The Stock Market Is Still Looking for a Bottom

A day after an encouraging rally briefly stemmed the waves of selling, the markets were down again today.


3 min read

Opinions expressed by Entrepreneur contributors are their own.


The Entrepreneur Index™ ended down 2.46 percent on the day.

As expected the earnings reported by Amazon.com and Alphabet Inc. after the market closed yesterday had a big impact on investor sentiment — unfortunately in a bad way. Like many companies this quarter, Amazon topped earnings estimates but missed slightly on revenues and lowered guidance for the fourth quarter and the all-important holiday season. The stock was down 7.82 percent.

Alphabet reported similar results, but the stock was down a more modest 2.2 percent. Healthcare information technology company Cerner Corp. was clobbered after also hitting earnings but missing revenue targets yesterday. The stock was down nearly 15 percent in morning trading–hitting a new 52-week low — but recovered ground in the afternoon. It closed down 10.86 percent, the biggest decline on the Entrepreneur Index™ today.

Tech stocks were once again the most volatile sector of the market. Up 2.95 percent yesterday, the Nasdaq Composite index was down 2.07 percent today. NVIDIA Corp. (-4.59 percent), Netflix (-4.17 percent) and Facebook (-3.7 percent) were down sharply. Twitter, still glowing from its nearly 16 percent jump yesterday was up 1.76%.

The only other tech stock in the black today was Verisign Inc. which gained 2.08 percent. The company, which registers internet domain names, reported solid earnings last night. The stock dropped a staggering 15 percent in the first hour of trading, however, possibly out of fears that the company’s registry agreement with the U.S. Commerce Department would not be approved before a deadline next month. Verisign, however, also revealed that that would likely trigger a six-month extension in the agreement. The stock recovered within an hour.

Universal Health Services, down 4.89 percent, got the familiar punishment for the good earnings/cautious outlook report it issued yesterday. It beat on earnings by 12 percent but missed on revenues by 1.2 percent and lowered forward guidance.

Tesla shares continued to roll today, up 5.09 percent — the biggest gain on the index. With the stock still having one of the largest short positions against it in the market, the Tesla bears are gnashing their teeth as their losses mount. The stock is now up 27 percent in the last four trading sessions and seemingly divorced from the mayhem in the rest of the market.

Chipotle Mexican Grill had the second largest gain on the index, rising 3.42 percent. It was one of the rare companies this quarter to miss revenue estimates and not get grilled. The fact that operating margins for restaurants were up 2.5 percent apparently made up for the miss. Chipotle shares are up 52 percent so far this year. The company plans to open another 140 to 155 restaurants next year.

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.

Source link

more recommended stories

  • 4 Ways to Successfully Turn Your Day Job into a #SideHustle That Earns You #PassiveIncome from #ThePowerofPassiveIncome

    Find out which key moves you.

  • J.M. Smucker Is Up, But Rest of Stock Market Soft After Minutes of Last Fed Meeting Released

    The stock market wasn’t sure what.

  • The 10 Most Reliable Ways to Fund a Startup

    Every funding decision is a complex.

  • The Most Important Career Lessons Are the Ones You Learn From Your Mistakes

    Instead of being embarrassed by your.

  • 7 Steps to a Perfectly Written Business Plan

    February 20, 2019 7 min read.

  • Must-Reads for List-Makers, Disrupters, and Social Entrepreneurs

    Inspired by our own personal goals.

  • 3 Fast Ways To Get Good Press

    Whether you’re a publicist or a.

  • 9 Questions to Ask Candidates’ References

    February 18, 2019 5 min read.

  • Are Your Goals Too Small? Here’s How to Know.

    See your life transform by setting.

  • 5 Partnership Lessons From Bill Belichick and Tom Brady

    Neither would be wearing so many.

  • Learning From Kevin Hart’s Social Media Mistakes

    He lost his gig at the.

  • Breaking Through on the PGA Tour After 187 Tries

    PGA Tour player Ken Duke shares.

  • Learn How to Practice Mindfulness at Work for Less Than $40

    Make the ancient, stress-relieving discipline more.

  • Why Your Next Startup Should Focus on Healthcare

    Breakdowns exist in the healthcare system,.

  • Market Up as Government Shutdown Averted, but FAANG Stocks Still Down

    The government shutdown drama is over.

  • 9 Business Ideas Under $1,000 You Can Run From Anywhere

    February 15, 2019 11 min read.

  • How to Make Your Wealth Last for Generations

    Hone your financial literacy and sustain.

  • Bed Bath & Beyond (Up 49 Percent This Year) Continues to Rise, but the Market Falls Flat

    Stocks were not feeling the love.

  • This Startup Raised $30 Million. Now, Its Founder Is Accused of Fraud.

    This promising Mexican startup closed its.

  • Corporate America Needs Understand These 4 Keys to Working With Millennials

    Millennials have a bad reputation that.

  • Government Shutdown and Trade Talks Still in Limbo but Market Up Slightly

    The stock market didn’t seem overly.

  • Jack Dorsey Picks Elon Musk as ‘Most Exciting’ User, Amazon Buys Eero and Prices Spike at Whole Foods (60-Second Video)

    Here are three things entrepreneurs should.

  • This CEO Says That Second-Guessing Your Business Is Natural

    The big decision for this Canadian.

  • The Government Shutdown Wasn’t So Bad for the Stock Market — But Avoiding a Shutdown Would Be Even Better

    The Entrepreneur Index™ was up big.

  • Mars Trip Could Cost You Less Than $500K or Even $100K

    The prices would be ‘low enough.

  • Chipotle Shoots for the Stars, Hires Oscar Winner to Produce Ad

    The burrito chain the had biggest.

  • Could These Companies Be the Next $1 Billion Unicorns?

    A new study looks ahead at.

  • Stop Hitting the Snooze Button and Start Intentionally Building Your Life and Business

    Don’t beat yourself up for hitting.

  • Get Exclusive Access to Silicon Valley Trailblazers for Less Than $10

    The CEOs of Redfin, Nextdoor, SurveyMonkey,.

  • Entrepreneurial Lessons From ‘Game of Thrones’ and the Super Bowl

    Step one is investing in creative.

  • 10 Simple Productivity Tips for Organizing Your Work Life

    February 8, 2019 5 min read.

  • 13 Secrets for Making Your Cleaning Business a Success

    Get the inside scoop from established.