Consumer Cos Up on Hopes for Moderation in Mortgage Rates -- Consumer Roundup

Retailers and other consumer companies rallied amid hopes that a spike in mortgage rates would soon ease.

Mortgage rates have shot up by historic margins this year as the Federal Reserve embarked on a surprisingly aggressive round of rate increases.

On Wednesday, Fed Chairman Jerome Powell indicated the central bank is planning to raise rates a more modest half-a-percentage point at its next meeting.

The prospect of a more measured approach to rate increases weighed on yields of benchmark Treasurys Wednesday, likely foreshadowing a drop in mortgage rates.

Swedish fast-fashion chain H&M Hennes & Mauritz said it would cut around 1,500 jobs from its global workforce, the latest major employer to adjust to a tough economic period marked by inflation and slowing demand.

Petco Health and Wellness surged after the pet-goods provider reported an unexpected up-tick in third-quarter sales. Food processor Hormel Foods fell after it reported a drop in quarterly sales.

Write to Rob Curran at [e-mail]

(END) Dow Jones Newswires

11-30-22 1700ET