The bulls did their best to drag stocks into the black for today, bolstered by a better-than-expected consumer confidence reading for June. But, feeling the weight of all the gains since October, they just couldn’t get anything going. By the time the closing bell rang, the S&P 500 was at 2,419.38, down 0.81% for the day.
It was notably worse for owners of T-Mobile US Inc (NASDAQ:TMUS), Advanced Micro Devices, Inc. (NASDAQ:AMD) and Arconic Inc (NYSE:ARNC) though, as these three names led the bearish move for large caps.
Here’s a look at what went wrong for each.
Arconic Inc (ARNC)
For the second day in a row, shares of materials supplier Arconic — formerly half of Alcoa Corp (NYSE:AA), before the organization split into two in November — earned a spot on the daily worst three list. Today’s 9.0% drubbing for ARNC was even worse than Monday’s 6% meltdown, as the company slipped further out of favor.
The selloff was started by reports that Arconic-made cladding may have been a key contributing factor in last week’s high-rise apartment fire in London that took the lives of at least 79 people. The poly/aluminum sandwiched plate was supposed to be fireproof, but wasn’t.
Following yesterday’s close, the company released a statement explaining it has no control of how its materials are used or if they’re used appropriately. The effort came across as excuse-making though, especially in light of the fact that the company has since decided to stop selling the construction material.
With the prospect of manslaughter charges still on the table, investors decided to continue distancing themselves from ARNC.
Advanced Micro Devices, Inc. (AMD)
Today’s 4.8% tumble from Advanced Micro Devices shares wasn’t devastating, but that pullback coupled with Monday’s lull on top of last week’s new headwind should be enough to give AMD fans pause.
The prod for the pullback was likely a combination of well-reasoned doubts that AMD had any further upside. Will Ashworth explained Monday afternoon that the company isn’t a reliable money-maker yet. Investopedia’s Michael Kramer suggested this morning that the stock’s current valuation left no room for error. And, also this afternoon, Bret Kenwell asked if AMD shares were at risk because a couple of key cryptocurrencies including Bitcoin were falling after recent runups. It matters, because Advanced Micro Devices’ graphics processors are ideally suited to ‘mine’ for Bitcoins. If the value of Bitcoin is falling, the need for them to be digitally mined is diminished.
With three layers of bearishness caked on, AMD shares did well to only lose 4.8% of their value.
T-Mobile US Inc (TMUS)
Last but not least, although it was anything but a done deal, Sprint Corp (NYSE:S) temporarily broke off merger talks with rival T-Mobile today to instead discuss a tie-up with Comcast Corporation (NASDAQ:CMCSA). Any deal with Comcast would also likely bring Charter Communications Inc (OTCMKTS:CCHJW) into the fold.
Both combinations have been suggested in the past, and both seemed like plausible rumors as of March of this year. T-Mobile emerged as the odds-on favorite in May though, when it and Sprint officially began talks. Now, with Sprint backing away from that negotiation table and seeking alternatives, perhaps T-Mobile isn’t going to seal the deal.
TMUS shares fell 3.4% following the news, with shareholders disappointed the two telecom giants may not be pairing up after all. Some believe each has the most to gain by teaming up with one another and posing a real threat to AT&T Inc. (NYSE:T) and Verizon Communications Inc. (NYSE:VZ).
As of this writing, James Brumley held a long position in AT&T (T).