3 Dow Stocks That Beat the Monday Blues

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

For three months at the beginning of 2012, it seemed like stocks could do no wrong. Now, though, investors seem to be focusing on all the negatives, with a report on factory orders adding to concerns that last Friday's jobs report raised, stoking fear that the U.S. economy may stop expanding. Yet even though the Dow Jones Industrials (INDEX: ^DJI) couldn't even managed a minor bounced from Friday's big 275-point sell-off, dropping another 17 points on the day, the S&P 500 and Nasdaq both managed to post gains on the day.

Moreover, unlike Friday, some Dow components managed to beat the gloom and rise. Home Depot (NYS: HD) was the big winner, rising 1.7% despite having no major news to report. Homebuilding stocks were generally lower, but optimism following rival Lowe's decision to boost its dividend last week seems to have carried over to Home Depot as well.

Alcoa (NYS: AA) also gained more than 1% on the day. The move may seem odd given that automakers, which are some of its primary customers, gave up ground today. But with a combination of automotive, aerospace, and consumer-product demand for its aluminum, Alcoa's long-term success will remain dependent on the health of the overall industrial economy going forward.


Finally, Johnson & Johnson (NYS: JNJ) rose 0.9% following a call from Goldman Sachs analysts for the company to split into three parts. Given that major competitors Abbott Labs (NYS: ABT) and Pfizer are both looking at breakups of their own, a similar move from J&J might well add value for investors. But new CEO Alex Gorsky looks to be following a different path, perhaps seeking acquisitions to become even larger.

Don't be blue
One of the ways the Dow gets through tough times is through the dividends its component companies pay. But you can also find great dividend stocks outside the Dow. Let me invite you to read about some great examples in the Fool's special report on dividends, where you'll learn about nine stocks that will help you secure your future. It's free, so get your copy today!

At the time this article was published Fool contributorDan Caplingerdoesn't own shares of the companies mentioned. You can follow him on Twitter,@DanCaplinger. The Motley Fool owns shares of Abbott Labs and Johnson & Johnson.Motley Fool newsletter serviceshave recommended buying shares of Johnson & Johnson, Goldman Sachs, Home Depot, and Pfizer, as well as creating a diagonal call position in Johnson & Johnson and writing covered calls on Lowe's. 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