L Brands was down more then seven percent on Wednesday.
May 29, 2019 3 min read
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Only 12 of 60 stocks on the Entrepreneur Index™ had gains today with just one rising more than one percent.
Stock prices fell sharply again as the major indexes head toward their first month in the red this year. The Dow and S&P 500 indexes were down 0.87 percent and 0.69 percent respectively while the Nasdaq Composite fell 0.79 percent. The Entrepreneur Index™ lost 1.1 percent on the day with weakness across all sectors of the market.
Trade concerns and their uncertain impact on slowing global economies continued to reduce investors’ appetite for equity risk.
Apparel manufacturers have been particularly hard-hit as many companies source products from China. L Brands, makers of Victoria’s Secret lingerie, fell 7.06 percent, the biggest decline on the Entrepreneur Index™ today. Under Armour Inc. (-3.1 percent) and Ralph Lauren Corp. (-1.88 percent) were also down sharply.
Meat producer Tyson Foods dropped 5.02 percent after competitor Hormel Foods reported mixed financial results yesterday. Hormel warned that the potential spread of African swine fever could have a significant impact on the company’s financials. Tyson Foods management raised the same red flag three weeks ago in an earnings conference call. Tyson shares are still up 42.9 percent on the year. Fellow food-maker J.M. Smucker Company was also down 2.21 percent today.
Retailers in general were weak as fears of a slowing economy intensify. Bed Bath & Beyond (-3.38 percent) had the biggest loss in the sector. Gap Inc. (-2.53 percent), Costco Wholesale Corp. (-2.28 percent) and Dollar Tree Inc. (-2.0 percent) were also down.
All nine REITs on the Entrepreneur Index™ were down today. As usual, mall-operator Macerich Company had the biggest decline in the sector, falling 5.9 percent. The stock is down 14.2 percent this year and 32.9 percent in the last twelve months. Kimco Realty Corp. (-2.7 percent) and Simon Property Group (-2.46 percent) were also down sharply.
The technology sector fared only slightly better than the rest of the market, but twelve of thirteen tech stocks on the Entrepreneur Index™ were down on the day. NVIDIA Corp. (-2.09 percent) and TripAdvisor Inc. (-2.04 percent) had the biggest losses. Chip-maker Analog Devices, down more than fifteen percent this month, had the only gain in the sector, rising 1.03 percent.
Gains on the index were modest. Pest-control company Rollins Inc. was up 0.93 percent and asset manager Franklin Resources gained 0.92 percent. Fedex Corp. (0.71 percent) and Capital One Financial (0.78 percent) were also up.
The Entrepreneur Index™ collects the top 60 publicly traded companies founded and run by entrepreneurs. The entrepreneurial spirit is a valuable asset for any business, and this index recognizes its importance, no matter how much a company has grown. These inspirational businesses can be tracked in real time on Entrepreneur.com.