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:
- Leisure Facilities company United Parks & Resorts (NYSE:PRKS) fell 3.3%. Is now the time to buy United Parks & Resorts? Access our full analysis report here, it’s free.
- Leisure Products company Harley-Davidson (NYSE:HOG) fell 3%. Is now the time to buy Harley-Davidson? Access our full analysis report here, it’s free.
Zooming In On United Parks & Resorts (PRKS)
United Parks & Resorts’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.
United Parks & Resorts is down 14.2% since the beginning of the year, and at $49.37 per share, it is trading 18.1% below its 52-week high of $60.29 from December 2024. Investors who bought $1,000 worth of United Parks & Resorts’s shares 5 years ago would now be looking at an investment worth $3,257.
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