Is the Dow Done Dropping?
Ideally, what you'd like to see on the Monday after a big Friday market plunge is for the stock market to rebound strongly. Unfortunately, stocks couldn't muster a big advance, as political wrangling in Europe continues to threaten to destabilize overseas markets. In addition, short-term traders blame the breakdown of a popular technical indicator as a big obstacle to potential share-price gains. Add it all up, and the Dow Jones Industrials (INDEX: ^DJI) are down about 11 points just before 10:45 a.m. EDT, and the S&P 500 (INDEX: ^GSPC) is also down around 0.1%.
Helping pull the Dow lower was JPMorgan Chase (NYS: JPM) , which dropped 2% early. The company will be the subject of congressional scrutiny as the Senate Banking Committee plans to hold hearings later this week about the bank's recent trading debacle. Questions about whether regulators at the Office of the Comptroller of the Currency should have more closely reviewed the bank's operations could raise new concerns about not just JPMorgan, but the banking industry in general.
Caterpillar (NYS: CAT) also fell about 2% after shares of Chinese construction equipment maker Lonking Holdings plunged in Hong Kong trading overnight. As another sign of slowing Chinese economic activity, the profit warning from Lonking bodes ill for Caterpillar's growth plans in the emerging-market economy as well.
Finally, General Electric (NYS: GE) dropped about 1.5% despite marking its 10-year anniversary in the wind energy industry. The company reminded investors today that its entrance to wind came from its buyout of Enron Wind, but the company has made huge investments in the area since then and looks poised to continue doing so well into the future.
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At the time this article was published Fool contributor Dan Caplinger doesn't own shares of the companies mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool owns shares of JPMorgan Chase. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool has a disclosure policy.
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