Tuesday was an upbeat day on Wall Street -- the Dow Jones Industrials climbed more than 100 points, and other major market indexes posted gains of around half a percent. A strong economy and optimism about the upcoming earnings results for the third-quarter have helped boost market confidence over the past month, and even issues like tariff disputes and the midterm elections haven't been enough to push the key stock indexes far off their record highs. Yet even though investors were in a good mood generally Tuesday, company-specific bad news sent some shares lower. SandRidge Energy (NYSE:SD), Sonos (NASDAQ:SONO), and Exelixis (NASDAQ:EXEL) were among the worst performers on the day. Below, we'll look more closely at these companies to tell you why their shares did so poorly.
SandRidge won't make a deal
SandRidge Energy shares closed 19% lower after the energy company concluded its strategic review process without accepting any bids to purchase its assets. SandRidge said that the bids it had obtained from potential buyers valued the company at about $12 to $13 per share, which it said failed to capture the true value of its business. The day's drop took the stock below the lower end of that $12 to $13 range, reflecting shareholders' disappointment about SandRidge's failure to find a path forward.
Sonos debuts badly
Sonos shares dropped 21% in the wake of the company's first quarterly release of financial results since it went public. The maker of premium speakers and sound systems reported a 7% drop in revenue, and said that the launch of new, lower-priced product lines adversely affected sales figures compared to the same period last year. Net losses widened by about 85% to $27 million, but CEO Patrick Spence remains optimistic about Sonos' prospects, asserting that he expects long-term price stability and cost controls will help its business over time. The market seemed displeased with the results, but savvy investors should keep their eyes on how Sonos bounces back.
Exelixis gets a critical review
Finally, Exelixis finished the day 8% lower. The biotechnology company was the subject of downbeat comments from analysts at Morgan Stanley, who initiated coverage of Exelixis with a rating of underweight. Morgan Stanley also put a $19 per share price target on the stock, arguing that Exelixis faces a highly competitive market for lead candidate treatments like cabozantinib for kidney and liver cancer. A lot will depend on whether Exelixis' rivals can put up a strong fight, but at least for today, shareholders are more nervous than they are confident about the biotech's ability to stay ahead of the pack.