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Consumer Cos Flat on Spending Concerns — Consumer Roundup

Shares of retailers and other consumer-services companies were more or less flat as traders hedged their bets on the outlook for retail-sales data.

Consumer spending in August appeared to weaken from July levels, particularly when excluding purchases made in Florida in preparation for Hurricane Dorian, said analysts at brokerage BofA Merrill Lynch Global Research, in a note to clients, citing Bank of America debit and credit-card data in the U.S. "Bottom line: our data show that August was a difficult month for the retailers," said the Bank of America analysts, warning that the August retail-sales tally from the Commerce Department later this week could reflect the slowdown.

Services companies are generally more domestically focused and thus less exposed to the vagaries of trade policy, said strategists at brokerage Goldman Sachs Group, in a note to clients.

Mirae Asset Global Investments, part of a South Korean financial services company, agreed this week to buy a 15-hotel portfolio from China's Anbang Insurance Group for $5.8 billion in a deal that was held up by fake deeds for some properties, The Wall Street Journal reported.

Retail chain Forever 21 is planning to file for bankruptcy as early as Sunday after facing a cash crunch for months, The Wall Street Journal reported.

 

Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

September 11, 2019 17:00 ET (21:00 GMT)

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