Stocks End in Red as China Faces Covid Surge

The stock market fell in a volatile session on Monday, as investors feared that China may again implement Covid-related restrictions due to rising infections, and that could prevent the key holiday shopping season.

Overall, S&P500 declined 0.4% to 3,950, while NASDAQ was down 1.1% to 11,025.

Tweet of the Day

Chart of the Day

Our chart of the day is the ten-year chart of Floor & Decor Holdings (FND) as of November 16, 2022, when the stock was at $78.

Floor & Decor offers the flooring industry’s broadest assortment of tile, wood, laminate and stone flooring in huge 70,000 sq ft warehouse formats, compared to home improvement centers which dedicate only 3,000 to 5,000 ft. to hard surface flooring.

The company continued to deliver solid sales growth even though the housing market is struggling. It is one of the best retail concepts of today. However, the stock has had a choppy trading history due to some issues including hurricanes, inflation, logistics costs, and port congestion. Now that those are behind us, profits might bounce back in a big way.

FND is part of the Growth Portfolio. David Sharek’s Fair Value P/E remains at 35.

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