Retailers and other consumer companies fell slightly amid signs that inflation was weighing on the sector's profitability.
One boost for the sector was a slide in the price of gasoline futures, which closed in New York Monday at their lowest levels since March.
Discount airline JetBlue Airways posted a second-quarter loss on a jump in expenses. The airline said it's turning a corner and expects to become profitable in the third quarter as travel demand was set to remain strong. British Airways is temporarily halting ticket sales on all domestic and European routes from London Heathrow Airport to cope with passenger restrictions at its primary hub, the latest fallout from widespread travel disruption.
Hotelier Marriott International posted torrid second-quarter revenue growth, while executives said demand for travel is holding up without any signs of a peak, despite concerns over rising prices.
In a sign of how inflation is affecting consumer behavior, Oatly Group cut its sales outlook for the year, warning that macroeconomic uncertainty is making it harder to switch consumers from regular milk to its plant-based options.
One brokerage said earnings season suggests consumers have, so far, not balked at price increases. "Key narratives we have gathered from corporates that have reported include the stronger dollar headwind, a shift from goods to services spending by consumers, and consumers willing to pay more in the face of price hikes benefiting companies sitting on the end of the supply chain," said strategists at brokerage BNP Paribas, in a note to clients.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
08-02-22 1728ET
