Please ensure Javascript is enabled for purposes of website accessibility

Why NVIDIA Corporation, Schlumberger Limited, and Rowan Companies PLC Are Today’s 3 Worst Stocks

By John Divine - Jul 18, 2014 at 7:50PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Two oil and gas drillers, and one high-tech mainstay, finish as the three worst performers in the stock market today

Yesterday, declining stocks outnumbered advancing stocks by a 4-to-1 ratio. Today, we saw the exact opposite, as four in five stocks made their way into the weekend colored with a lovely hue of green. Strong corporate earnings, as well as some clarification as to who was behind yesterday's downed Malaysia Airlines flight, brought buyers back to the stock market today. Alas, NVIDIA Corporation (NVDA -5.58%), Schlumberger Limited (SLB 0.82%), and Rowan Companies (RDC) didn't get the memo, as all three stocks finished in the depths of the S&P 500 Index (^GSPC -0.58%) today. The S&P, for its part, tacked on 20 points, or 1%, finishing at 1,978 today.

Shares of NVIDIA Corporation, which is known for its graphics chips, lost 4.5% today, due entirely to the lousy quarterly earnings that rival chipmaker Advanced Micro Devices posted on Friday. It's not fair that NVIDIA -- which is about three times the size of AMD and is historically far-less reliant on the dying PC industry for sales -- should get punished for AMD's poor earnings and weak sales projections. But Wall Street loves to extrapolate, selling and buying industries indiscriminately on one or two data points at a time. For potential NVIDIA investors, that means the stock is on sale -- so maybe Wall Street's blind selling isn't so bad after all!

One of the companies probably watching the Ukraine-Russia conflict more closely than the rest of the market is Schlumberger Limited, which drills alongside Russia's largest oil producer, Rosneft, in Sakhalin, an oil-rich Russian island. Rosneft was hit with sanctions earlier this week by the U.S. as the Obama administration tries desperately to discourage further Russian conflict in Ukraine through economic disincentives. Putting Russia aside, Schlumberger also reported second-quarter results today, topping both earnings and revenue expectations. Still, the stock shed 2% amid the Russia worries, and CEO Paal Kibsgaard's uninspiring assessment of global economics going forward.

One of Rowan's ships, looking majestic. Source: Rowan Companies

While the $3.9 billion Rowan Companies PLC is a mere fraction of Schlumberger's sprawling $146-billion international empire, the smaller contract driller also faced pressure from the stock market, stumbling 1.6% today. Investors waited anxiously for Rowan's "Monthly Fleet Status Report," which the company unleashed at about 1 p.m. E.S.T. Immediately thereafter, shares started diving. It may have been the 5% operational downtime the company expects for its fleet for the remainder of the year, or a newly inked contract to drill on the Gulf of Mexico that disappointed investors. While a 75-to-80-day deal at $108,000 per day sure ain't peanuts, investors hoping for higher fees or a longer contract were out of luck Friday.

John Divine has no position in any stocks mentioned. You can follow him on Twitter @divinebizkid and on Motley Fool CAPS @TMFDivine.

The Motley Fool recommends Nvidia. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

S&P 500 Index - Price Return (USD) Stock Quote
S&P 500 Index - Price Return (USD)
^GSPC
$4,116.13 (-0.58%) $-23.93
Schlumberger Limited Stock Quote
Schlumberger Limited
SLB
$34.94 (0.82%) $0.28
NVIDIA Corporation Stock Quote
NVIDIA Corporation
NVDA
$168.00 (-5.58%) $-9.93
Rowan Companies plc Stock Quote
Rowan Companies plc
RDC

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
379%
 
S&P 500 Returns
123%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/09/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.