The Stocks That Powered the Dow Today
If you had the three major indices in a 2012 survivor pool, only the S&P 500 would be left. The Dow was basically flat today but technically snapped its two-day winning streak:
|Dow Jones Industrial Average (INDEX: ^DJI)||-2.72 [-0.02%]||12,415.70|
|Nasdaq (INDEX: ^IXIC)||+21.50 [+0.81%]||2,669.86|
|S&P 500 (INDEX: ^GSPC)||+3.76 [+0.29%]||1,281.06|
When you see the Nasdaq outperforming the S&P and Dow, you'd expect a tech-stock surge. But the Dow tech components were mixed, with Microsoft and Intel up a bit and Cisco, Hewlett-Packard, and IBM down.
Instead, it was the financial sector that powered the Dow today. Bank of America (NYS: BAC) led all Dow components with a whopping 8.6% surge. JPMorgan Chase [2.1%], American Express [+1.2%], and Travelers [+1%] were each up as well. Looking more broadly, the Financial Select Sector SPDR ETF (NYS: XLF) was up 1.4%.
The big news driving the financial industry was rumors over a possible major refinancing plan for American homeowners. However, Bloomberg reported later in the day that the White House is denying those rumors. The only thing I'm predicting -- expect more volatility.
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At the time this article was published Anand Chokkaveluowns shares of Bank of America, JPMorgan Chase, Cisco, and Microsoft and warrants in JPMorgan Chase. The Motley Fool owns shares of Intel, Cisco Systems, JPMorgan Chase, Microsoft, IBM, and Bank of America, has created a bull call spread position on Cisco Systems, and has bought calls on Intel.Motley Fool newsletter serviceshave recommended buying shares of Cisco Systems, Microsoft, and Intel, creating a bull call spread position in Microsoft and Intel, and creating a write covered strangle position in American Express. 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 Motley Fool has adisclosure policy.
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