What Happened?

A number of stocks fell in the morning session after a surprisingly weak U.S. jobs report was released, fueling concerns about a slowing economy. 

The U.S. economy added only 73,000 jobs, falling significantly short of economists' expectations, while figures for May and June were revised down, erasing 258,000 previously reported jobs. The professional and business services industry itself shed 14,000 jobs. This data points to a cooling labor market, fueling concerns of a slowing economy. A weaker economic outlook often leads to reduced corporate spending on key services like IT consulting and professional staffing, which directly impacts the sector's revenue and growth prospects. The report immediately increased investor expectations of an interest rate cut by the Federal Reserve.

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:

• Specialized Technology company Cognex (NASDAQ: CGNX) fell 3.2%. Is now the time to buy Cognex? Access our full analysis report here, it’s free.
• Digital Media & Content Platforms company Rumble (NASDAQ: RUM) fell 3.4%. Is now the time to buy Rumble? Access our full analysis report here, it’s free.
• Industrial & Environmental Services company CECO Environmental (NASDAQ: CECO) fell 3%. Is now the time to buy CECO Environmental? Access our full analysis report here, it’s free.
• Electronic Components & Manufacturing company Jabil (NYSE: JBL) fell 3.2%. Is now the time to buy Jabil? Access our full analysis report here, it’s free.
• Government & Technical Consulting company Jacobs Solutions (NYSE: J) fell 3%. Is now the time to buy Jacobs Solutions? Access our full analysis report here, it’s free.

Zooming In On Rumble (RUM)

Rumble’s shares are extremely volatile and have had 55 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.

Rumble is down 34% since the beginning of the year, and at $8.19 per share, it is trading 49.7% below its 52-week high of $16.27 from December 2024.

Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.