This stock market is very sensitive to any hint of an increase in interest rates, so it may be no surprise that many tech high-flyers have been falling to earth.
But there are others whose shareholders are feeling the pain; 39 components of the S&P 500 have fallen 10% for a range of reasons.
For example, homebuilder D.R. Horton Inc.
DHI,
-6.17%
was down 6.2% on Jan. 7, when the benchmark S&P 500 Index
SPX,
-0.41%
declined only 0.4%. Why would the company’s shares fall so much in only one day when demand for housing in the U.S. is so high? Because even though mortgage loan rates are still at historically low levels, their recent increase to their highest levels in a year has put some people into panic mode.
The decline in the U.S. unemployment rate to 3.9% in December, the high inflation rate and this week’s release of the minutes of the last Federal Open Market Committee meeting all have investors expecting a significant increase in interest rates. That means more demand for bonds as yields become more attractive. And that can put downward pressure on the stock market, especially tech stocks that trade at high valuations to earnings.
To be sure, not all of these declines have been caused by the fear of rising interest rates. Humana Inc.
HUM,
-1.19%
is the worst performer of 2022 among the S&P 500. The shares plunged 19% on Jan. 6 after the company lowered its guidance for membership growth for individual Medicare Advantage plans in 2022. CEO Bruce Broussard made several comments about the company being “disadvantaged,” but pointed to 2023 for expected investments to better compete in that market.
The S&P 500 Index has pulled back 1.9% so far in 2022 through the close on Jan. 7. (All price changes in this article exclude dividends). But 125 components of the index are down at least 5% this year.
Here are the 39 stocks in the S&P 500 that have fallen at least 10% this year:
| Company | Ticker | Price change – 2022 | Price change – Jan. 7 | Closing price – Jan. 7 | Decline from 52-week high | Date of 52-week high |
| Humana Inc. | HUM,
-1.19% | -21.7% | -1.2% | $363.17 | -23.6% | 05/10/2021 |
| Enphase Energy Inc. | ENPH,
-4.20% | -20.7% | -4.2% | $145.13 | -48.6% | 11/22/2021 |
| Bio-Techne Corp. | TECH,
-2.64% | -19.7% | -2.6% | $415.28 | -23.6% | 09/23/2021 |
| Align Technology Inc. | ALGN,
-3.63% | -16.8% | -3.6% | $546.99 | -25.8% | 09/23/2021 |
| West Pharmaceutical Services Inc. | WST,
-4.24% | -16.7% | -4.2% | $390.47 | -17.9% | 09/09/2021 |
| EPAM Systems Inc. | EPAM,
-3.86% | -16.7% | -3.9% | $556.68 | -23.3% | 11/05/2021 |
| IDEXX Laboratories Inc. | IDXX,
-4.52% | -16.4% | -4.5% | $550.30 | -22.2% | 07/29/2021 |
| Moderna Inc. | MRNA,
-1.02% | -15.8% | -1.0% | $213.86 | -57.0% | 08/10/2021 |
| Etsy Inc. | ETSY,
-5.99% | -15.4% | -6.0% | $185.15 | -39.8% | 11/26/2021 |
| Paycom Software Inc. | PAYC,
-0.29% | -14.3% | -0.3% | $355.80 | -36.3% | 11/02/2021 |
| Ceridian HCM Holding Inc. | CDAY,
-0.75% | -14.3% | -0.8% | $89.57 | -31.3% | 11/03/2021 |
| Bath & Body Works Inc. | BBWI,
-3.91% | -14.2% | -3.9% | $59.90 | -27.0% | 11/18/2021 |
| Zoetis Inc. Class A | ZTS,
-2.91% | -13.5% | -2.9% | $211.09 | -15.3% | 12/30/2021 |
| Charles River Laboratories International Inc. | CRL,
-1.58% | -12.8% | -1.6% | $328.68 | -28.6% | 09/24/2021 |
| ServiceNow Inc. | NOW,
-1.33% | -12.7% | -1.3% | $566.39 | -20.0% | 11/04/2021 |
| Fortinet Inc. | FTNT,
+0.21% | -12.4% | 0.2% | $314.66 | -15.4% | 12/29/2021 |
| Bio-Rad Laboratories Inc. Class A | BIO,
-2.98% | -12.2% | -3.0% | $663.16 | -20.4% | 09/02/2021 |
| DexCom Inc. | DXCM,
-2.38% | -12.2% | -2.4% | $471.49 | -28.5% | 11/18/2021 |
| D.R. Horton Inc. | DHI,
-6.17% | -12.2% | -6.2% | $95.24 | -13.8% | 12/13/2021 |
| Intuit Inc. | INTU,
-3.10% | -11.8% | -3.2% | $567.56 | -20.8% | 11/19/2021 |
| Lennar Corp. Class A | LEN,
-4.74% | -11.4% | -4.7% | $102.95 | -12.4% | 12/13/2021 |
| SolarEdge Technologies Inc. | SEDG,
+0.27% | -11.3% | 0.3% | $248.91 | -36.1% | 11/22/2021 |
| ABIOMED Inc. | ABMD,
-5.10% | -11.1% | -5.1% | $319.28 | -17.6% | 01/28/2021 |
| Pool Corp. | POOL,
-3.33% | -11.1% | -3.3% | $503.17 | -13.6% | 11/19/2021 |
