Investing.com – Falling consumer discretionary stocks kept gains in the broader market in check as Amazon's move to scoop up a bigger share of customers this holiday season was not well received on Wall Street.
Amazon.com Inc (NASDAQ:AMZN) fell 3.10% after announcing Monday that it would expand free shipping to all shoppers in the U.S. this holiday season, without any minimum threshold, as it looks to beat its rivals to consumer's wallets during the crucial holiday season.
The announcement was not well received, with some on Wall Street warning that the move would trigger short-term pain for the e-commerce behemoth, though over the longer-term it would likely lead to revenue growth.
"We believe Amazon’s expansion of free shipping ahead of Christmas in the US will be positive for unit growth and retail revenue, both increasing concerns coming out of third-quarter earnings, but will likely weigh on near-term profitability," JPMorgan said in a note to clients.
Auto parts company Aptiv PLC (NYSE:APTV) fell 4.00%, giving up some of its gains, following its third-quarter results last week. Aptiv provided light fourth-quarter guidance and cautious 2019 commentary, which RBC said was "conservative" as the bank maintained its outperform rating on the company's stock.
Travel agent Booking Holdings Inc (NASDAQ:BKNG) fell 1.60% ahead of its third-quarter earnings report due after markets close. During the second-quarter, the company estimated fourth-quarter room nights booked growth to increase by 6%-9%.
Analysts expect the travel giant to post earnings of $38.37 per share on a revenue of $4.8 billion.
The S&P 500 Consumer Discretionary sector was down nearly 1% at 1:56 p.m. ET (6:56 p.m. GMT)