The stock market performed well on Tuesday, including gains of nearly 200 points for the Dow Jones Industrial Average and similarly positive moves for other major benchmarks. At first glance, decisions from the U.S. and China to impose new tariffs on each other might have seemed like bad news, but investors were pleased that the actual tariff rates on the goods covered by the measures were less severe than initially feared. Even with that as a positive backdrop, some companies weren't able to avoid bad news that sent their shares lower. Tesla (TSLA +0.30%), Apogee Enterprises (APOG 0.67%), and General Mills (GIS +0.33%) were among the worst performers on the day. Here's why they did so poorly.
Musk deals with more tweet fallout
Shares of Tesla finished lower by 3% after having been down more sharply earlier in the day. The electric-car company lost ground after reports that the U.S. Department of Justice will take a closer look at CEO Elon Musk's tweets about potentially taking Tesla private, with the assertion of "funding secured" meriting particularly close scrutiny. Tesla responded by saying that it has already responded to earlier requests for information from the Justice Department, and that the company has not received any further formal inquiries. Nevertheless, Tesla shareholders seem nervous about how big a role Musk's behavior can play in the automaker's prospects for the future.
Image source: Tesla.
Apogee can't keep up with demand
Apogee Enterprises stock dropped 12% in the wake of the company's fiscal second-quarter financial report. The maker of architectural glass and related products said that sales were higher by 5%, with earnings flat on an adjusted basis compared with last year's period. "Our glass segment saw much stronger than expected customer demand and a surge in orders across all segments of the market," said CEO Joseph Puishys. "However, challenges ramping up production in architectural glass in a tight labor market impacted overall results in the quarter." With unemployment at extremely low levels, it could be tough for Apogee to move forward and boost efficiency quickly.
General Mills gets soggy
Finally, shares of General Mills fell nearly 8%. The cereal maker reported fiscal first-quarter results that included only a 1% rise in organic net sales, with acquisitions playing a key role in pushing General Mills' top line higher at a faster 9% pace. With consumer tastes moving away from traditional breakfast foods, General Mills has had to pivot toward areas like its Yoplait yogurt brand. But fierce competition throughout the space is still punishing the food giant, and despite reaffirming its full-year fiscal 2019 guidance in most key areas, General Mills shareholders are still uncertain whether the company behind once-powerhouse brands like Cheerios can return to its former glory.
