What Happened?

A number of stocks fell in the morning session after the Trump administration's announcement of new global tariffs, reignited trade policy uncertainty. The move came swiftly after the Supreme Court ruled the previous week that the president could not use the International Emergency Economic Powers Act (IEEPA) for such duties, a decision that had initially sent markets higher. However, the administration invoked a different authority, the Trade Act of 1974, to impose a 15% global tariff for up to 150 days. The rapid reimposition of trade barriers creates significant uncertainty for companies across multiple sectors that depend on international supply chains and global trade. Investors are now weighing the potential impact of these new duties on corporate earnings and broader economic activity.

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:

• Consumer Discretionary - Travel and Vacation Providers company Marriott Vacations (NYSE: VAC) fell 7.6%. Is now the time to buy Marriott Vacations? Access our full analysis report here, it’s free.
• Consumer Discretionary - Travel and Vacation Providers company Sabre (NASDAQ: SABR) fell 8.1%. Is now the time to buy Sabre? Access our full analysis report here, it’s free.
• Consumer Discretionary - Leisure Products company Polaris (NYSE: PII) fell 6.2%. Is now the time to buy Polaris? Access our full analysis report here, it’s free.
• Consumer Discretionary - Leisure Products company Brunswick (NYSE: BC) fell 7.1%. Is now the time to buy Brunswick? Access our full analysis report here, it’s free.
• Consumer Discretionary - Real Estate Services company Compass (NYSE: COMP) fell 9%. Is now the time to buy Compass? Access our full analysis report here, it’s free.

Zooming In On Compass (COMP)

Compass’s shares are very volatile and have had 21 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 biggest move we wrote about over the last year was about 2 months ago when the stock gained 12.4% on the news that its planned merger with Anywhere Real Estate cleared a significant regulatory hurdle, overshadowing news of a large debt offering. The company disclosed that the Hart-Scott-Rodino antitrust waiting period for the merger had expired, signaling that U.S. regulators did not move to challenge the deal. This removed a major procedural obstacle for the acquisition to proceed. The positive development outweighed another major announcement from the company about its intent to offer $750 million in convertible senior notes. While such offerings can sometimes pressure a stock due to the potential for future share dilution, investors focused on the increased likelihood of the merger's completion. Compass noted that the proceeds from the offering were intended to be used for general corporate purposes, including the repayment of debt at Anywhere Real Estate once the merger closes.

Compass is down 13.4% since the beginning of the year, and at $9.09 per share, it is trading 33.1% below its 52-week high of $13.58 from January 2026. Investors who bought $1,000 worth of Compass’s shares at the IPO in March 2021 would now be looking at an investment worth $451.12.

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