3 Dow Stocks That Missed Today's Rally
The stock market against demonstrated its resiliency today, bouncing back from a nearly 65-point loss as investors were reassured that the situation in Greece would finally reach some kind of interim resolution. By the close, the Dow Jones Industrials (INDEX: ^DJI) finished up 33 points at 12,878.
But not every Dow stock managed to catch the wave higher. Let's look at some of the Dow's losers today.
Bank of America
Along with several other banks, B of A has been laboring under potentially huge liability from foreclosure-related investigations and lawsuits from all 50 states. Although yesterday allegedly marked one deadline by which the states had expected to decide whether to strike a deal with banks, it's unclear whether state attorneys general had reached an accord.
In addition, the company lost a court decision Monday that will now allow a class action by investors against B of A for allegedly failing to inform shareholders of losses at Merrill Lynch before they approved B of A's takeover of the then-ailing financial firm.
The big news from Verizon today was that it has entered an agreement with Coinstar to offer online streaming services in an attempt to go up against Netflix (NAS: NFLX) . The joint venture will leave Verizon with a 65% stake, Coinstar with 35%.
Coinstar soared, rising 14%. But investors apparently aren't convinced that the deal will move the needle at the much-larger Verizon.
We've known about potential defense-spending cuts for quite a while. But when lawmakers focus on particular programs, the news still has the power to move markets.
That's likely what happened today, as the market responded to news late yesterday of U.S. senators criticizing the F-35 fighter program. Citing cost overruns, the leaders of the Senate Armed Services Committee raised questions about the procurement process and opposed Defense Secretary Leon Panetta's decision to allow the F-35B Marine Corps variant of the plane to go forward. United Technologies provides the engines for Lockheed Martin's F-35s via United's Pratt & Whitney segment.
What will Wednesday bring?
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At the time this article was published Fool contributorDan Caplingerknows today's losers can become tomorrow's winners. You can follow him on Twitterhere. He doesn't own shares of the companies mentioned in this article. The Motley Fool owns shares of Bank of America and Lockheed Martin.Motley Fool newsletter serviceshave recommended buying shares of Netflix. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool'sdisclosure policyis always a winner.
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