Why Apple (AAPL), Boeing (BA) and Other Blue Chips Are Dragging the Markets Lower

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Shares of Santander Consumer USA Holdings Inc (NYSE:SC) are down by 15% in mid-morning trading, after the company missed fourth quarter profit forecasts. The company said it registered revenue of $1.75 billion, surpassing expectations of $1.71 billion, and earnings of $0.19 per share, miles away from Wall Street’s expectations of $0.57 a share. Full year figures came in at $6.74 billion in revenue and a profit of $2.41 per share. By yesterday’s closing bell, the stock had already fallen by 15% since the start of the year.

Follow Santander Consumer Usa Holdings Inc. (NYSE:SC)

At the end of September, roughly 15% of Santander Consumer USA Holdings Inc (NYSE:SC)’s common stock was held by 35 top funds, unchanged during the quarter. Whereas Lee Ainslie sees great upside in this stock, having boosted his stake by 10%, Fir Tree chose to reduce its exposure, having dumped nearly half of its position during the quarter. Ainslie’s Maverick Capital held 11.5 million shares, while Fir Tree reported ownership of 4.11 million shares.

Tupperware Brands Corporation (NYSE:TUP)‘s fourth quarter results were disappointing as well, sending the stock down by roughly 15% during the first hours of trading. Sales have been severely affected by the strong dollar, as the company gets approximately 70% of sales from overseas. In Asia, sales fell by 13% in dollar terms and compared to only 3% in local currency. A similar situation occurred in South America, where sales grew by 22% in local currency terms, but fell by 17% when converted to dollars. For the fourth quarter, Tupperware reported earnings of $1.35 per share, below analysts’ estimates of $1.38 per share. Revenue came in at $592.1 million, missing forecasts of $608 million. The company has also issued updated forecasts for 2016 of earnings of $0.74-to-$0.79 per share, below analysts’ estimates of $1.02 a share. Sales are nevertheless expected to increase by 10%-to-12%, whereas investors were only looking for a 4% increase.

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Tupperware Brands Corporation (NYSE:TUP) is the only company from this list that gained in popularity during the third quarter. The number of funds long the stock increased to 18 by the end of September, from 16 at the end of June. Among the funds we follow, the largest stake in Tupperware Brands is held by Huber Capital Management, run by Joe Huber. In its latest 13F filing, the fund reported ownership of 1.52 million shares, up by 10% over the quarter.

Disclosure: None

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