Sector Update: Consumer Stocks Decline Late Afternoon

03:52 PM EDT, 08/25/2026 (MT Newswires) -- Consumer stocks were lower late Tuesday afternoon, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) falling 1.1% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) decreasing 0.3%. In sector news, US consumer confidence fell in August amid a decline in the expectations index, with a "more pessimistic" outlook for business conditions and the labor market ahead, the Conference Board said Tuesday. The consumer confidence index dropped to 89.4 this month from July's reading of 90.2, which was the consensus in a Bloomberg survey. Separately, Redbook US same-store sales rose by 9.1% from a year earlier in the week ended Aug. 22 after a 7.6% year-over-year increase in the previous week. Redbook noted strong back-to-school sales, especially in the Midwest and South regions, where the school year started earlier. High fuel prices continued to weigh on consumer spending, while state tax holidays boosted sales in Florida, Illinois and Connecticut. Some retailers plan to use federal tariff refunds to reduce prices and drive sales. In corporate news, Dick's Sporting Goods (DKS) shares tumbled 30% after it lowered its full-year outlook on Tuesday amid a challenging athletic footwear and apparel marketplace. The company's fiscal Q2 results also fell short of market estimates. Target (TGT) shares were down 4% in Tuesday trading, a day after the company apologized over an offensive Halloween clown costume. The company said the costume is no longer available for sale and that it is reviewing how this happened and what steps it needs to take to ensure it does not happen again. The union representing over 12,000 Starbucks (SBUX) baristas said Tuesday on X it was calling for a boycott of the company until the two sides finalize a contract. Starbucks shares declined 1.7%. PepsiCo (PEP) will stop covering prescription weight-loss drugs under its company health insurance plans for some employees starting in October due to rising costs, Bloomberg reported, citing an email sent to employees. PepsiCo shares fell 1.6%.