Consumer companies fell, but not by as much as the broad market, amid optimism about spending patterns.

"Our confidence is higher that consumer companies are in solid shape to navigate this uncertain environment since speaking and meeting with over 25 consumer companies last week," said analysts at retail-industry focused research firm Telsey Advisory Group.

"Gross margin drivers include more full price selling, lower commodity costs, particularly with cotton, lean inventory and continued lower freight costs through the first half of 2024 (which could be offset by higher global freight costs and delays related to the Red Sea attacks, particularly for goods going to Europe)," Telsey analysts said.

Spirit Airlines plunged after a federal judge blocked JetBlue's $3.8 billion acquisition of its rival discount airline on antitrust grounds. Despite rising mortgage rates, there are signs of resillience in the housing market, based on volumes of sales and housing starts, said one strategist.

"Even with all the problems with higher rates on the real estate front, when you just look at it on the grass doesn't seem to be as pronounced," said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management.

Distiller Diageo and Sean "Diddy" Combs Tuesday said they have reached an agreement to resolve their legal dispute and dissolve their yearslong partnership on Cîroc vodka and DeLeón tequila.

A federal judge on Tuesday blocked JetBlue Airways from acquiring Spirit Airlines, agreeing with the Justice Department that the $3.8 billion deal would eliminate a competitor important to price-conscious travelers.


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

(END) Dow Jones Newswires

01-16-24 1728ET