Monday was an overall positive day for the stock market, through major benchmarks saw different reactions to events during the trading session. The Dow Jones Industrials posted solid gains to set another record, but moves for broader market benchmarks weren't quite as unambiguously positive. Investors were generally pleased at the prospect that the Federal Reserve will hold off until at least December before pushing interest rates higher, especially given the catastrophic effects of Hurricanes Harvey and Irma. Yet some stocks reacted negatively to this and other concerns. Teva Pharmaceutical Industries (NYSE:TEVA), Pier 1 Imports (OTC:PIRRQ), and Kinross Gold (NYSE:KGC) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.
Teva sinks despite making a deal
Shares of Teva Pharmaceutical Industries fell 6% in the wake of the company making a strategic deal. The drugmaker said that it would sell its specialty global women's health business for $1.38 billion, with one private equity company buying out Teva's contraception, fertility, menopause, and osteoporosis assets for $703 million, while a second entity will spend $675 million for various emergency contraceptive products. Interim CEO Yitzhak Peterburg noted that the deal will bring the total cash available for the Teva's use to more than $2 billion, topping expectations among those following the company's strategic plans. The move will allow Teva to refocus on other parts of its business, and bullish investors hope that Teva will therefore be able to recover fully from its recent slump.
Pier 1 rides the waves up and down
Pier 1 Imports stock dropped over 9.5%, giving back much of the gains the home furnishings retailer had made late last week. Pier 1 has been extremely volatile over the course of the past year, suffering from the same comparable-sales declines and overall revenue and earnings weakness that have pervaded much of the broader retail industry. New management is working hard to start a turnaround story, but the challenges of e-commerce competition and tougher economic conditions could hurt Pier 1. Investors will learn a lot next week when Pier 1 announces its earnings for the most recent quarter and reveals some of its longer-term strategy.
Kinross' shine gets dulled
Finally, shares of Kinross Gold sank 6%. The gold mining company suffered from the yellow metal's price doldrums, as gold bullion fell about $13 to $1,307 per ounce. Overall, Kinross has done a good job lately, reducing its production costs while finding ways to ramp up throughput at the same time. But some investors are nervous about capital projects, and Kinross said that it would move forward with a couple of expansion projects that will require further capital expenditures. That's fine if gold prices stay stable or rise, but on days like this when gold is weak, investors in Kinross need to be prepared for stormy seas.