Consumer companies slid as Treasury yields rose in the wake of comments from Federal Reserve Chairman Jerome Powell, spurring concerns about a freeze in consumer borrowing and the housing market.
Powell said the central bank is "attentive" to recent data showing a heated labor market, and that more interest rate hikes may be needed if that trend continues.
New weekly jobless claims hit a nine month high, further spurring gains in Treasury yields.
Used home sales which constitute the bulk of the U.S. market, fell 2% in September to the lowest rate in 13 years, showing the corner of the economy most weakened by high interest rates remains in decline.
Mortgage rates are at their highest level in decades, and are set to rise further in the wake of the 10-year Treasury yields advance this week.
"With low inventories and mortgage rates now above 8%, it should not come as a surprise that sales are declining," said Edward Moya, senior market analyst at foreign-exchange brokerage Oanda Group.
Cosmetics giant L'Oreal third-quarter sales climbed on year, as its growing cosmetics and consumer-products businesses shrugged off slower-than-expected recovery in China.
EssilorLuxottica's revenue growth slowed in the third quarter amid sluggish sales of sunglasses, but the company backed its longer-term financial targets.
Shares of shoe and leather goods maker Salvatore Ferragamo slipped after it reported a decline in sales for the first nine months of the year.
The spell cast by luxury firms on consumers -- and by their stocks on financial markets -- has broken, with disappointing sales reports from LVMH Retail spending by consumers last week, excluding auto purchases, fell 1.1% from a week earlier, according to a survey from brokerage Bank of America Global Research.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
10-19-23 1740ET
