Wall Street was in a celebratory mood on Monday, with market participants being particularly pleased about signs that the domestic economy could find ways to grow even amid a broader global slowdown. The Dow Jones Industrial Average overcame an opening drop of nearly 250 points to finish higher by 200 points, and other major benchmarks were up by as much as 2%. Yet even with a broad-based rally, some stocks weren't able to participate. Care.com (NYSE:CRCM), AngloGold Ashanti (NYSE:AU), and Spirit AeroSystems Holdings (NYSE:SPR) were among the worst performers. Here's why they did so poorly.
Care.com sees some controversy
Shares of Care.com dropped nearly 13% after a report alleged that the company falls short of some of the expectations of its customers. Specifically, according to a Wall Street Journal story, the caregiver referral specialist fails to do a full background check on the professionals it lists, instead doing simply a preliminary screening that doesn't include any sort of verification of any credentials that the caregiver claims to have. Similarly, Care.com's day care center referrals also raised questions about verification practices. Given the stock's poor response to quarterly earnings results last week, Care.com has some more questions to answer after the latest incident.
AngloGold deals with a dovish Fed
AngloGold Ashanti saw its stock fall more than 4% following comments that many investors saw as being negative for gold mining stocks in general. Fed Chair Jay Powell talked to 60 Minutes over the weekend and addressed whether his relationship with President Trump has played any role in guiding monetary policy. Powell denied any such influence, and gold bullion prices fell in response, making it one of the few markets to lose ground today. Gold has seen gains lately as some tried to hedge against greater political risk, but whenever the geopolitical picture has looked more stable, precious metals have generally been under pressure.
Spirit deals with fallout
Finally, shares of Spirit AeroSystems Holdings declined 4% after having been down much more sharply earlier in the day. The maker of aerospace components and systems dropped in response to the crash of an Ethiopian Airlines 737 MAX 8 aircraft over the weekend. Spirit supplies the fuselage for the 737 MAX 8, and concerns that the aircraft could be temporarily grounded or lose orders spurred some investors to shy away from Spirit stock. But as investors became more comfortable with the financial implications of the incident, Spirit's share price regained some of its losses, and shareholders hope that the supplier won't see any long-term hit from the tragedy.