Bad Stock News for Surfers and Doughnut-Eaters, but Great Auto Sales for America on Tuesday

The three things you need to know on June 4.

Jun 3, 2014 at 11:00PM

We know you're busy prepping your finest maple syrup and Molson brews in preparation for the Stanley Cup finals -- because it's probably going to be more entertaining than Wall Street's Tuesday performance. The Dow Jones Industrial Average (DJINDICES:^DJI) dipped 21 points, despite some interesting corporate earnings and some solid econ data.

1. Quiksilver gets punished after earnings report
Quiksilver, Roxy, and DC are three brands that give you the swag in your California beach town, but they're totally out with Wall Street on Tuesday. Surfing and skateboarding apparel maker Quiksilver  suffered a plain old market beat-down after reporting lower sales and widening losses in its recent quarter.

The stock price fell from $5.80 to $3.41 -- a 41% faceplant. Sales fell from February through April across each of the three brands and 9% overall. Not only did each brand have shrinking sales, but each region of the world suffered compared with last year as well. What's worse is that the loss of $33 million from last year's quarter dove to $46 million in the red this year. 

The takeaway is that the turnaround effort embarked on last year to focus on core brands and reduce costs is not enough. Something must drive sales growth, too. Clearly, consumers aren't buying board shorts and graphic skating tees like they used to, so Wall Street drastically recalculated its expectations of future profits with the 41% devaluation.

2. Spring arrives for car market as May auto sales jump 11%
Car buyers are unfazed by the lukewarm economy and by General Motors' (NYSE:GM) huge recalls. May auto sales in the U.S. were awesome -- an overall jump of 11% from last year. Car-buyers stormed out of their frozen living rooms into the warm spring car lots to buy American. GM sales rose 13%, Ford (NYSE:F) was up 3%, and Chrysler led all with a 17% rise. The lattermost company is owned by Italian Fiat now, but it was boosted by sales of the native American Jeep Cherokee.

General Motors: What recall? Despite revelations that GM cars might turn off mid-joyride (which led to millions upon millions of recalls this year), the car company's reputation appears unfazed. Perhaps consumers don't realize the Chevrolet, Buick, GMC, and Cadillac cars they're buying are the GM brands they hear about in the news -- May sales rose 13% from last year to the best month since August 2008.

Ford's 3% growth was the weakest of the American brands. Sales of the all-important F-150 pickup truck fell from last year by 4%, but the next-generation model is coming soon. It was still Ford's best May since 2004, so both Ford and GM stock rose over 0.6%.

3. Krispy Kreme stock suffers sugar shock
Which is worse for your health: Krispy Kreme doughnuts or Krispy Kreme (NYSE:KKD) stock? After shares of the sweets legend fell 14.8% Tuesday following the company's Monday evening earnings report release, we bet your doctor and your broker would be in agreement -- the company announced a nibble-worthy $121.6 million in first-quarter revenue, which was less than 1% more than the same period last year.

Like Target, Wal-Mart, and other retailers, Krispy Kreme blames the winter weather for deterring customers from coming to its stores, most of which require a car to get to. Although sales at franchised locations gained slightly by 4.5%, sales at non-franchised stores fell 1.5% and international sales dropped 4.5% over the past three months. What's scaring investors further, though, is that Krispy Kreme ain't sugar-coating things, dropping its revenue projections for the rest of the year.

As originally published on

These stocks beat the big banks ...
Here's your chance to pocket big dividends. Over time, dividends can make you significantly richer. And guess what? The big banks are laggards when it comes to paying dividends. So instead of waiting for a dividend windfall that may never come, check out these stocks that are paying big dividends to their investors right now. Click here for the exclusive free report.

Jack Kramer and Nick Martell have no position in any stocks mentioned. The Motley Fool recommends Ford and General Motors and owns shares of Ford. 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.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

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.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

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. It's also featured on several dozen 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 ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.

Compare Brokers