The bulls take hold of the market early this morning and only tightened their grip as the day wore on. By the time all was said and done, the S&P 500 ended the day up 0.66%, closing at 2,280.07.
Not every stock got in on the bullish action, however. AK Steel Holding Corporation (NYSE:AKS), BT Group plc (ADR) (NYSE:BT) and Verizon Communications Inc. (NYSE:VZ) all dipped deep into the red ink.
Here’s a closer look at what spooked their shareholders on Tuesday.
BT Group plc (ADR) (BT)
U.K.-based telecom service provider BT Group warned shareholders on Tuesday that the fiscal results for the next couple of years could be worse than had been forecasted. An accounting scandal related to work the telecom giant was performing in Italy could end up costing the company a great deal going forward.
The scandal itself isn’t news — the company has been aware of it for several months now. What was only recently discovered is the true depth of the scandal. The related charge is now expected to cost BT Group $665 million rather than the previous testament of only $182 million.
The impending accounting charge will and just proved to take a toll on the bottom line. BT added that its revenue projections for 2016 and 2017 are being lowered by approximately $250 million.
BT Group shares ended the day down 20.7%.
Verizon Communications Inc. (VZ)
BT Group wasn’t the only name from the telecom sector to get hit hard on Tuesday. U.S.-based telecom outfit Verizon Communications hit a headwind of its own, dragging VZ shares down to the tune of 4.4%.
The prod for the pullback from Verizon was its Q4 earnings report. The bottom line of 86 cents per share missed expectations for a profit of 89 cents per share of VZ, though revenue of $32.4 billion just topped analysts’ outlook of $32.1 billion. Net income as well as revenue both fell on a year-over-year basis. The wireless provider added 591,000 postpaid subscribers for the quarter in question, falling well short of the 726,000 analysts had predicted.
Also weighing in on VZ stock is the continuing uncertainty that surrounds the intended acquisition of Yahoo! Inc. (NASDAQ:YHOO). Although the wed company recently posted a better-than-expected quarterly report, the pairing of the two companies continues to vex Verizon. While Yahoo itself said the deal should be done by the end of the second quarter, Verizon wasn’t willing to offer the same timeframe. Some investors interpreted that as a sign that the acquisition remains on unsure footing.
AK Steel Holding Corporation (AKS)
Last but not least, although AK Steel Holding Corporation shares that got off on a very bullish foot following the company’s Q4 earnings report, traders quickly changed their mind, sending shares to a sizeable loss by the time Tuesday’s closing bell rang.
For the quarter ending in December, the steel company posted an operating profit of 25 cents per share on revenue of $1.42 billion. Analysts were only calling for a profit of 7 cents per share, although those same analysts were also expecting AK Steel to report sales of $1.43 billion.
Although the initial response for AKS was a bullish one, the rally’s sharp reversal took shape rather quickly following the conference call. During which the company cautioned that the first quarter’s (the quarter currently underway) average selling prices for steel were only going to be about the same as the fourth quarter’s.
AKS fell 6.5% for the day.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.