What Happened?
A number of stocks fell in the afternoon session as the broader market tumbled in the morning session after a surprisingly weak U.S. jobs report and the announcement of new, widespread tariffs on imported goods. The U.S. economy added only 73,000 jobs in July, falling far short of the 109,000 forecast. Compounding the issue, job gains for May and June were revised down by a combined 258,000, signaling what some see as “increasing signs of fragility” in the labor market. Simultaneously, the White House announced new tariffs, ranging from 10% to 41%, on goods from 92 countries. This “double whammy” of negative news has intensified fears that ongoing trade wars are damaging the U.S. economy. The combination of a weaker labor market and new trade barriers has rattled investor confidence, fueling expectations that the Federal Reserve may be forced to cut interest rates to support 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:
- Department Store company Macy's (NYSE: M) fell 3.2%. Is now the time to buy Macy's? Access our full analysis report here, it’s free.
- Discount Retailer company Ollie's (NASDAQ: OLLI) fell 4.7%. Is now the time to buy Ollie's? Access our full analysis report here, it’s free.
- Home Furniture Retailer company Arhaus (NASDAQ: ARHS) fell 3.5%. Is now the time to buy Arhaus? Access our full analysis report here, it’s free.
- Home Furniture Retailer company Sleep Number (NASDAQ: SNBR) fell 3.1%. Is now the time to buy Sleep Number? Access our full analysis report here, it’s free.
- Beauty and Cosmetics Retailer company Bath and Body Works (NYSE: BBWI) fell 3.1%. Is now the time to buy Bath and Body Works? Access our full analysis report here, it’s free.
Zooming In On Ollie's (OLLI)
Ollie’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 15 days ago when the stock gained 3.4% on the news that the company announced the grand opening of its 600th store and benefited from a broader market rally fueled by strong U.S. economic data. The company marked a significant milestone by opening a new location in Belmont, New Hampshire, expanding its footprint to 34 states. This expansion is a positive signal of the company's growth strategy and its ability to increase its national presence. Adding to the positive sentiment, the stock was lifted by a favorable macroeconomic backdrop. New economic reports showed an unexpected increase in U.S. retail sales and a drop in weekly unemployment claims, easing concerns about a potential recession. This news is particularly encouraging for consumer discretionary companies like Ollie's, as it suggests shoppers remain confident and willing to spend, which can drive higher foot traffic and sales.
Also, 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.
Ollie's is up 26.3% since the beginning of the year, and at $136.73 per share, it is trading close to its 52-week high of $139.34 from July 2025. Investors who bought $1,000 worth of Ollie’s shares 5 years ago would now be looking at an investment worth $1,324.
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