Shares of retailers and other consumer companies fell after a spike in services-sector activity was viewed as a sign of economic overheating.
Preliminary results of surveys of purchasing managers published by Markit showed that its index of activity at U.S. services business rose to 70.1 in May, from 64.7 in April, the sharpest increase in records extending back to October 2009. Data from the European Union suggest a similar surge in consumer spending. In isolation, the data would likely spur gains in retail stocks but surveys also show prices for services and supplies rising sharply, factors that could soon squeeze profit margins and/or force central banks to tighten monetary policy.
Several Federal Reserve officials hinted that a discussion of "tapering" bond purchases may soon be on the cards.
In one sign that the red-hot housing market may be cooling off, used-home sales fell 2.7% in April from March to a seasonally adjusted annual rate of 5.85 million, the third straight monthly decline, as record prices and limited inventory slowed activity, the National Association of Realtors said.
There are signs that the devastating impact Covid-19 had on American consumer sentiment is fading fast. "Views on the coronavirus are undoubtedly improving with over 31% of respondents reporting they are not concerned about Covid-19, highest share since we began asking the question in mid-February," said strategists at brokerage Bank of America Securities, in a note to clients.
Carrier Delta Air Lines recruited General Electric executive Daniel Janki to lead its finances following the departure of its longtime finance chief last year.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
05-21-21 1706ET
