What Happened?
Shares of financial technology company Enova International (NYSE: ENVA) fell 6.2% in the afternoon session after a hotter-than-expected inflation report sparked a broad market sell-off that particularly impacted financial stocks.
The Producer Price Index (PPI) for January rose 0.5% month-over-month, exceeding the 0.3% that was expected. More concerning for investors was the core PPI, which excludes volatile food and energy prices, as it jumped 0.8% against a 0.3% forecast. This data reinforced the view of persistent inflation, raising concerns that the Federal Reserve would have limited room to lower interest rates in the near future. In response to the news, U.S. equities traded lower, with the financial sector showing notable weakness. Investors shifted toward safer assets, such as government bonds, amid the downturn.
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What Is The Market Telling Us
Enova’s shares are quite volatile and have had 15 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 23 days ago when the stock dropped 1.5% on the news that the market slid following the release of weaker-than-expected private-sector employment data, fueling concerns about a cooling economy.
According to the ADP report, U.S. private employers added only 22,000 jobs in January, falling significantly short of economists' estimates of 45,000. This miss signals that the multi-year cooling in labor demand has continued into the new year. The disappointing data added to existing market pressures, particularly on the tech sector, as investors weigh the implications of a potential economic slowdown on corporate earnings and growth prospects.
Enova is down 14% since the beginning of the year, and at $139.23 per share, it is trading 19.2% below its 52-week high of $172.37 from February 2026. Investors who bought $1,000 worth of Enova’s shares 5 years ago would now be looking at an investment worth $4,420.
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