Consumer companies fell after a warning from Delta Air Lines.

The Atlanta carrier warned it now expects 2024 earnings of between $6 and $7 a share, below the target of more than $7 a share the company outlined at an investor day in December 2022.

"There are a bunch of macros that we look at," said Delta Chief Executive Ed Bastian. "The geopolitical front continues to be quite testy." Peers tumbled in sympathy amid fears that the "revenge spending" that followed the Covid-19 pandemic -- and featured increased spending on experiences such as travel -- was coming to an end. American Airlines shares had their biggest decline since early last year, while cruiselines Carnival and Royal Caribbean also fell in sympathy. Shares of Carnival are down more than 7% for the year to date.

The American consumer is still in robust credit health and remains in the mood for spending, said major banks such as JPMorgan Chase and Bank of America, as they reported earnings. Homeowners may feel the "wealth effect," as property prices and stock portfolios continue to rise and borrowing rates tick down. One real-estate broker in North Texas, who didn't wish to be named, said buyers in the region felt they had more leverage after several years of bidding wars in a "sellers' market."

Across the U.S., 88.5% of homeowners with mortgages have an interest rate below 6%, down from a record high of 92.8% in mid-2022, according to Redfin.

Fashion giant Shein's initial public offering could become entangled in the U.S.-China trade impasse, The Wall Street Journal reported.


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

(END) Dow Jones Newswires

01-12-24 1807ET