After Market: Unimpressive Earnings Sink Stocks; Bad Day for Best Buy

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Stocks ended Thursday mostly lower, hurt by disappointing earnings news. The Dow Jones industrial average (^DJI) fell 65 points, and the Standard & Poor's 500 index (^GPSC) lost 2, but the Nasdaq composite (^IXIC) added 4 points.
Views Of Best Buy As The Retailer Has Credit Rating Cut To Junk By Standard & Poor's
Bloomberg via Getty Images
Shares of Best Buy (BBY) were clobbered, dropping 29 percent. The retailer said a key measure of sales fell during the key holiday season. The company deeply discounting prices, but that hurt sales numbers. Best Buy stock was one of the market's best gainers last year, but it's off to a rocky start in 2014.

The other monumental loser today was NuSkin (NUS), which tumbled 26 percent. China, which accounts for about half of the company's sales, is investigating whether it operates as a pyramid scheme.

Herbalife (HLF), which has faced down similar charges of being a pyramid operation recently, lost 10 percent, even though its exposure to the Chinese market is not as large.

On the earnings front, UnitedHealth Group (UNH) lost nearly 3 percent, even though earnings topped expectations and enrollments jumped.

In the financial sector, Goldman Sachs (GS) fell 2 percent as earnings fell. Citigroup (C) lost more than 4 percent on weaker than expected results. But Blackrock (BLK), the largest provider of ETFs, gained 1.5 percent. Its net rose and the company hiked its dividend.

The railroad giant CSX (CSX) derailed, losing more than 6 percent as net fell due to lower coal shipments. That dragged down other rail stocks. Norfolk Southern (NSC) fell 4 percent.

In the online world, AOL (AOL) jumped 11 percent after agreeing to spin off and sell a majority stake in its local news network, Patch. (A disclaimer: AOL produces this report.) But Yahoo (YHOO) fell 2 percent after CEO Marissa Mayer fired the chief operating officer just a year after she hired him. And LinkedIn gained 7 percent, after it hired a respected Chinese executive to run its operations in China.

Finally, there's a new clown in charge at the parent company of Chuck E. Cheese. The restaurant/entertainment chain CEC (CEC) gained 13 percent after agreeing to be acquired by Apollo Group.

What to Watch Friday:
  • The Commerce Department releases housing starts for December at 8:30 a.m. Eastern time.
  • The Federal Reserve releases industrial production data for December at 9:15 a.m.
  • The University of Michigan releases its preliminary survey of consumer sentiment at 9:55 a.m.
  • The Labor Department releases job openings and labor turnover survey for November at 10 a.m.
These major companies are due to release quarterly financial statements:
  • Comerica (CMA)
  • General Electric (GE)
  • M&T Bank (MTB)
  • Morgan Stanley (MS)
  • SunTrust Banks (STI)
-Produced by Drew Trachtenberg.


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Iselin007

The Office stores were competing with some of the same tech supplies as the stores selling tech electronics so they were all fighting for similar foot traffic. Seems everyone was trying to chase the same customers. Too much duplication yet mostly cheap crap from unfair trade.

January 16 2014 at 11:25 PM Report abuse rate up rate down Reply
Iselin007

How long do they think they can keep trying to drive the economy with a saturated retail market feeding off a declining middle class ?

January 16 2014 at 11:16 PM Report abuse rate up rate down Reply
jwmgrand

We are going to wake up very soon and be down 1800 points by noon .... massive computer sell programs kicking in for the quick plunge .... everybody ( now ) sees that the King has no clothes on ! ..........no clothes and no earnings ..... many are already in the life boats ... saying ... get me off this sinking ship !

January 16 2014 at 9:45 PM Report abuse -2 rate up rate down Reply
1 reply to jwmgrand's comment
classof68gto

I have been in the market since 1980 and have done very well the entire time. You keep sitting by the sidelines and keep being poor by not investing.

January 17 2014 at 12:47 AM Report abuse rate up rate down Reply
Shirley Johnston

Very interesting. I enjoy very much. Thank you!

January 16 2014 at 9:09 PM Report abuse rate up rate down Reply
i_am_spartacus

BBY went from $9 to $44 if you listened to Cramer when he said "don't buy this stock at $9" or you bought it and didn't take profits then off with your head.

Yes, if you owned this stock yesterday you just got your face ripped off.

January 16 2014 at 7:38 PM Report abuse rate up rate down Reply
SPQR

we need a " The great wall of US" stretching across the whole southern part of the US. Guns mounted every 50 ft operated by game playing sociopathic geeks.

January 16 2014 at 6:04 PM Report abuse +3 rate up rate down Reply
analyst0042

What bad day? Makes my day when my funds increase over $2000. on a "bad day".
It pays to asset allocate your portfolio.

January 16 2014 at 5:32 PM Report abuse -1 rate up rate down Reply
1 reply to analyst0042's comment
classof68gto

Amen. I get a kick out of these people complain about something they know nothing about while us smart investors keep making the money. If more people invested there would be less poor people.

January 17 2014 at 12:48 AM Report abuse rate up rate down Reply