Shares of retailers and other consumer companies rose slightly as investors hedged their bets on the implications of Federal Reserve policy for the sector.
Higher interest rates could weigh on housing-market activity, but tamed inflation would ease pressure on some consumers.
Kroger shares rose after the supermarket giant said identical-store sales excluding fuel declined 4.1% in its quarter ended May 22, a smaller drop than the 6.6% that analysts had projected and one that reflected the pressure on comparisons from a spate of stockpiling during the height of the pandemic a year earlier.
The unique backdrop to the pandemic is still a factor in spending trends, according to one brokerage. "Seasonal trends in spending are different this year than in prior years," said analysts at brokerage Bank of America Global Research, in a note to clients. There's a "possible weakening ahead for the 2-year growth rate in home improvement spending but likely acceleration in lodging spending" as consumers leave lockdown and pursue travel experiences, the analysts said.
Distiller Constellation Brands bought a minority stake in Dos Hombres, an artesanal mezcal brand created by Breaking Bad co-stars Aaron Paul and Bryan Cranston.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
06-17-21 1658ET
