Wednesday gave investors some respite from the big drops that Wall Street suffered on Monday and Tuesday, as major benchmarks generally finished higher. Even though market participants seemed somewhat calmer about the state of the overall economy in quiet pre-holiday trading, many still remain nervous about the potential for a slowdown induced by rising interest rates and trade-related pressures. A few stocks responded quite negatively to company-specific issues, and Castlight Health (NYSE:CSLT), Caleres (NYSE:CAL), and Best Buy (NYSE:BBY) were among the worst performers on the day. Here's why they did so poorly.
Castlight slides lower
Shares of Castlight Health fell 9.5%, continuing the wild swings that its stock has seen recently. The health benefits platform provider announced quarterly financial results earlier this month that revealed encouraging performance, including a sales increase of 16% and break-even net income on an adjusted basis. Castlight had also suggested that its full-year 2018 results would be slightly better than previously anticipated. Some pointed to news of insider sales of stock to justify the decline, but the more likely cause is just general uncertainty about Castlight's ability to make its restructuring plan pay off in the long run.
Caleres loses its footing
Caleres stock dropped 9% after the global footwear company reported its third-quarter financial results. The company said that its Famous Footwear retail concept saw same-store sales increase by 2.8%, posting its seventh straight year of rising comps during the key back-to-school shopping season. Yet adjusted net earnings grew less than 2%, and full-year outlooks that included just modest increases in comps for Famous Footwear didn't inspire shareholders. Given how well some rival retailers in the footwear industry did today, Caleres' numbers were disappointing.
Best Buy gives back gains
Shares of Best Buy declined 2%, giving up their gains from Tuesday following the company's release of third-quarter financial results. The electronics retailer had risen 2% after reporting a 4.3% gain in comparable-store sales and adjusted earnings that climbed almost 20% from year-earlier levels. A boost in guidance for the full 2019 fiscal year also gave investors confidence in Best Buy, but many had wondered why the company managed to avoid the broader downturn that other retailers had suffered. Today's decline seems to be making up for that disconnect, especially given that several of Best Buy's peers finished higher today.