Nearly 8% of the S&P 500 has taken a bath this week -- 39 stocks fell at least 10%
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
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-Philip van Doorn
(END) Dow Jones Newswires
January 08, 2022 13:29 ET (18:29 GMT)
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