Shares of retailers and other consumer companies fell sharply after a report that inflation worries weighed on consumer confidence.
The Conference Board's survey of U.S. consumer confidence fell slightly in February to a five-month low of 110.5 from 111.1.
Macy's shares fell despite a robust earnings report after the department store chain opted against separating its e-commerce business from its bricks-and-mortar stores, resisting calls from an activist investor.
Home Depot shares tumbled even after the home-improvement chain posted an acceleration in quarterly sales growth, amid lingering concerns that growth would wind down with the pandemic and low mortgage rates.
"Spending will rotate from goods to services, from lower- to higher-income groups," said economists at brokerage Bank of America Global Research, in a note to clients, predicting an increase in spending overall, but a decline in the purchases of durable goods.
The Bank of America analysts expect spending at restaurants to grow, albeit with a shift towards full-service locations. Among fast food chains, shares of burger joint Shake Shack declined, while doughnut maker Krispy Kreme rose in the wake of earnings reports.
The S&P CoreLogic Case-Shiller National Home Price Index, which measures average home prices in major metropolitan areas across the nation, rose 18.8% in the 12 months that ended in December, unchanged from the prior month, and the highest since the index began in 1987.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
02-22-22 1719ET
