Stressed Out: Biggest Losers Following Fed's Rate Decision

 | Jan 27, 2016 | 3:36 PM EST
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

tdw

,

x

,

s

,

swn

,

fcx

This article is part of a Real Money series on 20 distressed companies investors should consider adding to their distressed watch list.

The market does not appear to like the Federal Reserve's decision to keep interest rates steady, especially those companies already laden with earnings problems.

Despite a nearly 2% drop in the S&P 500 following the Fed's announcement, Tidewater (TDW) was the only member of Real Money's distressed watch list to post gains of over 1%, less than an hour after the decision. (Meanwhile, U.S. Steel (X) and Sprint (S) shares each popped less than 1%.)

The Deal: Nexstar lines up $4.6B purchase of Media General

But since then the entire index has fallen, and some companies have been less fortunate than others.

Of the 20 members on the distressed radar, Freeport McMoRan (FCX) was the most badly hit, dropping more than 6% just over an hour after the Fed announcement, followed by a less than 6% drop for Chesapeake Energy (CHK) and a 5% decrease in Avon Products (AVP) shares.

"Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability," the Federal Reserve Board said in an afternoon statement.

"The Committee currently expects that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace and labor market indicators will continue to strengthen. Inflation is expected to remain low in the near term, in part because of the further declines in energy prices, but to rise to 2% over the medium term as the transitory effects of declines in energy and import prices dissipate and the labor market strengthens further," the Fed said.

The Fed has decided to keep the federal funds rate unchanged, the central interest rate upon which most U.S. lending rates are pegged, and Chair Janet Yellen said the central bank will continue to monitor employment and economic growth to determine if it is meeting its two central mandates of maximizing employment and controlling inflation.

Next on the list of index names most badly hit were Ultra Petroleum (UPL) and McDermott (MDR), which each fell 5% just an hour after the decision.

For more on Real Money's 20 distressed companies to watch:

Stressed Out: Introducing Real Money's Distressed Index

Stressed Out: Why the Big Steelmakers Are Tanking Today

Stressed Out: Is Avon Using Vanishing Cream on Its Cash?

Stressed Out: Sprint Is Collapsing Under the Weight of Its High-Yield Debt

Columnist Conversations

our chart of the week worked out nicely! we'll bank this big winner and roll up SOLD BIIB AUG 270 CALL AT...
No news yet, but Ralph Lauren (RL) is surging in early trading. Shares that previously traded as hi...
Good morning. Just a few comments about stocks that are in the news. Forget what I said about Chinese Inter...
Just what is the Fed thinking about these days?  Let's talk about it at 130pm PST (430pm EST), free to at...

BEST IDEAS

REAL MONEY'S BEST IDEAS

News Breaks

Powered by

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.