The bears took charge early on Monday, and held that control all day long. By the time the closing bell rang, the S&P 500 was at 2168.48, down 0.30% for the session.
Leading the bearish charge were Barrick Gold Corporation (USA) (NYSE:ABX), G-III Apparel Group, Ltd. (NASDAQ:GIII) and Roper Technologies Inc (NYSE:ROP). Here’s what went wrong for each.
Barrick Gold Corporation (USA) (ABX)
Barrick Gold led the majority of gold mining stocks lower today, but not because of anything the company did wrong, or did poorly. The setback was mostly driven by another pullback in gold prices, making it tougher for gold miners to make a buck.
The 0.7% dip in the price of gold today wasn’t horrifying, but it marks the renewal of a downtrend that extends back to early July and has shaved 3.7% off the value of gold … with no end to the downtrend in sight.
Since the pullback in gold is getting a little more serious, so is the pullback from gold stocks like Barrick Gold. ABX lost 3.5% of its value today, moving to its lowest level since late June on fears that gold is headed for even lower lows.
G-III Apparel Group, Ltd. (GIII)
Upscale apparel brand Donna Karan has been sold to peer and rival G-III Apparel Group, but if the 14% selloff GIII shares have dished out today is any indication, shareholders aren’t too happy about the price paid for it.
Donna Karen International, a division of French clothing designer group LVMH Moet Hennessy Louis Vuitton SE(ADR) (OTCMKTS:LVMUY), is selling the brand to G-III Apparel for a sum of $650 million, including debt.
Widely viewed as an expensive distraction for LVMH that needed to go, the Donna Karen label had not done well of late under the LVMH umbrella, with the parent talking of shelving the brand altogether late last year. Those whispers prompted the exit of the Donna Karen near the end of 2015, which has only exacerbated the struggle.
G-III Apparel Group already owns upscale brands like Calvin Klein and Tommy Hilfiger, and could do well with the Donna Karen name.
Roper Technologies Inc (ROP)
Last but not least, technology outfit Roper Technologies saw its shares get hit hard on Monday following a lackluster Q2 report and a similarly disappointing full-year outlook.
Last quarter, Roper Technologies earned $1.56 per share on revenue of $931.6 million. Analysts, however, were calling for a bottom line of $1.61 per share of ROP stock on sales of $948.2 million. CEO Brian Jellison explained, “Continued weakness in oil and gas and some traffic project delays impacted our results, while the balance of our businesses performed well in the quarter.”
Investors weren’t sympathetic though, perhaps more concerned about the guidance for the quarter currently underway. The company says it’s looking for earnings of somewhere between $1.59 and $1.63 per share, coming up short of the $1.83 per share of ROP the pros had been expecting.
ROP closed down nearly 6% on Monday.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.
