Consumer Cos Up on Hopes of Dovish Fed Statement -- Consumer Roundup

Retailers and other consumer companies rose sharply as traders positioned themselves for a dovish statement from the U.S. central bank Wednesday.

"I think there's just a relief rally that we're closer to the end of the interest rate cycle than we are the beginning of it," said Eric Marshall, president of mutual-fund firm Hodges Capital.

Higher mortgage rates are already taking their toll on the U.S. housing market.

The S&P CoreLogic Case-Shiller National Home Price Index, which measures home prices across the nation, fell 0.6% in November compared with October, the fifth straight month-over-month decline.

PulteGroup shares surged, however. after the homebuilder posted an unexpected increase in fourth-quarter sales. Pulte said new orders plunged, as cancellations rose. Still, the results painted a less dire picture of the housing market than many had expected, and the iShares Homebuilder exchange-traded fund rose sharply.

Write to Rob Curran at [e-mail]

(END) Dow Jones Newswires

01-31-23 1705ET