Today's 3 Worst Stocks

If you took a quick glance at today's market, you might think nothing much really happened. The S&P 500 Index (SNPINDEX: ^GSPC  ) gained less than a single point, for crying out loud! Honestly, how much can really transpire on a day when stocks move less than 0.1%? It turns out that quite a lot can transpire, as evidenced by today's three biggest S&P losers, all of which swung violently lower on major news.

The most pronounced decliner of the day was agricultural chemicals player Mosaic (NYSE: MOS  ) , which saw shares crater 17.7% as global markets learned of an impending and previously unexpected glut of potash supply. The supply of potash, a core ingredient in fertilizer, is largely controlled by a Russian cartel. Today, one of the two cartel members, Uralkali, announced that it's going solo; it plans on massively boosting production next year, resulting in a downward push on prices. Sometimes cartels can go rogue, apparently.

Secondly, Xylem (NYSE: XYL  ) shares plummeted 10.3%, as the water treatment company reported disappointing earnings and a weak forecast for the year. The demand for water treatment plunged the most on record, and profits took a nearly 50% hit in the quarter. The company blamed a weak economic environment in Europe and slumping U.S. industrial demand for the anemic results.

Finally, designer accessories behemoth Coach (NYSE: COH  ) shed 7.9% after reporting a weak quarterly report of its own. Same-store sales of locations open at least a year, an important metric in retail, fell 1.7% in North America. Just in case shareholders were still holding any bullish delusions, management was sure to warn Wall Street not to expect better business next year. Oh, and two major executives are leaving after getting stiffed for the CEO job, as the company transitions to new top-level management.

The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.


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

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.

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: 2568254, ~/Articles/ArticleHandler.aspx, 12/28/2014 5:15:24 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...


Advertisement