Today’s 3 Worst Stocks in the S&P 500

From miners to steel behemoths to tech innovators, these three stocks weren't immune from broad selloffs o Thursday

Jan 9, 2014 at 8:02PM

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

"Another day, another negligible swing in the stock market," is what I always say. The phrase, sadly, has never caught on, and is routinely ignored in favor of trite expressions like, "Another day, another dollar," word vomit such as, "A penny saved is a penny earned," and downright lies in the form of, "I'll gladly pay you Tuesday for a hamburger today."

Yet, negligible swings in the stock market, over a long period of time, are arguably a stronger force than even Wimpy's spinach-addicted pal Popeye. If the S&P 500 Index (SNPINDEX:^GSPC) had ticked up by just 0.1% each day of trading in 2013, it would be sitting at nearly 28.6% gains come New Year's Day, 2014. In reality, the S&P was up 29.6% last year. But the point remains: Don't ignore small, compounded gains -- like today's -- because they add up. The S&P added 0.6 points, or 0.03%, to end at 1,838 on Thursday. It could be the start of something great. 

If this was the beginning of something great for Cliffs Natural Resources (NYSE:CLF), the stock showed no signs of it, shedding 6.5% Thursday. The company mines for iron ore and coal, and with bad little boys and girls across the globe selling their Christmas stashes on the unregulated black market, Cliffs needs to assert itself before young Timmy parlays his sins into an unstoppable energy empire. In all seriousness, though, Cliffs Natural sells iron ore to steel producers in Asia and, with a recent movement by Chinese industry to focus on efficiency and the environment, the country is ratcheting down its steel production.

While the Pittsburgh-based United States Steel (NYSE:X) adheres to its proud name by marketing steel domestically, it also sells the alloy in Europe. And while it is avoiding the direct fallout of China's ebbing appetite, United States Steel stock still lost 4.4% today. Just days ago, investment bank UBS downgraded U.S. Steel stock in favor of competitors that utilize the so-called "mini-mill" production technology, which tends to have lower input costs. Analysts aside, with slow recoveries under way in both the U.S. and Europe, don't write off this stock just yet. Incremental gains add up, remember?

Lastly, chip maker NVIDIA (NASDAQ:NVDA) dropped 3.7% today, also in reaction to a sour analyst outlook. Canaccord Genuity downgraded shares from buy to hold, emphasizing how totally unimpressed it was with NVIDIA's performance at the Consumer Electronics Show. Yes, Canaccord Genuity analysts, who stare at cash flow statements and amortization tables from dusk to dawn, are apparently bored to death with NVIDIA's whole "Tegra" project -- you know, the system on a chip that could take graphics on mobile devices to places we've never known? Yeah, yawn. Personally, I think there's an enthusiastic market dying to use products like this: ones that allow for great gaming graphics to be enjoyed on mobile devices.

Crush the market with these six picks for ultimate growth
They said it couldn't be done. But David Gardner has proved them wrong, time, and time, and time again, with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market, and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

Fool contributor John Divine has no position in any stocks mentioned. You can follow him on Twitter @divinebizkid and on Motley Fool CAPS @TMFDivine.

The Motley Fool recommends Nvidia. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers