Shares of contemporary clothing brand Guess (NYSE:GES)
jumped 25.9% in the afternoon session after the company announced it has agreed to be taken private in a $1.4 billion deal. The transaction is a strategic partnership with Authentic Brands Group and a group of existing shareholders, including co-founders Maurice and Paul Marciano and CEO Carlos Alberini.
Stay up-to-date with the latest market trends one hour before the close of the markets on Wednesday. Explore the top gainers and losers during today's session in our detailed report.
Let's have a look at what is happening on the US markets in the middle of the day on Wednesday. Below you can find the top gainers and losers in today's session.
The performance of consumer discretionary businesses is closely linked to economic cycles. Unfortunately, the industry’s recent performance suggests demand may be fading as
discretionary stocks have pulled back by 1.9% over the past six months. This performance was disappointing since the S&P 500 climbed 5.8%.
Value investing has created more billionaires than any other strategy, like Warren Buffett, who built his fortune by purchasing wonderful businesses at reasonable prices.
But these hidden gems are few and far between - many stocks that appear cheap often stay that way because they face structural issues.
A number of stocks jumped in the afternoon session after markets rebounded following a sharp sell-off in the previous trading session as weaker-than-expected U.S. jobs data fueled investor hopes for a potential interest rate cut by the Federal Reserve.
Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings.
However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.
A number of stocks fell in the afternoon session after the latest U.S. consumer confidence report revealed underlying weakness despite a headline increase, raising concerns about future spending. While the Conference Board's headline Consumer Confidence Index rose to 97.2 in July, the details painted a more cautious picture for investors. The Present Situation Index, a measure of consumers' assessment of current business and labor market conditions, actually fell. More telling for the sector, the report showed a decline in buying intentions for major discretionary items such as homes, cars, and most appliances. This combination of factors signals potential weakness in future consumer spending, casting a shadow over companies that rely on non-essential purchases.
While profitability is essential, it doesn’t guarantee long-term success.
Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".
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.
Contemporary clothing brand Guess (NYSE:GES) reported Q1 CY2025 results exceeding the market’s revenue expectations, with sales up 9.4% year on year to $647.8 million. The company expects next quarter’s revenue to be around $760.4 million, close to analysts’ estimates. Its non-GAAP loss of $0.44 per share was 36.2% above analysts’ consensus estimates.
