Monday was a good day for the stock market, as the Dow Jones Industrials hit another record high and major market benchmarks were generally up modestly. Despite several tragic events in the news, market participants still felt optimistic enough about the prospects for American businesses to bid share prices up. Yet some downbeat news regarding several companies put a crimp in their share prices. J.C. Penney (NYSE:JCP), Genworth Financial (NYSE:GNW), and MGM Resorts International (NYSE:MGM) 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.
Penney deals with retail sluggishness
J.C. Penney fell almost 6% on a poor day for the retail sector in general. Many department stores suffered in light of news that a major upscale retailer that had reportedly sought to take itself private had run into trouble finding the necessary outside funding for a leveraged buyout. J.C. Penney shares have lost more than half their value so far in 2017, despite store closings and other moves geared toward improving efficiency and maximizing opportunity. The retailer continues to lose money, and shareholders worry it may never regain the full measure of its past success.
Genworth buyout hits a snag
Genworth Financial declined 12.5% after the insurance company said that it and potential acquirer China Oceanwide Holdings Group had once again withdrawn their joint filing to the Committee on Foreign Investment in the United States. The companies intend to refile their application with additional mitigation approaches designed to increase the likelihood of approval, including potentially working with a third-party service provider within the U.S. to address any concerns. CEO Tom McInerney said that Genworth is working to "preserve the value of our businesses in the event the transaction with Oceanwide cannot be completed," but investors clearly want the deal to go through as planned, and won't be happy with Genworth doesn't get CFIUS approval.
MGM deals with Vegas tragedy
Finally, shares of MGM Resorts International dropped almost 6% following news of a mass shooting in Las Vegas, where a man firing rifles from a room at its Mandalay Bay resort killed nearly 60 people and injured more than 500. Investors expect that the massacre could lead to fewer people visiting Las Vegas. MGM has more exposure to the U.S. gaming market than many of its peers, which have focused more on the lucrative Asian gaming market centered in Macau as a source of revenue and profits.