What Happened?
A number of stocks fell in the afternoon session after a confluence of negative economic data pointed to a weak economy.
The latest Survey of Consumer Expectations from the New York Fed revealed that households' short-term inflation expectations rose, while their outlook on the labor market deteriorated. Consumers expressed greater concern about potential job losses and expected lower earnings growth, factors that directly impact discretionary spending. Adding to the unease, Chief Economist at Moody’s Analytics, Mark Zandi, warned that 22 states demonstrated clear signs of a recession, placing the broader U.S. economy in a precarious position. The U.S. government shutdown further dampened sentiment, threatening to weigh on incomes and purchasing power.
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:
- Apparel and Accessories company G-III (NASDAQ: GIII) fell 1.7%. Is now the time to buy G-III? Access our full analysis report here, it’s free for active Edge members.
- Gaming Solutions company Rush Street Interactive (NYSE: RSI) fell 4.2%. Is now the time to buy Rush Street Interactive? Access our full analysis report here, it’s free for active Edge members.
- Footwear company Deckers (NYSE: DECK) fell 4.1%. Is now the time to buy Deckers? Access our full analysis report here, it’s free for active Edge members.
- Travel and Vacation Providers company Sabre (NASDAQ: SABR) fell 2.7%. Is now the time to buy Sabre? Access our full analysis report here, it’s free for active Edge members.
- Real Estate Services company Compass (NYSE: COMP) fell 2.9%. Is now the time to buy Compass? Access our full analysis report here, it’s free for active Edge members.
Zooming In On Rush Street Interactive (RSI)
Rush Street Interactive’s shares are very volatile and have had 22 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 5 days ago when the stock dropped 3.3% on the news that several top executives disclosed significant sales of company stock.
Regulatory filings showed that the Chief Information Officer, Einar Roosileht, sold shares valued at nearly $1.4 million. Additionally, Chief Operating Officer Mattias Stetz sold stock for a total of $603,000, and Chief Financial Officer Kyle Sauers sold shares worth approximately $336,000. Although the CFO's transaction was part of a pre-arranged trading plan, the cluster of sales from high-ranking insiders appeared to worry investors. Such moves can be interpreted by the market as a potential lack of confidence in the company's immediate future, leading to a decline in the stock price.
Rush Street Interactive is up 29.5% since the beginning of the year, but at $17.80 per share, it is still trading 21% below its 52-week high of $22.53 from September 2025. Investors who bought $1,000 worth of Rush Street Interactive’s shares 5 years ago would now be looking at an investment worth $1,505.
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