What Happened?
A number of stocks fell in the afternoon session after concerns about the health of the U.S. economy grew following a significant downward revision of job market data.
The Labor Department reported that employers added 911,000 fewer jobs from April 2024 through March than initially estimated. These "benchmark revisions" are issued annually to more accurately account for new and defunct businesses.
The report detailed that the leisure and hospitality sector added 176,000 fewer jobs, professional and business services 158,000 fewer, and retailers 126,000 fewer. This weaker-than-expected data has fueled investor anxiety, as it suggests businesses may be becoming more reluctant to hire amid economic uncertainty. The numbers issued are preliminary, with final revisions scheduled for February 2026.
JPMorgan Chase CEO Jamie Dimon added that the U.S. economy is "weakening," though he stopped short of predicting a recession. "Whether it's on the way to recession or just weakening, I don't know," he said. Dimon's remarks are closely watched, given his influence as head of one of the nation's largest banks.
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:
- Home Construction Materials company Trex (NYSE:TREX) fell 4.7%. Is now the time to buy Trex? Access our full analysis report here, it’s free.
- Aerospace company Rocket Lab (NASDAQ:RKLB) fell 4.4%. Is now the time to buy Rocket Lab? Access our full analysis report here, it’s free.
- Building Material Distributors company Boise Cascade (NYSE:BCC) fell 4.9%. Is now the time to buy Boise Cascade? Access our full analysis report here, it’s free.
- Ground Transportation company ArcBest (NASDAQ:ARCB) fell 6.4%. Is now the time to buy ArcBest? Access our full analysis report here, it’s free.
- HVAC and Water Systems company Carrier Global (NYSE:CARR) fell 3.9%. Is now the time to buy Carrier Global? Access our full analysis report here, it’s free.
Zooming In On ArcBest (ARCB)
ArcBest’s shares are quite volatile and have had 18 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 26 days ago when the stock dropped 3.1% on the news that an unexpectedly sharp rise in wholesale inflation fueled concerns about rising costs and their impact on corporate profits. The primary catalyst was the July 2025 Producer Price Index (PPI), a measure of inflation at the wholesale level, which jumped 0.9% against forecasts of a 0.2% rise. This represents the most significant monthly increase in over three years, pointing to mounting cost pressures for manufacturers, with tariffs cited as a key factor. This data complicates the Federal Reserve's upcoming interest rate decisions, as persistent inflation may prevent rate cuts, creating a headwind for cyclical sectors like Industrials.
ArcBest is down 23.4% since the beginning of the year, and at $70.44 per share, it is trading 42.2% below its 52-week high of $121.90 from November 2024. Investors who bought $1,000 worth of ArcBest’s shares 5 years ago would now be looking at an investment worth $2,118.
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