Consumer companies fell after inflation data revived interest-rate fears.
The rate of inflation accelerated to 0.4% in September, causing bond investors to recalibrate rate expectations. Treasury yields have become the most critical factor in daily movements of consumer stocks because of their implications for mortgages and other consumer loans.
Domino’s Pizza shares fell after lackluster growth at its U.S. operations offset rising demand overseas.
Shares of Delta Air Lines rallied after the air carrier reported third-quarter profit that beat expectations, and said “robust demand” for travel it has been seeing has continued into the current quarter. Strategists are debating whether “revenge travel” — the tendency for consumers to make up for lost time during the pandemic by booking far-flung trips — is wearing off.
In a sign of waning investor expectations for consumer demand, shares of container maker Ball fell to their lowest level since 2018.
Write to Rob Curran at [email protected]
Read the full article here