Tuesday was a bad day on Wall Street, with investors struggling through a downbeat assessment of the likely path of the manufacturing economy for the foreseeable future. Major indexes suffered losses of more than 1%, casting a shadow over the beginning of the fourth quarter of what until now has been a strong year for the stock market. Some companies saw even larger losses. TD Ameritrade (NASDAQ: AMTD), Bausch Health (NYSE: BHC), and Aurora Cannabis (NYSE: ACB) were among the worst performers. Here's why they did so poorly.
Shares of TD Ameritrade plunged 26% after the brokerage company faced a competitive onslaught from one of its biggest rivals. Charles Schwab said today that it would eliminate commissions on most retail trades, including stock and exchange-traded fund purchases and sales. The move will hurt Schwab's business, but TD Ameritrade relies to an even greater extent on the revenue from trading commissions for its overall financial success. With most people figuring that the entire industry will have to follow Schwab's lead in the long run, the move lower for TD Ameritrade reflects the financial hit that it will likely suffer in the near future.
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