Why the Dow Sank Yet Again Today
Six straight days of losses sure have a funny way of making the stock market look at lot more dangerous, don't they, folks? The Dow Jones Industrial Average (INDEX: ^DJI) dropped yet again today, this time falling nearly 100 points, or 0.8%. Other major U.S. markets were also seeing red today. The tech-weighted Nasdaq and the S&P 500 both closed down to the tune of 0.4% and 0.7%, respectively.
Continued anxiety over the fallout from elections in France and Greece was the main culprit, with rumors even surfacing that eurozone governments might withhold billions of pre-arranged bailout funds from Greece. Fortunately, European lawmakers eventually agreed to release most of the financing, while still withholding 1 billion euros that will be paid in June, making the situation only slightly less dysfunctional. Investor anxiety showed as well, with the market's "fear gauge," the VIX (INDEX: ^VIX) , surging 5.4% during today's trading session.
In the news
The day brought several noteworthy stories for specific stocks. On a rough day for the market as a whole, share of SiriusXM (NAS: SIRI) actually rose slightly more than 1.7%. The news? Liberty Media, led by John Malone, announced yesterday that it struck a deal what would increase its ownership stake in the satellite-radio broadcaster to 45.2%. Liberty has continually battled with the FCC over its attempts to gain control of Sirius, a narrative that's likely to play out in the coming weeks and months.
On the earnings front, entertainment juggernaut Disney announced a strong quarter, sending the stock north to a crisp 1.6%. Enthusiasm over the company has grown over the past several weeks as buzz around The Avengers was expected to -- and did -- translate into a stellar performance at the box office. In similar fashion, shares of consumer-products company SodaStream (NAS: SODA) surged to the tune of 26.4% after the company issued an outstanding quarterly earnings report. Dragged down along with Green Mountain Coffee Roasters (NAS: GMCR) by more than 16% over the previous five days, SodaStream asserted itself as distinctly separate from Green Mountain by growing its top line 50% and its bottom line by an astounding 67%.
What it all means
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At the time this article was published Andrew Tonner held no financial position in any of the companies mentioned in this article. You can follow Andrew and all of his Foolish writing onTwitterat@AndrewTonner. The Motley Fool owns shares of SodaStream International and Walt Disney.Motley Fool newsletter serviceshave recommended buying shares of SodaStream International, Walt Disney, and Green Mountain Coffee Roasters.Motley Fool newsletter serviceshave recommended creating a lurking gator position in Green Mountain Coffee Roasters. The Motley Fool has adisclosure policy. We Fools don't 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.
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