The bulls got on their horses first thing this morning, getting the new week started with a bang, and carrying the S&P 500 index 0.83% higher. This was enough to drive it to a record level, along with the Dow Jones Industrial Average, which also tiptoed a little deeper into record-high territory.
Not every name was on board the bullish train though. J C Penney Company Inc (NYSE:JCP), Regency Centers Corp (NYSE:REG) and EQT Corporation (NYSE:EQT) were all noticeably pointed in the other direction.
Here’s a closer look at what went wrong for each stock.
EQT Corporation (EQT)
What was good news for Rice Energy Inc (NYSE:RICE) shareholders on Monday was anything but good news for natural gas name EQT Corporation, if the plunge from EQT shares is any indication.
This morning, Pittsburgh-based EQT announced it would be shelling out roughly $6.7 billion, or $25 per share, for peer and rival Rice. The deal will create a virtual giant in the shale gas business, merging a major player in the Utica and Marcellus shale regions.
EQT stock holders weren’t thrilled about the deal, or at least its price, sending EQT lower to the tune of 8.9%. The merger does have its fans though, including Jim Cramer. He thinks the pairing will give EQT Corporation the firepower it needs to capitalize on the ongoing replacement of coal with natural gas-fired power plants.
RICE shares ended the day up 24.8%.
Regency Centers Corp (REG)
While the 2.0% loss shares of Regency Centers lost today wasn’t catastrophic, coupled with Friday’s 4.1% setback, REG shareholders are starting to sweat.
The prod for the pullback was Friday’s announcement that e-commerce icon Amazon.com, Inc. (NASDAQ:AMZN) would be acquiring Whole Foods Market, Inc. (NASDAQ:WFM) as a means of getting deeper into the grocery business and expanding its global footprint.
The deal poses a threat to retail REITs like Regency Centers, however, as it serves as a landlord to rival grocers like Kroger Co (NYSE:KR) that will now start to feel pressure from what will be sure to be a aggressive presence in the business. Another retail REIT, Kimco Realty Corp (NYSE:KIM), lost 3.3% of its value on Monday after taking a similarly-sized hit on Friday. It also lists Kroger and other grocers among its tenants.
J C Penney Company Inc (JCP)
Finally, struggling retailer may have picked a strange fight it could well end up wishing it hadn’t picked.
Last week, J C Penney CEO Marvin Ellison commented that the United States Postal Service — more than any other parcel carrier — wouldn’t be able to facilitate the looming demand for e-commerce deliveries as it stands now, at its current prices.
The USPS made a point of snapping back, explaining in no uncertain terms that it would be able to handle the load. An official statement from the delivery service’s spokesperson explained it efficiently handled 154 billion pieces of mail last year on the back of “an extensive and integrated retail, transportation, processing and delivery network to serve residential and commercial customers.”
Although it’s not damning, it was an embarrassing blowback, suggesting to JCP shareholders that any bottleneck will likely be from the retailer’s end. JCP ended the day down 3.6%.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.