Why Whirlpool, HNI, and PACCAR Slumped Today
Tuesday was another winning day on Wall Street, and major benchmarks set new records based largely on favorable earnings reports from key companies. The Dow Jones Industrials vaulted to gains of nearly 200 points, but elsewhere, market participants had to be content with less impressive but still substantial gains. Progress on Capitol Hill toward a tax reform package was another contributing factor to optimism, but some stocks suffered from bad news that affected their own business prospects. Whirlpool (NYSE: WHR), HNI (NYSE: HNI), and PACCAR (NASDAQ: PCAR) were among the worst performers on the day. Let's look more closely at these stocks to tell you why they did so poorly.
Whirlpool dropped 10.5% after the appliance manufacturer announced its third-quarter financials and said it will no longer sell some of its more popular product lines through Sears Holdings' (NASDAQ: SHLD) Sears stores. The relationship between Sears and Whirlpool has existed for 100 years, but Whirlpool will no longer supply certain brands, such as KitchenAid, Maytag, and Jenn-Air. Sears argued that Whirlpool demanded terms that would have been inconsistent with the retailer's mission of delivering reasonable prices to customers. Whirlpool's cut of earnings guidance also weighed on sentiment, and there will need to see signs of a turnaround soon to stop further losses from occurring.
Image source: Whirlpool.
Source: Fool.com