| Cadence Design Systems Inc. | CDNS,
-4.10% | -10.9% | -4.1% | $166.02 | -13.8% | 12/28/2021 |
| Zebra Technologies Corp. Class A | ZBRA,
-4.38% | -10.8% | -4.4% | $530.86 | -13.7% | 12/10/2021 |
| Iron Mountain Inc. | IRM,
+0.04% | -10.6% | 0.0% | $46.79 | -11.9% | 12/31/2021 |
| SBA Communications Corp. Class A | SBAC,
-0.36% | -10.6% | -0.4% | $347.91 | -11.1% | 12/31/2021 |
| Accenture Plc Class A | ACN,
-1.92% | -10.6% | -1.9% | $370.75 | -11.2% | 12/29/2021 |
| Gartner Inc. | IT,
-2.23% | -10.4% | -2.2% | $299.39 | -18.9% | 11/02/2021 |
| Synopsys Inc. | SNPS,
-4.24% | -10.4% | -4.2% | $330.36 | -12.5% | 12/28/2021 |
| Cintas Corp. | CTAS,
-1.38% | -10.3% | -1.4% | $397.42 | -13.9% | 12/13/2021 |
| Netflix Inc. | NFLX,
-2.21% | -10.2% | -2.2% | $541.06 | -22.8% | 11/17/2021 |
| Salesforce.com Inc. | CRM,
-0.37% | -10.2% | -0.4% | $228.31 | -26.8% | 11/09/2021 |
| Danaher Corp. | DHR,
-2.71% | -10.1% | -2.7% | $295.67 | -11.5% | 09/10/2021 |
| Tyler Technologies Inc. | TYL,
-2.03% | -10.1% | -2.0% | $483.59 | -13.3% | 11/17/2021 |
| Generac Holdings Inc. | GNRC,
-0.26% | -10.1% | -0.3% | $316.55 | -39.6% | 11/02/2021 |
| Copart Inc. | CPRT,
-3.58% | -10.0% | -3.6% | $136.41 | -15.3% | 11/16/2021 |
| Source: FactSet |
You can click the tickers for more about each company.
Then read for Tomi Kilgore’s detailed guide to the wealth of information available for free on the MarketWatch quote page.
Don’t miss: When tech stocks fade, where do you go?
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Source: https://www.marketwatch.com/story/nearly-8-of-the-s-p-500-has-taken-a-bath-this-week-39-stocks-fell-at-least-10-11641592772?siteid=yhoof2&yptr=yahoo
Nearly 8% of the S&P 500 has taken a bath this week — 39 stocks fell at least 10%
This stock market is very sensitive to any hint of an increase in interest rates, so it may be no surprise that many tech high-flyers have been falling to earth.
But there are others whose shareholders are feeling the pain; 39 components of the S&P 500 have fallen 10% for a range of reasons.
For example, homebuilder D.R. Horton Inc.
-6.17%
-0.41%
DHI,
was down 6.2% on Jan. 7, when the benchmark S&P 500 Index
SPX,
declined only 0.4%. Why would the company’s shares fall so much in only one day when demand for housing in the U.S. is so high? Because even though mortgage loan rates are still at historically low levels, their recent increase to their highest levels in a year has put some people into panic mode.
The decline in the U.S. unemployment rate to 3.9% in December, the high inflation rate and this week’s release of the minutes of the last Federal Open Market Committee meeting all have investors expecting a significant increase in interest rates. That means more demand for bonds as yields become more attractive. And that can put downward pressure on the stock market, especially tech stocks that trade at high valuations to earnings.
To be sure, not all of these declines have been caused by the fear of rising interest rates. Humana Inc.
-1.19%
HUM,
is the worst performer of 2022 among the S&P 500. The shares plunged 19% on Jan. 6 after the company lowered its guidance for membership growth for individual Medicare Advantage plans in 2022. CEO Bruce Broussard made several comments about the company being “disadvantaged,” but pointed to 2023 for expected investments to better compete in that market.
The S&P 500 Index has pulled back 1.9% so far in 2022 through the close on Jan. 7. (All price changes in this article exclude dividends). But 125 components of the index are down at least 5% this year.
Here are the 39 stocks in the S&P 500 that have fallen at least 10% this year:
You can click the tickers for more about each company.
Then read for Tomi Kilgore’s detailed guide to the wealth of information available for free on the MarketWatch quote page.
Don’t miss: When tech stocks fade, where do you go?
Sign up: For intel on all the news moving markets before the day starts, read the Need to Know email.
Source: https://www.marketwatch.com/story/nearly-8-of-the-s-p-500-has-taken-a-bath-this-week-39-stocks-fell-at-least-10-11641592772?siteid=yhoof2&yptr=yahoo