What Happened?

A number of stocks fell in the afternoon session after markets pulled back amid hotter-than-expected inflation data. The main concern for investors was the July Producer Price Index (PPI), a measure of wholesale inflation. The higher-than-expected reading suggests that companies could face squeezed profit margins due to rising costs. This also reduces the likelihood of the Federal Reserve cutting interest rates, which could further dampen economic activity. Compounding these inflation fears are multiple reports signaling a weakening consumer.

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:

• Personal Care company Edgewell Personal Care (NYSE: EPC) fell 3.3%. Is now the time to buy Edgewell Personal Care? Access our full analysis report here, it’s free.
• Personal Care company Herbalife (NYSE: HLF) fell 3.5%. Is now the time to buy Herbalife? Access our full analysis report here, it’s free.
• Personal Care company Inter Parfums (NASDAQ: IPAR) fell 3.1%. Is now the time to buy Inter Parfums? Access our full analysis report here, it’s free.
• Personal Care company BeautyHealth (NASDAQ: SKIN) fell 6.5%. Is now the time to buy BeautyHealth? Access our full analysis report here, it’s free.

Zooming In On BeautyHealth (SKIN)

BeautyHealth’s shares are extremely volatile and have had 73 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 1 day ago when the stock gained 3.4% on the news that markets continued to rally as a surprisingly subdued inflation report fueled hopes for an imminent interest rate cut from the U.S. Federal Reserve. The July Consumer Price Index (CPI) report showed a year-over-year increase of 2.7%, which was slightly below market expectations. This tamer-than-expected inflation data was viewed by investors as a key signal that price pressures are easing. As a result, the market has strengthened its conviction that the U.S. Federal Reserve will implement an interest rate cut in September. The prospect of lower borrowing costs tends to boost corporate profitability and can stimulate economic activity, creating a more favorable environment for consumer-facing companies and fueling a broad-based market rally.

BeautyHealth is up 36% since the beginning of the year, and at $2.19 per share, it is trading close to its 52-week high of $2.38 from August 2025.

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