NEW YORK (AP) — 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...