Retailers sink as Amazon raises hourly pay Dow at a record

first_imgNEW YORK — Retailers sank Tuesday after Amazon said it will raise hourly wages for U.S. employees, and smaller companies continued to stumble. Several big industrial companies rose, pushing the Dow Jones Industrial Average to a record high.Amazon, one of the largest private employers in the U.S., said it will raise the minimum wage for its U.S. workers to $15 an hour in November. Amazon also said it will advocate for an increase in the federal minimum wage, which has been $7.25 an hour since July 2009. Its stock fell, but other retailers suffered bigger losses.“The question is, do other companies have to follow suit?” said Quincy Krosby, chief market strategist at Prudential Financial. “This is the argument that what’s good for Main Street is not necessarily good for Wall Street.”The bad news for retailers didn’t end there. Stitch Fix, an online clothing company, plunged 35.2 percent $28.94. Stitch Fix had almost tripled since its IPO in November.Pepsi fell after it said the strong dollar will take a bigger chunk out of its annual profit. General Motors and Ford both fell after they reported their sales.last_img

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