The Dow's Downer of a Day

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The markets put in mixed results as January's hot start is officially taking a breather. Two Dow components reported today, one of which went on to become the indices' worst performer, and lower-than-expected GDP number, 2.8% vs. 3.0% expected growth for the fourth quarter, knocked stocks down.

But before we jump into those events, let's see how the three largest indices fared.

 

Gain / Loss

Gain / Loss %

Ending Value

Dow Jones Industrial Average (INDEX: ^DJI) (74.17)(0.58%)12,660.46
Nasdaq (INDEX: ^IXIC) 11.270.40%2,816.55
S&P 500 (INDEX: ^GSPC) (2.10)(0.16%)1,316.33

All three indices bounced around although there was a slight upward trend as the trading session wore on. The Nasdaq got back to its winning ways, making it the default winner of the three, while the Dow's 0.5% decline marked the worst performance of the day. This is the first week of 2012 the Dow closed at a loss, but the index still has a 3.6% gain for the month and is likely to close out January with a gain. And despite a small decline today, the S&P 500 managed to stay in positive territory for the week and leaving it with a 4.7% increase so far this year.

The Dow's rough day wasn't surprising, as all but two of the stocks that make up the index closed in the red. The lowlight of the group was Chevron (NYS: CVX) and its 2.5% decline. Analysts already were anticipating an 18% sequential decline; however, Chevron badly missed the expected $2.85 per share by a whopping 27 cents. The companies $60 billion in revenue was a far cry from the estimated $71 billion. As Fool energy expert Dan Dzombak noted, "Adding to the bad news for Chevron is news of potential criminal charges against Chevron executives in Brazil, in addition to the $11 billion civil suit, both relating to the company's November oil spill."

Procter & Gamble (NYS: PG) also reported, but the market treated the consumer goods giant slighter nicer, shaving off only 0.8% from shares despite reporting a 49% decline in profit and reduced sales guidance. However, most of the earnings decline was due to a non-cash writedown which, when removed, led to a merely flat performance. P&G also noted that sales-volume growth continues to bifurcate as developing markets saw a high single-digit increase, while developed economies saw a decrease of a similar amount.

So while Chevron and Proctor & Gamble had a poor quarter, there are plenty of other companies out there that investors need to watch during this earnings season. In the Fool's "Fourth-Quarter Earnings Report: 7 Stocks You'll Want to Watch," you'll find information on this quarter's possible big performers. It's completely free for our readers, so click here to access your report today

At the time this article was published David Williamsonholds no position in any company mentioned.Click hereto see his holdings and a short bio.Motley Fool newsletter serviceshave recommended buying shares of Procter & Gamble and Chevron. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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