3 Dow Stocks Falling

Updated

The Dow Jones Industrial Average (INDEX: ^DJI) is slightly higher today. As of 12:30 p.m. EDT, it is at 13,604, up 39.84 points, or 0.29%. The index is up by 11.42% year to date. Of the 30 Dow components, five are trading lower this session. Three of those companies are Boeing (NYS: T) , Chevron (NYS: CVX) , and Exxon Mobil (NYS: XOM) .

So why are they down?
Let's start with the aircraft manufacturer Boeing, which is down by 0.37% this afternoon. The BAE Systems and EADS merger talks are moving along smoothly, and leaders of Germany and France plan to meet today for the purpose of discussing the implications. The union of these companies would create the largest aerospace and defense company by revenue, surpassing current leader Boeing.

Boeing is also facing increased pressure from the FAA. The government agency will conduct more inspections on the Boeing 737 aircraft. Cracks in the fuselage and bulkheads have been the cause of incidents in recent years.


Two days after the "oil Flash Crash," integrated oil and gas giants Exxon Mobil and Chevron are trading lower by 0.13% and 0.40%, respectively. This morning, oil dropped to a 30-day low after U.S. inventories surged. With production and imports rebounding after Hurricane Isaac, supply estimates were blown out of the water. The U.S. Department of Energy said the oil supply rose by 8.5 million barrels. Additionally, downward pressure was being put on crude even before the government agency report when speculation arose that Saudi Arabia was taking action to reduce the price of oil. The oil-producing nation is currently pumping 10 million barrels a day, and a Saudi official stated that the country will produce more if customers demand it.

While Boeing is facing a number of strong headwinds, the company should be able to navigate through the tough times. You don't become a 96-year-old company unless you know how to thrive in both good and bad situations. As for Exxon and Chevron, both are solid companies, and today's pull-back should not worry investors. But neither company is the one our analyst is calling "The One Energy Stock You Must Own Before 2014."

The article 3 Dow Stocks Falling originally appeared on Fool.com.

Neither Fool Contributor Matt Thalman nor The Motley Fool own shares of any company mentioned above. Motley Fool newsletter services have recommended buying shares of Chevron. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

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