CE100™ plunges, but rigs gain despite retail

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In the stock market, there comes a time when, perhaps, we are satisfied with a less wild ride than seen in the broader indices.

To that end, the CE100™ Index slid 2.3%, slightly better than the 4.4% drop seen in the Nasdaq. Not fun, sure, but not as bad as it could have been.

And for this (relatively) low-key demonstration, much is due to platform companies – the marketplaces and connected digital businesses that still bring gamers and consumers to the online outposts to get what they need. It blunted the awful, not good and really tough week that sent the names in retail skidding.

Seen through the prism of year-to-date performance, the CE100™ came in fairly close to the broader industry, slipping almost 32%, while the Nasdaq lost more than 28%.

Relative performance CE100™

Source: PYMNTS

To get a sense of how brutal the downdraft was, consider the fact that all the mainstays fell and the best performing segment was the “Have Fun” group, which lost “only” 50 basis points (the group is down 37.4%). trailed by the “Pay and Be Paid” index (which has slipped 70 basis points and lost around 40% since the start of the year).

Drill down a bit, and the “Move” index was down 5.2% for the week, followed by two segments that were down 4.2% – the “Eat” and “Shop” pillars.

Platform performance

Some positive performances have been recorded over the past five days. DraftKings jumped 11.3% on the week, helping guide the “Have Fun” unit to its relatively moderate losses.

The company mentioned this week that it launched its online sports betting and online casino products in Ontario, Canada. This launch will include 130 variations of online casino games through DraftKings Casino, such as baccarat, blackjack, roulette and slots.

Separately, Pinduoduo gained just over 8%, providing some positive momentum after Chinese authorities appeared to acknowledge that tech regulation had hurt the private sector. Pinterest gained 6.7%, where the company appears to have been a bit buoyant amid the push to boost business initiatives.

See also: Pinterest makes itself more buyable as the platform positions commerce to take over ads

And yet retail and the “Move” sector… oy vey. Within the “Move” pantheon, Tesla was down 13.7% as Elon Musk’s “will or not” debate over the Twitter takeover continues.

Walmart was the standout decline here, dropping almost 20% on the week. Consumers are being hit by inflation and turning to lower-priced items, and the retail giant is seeing its own margins squeezed by rising input costs.

Read more: Walmart sees shift in demand for low-cost and high-priced game consoles

“Price leadership is especially important right now because one-stop shopping becomes more than just a convenience issue when people are paying over $4 a gallon for fuel,” CEO Doug McMillon said, noting that Walmart itself spent $160 million more on fuel for its own trucks in the quarter. The company’s digital business growth, which was up just 1% from a year ago, is a marked slowdown from the 38% seen over the past two years.

For the CE100™, a week of outperformance is not a trend, but, again, it could have been much worse.

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