What Happened?

A number of stocks jumped in the afternoon session after the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium. 

Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.

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:

• Marine Transportation company Kirby (NYSE: KEX) jumped 3.3%. Is now the time to buy Kirby? Access our full analysis report here, it’s free.
• Aerospace company Textron (NYSE: TXT) jumped 3.4%. Is now the time to buy Textron? Access our full analysis report here, it’s free.
• General Industrial Machinery company Dover (NYSE: DOV) jumped 3.3%. Is now the time to buy Dover? Access our full analysis report here, it’s free.
• Professional Tools and Equipment company Fortive (NYSE: FTV) jumped 3.4%. Is now the time to buy Fortive? Access our full analysis report here, it’s free.
• Inspection Instruments company Itron (NASDAQ: ITRI) jumped 3%. Is now the time to buy Itron? Access our full analysis report here, it’s free.

Zooming In On Textron (TXT)

Textron’s shares are not very volatile and have only had 8 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.

Textron is up 8.1% since the beginning of the year, but at $81.95 per share, it is still trading 10.1% below its 52-week high of $91.20 from August 2024. Investors who bought $1,000 worth of Textron’s shares 5 years ago would now be looking at an investment worth $2,086.

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