Unwilling or unable to follow through on yesterday’s move to record highs, the bulls were suspiciously absent from Tuesday’s action … despite a lack of a clear bearish catalyst. By the time the closing bell rang, the S&P 500 was at 2,437.03, down 0.67%.
That was nothing compared to the baths Snap Inc (NYSE:SNAP), Petroleo Brasileiro SA Petrobras (ADR) (NYSE:PBR.A) and Chipotle Mexican Grill, Inc. (NYSE:CMG) took today, however. Here’s a closer look at what upended each of these names on Tuesday.
Chipotle Mexican Grill, Inc. (CMG)
Anybody who thought Tex-Mex venue Chipotle Mexican Grill had finally shrugged off the ill effects of being the source of an e. coli outbreak in late-2015 is sorely mistaken. CMG stock tumbled to the tune of 7.3% on Tuesday after the company warned investors that this year’s numbers weren’t going to be all that hot.
For 2017, Chipotle Mexican Grill anticipates same-store sales growth of only in the high single digits, as opposed to the same-store sales growth of 10.1% analysts were collectively expecting. Marketing and promotional costs were going to be notably higher in the quarter ending this month.
Analysts responded less than favorably to the news. SunTrust Robinson Humprey analyst Jake Bartlett cut his target price on CMG from $550 to $530. Instinet’s Mark Kalinowski cut his target from $510 to $480, and also lowered his full-year earnings outlook from $8.75 to $8.30 per share.
Petroleo Brasileiro SA Petrobras (ADR) (PBR.A)
Most oil and gas stocks were in the red today. Marathon Oil Corporation (NYSE:MRO) lost 3.4% of its value, while Transocean LTD (NYSE:RIG) fell 4.2%. In terms of volume and total market cap (and net-misery dispensed) on Tuesday though, Brazilian oil company Petroleo Brasileiro SA Petrobras was the most noteworthy loser, with PBR falling 4.4%.
Another rough day for crude oil prices was the culprit. Crude fell roughly 2%, sliding to new multi-month lows in the process. Production reports from Nigeria and Libya were up, largely negating the efforts OPEC has made to curtail an oversupply. Meanwhile, U.S. producers continue to drill like it’s 2013 rather than 2017, seemingly unconcerned about the rekindling of a glut.
Again Capital analyst John Kilduff believes crude prices could fall below $40 before the current crude rout is over.
Snap Inc (SNAP)
Finally, Snap — the parent company of Snapchat — saw its stock lose ground today, though not because of anything it did wrong. Rather, it suffered a setback because of something its biggest competitor did right. That is, Facebook Inc (NASDAQ:FB) announced today that its Instagram Stories platform now boasts 250 million daily active users.
The news was deflating to long-term fans of Snap, in that it took Snapchat years to cultivate a base of 166 million regular users. Facebook handily surpassed that mark en route to a quarter of a million daily logins, and did so after only launching Stories in August of last year.
The 3.2% loss SNAP booked today wasn’t devastating, but it did drag the stock back to just above its early March IPO price of $17.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.
