The stock market rebounded on Tuesday, making up some ground from a three-day losing streak that went down as the worst three-day showing for the S&P 500 since 2011.
Although both JPMorgan (JPM) and Wells Fargo (WFC) slumped on disappointing earnings, Citigroup (C) added more than 3% in trading as the bank beat both top- and bottom-line analyst estimates. But Gilead Sciences (GILD), King Digital Entertainment (KING), and National Bank of Greece (NBG) didn’t seem to care about the integrity of America’s financial system.
Let’s take a gander at what went wrong with these three stocks on Tuesday.
King Digital Entertainment (KING)
Candy Crush maker King Digital Entertainment shed 6.8% today, as a heavy-fingered bearish trader sent investors rushing for the exits. King Digital is the mobile gaming company behind Candy Crush Saga, a game that was so wildly successful King rode its success to an IPO in March of this year.
KING stock has not been a wise investment since it went public at $22.50, and by day’s end shares were trading at exactly 50% of their IPO levels.
Investors on the stock blogging website StockTwits seemed to think that a trader who sold 2 million shares of KING stock in premarket trading got KING off to a bad start Tuesday.
Gilead Sciences (GILD)
While Johnson & Johnson (JNJ) beat both earnings and sales estimates in its most recent quarter, big pharma didn’t get an automatic lift. In fact, one of JNJ’s sectormates, Gilead Sciences, erased 4.2% of its value as investors took some rhetoric about JNJ’s future plans as a sign of increased competition. GILD currently makes Sovaldi, which is often combined with J&J’s Olysio to treat Hepatitis C.
JNJ said it was working on making Olysio more “accessible” in light of GILD’s newest all-in-one hep C treatment Harvoni coming to market.
National Bank of Greece (NBG)
Greece has been in absolute economic turmoil for years, and the European economy is increasingly showing signs that its pitiful sputtering might last for longer than it might have seemed.
Germany, generally considered the eurozone’s strongest economy, cut its growth forecasts for 2014 and 2015 dramatically today. The country also said that it was not willing to delay balancing its budget by increasing spending in an effort to stave off a continental recession, which isn’t what banks in the region — like National Bank of Greece — want to hear.
NBG stock lost 3.8% to finish at a 52-week low on Tuesday.
As of this writing John Divine held no positions in any of the stocks mentioned. You can follow him on Twitter at @divinebizkid.
