1 Reason the Dow Is Down Big Right Now
Gain / Loss
Gain / Loss %
|Dow Jones Industrial Average||(162)||(1.23%)||13,036|
Other big news
Though the news from the Fed is no doubt the big force here, there are a few other things investors should be watching today.
- The Volatility S&P 500 (INDEX: ^VIX) is popping almost 11% right now. The measure is an oft-cited way to measure the implied volatility of the markets. At just 17, it is still way down from August, when the VIX crossed 45. As the VIX plunged, the Dow rose, bringing us to our current level. Many are looking at this pop as a sign that the multimonth run could be over with a pullback looming.
- The eurozone continues to rear its head as the specter haunting the markets. Spanish borrowing costs spiked at bond auctions, thus perpetuating the worry about continued debt crises. The Europe Sector Index (INDEX: ^XEX) dropped 3%, its biggest misstep of the year.
Some stocks take bad news worse than others. Today it's year-to-date Dow starlets Bank of America (NYS: BAC) and Alcoa (NYS: AA) that are down the most on the Dow, recording 2.9% and 2.8% drops, respectively. Alcoa's broad international exposure hurt it in 2011, so it's no surprise that European worries would send it tumbling today. Though Bank of America is also down big, it's still up 66% for the year, so I wouldn't call this reason to worry.
The best approach
Watching the broad market each day is exciting, gut-wrenching, and stressful, but investing doesn't have to be. If you're in the mood to pick up a great company to buy for the long term, The Motley Fool has created a brand-new free report: "The Motley Fool's Top Stock for 2012." It features a company hand-selected by the Fool's chief investment officer that has a strong future ahead of it. Get access to the report and find out the name of this legendary company. The report is free, but won't be forever, so check it out today.
At the time this
article was published Fool writer Austin Smith does not own shares of any company mentioned.The Motley Fool owns shares of Bank of America. The Motley Fool has adisclosure policy.
We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.