What Happened?
A number of stocks jumped in the afternoon session after a new trade agreement between the United States and Japan spurred a broad market rally.
The positive sentiment swept across markets after it was announced the U.S. and Japan had reached a new trade deal. The agreement included a 15% tariff on Japanese goods imported into the U.S. and a commitment from Japan to invest $550 billion in the U.S. and open its markets to American cars and agricultural products. This development boosted investor confidence and contributed to a widespread rally, lifting stocks across many sectors. The Dow Jones Industrial Average and the S&P 500 both posted gains, creating a favorable environment that likely benefited individual stocks.
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 G-III (NASDAQ: GIII) jumped 3.4%. Is now the time to buy G-III? Access our full analysis report here, it’s free.
- Building Materials company Tecnoglass (NYSE: TGLS) jumped 3.2%. Is now the time to buy Tecnoglass? Access our full analysis report here, it’s free.
- Construction and Maintenance Services company MYR Group (NASDAQ: MYRG) jumped 3.1%. Is now the time to buy MYR Group? Access our full analysis report here, it’s free.
- Electronic Components & Manufacturing company Jabil (NYSE: JBL) jumped 3.3%. Is now the time to buy Jabil? Access our full analysis report here, it’s free.
- Dental Equipment & Technology company Dentsply Sirona (NASDAQ: XRAY) jumped 3.2%. Is now the time to buy Dentsply Sirona? Access our full analysis report here, it’s free.
Zooming In On G-III (GIII)
G-III’s shares are quite volatile and have had 15 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 gained 3.2% on the news that 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.
G-III is down 24.2% since the beginning of the year, and at $24.28 per share, it is trading 32.7% below its 52-week high of $36.10 from December 2024. Investors who bought $1,000 worth of G-III’s shares 5 years ago would now be looking at an investment worth $2,051.
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