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MasterCraft, Warner Bros. Discovery, Scholastic, European Wax Center, and AMC Entertainment Stocks Trade Up, What You Need To Know

MCFT Cover Image

What Happened?

A number of stocks jumped in the afternoon session after the latest Consumer Price Index (CPI) report showed inflation holding steady, bolstering investor optimism for a potential interest rate cut by the Federal Reserve. 

The data, which revealed that inflation remained at 2.7% for the year ending in July, was seen as a positive sign by investors. This stability increases the likelihood that the Federal Reserve might lower interest rates at its upcoming September meeting. Lower interest rates can stimulate the economy by making borrowing cheaper for both consumers and businesses, which often translates into higher consumer spending. This is particularly beneficial for the Consumer Discretionary sector, which includes companies selling non-essential goods and services like apparel, travel, and electronics.

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:

Zooming In On MasterCraft (MCFT)

MasterCraft’s shares are somewhat volatile and have had 14 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.

MasterCraft is up 8.8% since the beginning of the year, but at $20.16 per share, 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 5 years ago would now be looking at an investment worth $991.59.

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