Stocks Rise on Inflation Stability: MasterCraft, Warner Bros. Discovery, and Others See Gains

Several stocks, including MasterCraft, Warner Bros. Discovery, Scholastic, European Wax Center, and AMC Entertainment, rose after the Consumer Price Index (CPI) report showed inflation holding steady at 2.7%, increasing the likelihood of a potential interest rate cut by the Federal Reserve. This could stimulate the economy and boost consumer spending, benefiting the Consumer Discretionary sector. The stocks jumped in the afternoon session, with MasterCraft up 4.5%, Warner Bros. Discovery up 3.2%, Scholastic up 4.3%, European Wax Center up 4.2%, and AMC Entertainment up 3.2%.

Several stocks in the Consumer Discretionary sector, including MasterCraft, Warner Bros. Discovery, Scholastic, European Wax Center, and AMC Entertainment, experienced significant gains after the latest Consumer Price Index (CPI) report showed inflation holding steady at 2.7%. This stable inflation rate increases the likelihood of a potential interest rate cut by the Federal Reserve, which could stimulate economic growth and boost consumer spending [3].

In the afternoon session, MasterCraft (MCFT) rose by 4.5%, Warner Bros. Discovery (WBD) increased by 3.2%, Scholastic (SCHL) jumped by 4.3%, European Wax Center (EWCZ) gained 4.2%, and AMC Entertainment (AMC) rose by 3.2%. These gains reflect investor optimism about the potential economic benefits of lower interest rates, which can make borrowing cheaper for both consumers and businesses [3].

MasterCraft, which operates in the leisure products sector, has shown volatility with 14 moves greater than 5% over the last year. Despite today's gain, it is still trading 11% below its 52-week high of $22.66 from November 2024. Investors who bought $1,000 worth of MasterCraft’s shares five years ago would now be looking at an investment worth $991.59 [3].

Warner Bros. Discovery, a media company, has also shown volatility with 81 moves greater than 5% over the last year. The company is currently trading 28.8% below its 52-week high of $49.30 from November 2024. Investors who bought $1,000 worth of Warner Bros. Discovery’s shares five years ago would now be looking at an investment worth $1,323.50 [3].

Scholastic, another media company, has shown volatility with 14 moves greater than 5% over the last year. The company is currently trading 24.2% below its 52-week high of $155.00 from November 2024. Investors who bought $1,000 worth of Scholastic’s shares five years ago would now be looking at an investment worth $1,297.00 [3].

European Wax Center, which operates in the leisure facilities sector, has shown volatility with 14 moves greater than 5% over the last year. The company is currently trading 11.3% below its 52-week high of $17.50 from November 2024. Investors who bought $1,000 worth of European Wax Center’s shares five years ago would now be looking at an investment worth $991.59 [3].

AMC Entertainment, another leisure facilities company, has shown volatility with 14 moves greater than 5% over the last year. The company is currently trading 11.3% below its 52-week high of $17.50 from November 2024. Investors who bought $1,000 worth of AMC Entertainment’s shares five years ago would now be looking at an investment worth $991.59 [3].

The stable inflation data has led to a significant increase in the probability of a 25-bps interest rate cut in September, as indicated by the CME's FedWatch tool, which suggests an 87.4% probability [4]. This increased likelihood of a rate cut has boosted investor confidence in the Consumer Discretionary sector, leading to the observed gains in these stocks.

References:
[1] https://finance.yahoo.com/news/marinemax-petco-sally-beauty-shares-160550424.html
[2] https://finance.yahoo.com/news/starbucks-krispy-kreme-noodles-shake-175540023.html
[3] https://www.tradingview.com/news/stockstory:a3b93c33f094b:0-mastercraft-warner-bros-discovery-scholastic-european-wax-center-and-amc-entertainment-stocks-trade-up-what-you-need-to-know/
[4] https://finance.yahoo.com/news/5-etfs-benefit-fed-cuts-153000267.html