What Happened?
Shares of contract logistics company GXO (NYSE: GXO) jumped 1.3% in the afternoon session after the company announced it signed a long-term tenancy agreement for a large warehouse in Malaysia, expanding its footprint in Asia.
The deal secured GXO, the world's largest logistics provider focusing solely on contracts, the entire 720,000 square foot warehouse in the Equalbase Sunway 103° Free Commercial Zone. Located near Singapore, this facility was set to serve as a key regional hub. The location offered a significant advantage, allowing GXO's customers to import, store, and export goods without paying customs fees, which simplified their global supply chains.
A company executive noted that the new site represented GXO's expanding business in the region. This news came after the company's previous quarterly report showed revenue had increased by 15.9% compared to the same period in the prior year.
After the initial pop the shares cooled down to $50.37, up 1.1% from previous close.
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What Is The Market Telling Us
GXO Logistics’s shares are somewhat volatile and have had 13 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 14 days ago when the stock dropped 2.9% as 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.
GXO Logistics is up 16.9% since the beginning of the year, but at $50.37 per share, it is still trading 20.1% below its 52-week high of $63.01 from October 2024. Investors who bought $1,000 worth of GXO Logistics’s shares at the IPO in July 2021 would now be looking at an investment worth $924.22.
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