Consumer Stocks Rise as a Rise in Borrowing Costs Eases

Dow Jones09-26 05:14

Consumer companies rose as consumer confidence slipped less than expected in September, according to the University of Michigan survey, amid rising inflation expectations. Meanwhile, this week's sharp increase in borrowing costs took a pause.

Quarterly earnings for Costco Wholesale beat expectations as the retailer navigated economic headwinds while still managing to boost profitability. Costco's results highlight growing pressure that emerged earlier this year as rising inflation prompted consumers to rein in spending, even as the retailer continued reporting strong same-store sales, reflecting its staying power among warehouse club-shoppers. Costco reported earnings of $6.75 a share in its fiscal fourth quarter, and revenue rose 11% year over year to $95.7 billion.

Demand for U.S. durable goods was unchanged in August, according to data published by the Commerce Department. Total orders for durable goods-which comprise goods meant to last three years or more-decreased $0.1 billion in August to $338.6 billion, following a 0.9% July increase.

 

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