What Happened?
A number of stocks fell in the afternoon session after concerns arose that a widening conflict in the Middle East could harm the global economy and dampen consumer spending, as Trump warned the crisis might persist for up to a month.
A worldwide stock sell-off hit Wall Street, with the Dow Jones Industrial Average falling over 1,000 points. The consumer discretionary sector was particularly hard-hit, dropping over 3%. Investors are increasingly worried that the conflict could lead to a sustained rise in oil and energy prices, fueling inflation. This comes as many households are already navigating elevated prices and economic uncertainty. Higher costs for essentials could further squeeze budgets, potentially weakening demand for non-essential goods and services, which directly impacts companies in the consumer discretionary space. The conflict threatens to disrupt supply chains and increase freight costs, adding further pressure on these businesses.
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:
- Specialty Retail company Leslie's (NASDAQ: LESL) fell 8.8%. Is now the time to buy Leslie's? Access our full analysis report here, it’s free.
- Footwear Retailer company Designer Brands (NYSE: DBI) fell 6%. Is now the time to buy Designer Brands? Access our full analysis report here, it’s free.
- Auto Parts Retailer company AutoZone (NYSE: AZO) fell 5%. Is now the time to buy AutoZone? Access our full analysis report here, it’s free.
- Vehicle Retailer company Camping World (NYSE: CWH) fell 5.1%. Is now the time to buy Camping World? Access our full analysis report here, it’s free.
- Auto Parts Retailer company Advance Auto Parts (NYSE: AAP) fell 4.4%. Is now the time to buy Advance Auto Parts? Access our full analysis report here, it’s free.
Zooming In On Leslie's (LESL)
Leslie’s shares are extremely volatile and have had 101 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.
The previous big move we wrote about was 11 days ago when the stock gained 7.3% on the news that the Supreme Court struck down sweeping Trump tariffs, bringing potential relief to companies impacted by international trade disputes. The ruling was seen as a significant win for sectors reliant on global supply chains, as tariffs, which are essentially taxes on imported goods, have increased operating costs and squeezed profit margins for many U.S. companies. The removal of these levies is expected to lower expenses for manufacturers and retailers, potentially leading to more competitive pricing and stronger earnings. This positive development appeared to outweigh earlier concerns in the session regarding reports of slowing economic growth and rising inflation, with the broader market, including the S&P 500, ticking higher on the news. In response to the ruling, the Trump administration announced plans to impose a new 10% global tariff.
Leslie's is down 47.1% since the beginning of the year, and at $0.92 per share, it is trading 95.6% below its 52-week high of $20.60 from March 2025. Investors who bought $1,000 worth of Leslie’s shares 5 years ago would now be looking at an investment worth $2.05.
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