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GE Stock Has Dropped for 10 Straight Days. Here's What Is Going On. -- Barrons.com GE Stock Has Dropped for 10 Straight Days. Here's What Is Going On. -- Barrons.com Dow Jones By Al Root Stock in iconic American manufacturer General Electric is getting hammered in the coronavirus-related stock market selloff. Shares are at about $10.89, down 6 cents or 0.6% in midday trading Thursday. That may not sound like much for any given day, but shares have fallen for 10 consecutive trading sessions, losing 17.3% over that span. The S&P 500 and Dow Jones Industrial Average, for comparison, are down roughly 10%. Ten days is a long losing streak, in stock market terms. If shares close lower Thursday, it will be the longest losing streak since late 2009, when shares fell -- again -- for 10 straight days, according to Dow Jones Market Data. Investors, however, aren't giving up on the turnaround efforts being led by CEO Larry Culp. Instead, shares effectively are giving up recent outperformance. The stock is down only 2.4% year to date. The broader market is off 1.2% in 2020. Investors do have an event coming which is worth paying attention to, however. The company hosts an outlook event on March 4, and options markets imply the stock could move about 10% the day of the meeting. That feels high. Options prices, of course, have spiked recently, with some rising fivefold over the past few days. Volatility is an input into options pricing formulas, and volatility is on the rise. Earnings guidance for this year was given when General Electric (ticker: GE) reported fourth-quarter numbers. The company expects to earn about 55 cents a share and generate about $3 billion in cash flow in 2020. On March 4, investors will get a little more detail supporting those estimates. GE is the fourth most active stock in the S&P 500 today. |
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