Wall Street was in a better mood on Wednesday, with the Dow Jones Industrials finishing higher by more than 150 points. However, most indexes ended up with much more modest gains than they'd achieved earlier in the session. Investors remain encouraged when positive news on trade comes out of China or the White House, but the staying power of those upward moves seems more fragile than ever. Also, bad news from certain companies weighed on overall sentiment. Under Armour (UA 1.98%) (UAA 1.80%), Neurocrine Biosciences (NBIX 1.85%), and XPO Logistics (XPO 1.24%) were among the worst performers on the day. Here's why they did so poorly.
Under Armour sees a tough time ahead
Under Armour shares were down 9% to 10% as investors responded to the athletic apparel and footwear company's investor day presentation. After huge gains in the stock so far this year, shareholders had hoped that future sales projections would be high, but the relatively conservative low-single-digit percentage growth estimates for the North American market during the period from 2020 to 2022 came as a shock. International prospects remain encouraging, but it'll take even more for Under Armour to return to its former glory.
Neurocrine deals with disappointment
Neurocrine Biosciences saw its stock drop 14% after the biopharmaceutical company reported discouraging clinical trial results from a phase 2b study of its Tourette syndrome treatment valbenazine. The drug failed to meet the trial's primary endpoint of demonstrating improvement in the Yale Global Tic Severity Scale in the children and adolescents who participated in the study. CEO Kevin Gorman expressed his disappointment with the data and said that further analysis will drive what the company decides to do next. With valbenazine, known commercially as Ingrezza, already approved for the involuntary movement disorder tardive dyskinesia, Neurocrine has solid prospects, but hopes for an expanded indication for the drug were at least temporarily dashed.
XPO can't deliver
Finally, shares of XPO Logistics finished lower by nearly 10%. The logistics and delivery company said that adjusted pre-tax operating earnings would rise by just 12% to 15% in the coming year, down from original projections for growth of between 15% and 18%. Many of those watching XPO interpreted the warning as a sign that macroeconomic and geopolitical pressures are having an impact on its business, including trade-related tensions that have discouraged global investment. Even with e-commerce as a tailwind, XPO has to keep taking advantage of good conditions when it can in order to get its stock moving back in the right direction.