Why the Dow's on Edge This Morning

Before you go, we thought you'd like these...
Before you go close icon

With investors eagerly awaiting Facebook to start trading today, investors aren't paying as much attention to the overall market as they otherwise might. But regardless of whether IPO-hungry buyers hit the "like" button on Facebook shares, problems in Europe and economic concerns in the U.S. aren't going to solve themselves overnight. As of around 10:45 a.m. EDT, the Dow Jones Industrials (INDEX: ^DJI) were up just 25 points to 12,470 as it tries to break out of a stretch that has sent the average down more than 800 points since May 1.

Leading the Dow's losers yet again was JPMorgan Chase (NYS: JPM) , falling 2%. JPMorgan is now the target of investigative journalists, who've turned up a number of disturbing facts about its failed derivatives trade. The Wall Street Journal reports that CEO Jamie Dimon approved the concept behind the trade personally but then let it go unsupervised. Moreover, the company had no treasurer in place at the time of the trade. Shares will probably stay under pressure until the company can address these problems more completely.

Coca-Cola (NYS: KO) also fell almost 2%. Yesterday, the beverage giant learned that an appeals court had partially overturned a previous court decision in its favor and will now have to face a false-advertising claim from tiny competitor POM Wonderful. In all likelihood, the move has more to do with the market's overall correction than from the ruling.


Finally, telecom stocks Verizon (NYS: VZ) and AT&T (NYS: T) were both up around 1%. Both providers are looking for ways to cut previously unlimited data plans and increase their revenue. One plan being discussed involves cutting subsidies, which could boost their bottom lines immensely. How customers will respond is uncertain, but unless they revolt in mass, AT&T and Verizon could see big future growth if they're successful.

An end to a lousy week
A break from a down market can give you new perspective. To get a fresh look at a promising stock idea, I'd suggest reading this special report from The Motley Fool, in which the Fool's chief investment officer reveals a stock he has hand-selected and named The Motley Fool's top stock for 2012. Grab your copy free for a limited time. You can get access to the report and find out the name of this legendary company -- but don't wait; do it right now.

At the time this article was published Fool contributorDan Caplingerdoesn't own shares of the companies mentioned. You can follow him onTwitter. The Motley Fool owns shares of Coca-Cola and JPMorgan Chase.Motley Fool newsletter serviceshave recommended buying shares of Coca-Cola. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool has adisclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners