Why Cummins, Veritone, and Sears Holdings Slumped Today
Friday was a sluggish end to the week on Wall Street as market participants seemed content to coast into the weekend. Major benchmarks were down small fractions of a percentage point from their Thursday closing levels, but the tug of war continued between optimistic and pessimistic investors. Many believe that a strong economy and the prospects for action on the political front in Washington could lift stocks still further, while more cynical investors point to general uncertainties as well as the fact that a major correction is long overdue. Poor news for some individual companies also weighed on the market, and Cummins (NYSE: CMI), Veritone (NASDAQ: VERI), and Sears Holdings (NASDAQ: SHLD) 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 Cummins fell almost 5% after investors in the heavy-duty engine maker lost confidence in light of new competition. Tesla (NASDAQ: TSLA) revealed its electric semitractor-trailer model last night, and the move comes as a direct threat to Cummins and its fossil fuel-powered engine designs. Cummins has rebounded lately due to new strength in key sectors like mining, energy, and construction, and the company has been an innovator in areas like natural gas-powered engines. Yet although Tesla competition is still a long way away, the announcement got enough attention to make some question Cummins' long-term staying power.
Image source: Cummins.
Source: Fool.com
