Shares of retailers and other consumer companies tumbled as consumer discretionary stocks led decliners and investors digested big deal news.
Kroger said it is buying rival Albertsons in a deal that values the company at $24.6 billion, one of the biggest deals in the history of the U.S. grocery industry.
Combining would give Kroger and Albertsons, the largest and second-largest U.S. supermarket operators, greater scale and increased leverage in negotiations with vendors.
Meanwhile, U.S. shoppers' retail spending was flat in September as they faced high inflation and rising interest rates. Retail sales-which comprise consumer spending mostly on goods like furniture, vehicles and groceries but also at restaurants-were unchanged last month compared with an upwardly revised 0.4% August increase from the month before, the Commerce Department said.
Beyond Meat cut its full-year revenue outlook further and said it is reducing its global workforce by nearly 20% as it focuses on lowering expenses amid high levels of inflation. The plant-based meat company also made several changes to its executive ranks, including naming a new chief financial officer and parting ways with its operating chief, who had been suspended after being arrested following what authorities said was a fight in an Arkansas parking garage.
Write to Amy Pessetto at amy.pessetto@dowjones.com
(END) Dow Jones Newswires
10-14-22 1709ET
