What Happened?
A number of stocks fell in the afternoon session after The LSEG/Ipsos Primary Consumer Sentiment Index fell 5.3 points from September to 45.2 in October 2026, the lowest reading since October 2011. According to LSEG, the survey was taken from Sept. 25 through Oct. 1. The monthly drop was the second-largest on record, behind only April 2020. The index is now below its May 2020 pandemic low of 45.4 and is 7.7 points under its level of a year ago.
That kind of break in confidence hits the companies in this group, which sell apparel, travel, tickets, media, fitness, and housing-related services that households can postpone. Investors sold the group on the risk that weaker confidence shows up in traffic, bookings, and margins.
Higher yields are part of the same squeeze. According to Yahoo Finance, the 10-year Treasury yield, a benchmark for mortgage rates and other borrowing costs, had climbed to its highest level since 2002 and was around 5.30% earlier in the month. Steve Sosnick, chief strategist at Interactive Brokers, told Yahoo Finance that higher rates are weighing on companies whose products tend to require financing, such as autos. He also said most consumers are either indebted or only marginal savers, and the stocks that cater to those customers are suffering.
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:
- Consumer Discretionary - Travel and Vacation Providers company Frontier (NASDAQ: ULCC) fell 6%. Is now the time to buy Frontier? Access our full analysis report here, it’s free.
- Consumer Discretionary - Media company fuboTV (NYSE: FUBO) fell 6.2%. Is now the time to buy fuboTV? Access our full analysis report here, it’s free.
- Consumer Discretionary - Broadcasting company E.W. Scripps (NASDAQ: SSP) fell 5.6%. Is now the time to buy E.W. Scripps? Access our full analysis report here, it’s free.
- Consumer Discretionary - Leisure Facilities company Sphere Entertainment (NYSE: SPHR) fell 5.8%. Is now the time to buy Sphere Entertainment? Access our full analysis report here, it’s free.
- Consumer Discretionary - Leisure Facilities company AMC Entertainment (NYSE: AMC) fell 5.5%. Is now the time to buy AMC Entertainment? Access our full analysis report here, it’s free.
Zooming In On fuboTV (FUBO)
fuboTV’s shares are extremely volatile and have had 48 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 biggest move we wrote about over the last year was 6 months ago when the stock gained 24.7% on the news that the company released an optimistic financial outlook, setting new long-term targets for profitability and cash flow. In a letter to shareholders, FuboTV announced it expected to deliver between $80 million and $100 million in Pro Forma Adjusted EBITDA in Fiscal 2026.
Looking further ahead, the company targeted at least $300 million in Adjusted EBITDA in Fiscal 2028. Management also stated they believed FuboTV would be Free Cash Flow positive starting in Fiscal 2027. The company affirmed its forecast to end its fiscal year with at least $200 million in cash and cash equivalents. Chief executive David Gandler told shareholders the business had reached the “strongest financial position in our history.”.
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