Retailers and other consumer companies fell on weak economic data.
New-home sales fell 17% in April from March to a seasonally adjusted annual rate of 591,000, the lowest level since April 2020 and the biggest drop in nine years, the Commerce Department said, reflecting a sharp increase in mortgage rates.
"When you have such a dramatic increase in mortgage rates, it causes people to pause, and hold off on buying a house," said Eric Marshall, president of Dallas mutual-fund firm Hodges Capital. "You can hold off on buying for a month, six months, or even a year, but household formation [and] demographics will drive demand for housing and supply long term."
Business activity at services businesses in the U.S., eurozone, U.K. and Australia grew more slowly in May amid rising prices, according to S&P Global surveys.
Shares of AutoZone rose after the automotive replacement parts retailer posted fiscal third-quarter same-store sales growth above Wall Street targets.
In a good sign for discretionary spending, Visa said it's seeing healthy spending trends, buoyed by pent-up demand for activities outside the home and resurgent activity among affluent cardholders.
Oatly Group is lining up a successor to Toni Petersson, the chief executive who helped turn its oat milk into a global phenomenon and took the company public last year, The Wall Street Journal reported.
Walmart said it may remove some Juneteenth-related products from store shelves after a wave of social-media backlash that accused the retailer of inappropriately commercializing the holiday.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
05-24-22 1756ET
