Nearly 8% of the S&P 500 has taken a bath this week — 39 stocks fell at least 10%

view original post

By Philip van Doorn

The worst performers in 2022’s first week of trading include Humana, Moderna, Netflix and Salesforce.com

This stock market is very sensitive to any hint of an increase in interest rates, so it may be no surprise that many tech high-flyers have been falling to earth.

But there are others whose shareholders are feeling the pain; 39 components of the S&P 500 have fallen 10% for a range of reasons.

For example, homebuilder D.R. Horton Inc. (DHI) was down 6.2% on Jan. 7, when the benchmark S&P 500 Index declined only 0.4%. Why would the company’s shares fall so much in only one day when demand for housing in the U.S. is so high? Because even though mortgage loan rates are still at historically low levels, their recent increase to their highest levels in a year has put some people into panic mode.

The decline in the U.S. unemployment rate to 3.9% in December, the high inflation rate and this week’s release of the minutes of the last Federal Open Market Committee meeting all have investors expecting a significant increase in interest rates. That means more demand for bonds as yields become more attractive. And that can put downward pressure on the stock market, especially tech stocks that trade at high valuations to earnings.

To be sure, not all of these declines have been caused by the fear of rising interest rates. Humana Inc. (HUM) is the worst performer of 2022 among the S&P 500. The shares plunged 19% on Jan. 6 after the company lowered its guidance for membership growth for individual Medicare Advantage plans in 2022. CEO Bruce Broussard made several comments about the company being “disadvantaged,” but pointed to 2023 for expected investments to better compete in that market.

The S&P 500 Index has pulled back 1.9% so far in 2022 through the close on Jan. 7. (All price changes in this article exclude dividends). But 125 components of the index are down at least 5% this year.

Here are the 39 stocks in the S&P 500 that have fallen at least 10% this year:

Company                                        Ticker  Price change -- 2022  Price change -- Jan. 7  Closing price -- Jan. 7  Decline from 52-week high  Date of 52-week high 
Humana Inc.                                     HUM                 -21.7%                  -1.2%                 $363.17                     -23.6%       05/10/2021 
Enphase Energy Inc.                             ENPH                -20.7%                  -4.2%                 $145.13                     -48.6%       11/22/2021 
Bio-Techne Corp.                                TECH                -19.7%                  -2.6%                 $415.28                     -23.6%       09/23/2021 
Align Technology Inc.                           ALGN                -16.8%                  -3.6%                 $546.99                     -25.8%       09/23/2021 
West Pharmaceutical Services Inc.               WST                 -16.7%                  -4.2%                 $390.47                     -17.9%       09/09/2021 
EPAM Systems Inc.                               EPAM                -16.7%                  -3.9%                 $556.68                     -23.3%       11/05/2021 
IDEXX Laboratories Inc.                         IDXX                -16.4%                  -4.5%                 $550.30                     -22.2%       07/29/2021 
Moderna Inc.                                    MRNA                -15.8%                  -1.0%                 $213.86                     -57.0%       08/10/2021 
Etsy Inc.                                       ETSY                -15.4%                  -6.0%                 $185.15                     -39.8%       11/26/2021 
Paycom Software Inc.                            PAYC                -14.3%                  -0.3%                 $355.80                     -36.3%       11/02/2021 
Ceridian HCM Holding Inc.                       CDAY                -14.3%                  -0.8%                  $89.57                     -31.3%       11/03/2021 
Bath & Body Works Inc.                          BBWI                -14.2%                  -3.9%                  $59.90                     -27.0%       11/18/2021 
Zoetis Inc. Class A                             ZTS                 -13.5%                  -2.9%                 $211.09                     -15.3%       12/30/2021 
Charles River Laboratories International Inc.   CRL                 -12.8%                  -1.6%                 $328.68                     -28.6%       09/24/2021 
ServiceNow Inc.                                 NOW                 -12.7%                  -1.3%                 $566.39                     -20.0%       11/04/2021 
Fortinet Inc.                                   FTNT                -12.4%                   0.2%                 $314.66                     -15.4%       12/29/2021 
Bio-Rad Laboratories Inc. Class A               BIO                 -12.2%                  -3.0%                 $663.16                     -20.4%       09/02/2021 
DexCom Inc.                                     DXCM                -12.2%                  -2.4%                 $471.49                     -28.5%       11/18/2021 
D.R. Horton Inc.                                DHI                 -12.2%                  -6.2%                  $95.24                     -13.8%       12/13/2021 
Intuit Inc.                                     INTU                -11.8%                  -3.2%                 $567.56                     -20.8%       11/19/2021 
Lennar Corp. Class A                            LEN                 -11.4%                  -4.7%                 $102.95                     -12.4%       12/13/2021 
SolarEdge Technologies Inc.                     SEDG                -11.3%                   0.3%                 $248.91                     -36.1%       11/22/2021 
ABIOMED Inc.                                    ABMD                -11.1%                  -5.1%                 $319.28                     -17.6%       01/28/2021 
Pool Corp.                                      POOL                -11.1%                  -3.3%                 $503.17                     -13.6%       11/19/2021 
Cadence Design Systems Inc.                     CDNS                -10.9%                  -4.1%                 $166.02                     -13.8%       12/28/2021 
Zebra Technologies Corp. Class A                ZBRA                -10.8%                  -4.4%                 $530.86                     -13.7%       12/10/2021 
Iron Mountain Inc.                              IRM                 -10.6%                   0.0%                  $46.79                     -11.9%       12/31/2021 
SBA Communications Corp. Class A                SBAC                -10.6%                  -0.4%                 $347.91                     -11.1%       12/31/2021 
Accenture Plc Class A                           ACN                 -10.6%                  -1.9%                 $370.75                     -11.2%       12/29/2021 
Gartner Inc.                                     IT                 -10.4%                  -2.2%                 $299.39                     -18.9%       11/02/2021 
Synopsys Inc.                                   SNPS                -10.4%                  -4.2%                 $330.36                     -12.5%       12/28/2021 
Cintas Corp.                                    CTAS                -10.3%                  -1.4%                 $397.42                     -13.9%       12/13/2021 
Netflix Inc.                                    NFLX                -10.2%                  -2.2%                 $541.06                     -22.8%       11/17/2021 
Salesforce.com Inc.                             CRM                 -10.2%                  -0.4%                 $228.31                     -26.8%       11/09/2021 
Danaher Corp.                                   DHR                 -10.1%                  -2.7%                 $295.67                     -11.5%       09/10/2021 
Tyler Technologies Inc.                         TYL                 -10.1%                  -2.0%                 $483.59                     -13.3%       11/17/2021 
Generac Holdings Inc.                           GNRC                -10.1%                  -0.3%                 $316.55                     -39.6%       11/02/2021 
Copart Inc.                                     CPRT                -10.0%                  -3.6%                 $136.41                     -15.3%       11/16/2021 
                                                                                                                                                           Source: FactSet 

You can click the tickers for more about each company.

Then read for Tomi Kilgore’s detailed guide to the wealth of information available for free on the MarketWatch quote page.

Don’t miss: When tech stocks fade, where do you go?

Sign up: For intel on all the news moving markets before the day starts, read the Need to Know email

-Philip van Doorn

 

(END) Dow Jones Newswires

01-07-22 1659ET

Copyright (c) 2022 Dow Jones & Company, Inc.