The bulls picked up on Monday right where they left off on Friday … in a buying mood. The S&P 500 ended the day at 2,328.25, up 0.52%, hitting a new all-time high in the process. Sustained euphoria over the prospect of tax cuts are making the bulls unusually persistent.
Not every name was able to ride Monday’s bullish wave though. Hain Celestial Group Inc (NASDAQ:HAIN) , T-Mobile US Inc (NASDAQ:TMUS) and NVIDIA Corporation (NASDAQ:NVDA) couldn’t win for losing, though for understandable reasons.
Here’s what went wrong for each.
Nvidia Corporation (NVDA)
Following through on Friday’s weakness on the heels of its fiscal Q4 report and Q1 outlook, Nvidia shares fell another 4.6% on Monday, as Wall Street continued to scale back its bullishness on NVDA.
For the quarter ending in January, the chipmaker earned 99 cents per share on revenue of $2.17 billion. Both were better than expectations — analysts were only calling for a profit of 83 cents per share of NVDA and sales of $2.08 billion. Although the second quarter revenue grew by more than 50%, margins are shrinking.
And analysts are taking notice. SIG Susquehanna analyst Chris Rolland commented of the company’s Q1 guidance that it “may not be enough to satisfy the high-level of investor sentiment.” Nvidia is looking for revenue of $1.9 billion, which is just a mere hair above analyst expectations of $1.88 billion.
T-Mobile US Inc (TMUS)
T-Mobile was sent 2.4% lower on Monday following news that rival Verizon Communications Inc. (NYSE:VZ) was introducing, or re-introducing, and unlimited data plan … the first since 2011.
The move takes dead aim at a comparable offer from T-Mobile, which has slowly but surely been taking market share from the more prolific player with its more generous plans.
The stumble materialized just two days before T-Mobile unveils its fourth-quarter results. Analysts expect the wireless service provider to report earnings of 29 cents per share of TMUS on sales of $9.84 billion. That top line would be up quite a bit on a year-over-year basis, though the bottom line would be less than the 34 cents per share the company earned in the same quarter a year earlier.
Hain Celestial Group Inc (HAIN)
Finally, organic food company Hain Celestial Group reported this weekend that the U.S. Securities and Exchange Commission was probing the company, which would push its next official quarterly filing past its due date.
Hain Celestial has not submitted quarterly results in nearly a year after discovering in August it may have errantly accounted for revenue related to concessions it made to certain distributors. No intentional wrongdoing was discovered, though it is taking Hain an inordinately long time to perform the internal investigation and revise its quarterly accounting documents … long enough for the SEC to step in and subpoena related documents.
Today’s 8.9% pullback from HAIN brings the stock to roughly half of its value from mid-2015.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.