The bulls tried to get the new weeks started on the same bullish foot they ended last week on, but it wasn’t meant to be. By the time Monday’s closing bell rang, the S&P 500 index had been pared back to a close of only 2,459.14, down a mere 0.01% for the session.
It could have been worse though — you could have owned Radius Health Inc (NASDAQ:RDUS), Blue Apron Holdings Inc (NYSE:APRN) and Tesla Inc (NASDAQ:TSLA). These three names all took on more than their fair share of water today.
Here’s what traders need to know about each setback.
Tesla Inc (TSLA)
Just when it looked like the stock was about to hammer out a rebound after a sizable pullback, the headlines once again pulled the rug out from underneath Tesla stock. TSLA shares ended the day down 2.5% following reports that another one of its vehicles was involved in an accident.
The drivel of the electric car had reportedly just engaged the auto-driving feature, causing the vehicle to accelerate and eventually roll over. That driver, 58 year-old David Clark, reported that the autopilot was not the cause of accident, which only caused minor injuries to him and his passengers. He also said, however, that he thought he had disengaged the self-driving system before the incident played out. The inconsistencies only added to doubts that a completely autonomous car is safe whether the driver’s intent was to use the technology.
Fanning those bearish flames — perhaps even more so than the crash itself — was a downright strange comment from CEO Elon Musk, who argued at this weekend’s National Governors Association meeting that “our stock price is higher than we have any right to deserve.”
TSLA shareholders took him at his word.
Blue Apron Holdings Inc (APRN)
Add prepared-meal service provider Blue Apron Holdings to the list of companies that have become, or are about to become, victims of e-commerce giant Amazon.com, Inc. (NASDAQ:AMZN). Amazon indirectly announced it was also getting into the business of assembling all the ingredients and pre-prepping a meal to deliver to consumers’ homes, stepping onto Blue Apron Holdings’ turf.
Whispers of the possibility have been swirling for some time, and were rekindled in earnest following June’s announcement that Amazon would be acquiring grocer Whole Foods Market, Inc. (NASDAQ:WFM). Access to food is a key part of the meal-prep business. Today, though, the rumors were confirmed in the form of a trademark request … “We do the prep, you be the chef.” The filing says the phrase is in reference to “Prepared food kits composed of meat, poultry, fish, seafood, fruit and/or and vegetables and also including sauces or seasonings, ready for cooking and assembly as a meal.”
APRN ended the day down 10.5%.
Radius Health Inc (RDUS)
Finally, Radius Health shares tanked to the tune of 9.3% today on the heels of news about its new CEO. In short, RDUS shareholders aren’t overly thrilled with the selection of Jesper Høiland for the top spot.
Granted, they weren’t exactly thrilled with now-former CEO Bob Ward. RDUS shares haven’t gone anywhere since early 2016 even though the company won the FDA’s approval of its osteoporosis drug Tymlos under Ward’s leadership. Still, all CEO swap-outs are disruptive, and investors may have finally started to see a light at the end of the tunnel with Ward at the helm.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.