The stock market had a mixed session on Friday, and most major benchmarks finished close to unchanged. Investors continue to deal with conflicting influences on stocks, with reasonably favorable earnings reports that nevertheless point toward the possibility of slower growth ahead. Meanwhile, geopolitical and macroeconomic factors paint a gloomier picture of the near future. Some stocks reflected that negative sentiment, and Goodyear Tire & Rubber (NASDAQ:GT), Henry Schein (NASDAQ:HSIC), and Seattle Genetics (NASDAQ:SGEN) were among the worst performers. Here's why they did so poorly.
Goodyear rolls off the road
Shares of Goodyear Tire & Rubber fell 9% after the tire maker announced discouraging results in its fourth-quarter financial report. Goodyear said that revenue was down 5% compared to the previous year's fourth quarter, with a combination of lower tire sales volumes and weak foreign currencies contributing to the top-line decline. CEO Richard Kramer tried to emphasize Goodyear's operational wins during 2018, including getting its products involved in electric vehicle manufacturing. Yet many of the same challenges remain for Goodyear in 2019, and it could take a while for the tire maker to mount a complete recovery.
Henry Schein makes a spinoff
Henry Schein's stock fetched about 25% less than it did on Thursday, but after accounting for a spinoff transaction, the shares were really down much less, closer to 5%. The company completed the separation of its global animal health business into a distinct corporate entity, with the immediate merger of that business into what will henceforth be known as Covetrus (NASDAQ:CVET). As part of the spinoff, the continuing company will receive about $1.1 billion in cash that it expects to use to pay down debt. Going forward, the move will allow Schein to focus on the dental and medical market for its healthcare solutions, and the company sees great growth opportunities in those markets. Schein investors will get 0.4 shares of Covetrus for every Schein share they own, and that makes up in part for the hit to the share price of Henry Schein stock today.
Seattle Genetics hopes for a big win
Finally, shares of Seattle Genetics fell 12%. The biotech company reported fourth-quarter financial results that included a 35% rise in revenue, due largely to strong sales for the company's lymphoma drug Adcetris. However, investors don't seem to be quite as comfortable with the ambitious plans that Seattle Genetics has for Adcetris, with guidance for $610 million to $640 million in sales for the drug during 2019. That represents a gain of roughly 30% from 2018 levels, and it'll take considerable effort for the company to convince medical professionals that Adcetris is a better choice than some of the alternatives that have been on the market for a longer period.