What Happened?
A number of stocks jumped in the afternoon session after the major indices rebounded, as the Bureau of Labor Statistics report revealed a resilient labor market with non-farm payrolls rising by 139,000 in May 2025, significantly above the consensus forecast of 125,000.
Notably, a stable labor market often supports consumer spending, which is a key driver of economic growth, which means the report could help ease some of the recession fears that gripped markets. The data also supports the soft landing narrative, where the Fed can manage inflation toward its 2% target without significant damage to the economy.
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:
- Gaming Solutions company DraftKings (NASDAQ: DKNG) jumped 6.2%. Is now the time to buy DraftKings? Access our full analysis report here, it’s free.
- Online Marketplace company Teladoc (NYSE: TDOC) jumped 5.7%. Is now the time to buy Teladoc? Access our full analysis report here, it’s free.
- Gaming Solutions company Rush Street Interactive (NYSE: RSI) jumped 5.9%. Is now the time to buy Rush Street Interactive? Access our full analysis report here, it’s free.
- Therapeutics company Moderna (NASDAQ: MRNA) jumped 5.1%. Is now the time to buy Moderna? Access our full analysis report here, it’s free.
- Ground Transportation company Avis Budget Group (NASDAQ: CAR) jumped 5.8%. Is now the time to buy Avis Budget Group? Access our full analysis report here, it’s free.
Zooming In On DraftKings (DKNG)
DraftKings’s shares are very volatile and have had 20 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 dropped 7% on the news that the state of Illinois announced new legislation that introduces additional fees for online sports betting operators. The new fee structure is expected to significantly increase the tax rate for major players like DraftKings in Illinois, potentially reducing their profitability.
DraftKings is down 1.4% since the beginning of the year, and at $35.79 per share, it is trading 33.1% below its 52-week high of $53.49 from February 2025. Investors who bought $1,000 worth of DraftKings’s shares 5 years ago would now be looking at an investment worth $941.84.
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