Retailers and other consumer companies fell as a rebound in the sector stalled.
Traders rotated out of the sectors that bounced the most during the stock market's largest three-day rally since May. One strategist said a recent round of layoffs in higher paying jobs could bode ill for consumer spending.
"The top 20% of earners are responsible for approximately 40% of consumer spending," said Quincy Krosby, chief global strategist at brokerage LPL Financial. "A fear of layoffs will tighten purse strings across the lower income groups all the way up to higher wage earners. Retail sales are so important in the equation of whether or not we're heading into recession."
Boston Beer shares rose after a mixed earnings report from the brewer, which saw another decline in sales of its Truly hard seltzer water. Boston Beer's shares are down by more than 30% for the year to date, sinking alongside the popularity of hard seltzer just as its shares had followed the beverage's ascent.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
07-22-22 1705ET
