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 are rising, while their outlook on the labor market is deteriorating. Consumers expressed greater concern about potential job losses and expect 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 are already showing clear signs of a recession, placing the broader U.S. economy in a precarious position. The ongoing U.S. government shutdown further dampens 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:

• Media company Warner Music Group (NASDAQ: WMG) fell 2.9%. Is now the time to buy Warner Music Group? Access our full analysis report here, it’s free for active Edge members.
• Travel and Vacation Providers company Travel + Leisure (NYSE: TNL) fell 2.6%. Is now the time to buy Travel + Leisure? Access our full analysis report here, it’s free for active Edge members.
• Media company Warner Bros. Discovery (NASDAQ: WBD) fell 2.5%. Is now the time to buy Warner Bros. Discovery? Access our full analysis report here, it’s free for active Edge members.
• Travel and Vacation Providers company Delta (NYSE: DAL) fell 3.1%. Is now the time to buy Delta? Access our full analysis report here, it’s free for active Edge members.
• Casino Operator company Red Rock Resorts (NASDAQ: RRR) fell 3.6%. Is now the time to buy Red Rock Resorts? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Red Rock Resorts (RRR)

Red Rock Resorts’s shares are somewhat volatile and have had 11 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 7 days ago when the stock dropped 3% on the news that a report revealed that U.S. consumer confidence dropped for a second consecutive month, hitting a five-month low amid worries over inflation and the job market. 

Market volatility increased as a partisan standoff pushed the federal government closer to a shutdown. If lawmakers fail to reach a spending agreement, a shutdown would begin, furloughing thousands of federal workers. This prospect has weighed on investor sentiment, creating a 'risk-off' mood in the markets as traders brace for potential economic disruption. The political uncertainty adds a layer of caution for investors heading into the final day of the month. 

Adding to the weakness, a key report showed U.S. consumer confidence unexpectedly fell to a five-month low in September. The Conference Board's consumer confidence index slid to 94.2, a steeper drop than analysts had anticipated and its lowest reading since April. This downturn reflects growing pessimism among Americans about inflation and a weakening job market. Consumer confidence is a closely watched economic indicator as it gauges households' willingness to spend. A decline suggests that consumers may pull back on discretionary purchases, such as dining out or shopping for non-essential goods, which could negatively impact the future revenues and profits of companies in these sectors.

Red Rock Resorts is up 28.8% since the beginning of the year, and at $57.58 per share, it is trading close to its 52-week high of $62.97 from August 2025. Investors who bought $1,000 worth of Red Rock Resorts’s shares 5 years ago would now be looking at an investment worth $3,240.

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