Dow Moves More Than 100 Points for Third Day in a Row
For the third day in a row, the Dow Jones Industrial Average is moving by triple digits. Last Friday the Dow rose 149 points, yesterday it tumbled 129 points, and as of 12:45 p.m. EST today it's up 104 points, or 0.75%, to 13,984. Only two of its 30 blue-chip components are down so far. The other major indexes are also moving higher, with the S&P 500 up 0.9% and the NASDAQ up more than 1%.
So who wasn't invited to the party?
Shares of IBM are down 0.3% today. The company launched a new server line this morning that's priced just below $6,000. The company said it wants to take on Hewlett-Packard, Oracle, and other competitors by offering a more affordable server and Power Systems unit. IBM is attempting to attract the small to medium-sized business with this lower-priced product. Investors may be selling off shares due to fear that the low-price-point servers will ultimately hurt the brand. Additionally, future clients may decide to trade down to the cheaper products, rather than purchasing top-of-the-line units, which will likely hurt margins.
Shares of United Technologies are also trading lower today, down about 0.3%. It was announced this morning that the company and the Pentagon finally came to an agreement for the next patch of F-35 fighter engines. United Technologies' Pratt & Whitney unit will supply 32 engines, support, and spare parts. The Pentagon did not disclose what the purchase price was, but Lieutenant General Chris Bogdan, the F-35 program executive officer, said, "Engine prices have decreased, and I appreciate everyone's commitment to drive cost out of the program." Shares are likely lower because of the belief that the engines were sold at a lower price than the market had previously expected.
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The article Dow Moves More Than 100 Points for Third Day in a Row originally appeared on Fool.com.Fool contributor Matt Thalman has no position in any stocks mentioned. Follow Matt on Twitter @mthalman5513. The Motley Fool owns shares of International Business Machines.. 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 Motley Fool has a disclosure policy.