Thursday was another calm day on Wall Street, as investors largely remained on the sidelines during the inter-holiday week. Most major benchmarks inched higher with small gains, reflecting the upward momentum that has produced an extremely strong performance for the stock market as a whole in 2017. Yet even though the broader indexes didn't see much action, a few stocks still fell significantly due to unfavorable news. Calumet Specialty Products Partners (CLMT +0.00%), Stitch Fix (SFIX 0.69%), and Uranium Energy (UEC 2.44%) 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.
Calumet sees red ink
Shares of Calumet Specialty Products Partners dropped 9% after the oil refining specialist announced disappointing results in its third-quarter financial report. Although revenue gains turned out to be higher than expected, Calumet had an unexpected loss for the period. CEO Tim Go tried to focus on the positives, noting that even though Hurricane Harvey produced major disruptions in its business in the Gulf Coast, Calumet's core specialty products segment managed to produce flat year-over-year performance. Investors were nevertheless disappointed with the company's decision on capital expenditures for the full 2017 year, and Calumet will have to show a big recovery in the fourth quarter in order to convince investors that the miss was a short-term phenomenon.
Image source: Stitch Fix.
Stitch Fix stays volatile
Stitch Fix stock declined 6%, continuing its turbulent moves following the company's initial quarterly earnings report last week. Solid gains in revenue and active customer counts showed the growth potential in the subscription clothing service, but guidance for future bottom-line performance wasn't as favorable as investors had hoped. Yet the market doesn't seem convinced that Stitch Fix's personalized service will give it a lasting competitive advantage, especially as other apparel retailers start to find ways to meet similar needs. Shareholders can expect ongoing volatility for Stitch Fix well into 2018 until actual results prove either the bull or the bear case.
Uranium Energy powers down
Finally, shares of Uranium Energy dropped 7%. Uranium prices have been relatively weak throughout much of 2017, as demand from nuclear power plants has fallen in light of global moves to shift toward alternative power generation sources. Yet prices of the nuclear fuel rebounded in November on news that major producers might cut output, and they've been volatile since, climbing from $20 per pound to as much as $26.50 before dropping back toward the $24 level. For small producers like Uranium Energy, share prices tend to follow the uranium market fairly closely, and it's important that this brief rebound picks up steam in order for Uranium Energy to avoid giving back its gains as it did today.
