3 Stocks Getting Whacked Today

The fact that the Dow Jones Industrial Average is currently down by a negligible 15 points, or 0.11%, is far from indicative of three of its components' woes today.

Shares of Intel are getting absolutely slammed, down more than 6% in midday trading, after the chip maker reported downright abysmal sales figures for the fourth quarter. In a three-month period that's typically its strongest, sales for the company fell by 3% from the year-earlier period and profits declined by a staggering 27%.

The results are due largely to the suffering personal-computer market, which experienced a rare sales decline in 2012 as tablets encroached on their territory. Revenue from Intel's PC client group, which accounts for roughly two-thirds of the company's overall sales, declined by 6%. And to make matters worse, the company forecast a further 6% decline in the current quarter.


In an effort to stem the tide, Intel promulgated designs for a tablet-PC hybrid known as the Ultrabook. According to Intel's outgoing CEO Paul Otellini, "It's no longer necessary to choose between a PC and a tablet." Whether or not this is true remains to be seen.

Beyond Intel, the second-worst-performing stock on the Dow is American Express . Yesterday, the company said that its profit for the fourth quarter fell to $637 million, down from $1.19 billion in the fourth quarter of last year.

While loans increased at the credit card company on a year-over-year basis, its bottom line was hit by a number of charges. Among other things, it loan loss provisions for the quarter rose to $638 million from $409 million in the fourth quarter of 2011. In addition, the company recorded a multimillion-dollar charge related to its decision to cut 5,400 jobs this year in its travel-services business.

Rounding out the top three worst-performing stocks on the Dow today is Bank of America , the nation's second-largest bank by assets. Like Intel and American Express, B of A's woes are related to its earnings release.

For the three months ended Dec. 31, B of A earned a mere $732 million, well south of the roughly $2 billion it earned in the final quarter of 2011. The otherwise disappointing performance resulted from two massive charge-offs to settle legal disputes dating back to the financial crisis. Without those, as I noted elsewhere, it would have been an altogether positive quarter.

The Motley Fool wants to give you a 98.79% chance at beating the market. If you're interested in the best odds in the universe -- including more than a 70% chance at doubling the market's return over the long haul -- here's some very good news for you... Motley Fool Supernova is now open to new members for a limited time! Get instant and free access to learn how you get these kind of market-beating odds by clicking here now

The article 3 Stocks Getting Whacked Today originally appeared on Fool.com.

John Maxfield owns shares of Bank of America and Intel. The Motley Fool recommends American Express and Intel. The Motley Fool owns shares of Bank of America and Intel. 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Increase your money and finance knowledge from home

Bonds for Beginners

Learn about fixed income investments.

View Course »

Understanding Stock Market Indexes

What does it mean when people say "the market is up 2%"?

View Course »

Add a Comment

*0 / 3000 Character Maximum