Consumer companies ticked down amid signs that elevated mortgage rates and rising building costs were weighing on the American property market.
Housing starts, a measure of U.S. home building, declined 9.8% in January to a rate of 1.37 million. "Fears of tariffs on Canadian imports have pushed up the cost of lumber, a big input cost for homebuilders," said Bill Adams, chief economist for Comerica Bank.
"Also, expectations of these higher tariffs, tighter immigration policies, and tax cuts are keeping mortgage rates high."
Luxury home builder Toll Brothers shares slid after its earnings trailed some investors' expectations. The builder has not yet seen any significant price or labor-force issues from the tariffs or immigration raids threatened by the Trump administration, Chief Executive Douglas Yearley Jr. said.
Tapestry, the owner of the Kate Spade and Coach luxury brands, struck a deal to sell its Stuart Weitzman shoe line to footwear concern Caleres for $105 million in cash.
Southwest Airlines ceded further ground to activist shareholder Elliott Management with an amended agreement that will allow Elliott hold a bigger stake in the airline than previously.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
February 19, 2025 17:09 ET (22:09 GMT)
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