What Happened?
A number of stocks fell in the afternoon session after the latest U.S. consumer confidence report revealed underlying weakness despite a headline increase, raising concerns about future spending.
While the Conference Board's headline Consumer Confidence Index rose to 97.2 in July, the details painted a more cautious picture for investors. The Present Situation Index, a measure of consumers' assessment of current business and labor market conditions, actually fell. More telling for the sector, the report showed a decline in buying intentions for major discretionary items such as homes, cars, and most appliances. This combination of factors signals potential weakness in future consumer spending, casting a shadow over companies that rely on non-essential purchases.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Wireless, Cable and Satellite company Cable One (NYSE:CABO) fell 3.7%. Is now the time to buy Cable One? Access our full analysis report here, it’s free.
- Wireless, Cable and Satellite company WideOpenWest (NYSE:WOW) fell 5.1%. Is now the time to buy WideOpenWest? Access our full analysis report here, it’s free.
- Casino Operator company Bally's (NYSE:BALY) fell 3.5%. Is now the time to buy Bally's? Access our full analysis report here, it’s free.
- Footwear company Wolverine Worldwide (NYSE:WWW) fell 3.4%. Is now the time to buy Wolverine Worldwide? Access our full analysis report here, it’s free.
- Leisure Facilities company Lucky Strike (NYSE:LUCK) fell 3.4%. Is now the time to buy Lucky Strike? Access our full analysis report here, it’s free.
Zooming In On WideOpenWest (WOW)
WideOpenWest’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
WideOpenWest is down 29.5% since the beginning of the year, and at $3.41 per share, it is trading 41% below its 52-week high of $5.78 from August 2024. Investors who bought $1,000 worth of WideOpenWest’s shares 5 years ago would now be looking at an investment worth $589.97.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.