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:

• Water Infrastructure company Mueller Water Products (NYSE: MWA) fell 6.6%. Is now the time to buy Mueller Water Products? Access our full analysis report here, it’s free.
• Facility Services company BrightView (NYSE: BV) fell 5.4%. Is now the time to buy BrightView? Access our full analysis report here, it’s free.
• Home Builders company Installed Building Products (NYSE: IBP) fell 5.6%. Is now the time to buy Installed Building Products? Access our full analysis report here, it’s free.
• HVAC and Water Systems company CSW (NASDAQ: CSW) fell 6.4%. Is now the time to buy CSW? Access our full analysis report here, it’s free.
• Specialty Equipment Distributors company Herc (NYSE: HRI) fell 5.8%. Is now the time to buy Herc? Access our full analysis report here, it’s free.

Zooming In On Mueller Water Products (MWA)

Mueller Water Products’s shares are not very volatile and have only had 9 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 about 1 month ago when the stock gained 7.1% on the news that the company reported strong third-quarter financial results that beat Wall Street expectations and raised its full-year outlook. The water infrastructure company posted record quarterly net sales of $380.3 million, a 6.6% increase from the prior year, which surpassed analyst estimates. This growth resulted from increased volumes across most product lines and higher pricing. The company’s profitability also strengthened as its gross margin improved. Following the strong performance, management lifted its full-year forecast for both net sales and adjusted EBITDA, signaling confidence in its operational efficiency and future outlook.

Mueller Water Products is up 11.3% since the beginning of the year, but at $24.85 per share, it is still trading 12% below its 52-week high of $28.24 from March 2025. Investors who bought $1,000 worth of Mueller Water Products’s shares 5 years ago would now be looking at an investment worth $2,322.

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