Shares of retailers and other consumer-services companies slipped amid mixed signals for the economic recovery.
The Federal Reserve on Wednesday said it was committed to providing more support to the economy in the wake of the coronavirus pandemic, and projected it wouldn't raise interest rates through 2022.
Meanwhile, U.S. consumer prices dropped for a third straight month in May as the coronavirus pandemic kept shoppers and travelers at home, but the rate of decline in inflation eased as the cost of groceries, rent and medical services rose.
The consumer-price index, which measures what Americans pay for everything from alcohol to lawn mowers, fell a seasonally adjusted 0.1% in May after comparable declines of 0.8% in April and 0.4% in March, the Labor Department said.
Companies continued to detail their strategies for reopening.
Starbucks said it would close some traditional cafes and open more to-go locations as the chain known for spreading coffee shops across the globe bets more on convenience and speed. Shares fell 4% Wednesday as the company also detailed the financial impact from Covid-19 and updated its quarterly and annual outlook.
Zara-owner Inditex said it is permanently closing as many as 1,200 stores-16% of its global outlets-and will pivot more aggressively toward selling online, as the fast-fashion giant maps out its post-pandemic future.
Ulta Beauty, a cosmetics chain that is a staple of shopping centers across the country, is undertaking a "clean sheet" review of its stores, exploring whether to close, move or remodel its hundreds of brick-and-mortar locations in light of pressures facing retailers, including the coronavirus pandemic.
Volkswagen on Wednesday said its flagship electric car model, the ID.3 hatchback, wouldn't be delivered to customers until September, several months later than originally planned after software glitches delayed production.
Meanwhile, Tesla investors pushed the auto maker's stock to more than $1,000 a share Wednesday, lifting its valuation closer to Toyota Motor Corp.'s, after Chief Executive Elon Musk told employees it was time to begin volume production of the company's long-promised, all-electric semitrailer truck.
Write to Rob Curran at rob.curran@dowjones.com
