The week the House and Senate passed the financial bailout bill was hard on all stocks. It was harder on rural companies than others.

"> Rural Stocks Fall Harder Than Dow And S&P 500 - Daily Yonder

Rural Stocks Fall Harder Than Dow And S&P 500

The week the House and Senate passed the financial bailout bill was hard on all stocks. It was harder on rural companies than others.

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All the major stock market indices dropped last week, and the Yonder 40, the 40 stocks picked to represent the rural economy, fell the most. The 40 fell more than 11% last week.

The Dow Industrials dropped 7.4%. The Standard & Poor 500 fell 9.4%. And the NASDAQ lost 9.4% of its value. (See chart above for the Yonder 40 since July 2007, in green; the Dow in red; and the S&P 500 in blue.)

It was a terrible week for just about everybody. Coal stocks lost heavily — Peabody was down by 26%; Cimarex was off by 15%; Walter Industries dropped by 28%.

Family Dollar Stores reported a 41% increase in net income for the last quarter, and projected next quarters earnings to be up another 4% to 6%, but the rural retailer still lost 9% of its value last week.

The biggest loser last week was Deere & Co. The heavy equipment-maker lost 29.1% of its total value. Many ag stocks fell last week as crop future prices fell — corn futures were at $4.54 a bushel, down from $8 in June — and fertilizer makers said that their prices would no longer be rising. Monsanto raised its fiscal-year earnings forecast for the second time in three weeks and the stock still fell by 21.5%. Ag commodities were once seen as a safe haven for money. No longer, it appears.

Tight credit also may have ditched the proposed purchase of UST Inc. (a smokeless tobacco company and a member of the Yonder 40) by Altria Group. The purchase has been postponed until at least January on the advice of Altria's lenders.

Here is how the entire Yonder 40 fared last week:

Yonder 40 Ticker Price October 3 Price Change 9/26 to 10/3 Percent Change 9/26 to 10/3
Alico Inc. ALCO 47.34 $1.12 2.4%
Andersons Inc. ANDE 31.83 -$6.55 -17.1%
Burlington Northern Santa Fe Corp. BNI 83.29 -$15.05 -15.3%
Berkshire Hathaway BRKB 4,650.00 $225.00 5.1%
Bassett Furniture BSET 8.61 -$0.80 -8.5%
Peabody Energy Corp. BTU 36.12 -$12.51 -25.7%
Cabela's Inc. CAB 9.76 -$3.19 -24.6%
ConAgra Foods Inc. CAG 19.84 $0.11 0.6%
Cato Corp. Cl A CTR 15.56 -$2.43 -13.5%
Citizens Communications CZN 11.68 $0.00 0.0%
Deere & Co. DE 39.24 -$16.09 -29.1%
Dean Foods Co. DF 24.21 $0.61 2.6%
DIRECTV Group DTV 24.76 -$1.79 -6.7%
Family Dollar Stores Inc. FDO 24.55 -$2.40 -8.9%
Fleetwood Enterprises Inc. FLE 0.92 -$0.40 -30.3%
FairPoint Communications FRP 6.96 -$1.84 -20.9%
Gaylord Entertainment Co. GET 25.48 -$4.97 -16.3%
Hormel Foods HRL 36.42 $0.04 0.1%
International Speedway Corp. ISCA 36.19 -$3.56 -9.0%
Lee Enterprises LEE 3.05 -$0.30 -9.0%
Mohawk Industries Inc. MHK 58.68 -$11.22 -16.1%
Monsanto Co. MON 83.26 -$22.80 -21.5%
Mine Safety Appliances Co. MSA 35.5 -$4.18 -10.5%
Southwest Bancorp OKSB 18.21 -$1.56 -7.9%
Plum Creek Timber REIT PCL 45.07 -$5.71 -11.2%
Penn Virginia Corp. PVA 42.79 -$15.41 -26.5%
Ralcorp Holdings RAH 66.9 -$0.59 -0.9%
Regions Financial Corp. RF 13.52 -$0.48 -3.4%
Sturm Ruger & Co. RGR 6.82 -$0.18 -2.6%
Smithfield Foods SFD 15.91 -$1.20 -7.0%
Skywest Inc. SKYW 14.77 -$2.20 -13.0%
Southern Co. SO 37.15 -$1.47 -3.8%
Stage Stores Inc. SSI 11.5 -$3.11 -21.3%
Tractor Supply Co. TSCO 36.86 -$8.63 -19.0%
Tyson Foods TSN 11.68 -$1.01 -8.0%
UST Inc. UST 64.9 -$2.10 -3.1%
Waddell & Reed Financial Inc. WDR 21.52 -$2.90 -11.9%
Walter Industries WLT 36.48 -$14.29 -28.1%
Wal-Mart Stores WMT 59.73 -$0.98 -1.6%
Cimarex Energy XEC $42.24 -$7.60 -15.2%

 

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