Coca-Cola and IBM
Soft drink maker Coca-Cola (KO) finds itself down 4.3% year to date, while International Business Machines (IBM) has lost 5.1% on the year. KO took a big hit in January when volatility hit the overall market, and while shares have managed to trend sideways over the last three months, there still have a way to go before crossing back into positive territory. Consumers have shifted away from sugary soft drinks, and while Coca-Cola has done a decent job cutting costs and improving its snacks and non-soft drink businesses, the stock will remain under pressure due to the lower soft drink sales. The company posted better than expected numbers on the top and bottom line at the end of April, which initially pushed shares higher, but the gains were short lived, and KO is once again just above its low point for the year. Sentiment remains bearish on the stock and will likely remain that way through the summer months. IBM appeared to be coming back to life during the latter part of 2017 and first part of 2018, but the bears came back into the stock, and shares are trending lower once again. IBM already posted earnings this season, so there will not be a lot of news to help bring momentum back into the stock for the next few months, making it unlikely that the position will climb back into positive territory during the summer months.
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