Consumer companies fell as concerns about rising fuel prices persisted.
Ryanair Holdings shares dropped after the Irish budget carrier warned of weakening prices into the key summer season, last-minute bookings and a spike in fuel costs.
"I still think the wealth effect is a bigger deal than the price of oil as far as consumer spending is concerned," said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management. Still, the "energy price shock" is already showing up in inflation data, which could be a factor for Federal Reserve policy and spending in some areas.
The impact of higher gasoline prices on broad consumer behavior could become clearer with earnings due this week from Walmart, Target, Home Depot and Lowe's, said Joyce. These retailers will "collectively tell us how the consumer is holding up, especially right now during this time of inflation," said Joyce.
Yogawear retailer Lululemon Athletica is urging its shareholders to vote against the slate of directors nominated by founder Chip Wilson, saying he has outdated perspectives about how to position the athletic-apparel retailer for the future.
