Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Mueller Water Products (NYSE: MWA) fell 13% in trading today after the company released earnings.

So what: Adjusted loss per share of $0.06 was a penny lower than expectations, and the company got another kick when Brean Murray downgraded the stock from buy to hold. Investors were disappointed with the last quarter, but higher raw material costs and slowing municipal spending in the future are weighing heavily on investors' minds today.

Now what: As municipalities cut costs, demand for Mueller's products fall, and that could weigh on results in the near term. Although water infrastructure is rapidly aging in the U.S., I don't see a spending increase any time soon so there's not a reason to be bullish after today's news. I will stay from the stock today and re-evaluate when conditions start to improve.

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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

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