Dow Gains, but Breaks 5-Week Winning Streak
Buoyed by news that a budget deal has been brokered by European Union leaders, stocks logged modest gains today. News that the U.S. trade deficit shrank in December also brought some optimism, as it may mean that the 0.1% fourth quarter contraction in GDP was overly negative and will be revised upwards. The Dow Jones Industrial Average , despite gaining 48 points, or 0.35% -- ending at 13,992 -- was unable to break even on the week, falling 0.1%.
Hewlett-Packard was the top gainer in the Dow today, gaining 2.5%. The company announced that it would be instituting a more stringent set of qualifications for its Chinese suppliers, requiring better treatment of workers. However, a much-discussed possible breakup of HP may actually be what's rallying the stock.
On the losing side, Boeing led the blue chip index's laggards, falling 1.1%, after telling some of its customers that 787 Dreamliner deliveries will be delayed. Despite the fact that management has downplayed the recent safety investigations into its new airliner by de-emphasizing the effects they will have on its operations, it appears that the Dreamliner nightmare is material, after all.
Outside of the Dow, Seagate Technology continued with its bullish 2013, adding 2.1% today. Even after the 16.6% gains the stock has posted this year, Seagate still pays an impressive 4.4% dividend. The data storage devices company didn't have a solid reason for its jump today, but momentum counts for a lot, and that's one thing Seagate has in spades.
Apple rallied for a second straight day, gaining 1.4%, in anticipation of further moves that will return cash to investors. Apple directly acknowledged a lawsuit filed by hedge fund manager and Apple shareholder David Einhorn yesterday, but has so far maintained its stance of not issuing preferred stock without shareholder approval.
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The article Dow Gains, but Breaks 5-Week Winning Streak originally appeared on Fool.com.Fool contributor John Divine owns shares of Apple. You can follow him on Twitter @divinebizkid and on Motley Fool CAPS @TMFDivine.The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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