Consumer Sentiment Slips to 46.3, Missing Forecasts and Putting Retailers in Focus

The University of Michigan consumer sentiment index fell to 46.3 in its latest reading, down from 48.1 and below the 47.6 economists expected.

Weak sentiment, alongside high fuel prices and Treasury yields near 5.25%, raises questions about household spending heading into the holiday season. Retail and consumer-staples names such as Walmart, Kroger, Coca-Cola and Nike are among the companies watched for signs of shifting demand.

Retail sales for September are due Thursday and should offer a harder read on how consumers are actually spending.