Please ensure Javascript is enabled for purposes of website accessibility

Why Halliburton, Tyson Foods, and Amarin Slumped Today

By Dan Caplinger – Nov 13, 2018 at 4:33PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Bad news on multiple fronts hit these stocks hard.

Tuesday was a turbulent day on Wall Street, with most major benchmarks giving up early gains to finish lower. Despite most companies having come through earnings season with relatively strong performance, investors are nervous about the prospects for a global economic slowdown, especially in light of ongoing trade tensions between the U.S. and several key international partners. Adding to the gloom were bad showings from some high-profile stocks. Halliburton (HAL), Tyson Foods (TSN), and Amarin (AMRN) were among the worst performers on the day. Here's why they did so poorly.

Halliburton looks less energetic

Shares of Halliburton dropped nearly 6% on a difficult day for companies throughout the oil and gas sector. West Texas Intermediate crude oil plunged nearly $5 per barrel to $55, and globally, crude prices showed similar declines on worries about oversupply and a lack of strong demand. For Halliburton, the concern is that falling prices could prompt clients to cut back on their production, and that in turn would reduce the amount of services and supplies that the oil-field specialist would be able to deliver. Oil has performed quite badly lately, and unless things turn around soon, Halliburton could continue to see tough times heading into the end of the year.

Collection of black oil barrels in a room with a white floor.

Image source: Getty Images.

Tyson leaves investors feeling hungry

Tyson Foods stock dropped almost 6% after the company reported fiscal fourth-quarter financial results that fell short of expectations. The meat processor said that revenue fell 1% from year-earlier levels, with adjusted net income per share rising more than 10% over the same period. Sales volumes were mixed, with chicken climbing 10% and beef up 3%. Yet a 3% drop in pork volume weighed on results, and more importantly, average price declines of 15% for pork and 7% for chicken hurt overall revenue figures. Tyson's numbers show the impact of tariffs on the food industry, and the meat company's peers could see similar headwinds as long as tariffs remain in place.

Amarin can't pull up

Finally, shares of Amarin finished lower by 22%. The drug company added to losses from Monday, which stemmed from clinical results over the weekend about its fish oil drug, Vascepa. Although the results showed improvement in patients with elevated triglyceride levels, Amarin took criticism for its choice of placebo as a control in the study. Now, investors seem less certain that encouraging results in the recent past will lead to an expanded indication for Vascepa. Yet even after today's declines, Amarin stock is still trading at roughly five times what it fetched as recently as mid-September.

Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Amarin Stock Quote
Halliburton Stock Quote
Tyson Foods Stock Quote
Tyson Foods

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/06/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.