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Consumer Confidence, Netflix and Roku Fall & Buy Columbia Stock - Free Lunch

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On today’s episode of Free Lunch here at Zacks, Associate Stock Strategist Ben Rains breaks down why U.S. stocks hadn’t been moving much in September. The episode also dives into why shares of streaming TV firms Netflix and Roku have tumbled. We then take a look at what to expect from Nike’s Q1 fiscal 2020 earnings results Tuesday and close with why Columbia Sportswear (COLM - Free Report) stock is a Zacks Rank #1 (Strong Buy).

U.S. stocks had barely moved over the last few weeks after a turbulent August. Despite subdued movement, both the S&P 500 and the Dow have continued to hover within roughly 1% of their all-time highs recently. The lack of movement likely means that investors are waiting for U.S.-China trade war updates.

Tuesday seemed like it was poised to match recent trading days, until the Conference Board announced after I began the video that its U.S. consumer confidence index fell significantly in September. The news stands in contrast to the University of Michigan’s widely cited U.S. consumer sentiment index, which I touched on in the video, that showed a bounce back from August. The Conference Board news sent all three major U.S. indexes down big in early afternoon trading, with the S&P down 0.9%, while the Dow slipped 0.65%.

Meanwhile, shares of Netflix (NFLX - Free Report) continue to fall as the streaming TV firm prepares to face challenges from Disney (DIS - Free Report) and Apple (AAPL - Free Report) in November, along with current rivals such as Amazon (AMZN - Free Report) Prime. On top of that, Roku ROKU stock has been hammered since Comcast (CMCSA - Free Report) and Facebook (FB - Free Report) unveiled updated streaming device plans last week.

Looking ahead, Nike (NKE - Free Report) is set to release its Q1 fiscal 2020 results after the closing bell Tuesday. The company has faced more competition from Adidas (ADDYY - Free Report) and Lululemon (LULU - Free Report) , but looks strong going forward.

Today’s episode of Free Lunch then closes with why Columbia stock is a Zacks Rank #1 (Strong Buy). The outdoor apparel giant, which owns multiple brands, looks set to grow as it challenges The North Face (VFC - Free Report) and higher-priced Canada Goose (GOOS - Free Report) .

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