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:
- Agricultural Machinery company The Toro Company (NYSE: TTC) fell 3.2%. Is now the time to buy The Toro Company? Access our full analysis report here, it’s free.
- Construction and Maintenance Services company Primoris (NYSE: PRIM) fell 3.2%. Is now the time to buy Primoris? Access our full analysis report here, it’s free.
- Electrical Systems company Thermon (NYSE: THR) fell 2.7%. Is now the time to buy Thermon? Access our full analysis report here, it’s free.
- Electrical Systems company Kimball Electronics (NASDAQ: KE) fell 3.2%. Is now the time to buy Kimball Electronics? Access our full analysis report here, it’s free.
- Home Builders company Champion Homes (NYSE: SKY) fell 3.2%. Is now the time to buy Champion Homes? Access our full analysis report here, it’s free.
Zooming In On The Toro Company (TTC)
The Toro Company’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be 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 4.8% on the news that it received analyst upgrades from both DA Davidson and Longbow Research. DA Davidson raised its rating on the lawn care equipment manufacturer to Buy from Neutral, setting a price target of $93. The firm cited several positive factors, including strong late-spring sales according to dealer data and favorable trends in the company's residential segment. Additionally, a DA Davidson survey of golf courses suggests a promising 2025 season for Toro. Separately, Longbow Research also upgraded the stock to Buy from Neutral, assigning a higher price target of $100. The upgrades reflect a more positive outlook on improving market conditions ahead of Toro's upcoming earnings call next week.
The Toro Company is down 0.2% since the beginning of the year, and at $78.89 per share, it is trading 10.8% below its 52-week high of $88.44 from December 2024. Investors who bought $1,000 worth of The Toro Company’s shares 5 years ago would now be looking at an investment worth $967.62.
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