The Dow Jones Industrial Average consists of 30 large U.S. companies. Despite its name, the index no longer just includes industrial stocks, but encompasses blue chip companies from all sectors except utilities and transportation stocks.
The index had a nice month, returning 4.3% in June. Nonetheless, not every stock performed well in that month. While it's important to keep a long-term investment focus, you should pay attention to short-term movements to see if they indicate a longer-term trend.
These two stocks below were the index's worst performers last month.
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Procter & Gamble
Procter & Gamble (PG -1.02%) sells everyday basic items like shampoo, razor blades, toothpaste, detergent, and diapers. The consumer staples company had a rough month, losing 6.2%.
While there wasn't recently released public news in June that would've affected the stock, investors were disappointed with Procter & Gamble's fiscal third-quarter results, which it released in late April. Sales for the three-month period that ended on March 31, adjusted to remove foreign-currency translation effects and the effect of acquisitions and divestitures, increased a tepid 1% versus a year ago.
The sales gain was entirely due to higher prices while volumes were flat. Management now expects 2% sales growth for the entire year. Previously, it called for a 3% to 5% increase. Procter & Gamble will release quarterly results at the end of this month.
McDonald's
McDonald's (MCD 0.45%) had the unfortunate distinction of posting the Dow Jones Industrial Average's worst stock performance in June. The shares dropped 6.9% during the month.
The fast-food restaurant chain has been facing challenges that have negatively affected sales growth. These include broad economic factors that have hurt its customers' ability to spend on discretionary items. However, McDonald's has also been confronting consumer tastes changing toward a healthier diet.
First-quarter same-store sales fell 1% across the company. The key U.S. market experienced a 3.6% drop, which management attributed largely to fewer customers. McDonald's has scheduled its second-quarter earnings release on Aug. 6.
