S&P 500 Falls 2.09%

Today was the worst day for the stock market is more than four months. The S&P 500 dropped 2.09% to 1,790.29. We lost two important marks — 16,000 on the Dow and 1,800 on the S&P. The S&P 500 closed below its 50-day moving average for the first time since October 9. The index is 5.2% above its 200-DMA, which we haven’t closed below in 14 months.

Nineteen of our 20 Buy List stocks closed down today. Microsoft ($MSFT), thanks to the good earnings report, was our only winner.

The big loser was Moog ($MOG-A) which lost 8.85% after their earnings report. Despite that big loss, our Buy List held up reasonably well compared with the rest of the market. For the day, we lost 2.20% which was 0.11% worse than the S&P 500. Moog, by itself, made up 0.45% of today’s loss.

For the quarter, Moog made 88 cents per share which was one penny below expectations. Their outlook, however, was rather weak:

Moog also warned that its profits for the entire fiscal year would fall about 10 percent short of what both the company and analysts were forecasting. Moog now said it expects its profits to rise to $169 million, or $3.65 per share. That’s less than the $3.95 to $4.10 per share that the company forecast last fall and below the $4.06 per share that analysts were forecasting, but still an improvement from the $3.50 it earned last year.

Moog said it now plans to spend an additional 15 cents per share on research and development expenses for its aircraft business, while its business system conversion also is forecast to cost about 10 cents per share more than expected. The company also trimmed its sales forecast for the year by nearly 2 percent, or $45 million, to $2.63 billion from the previous prediction of $2.67 billion. That’s still up from $2.61 billion last year. The expectation of lower sales growth led to a reduction of about 10 cents per share in the company’s earnings forecast.

Posted by on January 24th, 2014 at 5:49 pm


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