Retailers and other consumer companies fell after lackluster earnings from one major department store.

Kohl's shares slid after the department-store chain posted a drop in quarterly sales, and cut growth projections for the year, warning that high inflation was slowing discretionary spending, particularly on apparel items.

Rivals such as Nordstrom's and Macy's, which had risen after a relatively optimistic report from Dillard's a week earlier, fell sharply, reflecting fears that the same problems would arise in their upcoming reports.

Used-home sales fell 5.9% in July, the sixth straight month of declines, as higher mortgage rates and a shortage of homes for sale constrain activity.

In one good sign for housing-market activity, the average 30-year mortgage rate fell to 5.13% last week, according to housing-finance agency Freddie Mac.

Bed Bath & Beyond shares tumbled after activist investor Ryan Cohen filed for permission to sell his entire stake in the home-ware store.

It was partly GameStop Chairman Cohen's interest in Bed Bath & Beyond that made it a "meme" stock, causing a meteoric rally recently.

BJ's Wholesale Club shares rose after the warehouse-club retailer boosted its projection for same-store sales growth.


Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

08-18-22 1706ET