Amazon leads declines in discretionary sector, streaming companies outperform

FILE PHOTO: The logo of the web service Amazon is pictured in this June 8, 2017 illustration photo. REUTERS/Carlos Jasso/Illustration/

(Reuters) - Shares in Amazon.com closed down 4.2% on Wednesday, leading declines in the S&P 500 consumer discretionary sector while video streaming companies Warner Bros Discovery and Paramount Global rallied.

Amazon shares deepened losses after a Wall Street Journal report said the online retailer and video streamer is planning an advertising-supported tier for its Prime Video streaming service and that it is in talks with Warner Bros Discovery and Paramount about including ad-based tiers of their streaming services through Amazon Prime Video Channels.