Consumer stocks fall with spending

Click the chart to track the Consumer Discretionary Select Sector SPDR Fund.

NEW YORK (CNNMoney) -- U.S. consumer spending declined for the first time in almost two years, as purchases for the month of June fell 0.2%.

Following the report, the consumer discretionary sector (XLY) turned out to be among the worst performers Tuesday, which in turn had a negative impact on all consumer-related stocks.

The duality of the U.S. consumer continues to expand as sales of high-end brands don't appear to be suffering as much as the rest of the retail universe.

Coach (COH) topped earnings and sales estimates by a small margin, but that was not enough as the market focused on its shrinking margins.

Americans choose to save, not spend, in June

Meanwhile, Wal-Mart (WMT, Fortune 500) was downgraded by analysts at Jefferies, citing a potential downside risk to sales for 2012.

These are among the more popular themes on StockTwits this Tuesday:

BrianSozzi: This Coach earnings call almost seems like it's being held in the Twilight Zone. No mention of consumer spending stress. $COH

OptionRadar: $COH was bid at 66 when I said that quarter might not be good enough....margin declines and barely beat...shares smoked here

event_trader: Luxury brands taking a bath today $ZLC $TIF $COH $VRA

suzsmith98: $WMT has gone downhill. The store remodels are horrible. I choose to pay more @ Target or Kohls. At least it is pleasant.

AlacraPulse: Jefferies downgrades Wal-Mart Stores to Hold, cuts price target to $56 from $61 $WMT