What Happened?
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025.
Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand.
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:
- Sit-Down Dining company Kura Sushi (NASDAQ: KRUS) jumped 6.2%. Is now the time to buy Kura Sushi? Access our full analysis report here, it’s free.
- Sit-Down Dining company BJ's (NASDAQ: BJRI) jumped 5%. Is now the time to buy BJ's? Access our full analysis report here, it’s free.
- Sit-Down Dining company Red Robin (NASDAQ: RRGB) jumped 6.6%. Is now the time to buy Red Robin? Access our full analysis report here, it’s free.
- Apparel and Accessories company Tapestry (NYSE: TPR) jumped 5.5%. Is now the time to buy Tapestry? Access our full analysis report here, it’s free.
- Broadcasting company E.W. Scripps (NASDAQ: SSP) jumped 7%. Is now the time to buy E.W. Scripps? Access our full analysis report here, it’s free.
Zooming In On E.W. Scripps (SSP)
E.W. Scripps’s shares are extremely volatile and have had 92 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 biggest move we wrote about over the last year was 8 months ago when the stock gained 24.1% on the news that the company announced that it would end its 24/7 national news broadcast service after November 15, 2024, due to challenges hitting its revenue target from linear television.
The business planned to focus on digital and streaming platforms. While the move means SSP would scale back its reach in the short term (with over 200 job cuts expected), the stock's reaction suggested the market liked the decision to capitalize on more promising growth opportunities.
E.W. Scripps is down 10.5% since the beginning of the year, and at $2.25 per share, it is trading 41.7% below its 52-week high of $3.87 from July 2024. Investors who bought $1,000 worth of E.W. Scripps’s shares 5 years ago would now be looking at an investment worth $239.60.
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