Consumer companies rose amid mixed earnings.
Shares of Walmart, the world's largest retailer by sales, fell despite a hefty increase in same-store sales, as the discounter warned of a blow to shoppers from gasoline prices. For the first time since 2022, Walmart shoppers filled their tanks with an average of less than 10 gallons per trip at its gas stations. "That's an indication of stress," said Chief Financial Officer John David Rainey in an interview with the Wall Street Journal, pointing to "uneven" circumstances for U.S. consumers.
On the high end, Ralph Lauren soared after the fashion house said exposure at the Winter Olympics and elsewhere buoyed sales. Similarly, shares of Williams Sonoma rose sharply after the home furnishings firm posted stronger-than-anticipated sales growth and backed its growth projections for the year, shrugging off weakness in the housing market.
Hovnanian Enterprises rallied after the home builder posted earnings ahead of Wall Street expectations. Builders have been under pressure as mortgage rates have trailed rising Treasury yields, with the average 30-year rate testing multiyear highs.
Kontoor Brands agreed to sell its Lee denim and casual apparel business to Authentic Brands in a deal that could eventually be worth $1 billion.
