The 3 Worst Dow Stocks This Week

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Earnings season is in full swing, and a number of disappointing reports pushed big-name stocks lower this week. Giants IBM (NYSE: IBM  ) , Coca-Cola (NYSE: KO  ) , and McDonald's (NYSE: MCD  ) were the Dow Jones Industrial Average's (INDEX: ^DJI  ) biggest losers, but somehow the index squeaked out a small gain for the week. The Dow was up 15 points, or 0.1%, and the S&P 500 (INDEX: ^GSPC  ) gained 5 points, or 0.3% on the week.

IBM was the most disappointing stock after posting a big earnings miss. Revenue fell 5% to $24.75 billion, which was much worse than expectations. Earnings per share grew slightly to $3.33, but the consensus estimate was $3.61 and the stock fell 6.9% for the week.  The stock fell 6.9%, and its heavy weighting on the Dow held the index back this week.

McDonald's fell 4.1% after reporting an earnings miss as well. Third-quarter same-store-sales growth of 1.4% in Asia, the Middle East, and Africa of 1.4% was disappointing and limited the company's overall growth. Earnings of $1.32 per share were $0.04 short of estimates.  

Coca-Cola dropped 2.2% after reporting that third-quarter revenue that rose just 1% to $12.34 billion. The result was slightly worse than expectations. Coke continued a theme of weak results by multinational companies that were hit by the strong dollar. When the dollar rises, it makes international sales appear lower, and both revenue and income take a hit as a result.  

There was also a strange event this week. Google (Nasdaq: GOOG  ) accidentally released earnings a few hours early on Thursday, sending the market into a panic. Results were much worse than expected, and the stock fell nearly 10% after the release.

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Fool contributor Travis Hoium has no positions in the stocks mentioned above. The Motley Fool owns shares of Google, IBM, and McDonald's. Motley Fool newsletter services recommend Google, IBM, Coca-Cola, and McDonald's. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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  • Report this Comment On October 20, 2012, at 5:36 PM, USIRIUS wrote:

    This guy shorts stocks for a living and is basically behaving in a way that borderlines illegal activity. I hope he does not plan to short any KO this week or he will be reported for the SEC.

    Do not belive this bs. The 10,20, & 50 moving averages point to this stock going up on Monday. Do a historical check on when KO when it has been 37 mid and there is always gets a good bounce.

    Worst stock to own this week. That's why everyone will buying this stock this week.

    This stock will be at 39.00 in no time.

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Related Tickers

10/21/2016 4:20 PM
^DJI $18145.71 Down -16.64 -0.09%
^GSPC $2141.16 Down -0.18 -0.01%
S&P 500 INDEX CAPS Rating: No stars
IBM $149.63 Down -1.89 -1.25%
IBM CAPS Rating: ****
KO $42.13 Up +0.20 +0.48%
Coca-Cola CAPS Rating: ****
MCD $113.93 Up +3.36 +3.04%
McDonald's CAPS Rating: ***