The Dow's 3 Biggest Losers This Week

After a slew of earnings reports, the Dow Jones Industrial Average (INDEX: ^DJI  ) gained 1.6% this week.

But three stocks lagged behind the others:


Weekly Price Change

Wal-Mart (NYSE: WMT  ) (5.5%)
Procter & Gamble (NYSE: PG  ) (4.5%)
Caterpillar (NYSE: CAT  ) (2.9%)

So what's going on with these companies?

Shares plunged afterThe New York Times revealed that the discount retailer had been systematically bribing Mexican officials to speed up approval of new store construction to get an advantage over competitors. The allegations aren't particularly surprising, per se; what makes the 8,000-word piece so damaging is its thorough documentation of the bribes as well as the cover-up that seemed to extend up through the highest reaches of Wal-Mart management and how vital Wal-Mart's Mexican operations have been to its growth.

Procter & Gamble
P&G reported a 16% decline in its net income, which wasn't actually as bad as analysts had expected. But investors are more concerned about the company's prediction that weak growth in developed economies, Venezuelan-mandated price cuts, and rising costs could pressure full-year earnings.

Caterpillar reported a 29% surge in earnings, in large part because of its acquisition of Bucyrus. Although that topped analyst forecasts, it wasn't enough for investors. Weakness in the market for construction equipment in Brazil and China meant that Cat sales came in lower than analysts had expected.

Wal-Mart, P&G, and Caterpillar were the worst performers this week, but it's important for us to remember that it's long-term performance, not daily price fluctuations, that ultimately matter to investor returns. If you're interested in one stock that our chief investment officer picked to crush the market over the long haul, check out our brand-new report, "The Motley Fool's Top Stock for 2012." It highlights a company that is revolutionizing commerce in Latin America. For a limited time, you can get instant access to the name of this company -- and it's free

Ilan Moscovitz doesn't own shares of any company mentioned. You can follow him on Twitter, where he goes by @TMFDada. Motley Fool newsletter services have recommended buying shares of Procter & Gamble. Motley Fool newsletter services have recommended creating a diagonal call position in Wal-Mart Stores. The Motley Fool has a disclosure policy. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (0) | Recommend This Article (16)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1874191, ~/Articles/ArticleHandler.aspx, 5/31/2016 8:09:44 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 17,787.20 -86.02 -0.48%
S&P 500 2,096.96 -2.10 -0.10%
NASD 4,948.06 14.55 0.29%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

5/31/2016 4:49 PM
^DJI $17787.20 Down -86.02 -0.48%
CAT $72.51 Up +0.55 +0.76%
Caterpillar, Inc. CAPS Rating: ***
PG $81.04 Down -0.39 -0.48%
Procter & Gamble CAPS Rating: ****
WMT $70.78 Up +0.03 +0.04%
Wal-Mart Stores CAPS Rating: ***