Retailers and other consumer companies fell after mixed economic and earnings data.
Retail sales were more or less flat in July compared with the prior month's revised 0.8% increase, the Commerce Department said. Excluding gasoline and auto sales, however, consumers picked up their shopping activity.
Target fell as inventory issues weighed on its earnings. The discounter said its operating margin dropped to 1.2% in the most recent quarter, below a recently reduced goal of 2%, suggesting it was forced to slash prices even further than planned in the final weeks of the July-ended quarter.
Inventory pileups due to customers balking at prices have plagued a broad swath of retailers, from Walmart to the parent of T.J. Maxx. TJX shares rose even after it warned of a contraction in same-store sales, reflecting the pessimism among investors in retail companies.
Marlboro maker Philip Morris International might have to raise its $16 billion friendly bid for Swedish Match to gain full ownership of the smokeless-tobacco maker, in what could prove to be the latest instance of a hedge-fund trade often linked to Elliott Management.
Home-improvement chain Lowe's posted a drop in quarterly sales as homeowners cut back on discretionary purchases.
Krispy Kreme fell sharply after the donut maker cut growth projections for the full year, and reported disappointing second-quarter earnings.
Bed Bath & Beyond rallied, as the "meme" stock drew more momentum traders despite concerns over its liquidation.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
08-17-22 1716ET
