Watch stocks you care about
The single, easiest way to keep track of all the stocks that matter...
Your own personalized stock watchlist!
It's a 100% FREE Motley Fool service...
The S&P 500 Index (SNPINDEX: ^GSPC ) has now fallen in four of the last five trading days, losing 3.25% of its value over the period. Given its blistering-hot start to the year, the market's cooldown shouldn't dismay or discourage long-term investors: the S&P has still seen 11.3% gains in the last year. That said, shareholders in three S&P components may consider changing their thesis on these stocks altogether.
Flash memory producer SanDisk (NASDAQ: SNDK ) committed a cardinal sin yesterday, announcing that it probably wouldn't be able to fill all its orders this year -- voluntarily. This blase philosophy -- in which SanDisk won't pay for more facilities to meet rising demand for its own product -- put an effective cap on its sales growth going forward, and the stock took a 6.6% shellacking because of it.
Perhaps if SanDisk decides to try a little harder, it could pawn its wares through eBay (NASDAQ: EBAY ) , which could use some business of its own. Shares in the web-based auction site cratered 5.9% Thursday, as Wall Street was disappointed by slowing sales growth. Though 14% revenue growth in a wildly competitive environment like online retail ain't shabby, it's less than half the 29% pace seen a year ago. With PayPal sales growth also easing rapidly, it looks like the company may finally be reaching maturity. That's not necessarily a bad thing, but growth investors are leaving in hordes.
Lastly, homebuilder PulteGroup (NYSE: PHM ) slipped 3.9% Thursday. While it didn't disappoint on earnings -- that won't be possible until next Thursday -- investors are realizing that the rising cost of materials could seriously impact margins. For example, plywood costs more than twice what it did just a year ago, lumber is up 120% from the lows of 2009, and drywall is 40% more expensive than it was last year.
While it may not seem like it after reading about some of the day's worst stocks, profiting from our increasingly global economy can be as easy as investing in your own backyard. The Motley Fool's free report, "3 American Companies Set to Dominate the World," shows you how. Click here to get your free copy before it's gone.