Dow Hamstrung by Europe... Again!

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For the third trading day in a row, Europe's troubles are scaring investors away from the stock market and into the safety of United States Treasuries, as the 10-year yield retreated further today, dropping below the 1.4% level. The Dow Jones Industrials (INDEX: ^DJI) are down 1.48% after Greece reported it is unable to pay off its debts without restructuring the terms, hog-tieing the ECB and other euro members after they provided the country with over $240 billion.

Index

Gain/Loss

Gain/Loss %

Dow Jones Industrial Average(188.75)(1.48%)
S&P 500(20.30)(1.50%)
Nasdaq(34.90)(1.21%)

Source: Yahoo! Finance at 2:30 p.m.

Earnings recap
It has been a busy day so far, with quite a few notable earnings releases. Tonight will not disappoint, as Apple, TripAdvisor, and Netflix are reporting.

In the Dow, AT&T announced a solid second quarter with profits of $3.9 billion and EPS of $0.66, beating analyst estimates by $0.03 as the wireless division buoyed the company with record margins of 30.3%. After climbing before the markets opened, AT&T has been on steep decline, down 3.02%. DuPont narrowly beat on EPS, but full-year numbers are not looking promising, as forecasts are heading toward the bottom of the 2012 range.


Under Armour (NYS: UA) is soaring today, up 8% after reporting EPS of $0.05 and boosting its full-year forecast from $1.78 billion-$1.80 billion up to $1.80 billion-$1.82 billion. Footwear sales increased 44% last quarter, strengthening the bottom line. Baidu (NAS: BIDU) is up 8.5% after crushing quarterly expectations yesterday, recording a profit increase of 70%. The mega Chinese search engine is still early in its growth stage as it continues to tackle the growing mobile contingent in China.

On the flip side, Peabody Energy (NYS: BTU) is down 10% on the day after the coal company fell short on revenue and earnings. The entire coal industry has taken a beating over the past year as cheap natural gas has been substituted for coal in electrical generation. To combat natural gas prices, Peabody partnered with Kinder Morgan Partners (NYS: KMP) to export coal to more lucrative areas in Asia.

Long-term thinking
Instability in Europe is once again dragging the broad markets down. Now is a great time for investors to be focusing on the long term and finding companies they can rely on to return capital for the long haul. Check out The Motley Fool's special report: "3 Stocks That Will Help You Retire Rich." This free report will list three remarkable companies and offer great advice on how to invest to secure a comfortable retirement. Get your free report now.

The article Dow Hamstrung by Europe... Again! originally appeared on Fool.com.

Joel South owns shares of no company listed above. The Motley Fool owns shares of Under Armour and Baidu. Motley Fool newsletter services have recommended buying shares of Under Armour and Baidu. Motley Fool newsletter services have also recommended creating a bear put spread position in Under Armour. The Motley Fool has a disclosure policy.
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