Although they didn’t undo all of Wednesday’s damage, the bulls took the reins on Thursday and hammered out a solid gain of 1.67% to leave the S&P 500 at 1,921.83. Energy, of all sectors, led the way, with crude oil prices rising 2.3%.
Not every stock jumped on the bullish bandwagon, however. In fact, Fiat Chrysler Automobiles NV (NYSE:FCAU), SolarCity Corp (NASDAQ:SCTY) and Best Buy Co Inc (NYSE:BBY) were decidedly moving in the other direction. Here’s what investors need to know.
Best Buy Co Inc (BBY)
While retail sales may have been up 3.3% during last year’s holiday shopping season, none of that increased cash layout was spent at electronics retailer Best Buy. The company warned BBY shareholders this morning that Q4’s top line would indeed by weaker than its year-ago tally.
All told, the company’s total November/December revenue was 0.8% less than the comparable period from 2014, translating into a 1.5% dip for the full three-month accounting period. Same store sales slumped 1.4% for the quarter. Sales of smartphones and other mobile devices were a particular sore spot, falling more than 7% on a year-over-year basis.
BBY ended the day down nearly 10%.
Fiat Chrysler Automobiles NV (FCAU)
A filed lawsuit doesn’t inherently mean a defendant is guilty. On the other hand, in that it may be true that where there’s smoke there’s fire, Fiat Chrysler Automobiles investors weren’t taking any chances today. FCAU fell more than 4% on Thursday following news filed claims that the automaker attempted to falsify sales figures for its vehicles.
The suits, filed on Tuesday in Chicago, alleges the company bribed at least two U.S. dealers to report unsold vehicles as sold in order to boost sales figures, with those vehicles in question reverting back to an unsold status a few days later. One dealer claims he was offered $20,000 to report an additional 40 cars had been driven off his lot than were actually purchased during the period in question.
Now the streak of 69 consecutive months of rising sales is being called into question.
SolarCity Corp (SCTY)
Finally, SolarCity shareholders were hit hard today, when the state of Nevada — one of the company’s key markets — changed the game today and made it far more difficult for solar power players to turn a profit there.
Long story made short, last month, Nevada’s Public Utilities Commission increased fees — to the tune of 40% — for utility customers with rooftop solar power systems, and simultaneously reduced the amount of credit those homeowners could receive for selling electricity back to the utility company.
The decision was appealed, but last night the state opted to go through with its new fees and credit schedule. In response, SolarCity has decided it will no longer do business in the state, and announced job cuts in association with its exit from Nevada. SCTY shares slumped 13%.
The debate underscores the impact of consumer-level self-sufficiency, which leaves utility companies less revenue to build and maintain a power grid that serves the public as a whole.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.
