The bulls made an effort late in the day to reclaim what was lost early on in the session, but it just wasn’t enough. The S&P 500 was still down 0.61% by the time the closing bell rang, and the close of 2053.40 marks the third straight weekly loss for the market.
It was even worse for some names today. Lumber Liquidators Holdings Inc. (NYSE:LL), Harley-Davidson Inc. (NYSE:HOG) and Continental Resources, Inc. (NYSE:CLR) all logged big-time losses, for a variety of reasons. Here’s the deal.
Lumber Liquidators Holdings (LL)
Not understanding the importance of simply laying low and letting the smoke clear after a major gaffe, Lumber Liquidators Holdings CEO Tom Sullivan sent LL shares down 15% on Friday, reversing course just when it started to look like LL was working on a rebound.
After losing nearly 60% in the wake of a damning report recently aired on 60 Minutes that Lumber Liquidators flooring contained a dangerous amount of formaldehyde, LL shares finally started to edge higher earlier this week, getting started on the path to recovery. The company’s CEO Tom Sullivan, however, ensured the stock got of that path today after making a point of explaining:
“We will sell what customers want. We stand behind our products and know they are safe. Because media reports provided very little context, customers are understandably concerned.”
Investors weren’t convinced by Sullivan’s confidence. Indeed, the market seemed to be a little alarmed by the seemingly defiant attitude.
Continental Resources (CLR)
Just for the record, Continental Resources was hardly alone today at the bottom of the barrel. Most oil and gas stocks were deep in the red on Friday as crude oil itself lost more than 4% of its value to close near $45 per barrel. The energy sector posted 1.3% loss… one of the market’s worst performing sector for the session.
That being said, Continental Resources as the worst of the worst on Friday, with CLR losing nearly 5% of its value on the heels of yet another oil pullback.
A week ago, the picture being painted about Harley-Davidson was a compelling one. The company had announced plans to beef up its distribution channel to Canada, the media was only too happy to tout the motorcycle company’s strong operating results, and investors were even still beaming about the optimism Wedbush reiterated in late January.
The failure of HOG to move higher on any of that seemingly good news today, however, should have been a warning that this stock was vulnerable.
That became clear today, when HOG tumbled more than 3% (after Thursday’s 2.5% pullback) as Deutsche Bank lowered its price target on Harley-Davidson shares. The research firm now believes HOG is only worth $58 per share, versus a prior price target of $60, in the wake of a significant layoff announcement at a Missouri plant.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.
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