Today's 3 Worst Stocks in the S&P 500

Wall Street analysis, search engine tactics send these 3 lower in the stock market today.

Jan 21, 2014 at 7:01PM

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.

As the Eastern U.S. braced for more inclement winter weather, stocks edged mostly higher on Tuesday. This week is remarkably light on economic reports, with Thursday's jobless claims numbers, manufacturing data, and existing home sales constituting the bulk of what investors will look to as leading indicators. Of course, earnings season is now under way, and Wall Street will be keeping a close eye on corporate America's financial health as results are released. The S&P 500 Index (SNPINDEX:^GSPC) began its shortened week by adding 5 points, or 0.3%, to end at 1,843.

None of today's three unfortunate stocks announced earnings today, which makes their declines all the more notable. Cliffs Natural Resources (NYSE:CLF), for instance, doesn't report earnings until Feb. 13, but its shares shed 5% Tuesday as Goldman Sachs issued a forecast calling for falling metals prices. Specifically, Goldman thinks steel prices are headed off a cliff as demand from China slows and Asia's growth in the last decade is seen to be anomalistic. Although Cliffs Natural Resources doesn't exactly produce steel, it mines for the essential components of steel, which makes it just as vulnerable to the steel market. 

Shares in the online travel site Expedia (NASDAQ:EXPE) slumped 4.3% Tuesday in the wake of what appears to be a backlash from Google. The success of companies like Expedia rely largely on Internet searches for common phrases customers might search in attempting to book travel arrangements. Expedia's recent search traffic from such keywords is sharply down, a trend the website SearchEngineLand proposed yesterday was Google's retribution for Expedia's use of sketchy "link building" tactics the site used. Bottom line: Expedia's business may suffer as Google temporarily pushes the site's results to lower positions in its search rankings. 

Lastly, shares of United States Steel (NYSE:X) lost 2.7% Tuesday. The acute reader will remember that Goldman Sachs, upon consulting its crystal ball, kindly gave heed of a stagnant market for the future of steel. Curiously, Cliffs Natural Resources actually fell more than United States Steel did today, although in fairness coal has been going through some problems of its own recently. U.S. Steel also ended as one of the worst performers last Friday, when Citigroup noted the stock's six-month run-up and implied shares were currently overvalued. 

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4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.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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