Why the Dow Is Falling Hard Today

Today, industrials editor and analyst Brendan Byrnes discusses what's behind the Dow's 1%+ drop through midday. To no one's surprise, Europe -- and Spain in particular -- is the main reason for the market's sell-off today. Spain's benchmark 10-year bond yields rose to over 7.5% today, a level that's unsustainable and around the same rate that forced Greece, Ireland, and Portugal into bailouts. Disappointing earnings from McDonald's also helped sink the Dow today, with the fast-food giant posting net income that fell 4% from last year. The strong dollar and exposure to Europe hurt the company. Check out the video below for more on what's driving the Dow's loss today, and the biggest losers so far.

As evidenced with bad news out of Spain today, there is still a tremendous amount of uncertainty surrounding the market. That may tempt many investors to take their money and run far from stocks, but that can be one of the biggest mistakes investors can make. Some of the most successful stock picks are great dividend stocks purchased at attractive valuations on dips in the market. With that in mind, we've taken an in-depth look at all 30 Dow components and picked out our three favorite Dow dividend stocks that investors can buy right now. You can find the names and analysis of these companies in our brand-new free report: "The 3 Dow Stocks Dividend Investors Need." Read the report now -- it's absolutely free.

The article Why the Dow Is Falling Hard Today originally appeared on Fool.com.

Brendan Byrnes owns no shares of any company mentioned above. The Motley Fool owns shares of Microsoft and McDonald's.Motley Fool newsletter serviceshave recommended buying shares of Microsoft and McDonald's.Motley Fool newsletter serviceshave also recommended creating a bull call spread position in Microsoft. The Motley Fool has adisclosure policy.
We Fools may not all hold the same opinions, but we all believe that
considering 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.