Today's 3 Worst Stocks
Jan 23rd 2013 7:15PM
Updated Jan 23rd 2013 9:15PM
Less than 5% from its all-time high, the S&P 500 Index rose 2.25 points, or 0.15% today, to close at 1,494. Before January has even ended, the benchmark index is up nearly 5% for the year already. Despite the run-up, many stocks have enjoyed thus far, not every company is thriving, and today's three big S&P losers exemplify that fact rather well.
While luxury retail has had a nice run in the past few years, Coach's performance today shows that investors are worrying about the future growth in that market. Not only did quarterly results fall below expectations, but the numbers revealed a far graver trend at work: comparable store sales fell, and the U.S. market began to look more saturated than previously thought. This is a double whammy for Coach, which will need to grow sales in its current stores before building a bunch of unproven new ones.
The second big loser of the day shows just how quickly sentiment can turn on Wall Street. Seagate Technology and its 3.4% decline made headlines today, just a day after the stock was one of the market's best performers, rising 7.1%. The disk drive maker reports quarterly results Monday, and investors are gauging what those will look like. Competitor Western Digital announced its own earnings after hours today, giving a better idea about what to expect from Seagate next week.
Mining company Cliffs Natural Resources , which has twice been downgraded since December, fell 3.2% today to round out the list of laggards. While there wasn't any major news from Cliffs, the business' overreliance on just a handful of customers for the bulk of its business is disconcerting, and is one of a few different things to watch for when Cliffs reports its quarterly results on Feb. 11.
The article Today's 3 Worst Stocks 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 Coach. The Motley Fool owns shares of Coach and Western Digital.. 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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