After closing on April 8th, the U.S. Trade Representative proposed an $11 billion list of European goods, including commercial aircraft, dairy products and wine, on which to impose tariffs. The U.S. is considering the actions as retaliation for European subsides to Airbus and the aerospace sector. Separately, the International Monetary Fund lowered its estimate for global economic growth this year to 3.3 percent from 3.5 percent.
The major stock indexes were all down sharply. The Dow and S&P 500 indexes fell 0.72 percent and 0.61 percent respectively, while the Nasdaq Composite was off 0.56 percent. The Entrepreneur Index™ ended the day down 0.53 percent.
Starboard Value LP is making waves at companies on the Entrepreneur Index™. Yesterday, the activist investor backed off a fight with management at retailer Dollar Tree Inc. after the company agreed to make changes to its product pricing strategy. Today, it struck a deal with Cerner Corp., a provider of healthcare information technology, to install four new directors on Cerner’s board, increase operating margins, and boost its share buyback program. Cerner stock was up as much as 16 percent before settling with a gain of 10.3 percent — the biggest on the Entrepreneur Index™ today.
Clothing-maker Under Armour Inc. had the biggest decline on the Entrepreneur Index™, falling 4.69 percent. B. Riley analyst Susan Anderson reiterated a sell rating on the stock, pointing to the company’s weakness in athletic footwear as a reason for concern. She put a price target of $12 on the stock — more than 40 percent below its current $20.72.
Shares in casino-maker Wynn Resorts, up 40.8 percent this year, were down 3.86 percent today. The company announced it had terminated discussions to buy Australian firm Crown Resorts for $7.1 billion after news of the deal was prematurely leaked. Wynn is looking to diversify its operations in Macau, where its gaming licenses are up for renewal in 2022. Macau currently accounts for about two thirds of Wynn’s revenues.
Other declines on the Entrepreneur Index™ included asset managers Franklin Resources (-2.81 percent) and BlackRock (-1.42 percent) and drug-makers Regeneron Pharmaceuticals (-1.38 percent) and Alexion Pharmaceuticals (-1.5 percent). Gap Inc.and REIT SL Green Realty Corp. were also down 2.95 percent and 2.34 percent respectively.
Only 12 of sixty stocks on the Entrepreneur Index™ posted gains today. Outside of Cerner Corp., tech stocks TripAdvisor Inc. (1.55 percent) and Facebook (1.51 percent) had the biggest gains. Food-maker J.M. Smucker Company was also up 1.27 percent.
The Entrepreneur Index™ collects the top 60 publicly traded companies founded and run by entrepreneurs. The entrepreneurial spirit is a valuable asset for any business, and this index recognizes its importance, no matter how much a company has grown. These inspirational businesses can be tracked in real time on Entrepreneur.com.
