Why Netflix, Peloton, and DraftKings Fell on Tuesday

Shares of Netflix (NASDAQ: NFLX), Peloton (NASDAQ: PTON), and DraftKings (NASDAQ: DKNG) were all sinking Tuesday, down 4.6%, 6.8%, and 4.5%, respectively, as of 1:14 p.m. ET.

There wasn't anything in the way of company-specific news from any of them. However, each is a former consumer discretionary darling that thrived during the more intense periods of the pandemic. But with a new report out suggesting that home price growth is accelerating, investors may think that consumers will soon be dialing back their spending on these sorts of luxuries as their wallets are further squeezed.

On Tuesday morning, the latest report on the S&P CoreLogic Case-Shiller national home price index was released. It showed that in February, the average U.S. home price soared by a whopping 19.8% year over year. With COVID-19 receding as a crisis-level threat, and inelastic expenditures such as housing, gas, and food prices on the rise, investors may be concerned that the U.S. consumer could pull back on discretionary spending. (By the way, crude oil prices were bouncing higher as well on Tuesday after two days of relief.)

Source Fool.com