Why the Dow Is Flat Today
The Dow Jones Industrial Average (INDEX: ^DJI) is falling for the second day in a row as investors await news of the Greek bailout package discussions. Also, two Dow components report earnings today. At 10:30 a.m. EST, the Dow was down 27 points to 12,818.
The Greek bailout discussions have been ongoing for some time now. There are two things investors are worried about. The first is that if conditions in Greece and the rest of Europe continue to worsen, the U.S. will also experience a slowdown in growth. This would likely happen if there is no bailout of Greece. The second worry is that if bailout measures are too harsh, Greece could be a brake on growth in the region for some time to come.
On the earnings front, Coca-Cola (NYS: KO) reported strong earnings this morning. Last year's earnings were given a huge boost from Coca-Cola's consolidating Coca-Cola Enterprise's North American bottling operations. As such, adjusted earnings per share fell year over year by 70% to $0.79, however this was above analyst expectations of $0.77 per share. Revenue was $11.04 billion, above analyst expectations of $10.99 billion. In early trading, Coca-Cola is up 1.73%.
Disney (NYS: DIS) reports earnings after the market close. Analysts expect earnings per share of $0.72 and revenue of $11.18 billion. In other Disney news, The Wall Street Journal is reporting Disney might partner with Univision Communications to create a 24-hour cable news channel targeting Latinos. In early trading, Disney is down 0.2%.
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At the time this article was published Fool contributorDan Dzombakholds no position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool owns shares of Coca-Cola.Motley Fool newsletter serviceshave recommended buying shares of Walt Disney and Coca-Cola. 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 Motley Fool has adisclosure policy.
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