Today's 3 Worst Stocks
Wednesday marked the fourth straight day of gains for the S&P 500 Index , which added 8 points, or 0.5%, to end at an all-time record close, 1,658. Of course, if you've been following the S&P, this is just more of the same news; the index has hit highs nine times in the past 10 trading days. Today's gains stemmed from sentiment that the Federal Reserve will continue its efforts to stimulate the economy.
IT and outsourcing company Computer Sciences slipped 9.7% Wednesday after its quarterly report. In its most recent quarter, the company far exceeded its earnings expectations -- the EPS of $1.28 blew the consensus $0.98 estimate away. But revenue came in about $140 million lower than what analysts were looking for, as sales fell 10%.
Metals and materials company Cliffs Natural Resources dropped 5.8% today, logging its second straight day as a major S&P decliner. The stock has been an absolute nightmare this year, with shares falling 45% in 2013 alone. One reason Cliffs has been losing steam is signs of decelerating growth in China, the world's second largest economy and a vital source of demand for materials and commodities.
Lastly, Apple , the second-largest public company in the world, slumped 3.4% on a flurry of bad news. Reports surfaced that an Apple executive will have to testify before the Senate next week on its tax practices, which have been criticized before. The company has more than $40 billion in earnings abroad yet to be repatriated because of the nearly $14 billion it would owe if it did. The second catalyst driving the stock lower was news that David Tepper -- the hedge fund manager whose words moved markets yesterday -- decreased his fund's Apple holdings by 40% in the first quarter.
There's no doubt that Apple is at the center of technology's largest revolution ever and that longtime shareholders have been handsomely rewarded, with more than 1,000% gains. However, there is a debate raging as to whether Apple remains a buy. The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on reasons to buy and reasons to sell Apple and what opportunities are left for the company (and your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.
The article Today's 3 Worst Stocks originally appeared on Fool.com.Fool contributor John Divine owns shares of Apple. You can follow him on Twitter @divinebizkid and on Motley Fool CAPS @TMFDivine.The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. 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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