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:
- Renewable Energy company Sunrun (NASDAQ:RUN) fell 5.9%. Is now the time to buy Sunrun? Access our full analysis report here, it’s free.
- Home Construction Materials company JELD-WEN (NYSE:JELD) fell 4.9%. Is now the time to buy JELD-WEN? Access our full analysis report here, it’s free.
- Engineered Components and Systems company NN (NASDAQ:NNBR) fell 4.4%. Is now the time to buy NN? Access our full analysis report here, it’s free.
- Building Materials company Sherwin-Williams (NYSE:SHW) fell 4.4%. Is now the time to buy Sherwin-Williams? Access our full analysis report here, it’s free.
- Home Builders company D.R. Horton (NYSE:DHI) fell 3.9%. Is now the time to buy D.R. Horton? Access our full analysis report here, it’s free.
Zooming In On Sunrun (RUN)
Sunrun’s shares are extremely volatile and have had 77 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 4 days ago when the stock gained 10.2% on the news that the stock rebounded following several positive analyst actions and favorable sector-wide news. RBC Capital upgraded the stock to "Outperform" from "Sector Perform," and Wells Fargo raised its price target, with both citing increased clarity on long-term opportunities following recent U.S. Treasury guidance. GLJ Research also upgraded its rating on the company. This guidance appears to be a key factor, with analysts noting it's favorable for the residential solar sector. Adding to the positive sentiment for renewable energy, India announced it was more than halving its goods and services tax on related equipment, including solar panels, from 12% to 5%, shoring up the industry.
Sunrun is up 55.8% since the beginning of the year, but at $15.91 per share, it is still trading 21.7% below its 52-week high of $20.31 from September 2024. Investors who bought $1,000 worth of Sunrun’s shares 5 years ago would now be looking at an investment worth $288.02.
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