Consumer Shares Fall Led by Consumer Discretionary Stocks -- Consumer Roundup

Shares of retailers and other consumer companies fell as consumer discretionary stocks led decliners.

Casino operators were among the few S&P stocks that notched gains on signs that loosening Covid-19 restrictions could improve tourism in Macau, an Asian gambling mecca.

New residential construction in the U.S. increased sharply in August but building permits fell further, adding to evidence of a housing downturn amid high inflation and rising interest rates. Housing starts, a measure of U.S. homebuilding, rose 12.2% in August on month, while building permits dropped 10%.

Ford shares tumbled after the carmaker warned third-quarter earnings would be affected by about $1 billion in higher-than-anticipated supplier costs and parts shortages that have led to unfinished vehicles it couldn't sell during the period.

Meanwhile, Hertz agreed to buy up to 175,000 electric vehicles from General Motors over five years, the latest example of rental companies bulking up on EVs.

Separately, a lawsuit by five Hertz customers has accused the rental giant of faulty inventory tracking that caused the drivers to face wrongful arrest for car theft.

Nordstrom adopted a so-called poison pill to prevent outsiders from boosting their stake in the business after a Mexican company acquired a 9.9% stake in the upscale U.S. retailer. A roughly $300 million investment made El Puerto de Liverpool SAB-which operates high-end department stores in Mexico-the second largest shareholder after the founding Nordstrom family, which owns about 30% of the Seattle company.

Federal antitrust enforcers are investigating Amazon.com's proposal to buy Roomba maker iRobot, according to a securities filing. The Federal Trade Commission this week formally requested documents from both companies explaining the proposed $1.7 billion deal's purpose and rationale, iRobot disclosed on Tuesday.

The FTC's review is the latest investigation involving Amazon. The agency also is examining Amazon's $3.9 billion deal to buy 1Life Healthcare, which operates One Medical primary-care clinics in 25 U.S. markets.

Gap is eliminating about 500 corporate jobs, The Wall Street Journal reported citing people familiar with the matter, moving to reduce expenses at the apparel retailer amid declining sales and profits. The jobs are mainly at Gap's main offices in San Francisco and New York, as well as in Asia, the people said.

Write to Amy Pessetto at [e-mail]

(END) Dow Jones Newswires

09-20-22 1701ET