Wall Street Lower As Retail Sales Dive In July

Stocks fell in morning trading Tuesday, as data showed the coronavirus pandemic is still holding back the US economy, Damian J. Troise reported for the Associated Press (AP).

Photo Insert: The New York Stock Exchange as seen from the steps of the Federal Hall.

The S&P 500 index fell 0.7 % as of 11:39 a.m. Eastern. The Dow Jones Industrial Average fell 277 points, or 0.8%, to 35,347 and the Nasdaq composite fell 1%. The Russell 2000 index of small-company stocks was down 1.6%.

Investors again shifted money into industries that are traditionally considered less risky and that will hold steady if economic growth slows. A mix of companies that sells food and personal goods, such as General Mills and Procter & Gamble, gained ground while utilities and real estate companies also held up better than other sectors.

Technology companies and other sectors that tend to do well in a growing economy slipped.

Americans cut back on their spending last month as a surge in COVID-19 cases kept people away from stores. Retail sales fell a seasonal adjusted 1.1% in July from the month before, the US Commerce Department said Tuesday.

It was a much larger drop than the 0.3% decline Wall Street analysts had expected. According to Tuesday’s report, spending fell at stores selling clothing, furniture, and sporting goods.

At restaurants and bars, spending rose nearly 2%, but the rate of growth has slowed from recent months as the delta variant spread and people worried about dining with others.

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