Shares of retailers and other consumer companies fell after mixed economic data and signs of slowing travel activity.
The ADP survey of private employers showed that only 330,000 workers were added to payrolls in July, far shy of the 653,000 forecast by economists. The Institute for Supply Management's Services Report on Business PMI increased to 64.1 in July from 60.1 in June.
Royal Caribbean shares fell after the cruise-line operator posted second-quarter sales that lagged Wall Street estimates, and forecast a third-quarter loss. An uptick in domestic air travel, mostly related to leisure travel, has stalled, according to brokerage Citi. "The booking curve over the last seven days shows weaker U.S. domestic trends versus 2019."
Kraft Heinz shares fell sharply amid concerns about the ketchup maker's growth outlook, in light of rising ingredient costs. Heinz executives warned that inflation was a constant issue, but expressed confidence that the company could pass on price increases.
Shares of MGM Growth rallied after the casino-property owner agreed to a buyout from real-estate investment trust Vici Properties in a deal that values MGM Growth at $17.2 billion, including about $5.7 billion in debt. Under the agreement, MGM Resorts International, which operates the casinos owned by MGM Growth and is the former parent company, will receive about $4.4 billion in cash.
Write to Rob Curran at email@example.com
(END) Dow Jones Newswires