Why Gap, Teradata, and Modine Manufacturing Slumped Today
Friday was a relatively quiet day on Wall Street as market participants seemed content to hang onto most of their gains from earlier in the week. A dose of reality on the trade front hurt sentiment to some extent, but for the most part, investors still have high hopes about the future of the U.S. economy and the potential for growth among many high-flying companies. However, some stocks still posted significant losses. Gap (NYSE: GPS), Teradata (NYSE: TDC), and Modine Manufacturing (NYSE: MOD) were among the worst performers. Here's why they did so poorly.
Shares of Gap fell nearly 8% after the clothing retailer disappointed investors with two downbeat news items. First, Gap's preliminary look at third-quarter financial results wasn't very encouraging, including drops in comparable sales for all three of its key brands. Of potentially more concern was the company's announcement that Art Peck will leave his position as chief executive officer, giving way to board chair Robert Fisher stepping in as interim CEO. Even the Old Navy concept saw a 4% decline in comps, and that made some shareholders nervous about Gap's plans to spin off Old Navy as a separate company. Even as some struggling retailers have managed to turn the corner, Gap isn't showing immediate signs of a turnaround.
Image source: Gap.
Source Fool.com
