What Happened?
A number of stocks fell in the afternoon session after new economic data intensified market agitation ahead of the Federal Reserve's policy decision later in the week.
According to the Bureau of Economic Analysis, real consumer spending, which is adjusted for inflation, stalled in September, marking its weakest performance in four months. Compounding the issue, the University of Michigan's consumer sentiment index, while slightly improved, remained gloomy, with one economist noting that many households faced affordability issues forcing them to be more cautious. This pressure on consumers was reflected in the market, where the Consumer Discretionary sector was among the leading decliners. The broader economic picture showed other signs of caution, as new orders for U.S. factory goods also increased less than anticipated. These indicators collectively suggest a widening slowdown across both consumer and industrial sectors as the Federal Reserve prepared to announce its final policy actions for the year.
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:
- Gaming Solutions company PlayStudios (NASDAQ:MYPS) fell 2.6%. Is now the time to buy PlayStudios? Access our full analysis report here, it’s free for active Edge members.
- Apparel and Accessories company Oxford Industries (NYSE:OXM) fell 3.3%. Is now the time to buy Oxford Industries? Access our full analysis report here, it’s free for active Edge members.
- Travel and Vacation Providers company Marriott Vacations (NYSE:VAC) fell 3.3%. Is now the time to buy Marriott Vacations? Access our full analysis report here, it’s free for active Edge members.
- Toys and Electronics company Mattel (NASDAQ:MAT) fell 3.9%. Is now the time to buy Mattel? Access our full analysis report here, it’s free for active Edge members.
- Apparel and Accessories company Kontoor Brands (NYSE:KTB) fell 3.6%. Is now the time to buy Kontoor Brands? Access our full analysis report here, it’s free for active Edge members.
Zooming In On Mattel (MAT)
Mattel’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 5 days ago when the stock gained 4.8% on the news that the company presented at the Morgan Stanley Global Consumer & Retail Conference, where its leadership shared business updates. The company's Executive Chairman & CEO, Ynon Kreiz, and its Chief Financial Officer, Paul Ruh, participated in the event. Presentations at such conferences often contain forward-looking statements that can influence investor views on a company's future performance. This news followed Mattel's re-introduction of Uno Braille a day earlier. The new edition of the popular card game was designed so that blind or low-vision players could enjoy it, showing the company's commitment to making its products more accessible to everyone.
Mattel is up 15.3% since the beginning of the year, and at $20.44 per share, it is trading close to its 52-week high of $21.94 from February 2025. Investors who bought $1,000 worth of Mattel’s shares 5 years ago would now be looking at an investment worth $1,267.
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