Shares of Carter’s (NYSE: CRI) jumped 16% in June, according to data from S&P Global Market Intelligence , despite a lack of company-specific news. Rather, after plunging more than 20% in May along with the broader market amid trade tensions between the U.S. and both Mexico and China, last month’s gain only partially recouped those losses as trade concerns eased and the broader markets rebounded.
IMAGE SOURCE: GETTY IMAGES.
To be clear, there were no new press releases, analys t report s, or regulatory filings on Carter’s that might otherwise have driven the move. But with the S&P 500 up 7%, the rising tide unsurprisingly lifted most boats that had sank over the previous several weeks.
But while the U.S. and China recently agreed to restart trade talks, there’s no guarantee those talks will be fruitful — and macroeconomic concerns remain. Around the middle of last month, for example, the CEO of the American Apparel & Footwear Association insisted that imposing new tariffs on imported Chinese goods would be a “disaster in the making,” saying that much of the industry — including companies like Carter’s — is “deeply entrenched … with nowhere to go” to reduce costs.
It’s worth noting, however, that China tariffs in their current form aren’t technically hurting Carter’s today. But during the company’s last quarterly conference call in late April, Carter’s Chairman and CEO Michael Casey noted they’re watching the situation closely, as new tariffs could pose a risk, and added they were thankful “the tone of those negotiations [had] improved” at the time.
As such, at least between now and Carter’s second-quarter report toward the end of this month, I suspect Carter’s stock price will remain at the mercy of both broader market movements and global trade developments.
10 stocks we like better than Carter’s
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now… and Carter’s wasn’t one of them! That’s right — they think these 10 stocks are even better buys.
Go to Appearance > Customize > Subscribe Pop-up to set this up.
Wealth Empire Newsletter
Register now for free updates and alerts
Note: I have the ability to revoke this permission at any time and ask for the removal of my personal data collected by contacting us or simply clicking Unsubscribe.