Will the Dow Finally Catch a Break Today?

Updated

Another day, another thwarted rally. Stocks seemed poised to get off to a good start again this morning even after yesterday's disappointing performance following Europe's bailout of Spanish banks. But after an initial jump of about 50 points, the Dow Jones Industrials (INDEX: ^DJI) started giving up steam and gave up all their gains before finally rebounding. Just after 10:45 a.m. EDT, the average was up about 40 points. Broader markets recovered from slight drops to trade modestly higher.

Among Dow stocks, Verizon (NYS: VZ) fell 0.2%. The mobile carrier announced that it would eliminate most of its existing cellphone plans in favor of what it's calling "Share Everything" plans. The new plans come with a monthly data allowance and unlimited phone and text messages, and the pricing represents a discount from current unlimited plans but a significant increase compared to low-priced plans. The move draws lines in the sand as a response to Sprint (NYS: S) and its Virgin Mobile's new no-contract plans for the iPhone.

Boeing (NYS: BA) rose almost 2% after getting an analyst upgrade from Bernstein Research. The report argues that the aircraft giant's decline in share price is overblown and that prospects for its 787 Dreamliner have improved. Given the mass of orders that Boeing has gotten recently, it seems like all the company has to do is deliver on its commitments in order to post great long-term success.


Finally, DuPont (NYS: DD) rose more than half a percent. With the USDA having recently lowered its estimates on global wheat supplies for the year, it's clear that the chemical company's agricultural segment will continue to play a key role in its overall success. As a diversified play, DuPont also offers industrial exposure that could benefit from a cyclical boost to the economy when it finally comes.

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At the time thisarticle was published Fool contributor Dan Caplinger doesn't own shares of the companies mentioned. You can follow him on Twitter @DanCaplinger. 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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