What Happened?
A number of stocks jumped in the afternoon session after the July jobs report showed an unexpected loss of 23,000 jobs, signaling a cooling labor market. Economists had forecast a gain of around 80,000 nonfarm payrolls.
According to the U.S. Bureau of Labor Statistics, the unemployment rate held steady at 4.1%. This weaker-than-expected data led investors to bet on the possibility of an interest rate cut by the Federal Reserve. The logic, often described as "bad news is good news" for the market, suggests that a slowing economy could deter the central bank from further rate hikes, and potentially encourage cuts to stimulate growth. This outlook generally makes borrowing cheaper for companies and increases the relative attractiveness of stocks.
Lower rates are particularly beneficial for growth companies because they reduce the discount rate applied to future earnings, boosting the present value of cash flows that extend further out.
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:
- Law Enforcement Suppliers company Byrna (NASDAQ: BYRN) jumped 3.9%. Is now the time to buy Byrna? Access our full analysis report here, it’s free.
- Automobile Manufacturing company Lucid (NASDAQ: LCID) jumped 0.2%. Is now the time to buy Lucid? Access our full analysis report here, it’s free.
- Engineered Components and Systems company Park-Ohio (NASDAQ: PKOH) jumped 5.9%. Is now the time to buy Park-Ohio? Access our full analysis report here, it’s free.
- Home Construction Materials company JELD-WEN (NYSE: JELD) jumped 6.8%. Is now the time to buy JELD-WEN? Access our full analysis report here, it’s free.
- Automobile Manufacturing company Tesla (NASDAQ: TSLA) jumped 3.9%. Is now the time to buy Tesla? Access our full analysis report here, it’s free.
Zooming In On JELD-WEN (JELD)
JELD-WEN’s shares are extremely volatile and have had 79 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 3 days ago when the stock gained 18% on the news that the company reported second-quarter results that beat analyst estimates and raised its full-year profit forecast. The company announced revenue of $817.8 million, which was flat year-over-year but surpassed expectations of $792.6 million. More impressively, adjusted EBITDA of $42.3 million significantly beat Wall Street’s estimates of $29.4 million. The adjusted loss per share of $0.11 also came in better than the anticipated loss of $0.14. Looking ahead, JELD-WEN lifted its full-year adjusted EBITDA guidance, now forecasting a range of $120 million to $150 million, signaling management's increased confidence for the remainder of the year.
JELD-WEN is down 23.6% since the beginning of the year, and at $1.90 per share, it is trading 72% below its 52-week high of $6.76 from September 2025. Investors who bought $1,000 worth of JELD-WEN’s shares 5 years ago would now be looking at only $68.83.
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