What Happened?
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +1.5%, S&P 500 +1.0%) as reports pointed to easing tensions between Israel and Iran.
The Wall Street Journal said senior Iranian officials had signaled a willingness to restart stalled nuclear talks, on the condition that Washington refrain from joining Israel's ongoing strikes. This development triggered a significant decline in oil prices, easing inflation concerns.
Also, it is possible some investors were buying the dip following the sell-off at the end of the previous week.
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:
- Online Marketplace company The RealReal (NASDAQ: REAL) jumped 5.3%. Is now the time to buy The RealReal? Access our full analysis report here, it’s free.
- Travel and Vacation Providers company Carnival (NYSE: CCL) jumped 6.2%. Is now the time to buy Carnival? Access our full analysis report here, it’s free.
- Genomics & Sequencing company PacBio (NASDAQ: PACB) jumped 14%. Is now the time to buy PacBio? Access our full analysis report here, it’s free.
- Waste Management company Quest Resource (NASDAQ: QRHC) jumped 5%. Is now the time to buy Quest Resource? Access our full analysis report here, it’s free.
- Specialty Equipment Distributors company Hudson Technologies (NASDAQ: HDSN) jumped 7.8%. Is now the time to buy Hudson Technologies? Access our full analysis report here, it’s free.
Zooming In On PacBio (PACB)
PacBio’s shares are extremely volatile and have had 87 moves greater than 5% over the last year. But moves this big are rare even for PacBio and indicate this news significantly impacted the market’s perception of the business.
PacBio is down 23.9% since the beginning of the year, and at $1.37 per share, it is trading 48.3% below its 52-week high of $2.65 from November 2024. Investors who bought $1,000 worth of PacBio’s shares 5 years ago would now be looking at an investment worth $370.27.
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