What Happened?

A number of stocks fell in the afternoon session after investors paused a record-setting rally amid uncertainty from the ongoing U.S. government shutdown. 

The S&P 500 and Nasdaq pulled back from all-time highs as the shutdown entered its second week, creating a data vacuum for investors. The political impasse has halted the release of vital economic indicators, including key reports on jobs and inflation. Without this crucial information, it becomes more difficult for the Federal Reserve and market participants to accurately assess the nation's economic health. This uncertainty prompted traders to take profits following a prolonged period of gains. In addition, Jamie Dimon raised concerns about a market correction. He added, “I would give it a higher probability than I think is probably priced in the market and by others, so if the market is pricing in 10%, I would ... say it’s more like 30%.” 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:

• Apparel and Accessories company Under Armour (NYSE: UAA) fell 3%. Is now the time to buy Under Armour? Access our full analysis report here, it’s free for active Edge members.
• Apparel and Accessories company Kontoor Brands (NYSE: KTB) fell 4.4%. Is now the time to buy Kontoor Brands? Access our full analysis report here, it’s free for active Edge members.
• Apparel and Accessories company Movado (NYSE: MOV) fell 4.4%. Is now the time to buy Movado? Access our full analysis report here, it’s free for active Edge members.
• Broadcasting company E.W. Scripps (NASDAQ: SSP) fell 4.3%. Is now the time to buy E.W. Scripps? Access our full analysis report here, it’s free for active Edge members.
• Wireless, Cable and Satellite company Cable One (NYSE: CABO) fell 4%. Is now the time to buy Cable One? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Movado (MOV)

Movado’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 4 months ago when the stock dropped 8.5% on the news that the company reported weak first quarter 2025 results as its revenue and EPS fell short of Wall Street's estimates. The miss was largely due to weaker sales in Movado's owned brands and company-operated stores, which outweighed gains in its licensed brand portfolio. With so much uncertainty from tariffs and a shaky economy, Movado decided not to give guidance for the rest of the year and instead plans to raise prices where needed. Overall, this was a softer quarter.

Movado is down 6.6% since the beginning of the year, and at $18.26 per share, it is trading 14.3% below its 52-week high of $21.31 from December 2024. Investors who bought $1,000 worth of Movado’s shares 5 years ago would now be looking at an investment worth $1,669.

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