Consumer Shares Fall, Led by Consumer Discretionary Stocks -- Consumer Roundup

08/05/2022 | 05:15pm

Shares of retailers and other consumer companies fell as consumer discretionary stocks led decliners.

Data showed the U.S. economy added 528,000 jobs in July, far exceeding the consensus estimate of 258,000 as the unemployment rate dropped to 3.5% from 3.6%.

Amazon.com is buying Roomba maker iRobot for $1.7 billion, including debt, as the online retailer adds another connected-home product to its portfolio. Amazon said it is paying $61 a share for iRobot in an all-cash deal.

Beyond Meat is cutting 4% of its global workforce, saying the layoffs are part of its plan to reduce costs as inflation prompts consumers to buy less-expensive protein.

Meanwhile, online used-car dealer Carvana said it is aggressively cutting costs as demand from consumers remains under pressure and the company faces the prospect of an economic downturn.

Tesla Chief Executive Elon Musk said he expects the U.S. is headed for a mild recession and predicted that the rapid pace of inflation will begin to cool. Inflation will quickly drop during the next few months, Musk said Thursday at the auto maker's annual shareholder meeting.

Shares of AMC Entertainment rose 19% after the cinema chain said revenue quintupled in the recent quarter and that it would issue a special dividend in the form of preferred shares.

 Write to Amy Pessetto at amy.pessetto@dowjones.com 

(END) Dow Jones Newswires

08-05-22 1714ET

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