What Happened?
A number of stocks jumped in the afternoon session after the second quarter (2025) earnings season got off to a strong start. Quarterly earnings reports released during the week exceeded Wall Street's expectations, fueling investor confidence. Around 50 S&P 500 components reported, with 88% of those exceeding analysts' expectations, FactSet data revealed. Investors were also encouraged by several positive reports that painted a picture of a resilient consumer. One key report revealed that shoppers increased their spending at U.S. retailers more than economists had anticipated. Precisely, retail sales increased 0.6% from May, surpassing the 0.2% estimate. This robust consumer spending is a crucial pillar supporting the economy.
Adding to the positive sentiment, the latest data on unemployment claims showed a decrease in the number of workers applying for benefits, signaling that layoffs remain limited and the job market is steady. This combination of strong earnings reports, retail sales, and a solid labor market suggests the economy is navigating challenges successfully.
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:
- Professional Tools and Equipment company Hillman (NASDAQ: HLMN) jumped 5.4%. Is now the time to buy Hillman? Access our full analysis report here, it’s free.
- Waste Management company Perma-Fix (NASDAQ: PESI) jumped 3.1%. Is now the time to buy Perma-Fix? Access our full analysis report here, it’s free.
- Home Construction Materials company JELD-WEN (NYSE: JELD) jumped 3.4%. Is now the time to buy JELD-WEN? Access our full analysis report here, it’s free.
- Social Networking company Snap (NYSE: SNAP) jumped 3.4%. Is now the time to buy Snap? Access our full analysis report here, it’s free.
- HR Software company Dayforce (NYSE: DAY) jumped 3.9%. Is now the time to buy Dayforce? Access our full analysis report here, it’s free.
Zooming In On Hillman (HLMN)
Hillman’s shares are somewhat volatile and have had 12 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 6 days ago when the stock dropped 3.6% on the news that the U.S. announced a new 35% tariff on all goods imported from Canada, set to begin on August 1. The broad tariff announcement has cast a shadow on companies with significant cross-border operations. Hillman, a provider of hardware and protective solutions, has a dedicated business segment in Canada, distributing its products to various retail outlets across the country.,This development introduces considerable uncertainty and potential cost increases for the company's Canadian operations. Investors may be concerned about the potential impact on profit margins and the disruption to supply chains.
Hillman is down 13.3% since the beginning of the year, and at $8.14 per share, it is trading 29.5% below its 52-week high of $11.54 from November 2024.
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