What Happened?

A number of stocks jumped in the afternoon session after investors wagered geopolitical tension would be contained following the U.S. military's operation in Venezuela, with the Dow hitting a fresh record. 

Sentiment remained firmly "risk-on" for early 2026, with Wall Street prioritizing domestic economic strength over foreign turbulence. Analysts noted that while the event raises short-term supply questions, the market largely viewed the potential stabilization of Venezuela's vast oil reserves as a long-term economic positive.

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:

• Education Services company Universal Technical Institute (NYSE: UTI) jumped 11.1%. Is now the time to buy Universal Technical Institute? Access our full analysis report here, it’s free for active Edge members.
• Travel and Vacation Providers company Delta (NYSE: DAL) jumped 4.8%. Is now the time to buy Delta? Access our full analysis report here, it’s free for active Edge members.
• Travel and Vacation Providers company Choice Hotels (NYSE: CHH) jumped 3.6%. Is now the time to buy Choice Hotels? Access our full analysis report here, it’s free for active Edge members.
• Leisure Products company Ruger (NYSE: RGR) jumped 3.1%. Is now the time to buy Ruger? Access our full analysis report here, it’s free for active Edge members.
• Specialized Consumer Services company Mister Car Wash (NASDAQ: MCW) jumped 4.4%. Is now the time to buy Mister Car Wash? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Universal Technical Institute (UTI)

Universal Technical Institute’s shares are quite volatile and have had 17 moves greater than 5% over the last year. But moves this big are rare even for Universal Technical Institute and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 28 days ago when the stock dropped 3% on the news that new economic data intensified market agitation ahead of the Federal Reserve's policy decision later in the week. 

According to the Bureau of Economic Analysis, real consumer spending, which is adjusted for inflation, stalled in September, marking its weakest performance in four months. Compounding the issue, the University of Michigan's consumer sentiment index, while slightly improved, remained gloomy, with one economist noting that many households faced affordability issues forcing them to be more cautious. This pressure on consumers was reflected in the market, where the Consumer Discretionary sector was among the leading decliners. The broader economic picture showed other signs of caution, as new orders for U.S. factory goods also increased less than anticipated. These indicators collectively suggest a widening slowdown across both consumer and industrial sectors as the Federal Reserve prepared to announce its final policy actions for the year.

Universal Technical Institute is up 10.4% since the beginning of the year, but at $27.44 per share, it is still trading 23.6% below its 52-week high of $35.90 from June 2025. Investors who bought $1,000 worth of Universal Technical Institute’s shares 5 years ago would now be looking at an investment worth $4,348.

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