Why These Stocks Are the Biggest Losers of the Day

Updated

With only two of the Dow Jones Industrial Average (INDEX: ^DJI) components in the green, there are plenty of companies to blame for today's 229 point slide. As of 12:30 p.m. EDT, the index is at 13,116, down 1.72%. Again, today's drop can be directly attributed to earnings announcements and the continued uncertainty and fear that the world is sliding into a global slowdown.

Today, 28 of the 30 Dow components are in the red, but some of the biggest losers are 3M (NYS: MMM) , Dupont (NYS: DD) , Chevron (NYS: CVX) , and ExxonMobil (NYS: XOM)

So why are they down?
3M announced earnings this morning, meeting estimates for earnings per share of $1.65 but posting only 7.5 billion in revenue where analysts wanted to see $7.63 billion. But what really sent investors running for the hills was when the company announced that it was cutting back full-year guidance. The company previously said it would make between $6.35 and $6.50 per share, and now that forecast has been revised to $6.35 to $6.27 per share. The stock is the second-biggest loser of the day, down by 3.7%.


DuPont, the Dow component experiencing the biggest drop today, is down an astonishing 8.9% today. The company announced EPS of $0.44 -- below the $0.46 analyst were expecting. However, as with 3M, the real pain came when the company cut full-year guidance. Management is now expecting to make between $3.25 and $3.35 per share, whereas the company had previously set that range from $4.20 to $4.40.

Big Oil is also taking a beating today. Chevron and Exxon Mobil are down 2.9% and 2.15%, respectively, this afternoon. Investors previously had concerns that the world economy is slowing down, but those fears have now been confirmed by a number of companies this earnings season. WTI Crude is down 2.8% today, while Brent Crude moved lower by 1.56%. When worldwide industries slow down, oil consumption slows down, and thus the profits of companies like Chevron and Exxon take a hit.

Foolishly investing
I've said it before, and I'm sure I will say it again: When the market moves lower, start looking to buy. The best buying opportunities are after a big move down; that's when the long-term investors can have their day in the sun. All of the companies above pay healthy dividends, and today you can get those yields on the cheap. But before you go on a buying spree, check out this report, which will give you "9 Solid Dividend Paying Stocks." Don't wait for the market to reprice stocks; get the report today by clicking here.

The article Why These Stocks Are the Biggest Losers of the Day originally appeared on Fool.com.

Matt Thalman has no positions in the stocks mentioned above. The Motley Fool owns shares of ExxonMobil. Motley Fool newsletter services recommend Chevron and 3M Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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