Consumer companies fell after ominous jobs data.
Outplacement firm Challenger, Gray & Christmas, which tracks corporate layoff announcements, said companies announced 108,400 job cuts last month, up sharply from the 35,500 cuts reported the month prior, marking the highest level for the month since 2009.
New weekly jobless claims rose by 22,000 to 231,000, a more marked increase than economists had anticipated. U.S. job openings dropped by 386,000 roles in December to their lowest level since September 2020, the Labor Department reported. All the data came in the absence of the January jobs report that was delayed by a partial government shutdown, a vacuum that only increased the worries generated by the less comprehensive snapshots.
Tapestry shares rallied after the company reported higher second-quarter revenue and raised its fiscal-year outlook as growth from its Coach brand offset declines in Kate Spade sales. Investors inferred that Coach's good fortunes came at the expense of rival aspirational fashion brand Michael Kors.
Perfumer and cosmetics company Estee Lauder lifted its adjusted earnings outlook for the year, but continued to expect that tariff-related headwinds will hurt its profit by about $100 million, mostly in the second half.
Ralph Lauren shares fell even after the design house logged brisk revenue growth spurred by demand among young Gen Z shoppers all over the world, particularly in Asia.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
02-05-26 1803ET
