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Rough Morning For Whirlpool Stockholders With Precipitous Drop

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Whirlpool Corporation stock prices haven’t seen a price this low since the stock hit $128.64 on January 15, 2016. In fact, even the end of the 100-year long partnership with Sears announced last October had a softer impact than the market is delivering to the appliance giant’s stock prices today.

After the market closed for the day yesterday, Whirlpool announced 2nd quarter earnings surprises that shocked Wall Street and the stock plunged by 8-percent in after hours trading. That drop was starting to look tame today when the stock dropped all the way to $129.09 per share in the first hour or so of trading, and the slide has continued. Just minutes before 11am, the stock dropped to $128.56…a drop of 14.70-percent.

On a percentage basis, Wall Street’s reaction to the end of the Sears contracts last October brought about a 10.78-percent drop in the stock’s value, to (at that time) $163 per share.

CNNMoney says that in the company’s earnings report conference call with Wall Street analysts this morning CEO Marc Bitzer cited “uncertainty” around additional tariffs on raw materials such as steel and aluminum and other global trade issues have disrupted Whirlpool’s supply chain.

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The CNNMoney report quotes Bitzer as saying, “The global steel costs have risen substantially, and in particular, in the U.S., they have reached unexplainable levels.”

Despite those concerns, President Trump issued a Tweet this morning saying, “Tariffs are the greatest!” While Bitzer originally concurred, saying, “This is, without any doubt, a positive catalyst for Whirlpool,” CNNMoney says, “Now Whirlpool is backtracking on its protectionist cheerleading.”

Bitzer’s comments in January came on the heels of the President’s announced tariffs on imported washing machines due to dumping by foreign competitors to Whirlpool and other American manufacturers.

The market has responded to Monday evening’s 2nd quarter earnings statements by hammering Whirlpool’s stock all morning long so far. With average trading in the range of 1.5-million shares per day, activity had soared to more than 7.3-million shares changing hands in the first two hours of market action today.

Here’s a link to Monday night’s financial report from Whirlpool:

https://www.moodyonthemarket.com/after-hours-stock-price-hit-big-as-whirlpool-falls-short-of-wall-street-estimates/

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