Although we don’t believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes — just in case they’re material to our investing thesis.
At the ring of the closing bell Tuesday, the Dow Jones Industrial Average (INDEXDJX:.DJI) logged a fifth straight day of losses. While such a streak may sound inarguably ominous, today’s fall is more misleading than fear-inducing. That’s because 70% of all U.S. stocks actually gained ground today; in other words, the 30-stock, price-weighted index failed to really capture the mood of Wall Street. Barely ending in the red, the Dow slipped seven points, or 0.1%, to close at 15,002 Tuesday.
Bank of America Corp (NYSE:BAC) tacked on 1% Tuesday, gaining in the face of news that an intern at one of the financial giant’s London offices died after working until dawn for three consecutive days. The 21-year-old was epileptic, and little more than that is known about his tragic death, although the situation is sparking calls for reform in the world of investment banking.
Although all 10 sectors of the market advanced Tuesday, half of the components in the Dow Jones Industrial Average (INDEXDJX:.DJI) managed to fall, with Johnson & Johnson (NYSE:JNJ) logging some of the day’s biggest losses. All it took was a slide of 0.8% to end toward the bottom of the Dow, as shares lost ground despite few substantial developments meriting a fall. The company did complete a $1 billion acquisition (small potatoes for the $250 billion health-care powerhouse) today, and acquisitions often cause a temporary downtick in the purchaser’s stock as the acquiring money shells out cash for the new enterprise.
The Home Depot, Inc. (NYSE:HD) shed 1.2%, despite reporting sales and earnings beats in the most recent quarter. With a strengthening housing market, the main fears with the stock are now its valuation and management’s guidance, which underwhelmed investors today as the home improvement chain’s conservative forecasts reflect the specter of rising interest rates. That said, management isn’t too conservative about its prospects: The company plans to repurchase more than $2 billion of its stock before the year is through.
The article Why the Dow Stumbled for a 5th Straight Day originally appeared on Fool.com and is written by John Divine.
Fool contributor John Divine has no position in any stocks mentioned. You can follow him on Twitter @divinebizkid and on Motley Fool CAPS @TMFDivine.The Motley Fool recommends Bank of America, Home Depot, Intel, and Johnson & Johnson. The Motley Fool owns shares of Bank of America, Intel, Johnson & Johnson, and Microsoft.
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