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The stock market had big ups and downs on Friday, but the bears ended up wearing the day. Dow Jones Industrial Average and the other main indices have finished lower. It was premature to speculate on the long-awaited end of the trade dispute between China and the United States. Despite mixed results, several key players in the global economy have identified obstacles that could hinder growth. Among the large companies in decline were several leading companies, and Kraft Heinz (NASDAQ: KHC), Universal display (NASDAQ: OLED), and Synchrony Financial (NYSE: SYF) were among the worst performers of the day. Here's why they hurt so badly.
Kraft Heinz leaves investors feeling burned
Kraft Heinz shares fell 10% after the food giant announced its third quarter financial results. The company's operating performance was relatively good, with organics sales up 2.6% over the previous year. But rising costs weighed on its profits, including more expensive raw materials and higher overhead costs. The company's executives believe Kraft's end result will only be temporary, but the long-term problem faced by Food Titan is whether it can pivot to healthier offerings that better match changing consumer preferences. Otherwise, the decline of today could only be the beginning of a longer term trend at Kraft Heinz.
Source of the image: Kraft Heinz.
The universal display is wallowing
The Universal Display share fell 20.5% as a result of a disappointing performance in the company's third quarter report. The manufacturer of organic LED displays said its turnover was up 26% over the previous year's level and its net profit jumped nearly 70% from the previous year . Still, both numbers were lower than expected by most stock users, and Universal Display also reduced its revenue forecast for the year. Disappointing news from other sectors of the smartphone industry may have also weighed on the OLED maker's actions, but regardless of industry trends, Universal Display still needs to demonstrate that it can benefit from growth. in the long term to stimulate its own activities.
Synchronization is out of sync
Finally, the shares of Synchrony Financial ended down nearly 10%. The credit card issuer was sued by the retail giant Walmart (NYSE: WMT), alleging breach of contract between the two companies. Walmart argued that Synchrony's customer credit underwriting standards were hurting the retailer and claiming $ 800 million in damages, but Synchrony responded by saying that Walmart was simply trying to pay less than the company Consumer credit estimates just customer loans. Synchrony wants to enforce the contract, but given Walmart's size and leverage, investors are not absolutely convinced that the finance company will end up in dispute.
Dan Caplinger has no position in the mentioned actions. The Motley Fool owns shares and recommends Universal Display. Motley Fool has a disclosure policy.
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