Big-Name Stocks Tanking Today
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Following a number of terrible quarterly results by retailers, the Dow Jones Industrial Average may finally break its six-day losing streak. As of 12:45 p.m. EDT the index is up by 59 points, or 0.4% while the S&P 500 is up 0.71% and the Nasdaq has risen 0.87%.
The big losers
Hewlett-Packard is down 11.8% today after the company reported disappointing earnings after yesterday's closing bell. Not only did HP report weaker-than-expected results for the quarter, but CEO Meg Whitman told investors that the company would not see revenue growth in 2014. That comment, and the fact that nearly every unit of HP's business is performing poorly, has investors selling the stock off today. Just a few days ago, HP was up more than 90% for 2013. That gain has since been reduced to 55%. Investors should be cautious if they're thinking about buying this company as it gets cheaper.
Retailers Abercrombie & Fitch and Sears are also having bad days: Shares of Abercrombie are down a crushing 18%, and Sears has lost 8.3%, after each company reported earnings this morning.
Abercrombie missed on both the top and bottom lines, which many blame on an inability to keep up with the changing tastes of young shoppers. The company had to deeply discount merchandise during the quarter, and it generated about half the profit it had forecast. Retailers that focus on a younger generation always need to stay on top of the latest trends, and one misstep can lead a company into big trouble, like we're seeing today.
Due to weak sales, deep discounts, and a lower number of stores, Sears posted a widening second-quarter loss. For the quarter the company lost $1.83 per share, compared with a loss of $1.25 per share last year, as revenue declined 6% from $9.47 billion to $8.87 billion. Things just keep getting worse and worse for Sears, and I have a hard time finding anything good about the company. Even as some value investors say there is money to be made from the property the company owns, I would argue that there's more money to be made by owning a better company with less risk involved.
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The article Big-Name Stocks Tanking Today originally appeared on Fool.com.Fool contributor Matt Thalman has no position in any stocks mentioned. Check back Monday through Friday as Matt explains what caused the Dow's winners and losers of the day, and every Saturday for a weekly recap. Follow Matt on Twitter @mthalman5513. The Motley Fool has no position in any of the stocks mentioned. 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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