Consumer Confidence Report Sends Stocks Plummeting, AMC Entertainment, Altice, PENN Entertainment, Lovesac, and Target Hospitality Shares Fall

Several stocks, including AMC Entertainment, Altice, PENN Entertainment, Lovesac, and Target Hospitality, fell after the US consumer confidence report showed underlying weakness despite a headline increase. The report revealed a decline in buying intentions for discretionary items, potentially indicating future consumer spending weakness. The stock market's overreaction to news can present good buying opportunities for high-quality stocks.

Title: Stock Market Reacts to Consumer Confidence Report; Opportunities for High-Quality Stocks

The U.S. consumer confidence report, released on July 1, 2025, revealed underlying weakness despite a headline increase in the Conference Board's consumer-confidence index. The index climbed to 97.2 from 95.2 in June, but American consumers' economic mood remained clouded by tariff and labor market concerns [1].

Several stocks, including AMC Entertainment, Altice, PENN Entertainment, Lovesac, and Target Hospitality, fell following the report. The decline in buying intentions for discretionary items indicated potential future consumer spending weakness, leading to a sell-off in these stocks. However, the market's overreaction to the news presents an opportunity for investors to buy high-quality stocks at potentially discounted prices.

The consumer confidence report also highlighted a slowdown in home prices. Home prices in the 20 biggest U.S. metros continued to slow as the housing market weakened under the weight of high mortgage rates and increasing unaffordability [1]. This slowdown could further dampen consumer spending, particularly on discretionary items.

Meanwhile, the U.S. stock market experienced a pullback as investors scoured big-name earnings and tracked trade-talk progress. The global growth outlook improved due to a tariff detente, but the world economy is not yet out of the woods [1]. The trade deal with the U.S. has lifted uncertainty over tariffs, but the Bank of Japan is expected to keep rates on hold despite the positive developments [2].

The report also indicated a decline in job openings and hiring due to trade wars, but the rate of layoffs remained low, signaling a positive sign for the broader U.S. economy [1]. This mixed economic outlook presents both challenges and opportunities for investors.

References

[1] https://www.tradingview.com/news/DJN_DN20250729008961:0-dow-jones-top-markets-headlines-at-1-pm-et-consumer-confidence-survey-improved-in-july-home/
[2] https://www.fool.com/investing/2025/07/26/3-brilliant-growth-stocks-to-buy-right-now/