Why the Dow Fell Hard Again Today
It's starting to sound like a broken record: The Dow Jones Industrial Average (INDEX: ^DJI) dropped again today, dragged down by more worries over the debt crisis in Greece and the possibility that the country leaves the eurozone. The Dow has now lost ground in eight of the past nine days, as concerns about Greece overshadowed positive news out of China that the country is reducing the reserve ratio requirement for banks, a move that should free up billions for lending.
|Dow Jones Industrial Average||-125.25 [-0.98%]||12,695.35|
|S&P 500||-15.04 [-1.11%]||1,338.35|
As for individual stocks, JPMorgan Chase (NYS: JPM) continued its decline after shocking investors last week with the disclosure that it lost $2 billion in just six weeks of bad trades. The stock dropped 3.17% on the day and has now shed more than 12% in just the past two trading days alone. Unfortunately for JPMorgan, it could get even worse; there could be an additional $1 billion in losses as the bank tries to unwind the trade. JPMorgan's rough day also affected Bank of America (NYS: BAC) , which was the Dow's second biggest loser on the day. B of A is still easily the best performer on the Dow this year, up over 32% year to date.
One of the lone bright spots on the day was tech giant Cisco (NAS: CSCO) . The stock gained 1.21%, rebounding from a rough few days last week. The company reported earnings last Wednesday and the shares promptly tanked, after Cisco raised the possibility of a significant slowdown in tech spending.
Outside the Dow, Groupon (NAS: GRPN) jumped a whopping 18.54% on the day and another 16% after hours after reporting earnings. The daily-deals company posted non-GAAP earnings per share of $0.02, beating expectations by a penny. Revenue for the quarter came in at an impressive $559 million.
The big picture
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At the time this article was published Brendan Byrnes owns no shares of any company mentioned above. The Motley Fool owns shares of JPMorgan Chase, Cisco Systems, and Bank of America and 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.