uploads/2018/07/lOSSES-7.png

S&P 500’s Top Losses: Nielsen Holdings and Facebook

By

Updated

Top losses

The S&P 500’s top losses on July 26 were:

  • Nielsen Holdings (NLSN) declined 25.23%.
  • Facebook (FB) declined 18.96%.
  • Mohawk Industries (MHK) declined 17.51%.
  • Abiomed (ABMD) declined 10.78%.
  • Synchrony Financial (SYF) declined 10.29%.

Nielsen Holdings

Nielsen Holdings, which is a global information, data, and measurement company, was the S&P 500’s top loss on July 26. After declining for two weeks, Nielsen Holdings started this week on a weaker note and declined as the week progressed. Nielsen Holdings opened lower on July 26 and declined to 7.5-year low price levels.

The selling pressure increased after the announcement of the weaker-than-expected second-quarter earnings report. According to management, the EPS in the second quarter was $0.2—a drop of 47% YoY and also less than analysts’ EPS estimate of $0.37. Management lowered its fiscal 2018 EPS guidance 36% to $0.98, which was less than analysts’ forecast of $1.51. The weak guidance is due to increased regulations on data collection services and the impact of the European GDPR data security act on the company’s sales.

On July 26, Nielsen Holdings declined 25.23% to $22.11.

Facebook

Facebook was among the S&P 500’s top losses on July 26. After gaining in the first three trading days of the week, Facebook opened lower on Thursday and ended the day at 2.5-month low price levels.

The selling pressure in Facebook increased on Thursday amid more concerns about its slowing growth. The active daily users in the US region remained unchanged in the second quarter, while the active daily users in the Europe region declined compared to the first quarter. David Wehner, Facebook’s CFO, expects the revenue growth to decline in the coming quarters, which weighed on Facebook and triggered a sell-off on Thursday.

On Thursday, Facebook declined 18.96% and closed the day at $176.26. Facebook is part of the S&P 500 Information Technology sector, which declined 1.64% on July 26.

Next, we’ll discuss how the US Dollar Index and Treasury yields performed in the early hours on July 27.

More From Market Realist