly affect the ETF's performance.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEGATIVE IMPACT
Consumer Staples Select Sector SPDR Fund (NYSE:XLP) may see minor negative impact due to its exposure to Philip Morris, which is facing legal challenges over flavored nicotine pouches.
XLP has exposure to Philip Morris, and the legal issues faced by PM could slightly impact the ETF's performance.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50