While the bulls put up a valiant fight all session long, they just couldn’t get any meaningful traction going. By the time the closing bell rang, the S&P 500 was down 0.19%, closing at 2,071.18.
It could have been worse, though. And, for owners of Skyworks Solutions Inc. (NASDAQ:SWKS), Whole Foods Market, Inc. (NASDAQ:WFM) and Kinder Morgan Inc. (NYSE:KMI), it was worse. These three names were among the leaders of Monday’s biggest losers. Here’s what investors need to know.
Skyworks Solutions Inc (SWKS)
Apple Inc. (NASDAQ:AAPL) supplier Skyworks Solutions was in the wrong place at the wrong time on Monday, and deemed guilty by association, sending SWKS shares lower by a hefty 5.6%.
The prod for the pullback was bad news from Dialog Semiconductor (OTCMKTS:DLGNF) … another supplier to Apple. It reported disappointing third-quarter numbers, leading SWKS shareholders to presume Skyworks Solutions, along with a slew of other suppliers to the world’s most recognizable consumer technology name, are in a similar boat.
Fanning the bearish flames for SWKS was a revival of the notion that it may well be forced into a bidding war for acquisition target PMC-Sierra Inc. (NASDAQ:PMCS).
Skyworks Solutions made an offer earlier in the month, and though whether or not it’s still superior to the offer made by rival bidder Microsemi Corporation (NASDAQ:MSCC) is debatable, the PMC-Sierra board continues to prefer the Skyworks Solutions offer. This Investor’s Business Daily commentary posted today, however, points out the possibility that Microsemi may yet — and possibly should — outbid SWKS.
Kinder Morgan Inc (KMI)
It wasn’t the worst-performing energy stock on Monday, but between the 6% pullback KMI posted and the huge amount of volume behind the selloff, Kinder Morgan certainly doled out the most pain.
The pullback from KMI on Monday is just an extension of the weakness that re-materialized on Thursday of last week after the company posted its third-quarter results. While operating earnings of 19 cents per share topped estimates for a profit of only 18 cents per share of KMI, revenue of $3.71 billion missed the mark of $3.78 billion.
The real killer on Monday, though, was primarily the result of news that the company would be issuing $1.6 billion worth of preferred stock with a provision for mandatory conversion to ordinary shares within three years.
Whole Foods Market, Inc. (WFM)
Last but not least, Whole Foods Market was the victim of not one but two pieces of alarming news on Monday.
First (though not foremost), WFM shares were off nearly 5%, partially on the heels of news the grocer had issued yet another product recall on concerns that some of its foods may pose a threat of listeria transmission. It’s the second such scare in less than a month, and may force its customers to rethink shopping at its stores altogether.
The other, and bigger, reason Whole Foods Market slumped on Monday was a downgrade from Cleveland Research. The firm’s analyst Scott Bender lowered his rating on WFM to an “underperform” based on still-slowing sales growth.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.
