The Dow Is Feeling Bipolar Today

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

The Dow Jones (INDEX: ^DJI) looks pretty placid today, gaining just 0.3% as of this writing. But there's always turmoil when you dig a little deeper.

Today, the index gets another jolt of adrenaline from the infrastructure sector, while telecoms hold the Dow back from larger gains.

The biggest winner at midday was construction machinery giant Caterpillar (NYS: CAT) , whose 2.5% jump added 17 points of Dow value. United Technologies (NYS: UTX) is hot on Caterpillar's heels, jumping 1.8% to boost the Dow by 11 points.


These infrastructure plays -- and several other solid gainers besides -- are still riding the wave of optimism that was triggered by the Fed's QE3 plan yesterday. Today, analysts are following up on that policy action with a slew of government-inspired upgrades, and Mr. Market is still taking notice.

So why didn't the big telecoms follow suit? AT&T (NYS: T) fell 2.3% overnight, and Verizon dropped by 2.4%. Combined, these two moves sliced 16 points off the Dow. That's enough to negate Caterpillar's index-leading gain. Aren't these guys part of our national infrastructure, too?

Well, there's this brand-new Apple (NAS: AAPL) iPhone 5 flying off the carriers' preorder shelves. While that's arguably good for Ma Bell and Big Red in the long run, record-breaking iPhone sales would hurt their margins in the launch quarter since the telecoms subsidize every handset by several hundred dollars. You have to spend money to make money, you know, and the short-term effects often outweigh long-term gains when there's blood in the trading waters.

To help investors understand the opportunities and challenges ahead of Apple and its ecosystem of partners, we've created a brand-new report on that august stock. It not only details reasons to buy and sell the company, but it also comes with continuing guidance and updates in the important months ahead. Not only that, but you get plenty of extras, like our brand-new report on which iPhone suppliers are set to gain the most from the iPhone 5 launch. Claim your inside edge on the mobile market now.

The article The Dow Is Feeling Bipolar Today originally appeared on Fool.com.

Fool contributor Anders Bylund holds no position in any of the companies mentioned. Check out Anders' holdings and bio, or follow him on Twitter and Google+. The Motley Fool owns shares of Apple. Motley Fool newsletter services have recommended buying shares of Apple as well as creating a bull call spread position in Apple. The Motley Fool has a disclosure 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