Apple, 10 other giants stuck in correction
The market correction is over! Hooray! But wait ... some of the very biggest companies are still stuck in correction and not getting a big enough lift from the market's improved mood.
There are 11 mega-cap stocks worth $150 billion or more, including gadget maker Apple (AAPL), retailer Wal-Mart Stores (WMT) and media giant Walt Disney (DIS), that are still in a correction. Each of these stocks are down 10% or more from their highest points over the past 12 months - the unofficial definition of a bear market.
The broad market's recovery from the horrible start to the year seems to be taking hold. The Standard & Poor's 500 jumped 28 points, or 1.5% Monday, to 1945.50 - which was the broad index' fifth gain in the past six days. The S&P 500 has now gained 6% from its low notched on Feb. 11, 2016 and is just 8.7% below its highest point the past 52 weeks. That's an important recovery since the broad market is no longer in a correction.
Dow gains 229, exits correction territory
But don't think the market's rally has erased some of the pain in some pretty big cases. Apple remains the best example of a stock that's still firmly in not just a correction - but a bear market. Shares of the company are down 28% from their highest point the past 52 weeks of $134.54 a share. Shares have been underpressure amid slowing growth of smartphone shipments. Additionally, the stock has missed out on the recent rally as the company comes under fire for refusing to cooperate with the Federal government's investigation into a recent terrorist attack.
Wal-Mart is another stock that can't get things going. Shares have actually been stable this year - rising 7% - but that only makes a dent in the major destruction to the stock last year. Wal-Mart shares are still down 23% from their high as the company attempts to restructure itself in a way to compete with online rivals.
Walt Disney continues to deliver with revenue and profit - but investors are worrying the magic could run out. Shares of Disney are off 21% from the 52-week high as investors fixate on the potential for a difficult future for the ESPN network as more consumers move from pricey cable subscriptions to online streaming. Disney stock, too, has been a stellar performer since 2011, however, rocketing 126% which the S&P has risen just 46% - so a little bit of a cool down isn't all that unexpected.
So, celebrate investors. The correction is over. But keep in mind that some stocks are still working their way out.
MEGA-CAP S&P 500 COMPANIES STILL IN CORRECTION *
Company, symbol, % from 52-week high
Apple, AAPL, -28%
Wal-Mart, WMT, -22.7%
Walt Disney, DIS, -21.1%
Chevron, CVX, -20.8%
Amazon.com, AMZN, -19.7%
Oracle, ORCL, -18%
Pfizer, PFE, -17.6%
JPMorgan Chase, JPM, -17.1%
Wells Fargo, WFC, -16.3%
Berkshire Hathaway, BRKA, -11.4%
Alphabet, GOOGL, -10.0%
Source: S&P Global Market Intelligence, USA TODAY
* Includes companies worth $150 billion or more