Consumer stocks were mixed Thursday afternoon, with the Consumer Staples Select Sector SPDR Fund (XLP) rising 0.8% and the Consumer Discretionary Select Sector SPDR Fund (XLY) dropping 5.4%.
In sector news, President Donald Trump's auto tariffs will likely cost US car buyers about $30 billion in the first year, assuming carmakers will absorb some of the costs, Anderson Economic Group said in a report.
In corporate news, Stellantis (STLA) plans to lay off 900 workers temporarily at five US facilities following Trump's tariff announcement, according to media reports. The automaker is also temporarily pausing production at assembly plants in Mexico and Canada, the reports said. Stellantis shares dropped 8.5%.
The Trump administration's broad tariffs are likely to impact Best Buy (BBY) the most among hardline retailers, followed by some home-furnishing companies such as Wayfair (W), RH (RH), Williams-Sonoma (WSM) and Arhaus (ARHS), Wedbush Securities said. Best Buy shares fell 17%, Wayfair tumbled 27%, RH plunged 39%, Williams-Sonoma declined 15% and Arhaus dropped 18%.
Nike (NKE) shares fell 13% after the US tariff announcement. Trump said he will impose tariffs of 32% to 49% on Vietnam, Cambodia, Bangladesh and Indonesia and a 54% tariff on China. Nike sources a large portion of its products from the Asian countries.
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