Today's 3 Worst Stocks in the S&P 500
Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.
With a new era of Federal Reserve policy possibly in the air, Wall Street sold off on Tuesday as investors showed what they truly think about the possibility of a December taper. Given last week's exemplary jobs numbers, there's reason to believe the central bank could begin reining in its loose money policies as soon as next week. The benchmark S&P 500 Index lost five points, or 0.3%, to end at 1,802 on Tuesday.
The $111 billion biotech behemoth Gilead Sciences was one of the index's most pronounced losers today, with shares shedding 3.2% in trading. The losses, which came on heavy volume, came as drug benefits manager Express Scripts expressed its willingness to examine competitors to Gilead's new hepatitis C treatment in an effort to bring down costs. Gilead's Sovaldi may be too expensive for Express Scripts to endorse for reimbursement if it goes to market for $1,000 a pill.
Elsewhere, Starbucks stock was feeling the hurt from high expectations on Tuesday, as shares tumbled 3%. Preliminary numbers from ITG Research put sales at company-owned stores around $2.8 billion in the current quarter, a figure that, if accurate, would fall slightly short of expectations. Starbucks stock has been on fire in 2013, gaining 44%. Obviously, growth is what's keeping this stock alive, and even though international expansion remains a big part of the story, the U.S. remains the company's biggest market and a vital part of its financial success.
Oil and gas exploration company Newfield Exploration continued to see fallout from its production outlook for 2014, dropping 2.6% Tuesday. While Newfield sees liquids production growing by 20% a year over the next three years, that's apparently not enough growth for investors in the $3 billion energy company. Natural gas is a massive area of opportunity for investors in the U.S. energy renaissance, and competition is rather stiff, which means 20% a year isn't the best growth on the block.
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The article Today's 3 Worst Stocks in the S&P 500 originally appeared on Fool.com.Fool contributor John Divine has no position in any stocks mentioned. You can follow him on Twitter @divinebizkid and on Motley Fool CAPS @TMFDivine.The Motley Fool recommends Gilead Sciences. It recommends and owns shares of Express Scripts and Starbucks. 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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