Why CSX, Fitbit, and Sirius XM Holdings Slumped Today
Friday was a great day on Wall Street, with the Dow climbing by more than 140 points and broader benchmarks rising even more on a percentage basis. Market participants celebrated the Republicans' apparent success in coming up with a tax reform package that could get passed by both the House and Senate as early as next week, and the corresponding drop in corporate taxes could bolster earnings for stocks beginning in 2018. Yet some companies still missed out on the rally, and CSX (NASDAQ: CSX), Fitbit (NYSE: FIT), and Sirius XM Holdings (NASDAQ: SIRI) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.
Shares of CSX dropped nearly 8% following news that CEO Hunter Harrison has taken a medical leave due to unforeseen complications from a recent illness. The railroad giant said that COO James Foote will take over as acting CEO during Harrison's absence. Foote tried to reassure investors that much of the tough work in helping to transform CSX into a more efficient and successful railroad has already been accomplished, making it unlikely that Harrison's absence will have any negative impact on CSX's expectations for future progress. Nevertheless, investors weren't entirely comfortable seeing a new engineer at the front of the CSX train, and they're hoping that Harrison will come back better than ever in the near future.
Image source: CSX.
Source: Fool.com