What Happened?
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +1.5%, S&P 500 +1.0%) as reports pointed to easing tensions between Israel and Iran. The Wall Street Journal said senior Iranian officials had signaled a willingness to restart stalled nuclear talks, on the condition that Washington refrain from joining Israel's ongoing strikes. This development triggered a significant decline in oil prices, easing inflation concerns.
Also, it is possible some investors were buying the dip following the sell-off at the end of the previous week.
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:
- Sit-Down Dining company Cracker Barrel (NASDAQ: CBRL) jumped 8.2%. Is now the time to buy Cracker Barrel? Access our full analysis report here, it’s free.
- Sit-Down Dining company Red Robin (NASDAQ: RRGB) jumped 8.7%. Is now the time to buy Red Robin? Access our full analysis report here, it’s free.
- Broadcasting company E.W. Scripps (NASDAQ: SSP) jumped 10.9%. Is now the time to buy E.W. Scripps? Access our full analysis report here, it’s free.
- Casino Operator company Wynn Resorts (NASDAQ: WYNN) jumped 5.5%. Is now the time to buy Wynn Resorts? Access our full analysis report here, it’s free.
- Online Marketplace company eHealth (NASDAQ: EHTH) jumped 5.5%. Is now the time to buy eHealth? Access our full analysis report here, it’s free.
Zooming In On E.W. Scripps (SSP)
E.W. Scripps’s shares are extremely volatile and have had 97 moves greater than 5% over the last year. But moves this big are rare even for E.W. Scripps and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 20 days ago when the stock gained 7% on the news that the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand.
E.W. Scripps is up 14.5% since the beginning of the year, but at $2.88 per share, it is still trading 25.5% below its 52-week high of $3.87 from July 2024. Investors who bought $1,000 worth of E.W. Scripps’s shares 5 years ago would now be looking at an investment worth $328.53.
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