What Happened?

A number of stocks jumped in the afternoon session after comments from a key Federal Reserve official bolstered hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.

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:

• Wireless, Cable and Satellite company Charter (NASDAQ: CHTR) jumped 3.9%. Is now the time to buy Charter? Access our full analysis report here, it’s free for active Edge members.
• Home Furnishings company La-Z-Boy (NYSE: LZB) jumped 3.8%. Is now the time to buy La-Z-Boy? Access our full analysis report here, it’s free for active Edge members.
• Apparel and Accessories company Tapestry (NYSE: TPR) jumped 3.9%. Is now the time to buy Tapestry? Access our full analysis report here, it’s free for active Edge members.
• Casino Operator company Boyd Gaming (NYSE: BYD) jumped 3.9%. Is now the time to buy Boyd Gaming? Access our full analysis report here, it’s free for active Edge members.
• Travel and Vacation Providers company Lindblad Expeditions (NASDAQ: LIND) jumped 3.8%. Is now the time to buy Lindblad Expeditions? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Charter (CHTR)

Charter’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The previous big move we wrote about was 18 days ago when the stock dropped 5.6% on the news that the stock's negative momentum continurd as the company reported disappointing third-quarter 2025 financial results, which missed analyst expectations and revealed a significant loss in internet customers. The cable and broadband provider announced earnings per share of $8.34, falling short of the $9.27 analysts had predicted. Revenue also came in slightly below forecasts at $13.67 billion. A key point of concern was the loss of 109,000 internet customers during the quarter, a larger decline than the 83,000 that Wall Street had anticipated. The company’s CEO noted that tough competition from fixed wireless and fiber providers was a major factor. Adding to the pressure, Wells Fargo lowered its price target on the stock by 20% to $240 from $300, although it kept its "Equal-Weight" rating.

Charter is down 42.2% since the beginning of the year, and at $201.83 per share, it is trading 52.8% below its 52-week high of $427.25 from May 2025. Investors who bought $1,000 worth of Charter’s shares 5 years ago would now be looking at an investment worth $312.89.

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