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Yikes! A fifth of big stocks in bear market

A immature adult masculine bear watches earnestly as alternative bears fish for salmon, as charge clouds set up over Katmai National Park, Alaska.  Photo by Oliver Scholey, Disney

A immature adult masculine bear watches earnestly as alternative bears fish for salmon, as charge clouds set up over Katmai National Park, Alaska. Photo by Oliver Scholey, Disney

Investors have been nervously available the genocide of the longhorn marketplace – and the begin of the bear. That day will come. But it’s already here for 20% of big companies.

One hundred of the bonds in the Standard & Poor’s 500, together with Delta Airlines (DAL), tradesman Wal-Mart Stores (WMT) and oil scrutiny organisation Transocean (RIG), have been down 20% or some-more from their 52-week highs. A dump of 20% or some-more a tall H2O symbol is the unaccepted clarification of a bear marketplace – the indicate which a batch dump gets generally painful.

What’s even some-more worrisome is usually how many bonds have been descending apart. A year ago – usually twenty-one bonds – or 4% – in the S&P 500 were down 20% or some-more from their highs. Now it’s a 100 bonds or 20%. Seeing such a large wearing away is a thespian wakeup call for investors – who have been lulled in to meditative this marketplace can infantryman aloft no make a difference what.

Chart source: S&P Capital IQ around Microsoft Excel

Chart source: S&P Capital IQ around Microsoft Excel

Market reversals have been guileful in which they begin to occur mostly prolonged prior to many investors even notice. Gains or fortitude by many bonds or bonds with the top marketplace values can simply facade the relapse in a flourishing series of companies underneath the surface.

The stream marketplace altogether – loyal to form – has been comparatively stable. The S&P 500 at large is usually down 2.4% from the 52-week tall and is essentially up 1% this year so far. But which peace is small joy for investors in the bonds which have been down the many from their 52-week highs.

Capture

It’s removing some-more formidable to omit the wearing away as some-more companies which strike 52-week highs this year, have been right away down 20% or some-more from those levels. All told, nineteen S&P 500 bonds which notched brand brand new 52-week highs this year have been down 20% from those highs.

Take many of the big airlines, for instance, which had been outrageous marketplace leaders entrance in to the year. Southwest (LUV), American Airlines (AAL) and Delta (DAL) all notched brand brand new 52-week highs this past January. But right away these airlines shares have been precisely in bear marketplace territory, down 27%, 28% and 20%, from their highs respectively.

A series of retailers, too, set 52-week highs this year usually to pulp in to bear marketplace domain now. Retailers Kohl’s (KSS) and Wal-Mart (WMT) strike 52-week highs in Apr and Jan of this year, respectively. Now, Kohl’s is off 22% from which tall and Wal-Mart has strew 23%.

S&P 500 STOCKS DOWN 20% FROM 52-WEEK HIGHS NOTCHED THIS YEAR

Company Symbol % Ch. from 52-week Date of 52-week high
Frontier Comm. FTR -41.4% 2/17/2015
Whole Foods Market WFM -30% 2/19/2015
American Airlines AAL -28.2% 1/26/2015
Southwest Airlines LUV -26.7% 1/29/2015
HCP HCP -25% 1/20/2015
SCANA SCG -23.7% 1/29/2015
Urban Outfitters URBN -23.6% 3/20/2015
Vornado Realty VNO -23.2% 1/15/2015
Iron Mountain IRM -23.1% 2/6/2015
Ventas VTR -22.8% 1/28/2015
Pinnacle West PNW -22.4% 1/22/2015
Wisconsin Energy WEC -22.1% 1/28/2015
Kohl’s KSS -222% 4/6/2015
Hewlett-Packard HPQ -20.7% 1/9/2015
Biogen BIIB -20.4% 3/20/2015
Wal-Mart Stores WMT -20.3% 1/13/2015
Delta Air Lines DAL -20.3% 1/23/2015
Southern Company SO -20.2% 1/28/2015
Health Care REIT HCN -20.1% 1/20/2015

Sources: S&P Capital IQ, USA TODAY

Don’t think all the suffering is centered on a little new and pointy declines. Not surprisingly, many of the bonds which have been the many deeply mired in bear-market domain have been prolonged in the making. Here have been the bonds which have been down many from their 52-week highs:

S&P 500 STOCKS DOWN THE MOST FROM THEIR 52-WEEK HIGHS

Company Symbol % Ch. from 52-week
Transocean RIG -59.4%
Chesapeake Energy CHK -58%
Ensco ESV -57.3%
Genworth Fin’l GNW -56.5%
Wynn Resorts WYNN -53.6%
Noble NE -51.4%
Michael Kors KORS -49.4%
Freeport-McMoRan FCX -49.1%
Southwestern Energy SWN -48.5%
QEP Resources EQP -47.9%

Sources: S&P Capital IQ, USA TODAY

Does the actuality a poignant and flourishing cut of the marketplace is descending in to a bear marketplace – meant the complete bear marketplace is headed for trouble? Absolutely not. But it does meant which investors who have been notice of a bear have which most some-more justification to indicate to.

Growl.

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