These 2 Plunging Stocks Are Pointing to Consumer Weakness Across the Economy
Investors came into the month of June with some optimism about what the summer could bring. With a debt ceiling solution seemingly on the way, market participants remain hopeful that the U.S. economy can avoid recession and keep chugging along at a modest but reasonable pace. Major market benchmarks climbed in response, with the Nasdaq Composite leading the way in midafternoon trading with a 1.3% gain.
However, not everyone remains convinced that consumers are in good financial shape. Indeed, shares of consumer-facing companies at both ends of the income spectrum faced challenges on Thursday. Dollar General (NYSE: DG) caters to those seeking discounts, while Lucid Group (NASDAQ: LCID) has aimed squarely at the luxury electric vehicle market. Both stocks fell sharply as investors try to determine whether recent events will help or hurt their respective businesses.
Shares of Dollar General sank 18% in midafternoon trading Thursday. The dollar store retailer's first-quarter financial report for the period ended May 5 fell well short of what investors had expected to see in a challenging macroeconomic environment that would usually favor the lower end of the retail spectrum.
Source Fool.com
