Why the Dow Plummeted More Than 200 Points Today

Updated

While the Dow Jones Industrial Average added about 120 points on Friday on news of German business confidence, a different European country took its turn influencing markets today, this time with less admirable results. The result of Italy's national election is by no means clear, and former Prime Minister Silvio Berlusconi, if he wins, is seen as derailing his country's economic direction. The Dow ended down 216 points, or 1.55%, to close at 13,784 today.

Bucking the stubborn bearishness of the day, shares of McDonald's advanced 0.9%, making the stock one of just three blue-chip stocks to advance. Did Mickey D's simply rise because today's precipitous market drop had investors pondering where people would have to eat given a prolonged crisis? Doubtful. More likely is the fact that shareholders as of Wednesday will receive the company's handsome $0.77 (a 3.2% annual yield) quarterly dividend in mid-March.

Alternatively, Bank of America tumbled 3.6%, and was the Dow's biggest loser to open the week. The uncertain Italian political landscape was the main culprit; if Berlusconi, who is anti-austerity, returns to power, Wall Street fears that Europe's fiscal can of worms may be reopened..


Still, as with most days in the market, there were some big winners interspersed with the voluminous number of laggards. Barnes & Noble , which will report earnings on Thursday, advanced a whopping 11.5%. Earnings speculation, however, didn't fuel those gains. The bookstore's founder announced that he'd like to purchase the company's retail business, which doesn't include the higher-growth Nook business unit.

Just about the only certainty with stocks is that they're not for the faint of heart. That goes double for anyone considering an investment in 3D Systems . After slumping more than 8% Thursday and then adding nearly 4% Friday, the stock fell 9% today after reporting lower-than-expected revenue growth. Sometimes even 45% year-over-year improvement can still be a disappointment.

3D Systems is at the leading edge of a disruptive technological revolution, with the broadest portfolio of 3-D printers in the industry. However, despite years of earnings growth, 3D Systems' share price has risen even faster, and today the company sports a dizzying valuation. To help investors decide whether the future of additive manufacturing is bright enough to justify the lofty price tag on the company's shares, The Motley Fool has compiled a premium research report on whether 3D Systems is a buy right now. In our report, we take a close look at 3D Systems' opportunities, risks, and critical factors for growth. You'll also find reasons to buy or sell, and receive a full year of analyst updates with the report. To start reading, simply click here now for instant access.

The article Why the Dow Plummeted More Than 200 Points Today originally appeared on Fool.com.

Fool contributor John Divine has no position in any stocks mentioned. You can follow him on Twitter @divinebizkid and on Motley Fool CAPS @TMFDivine.The Motley Fool recommends 3D Systems and McDonald's. The Motley Fool owns shares of 3D Systems, Bank of America, and McDonald's and has the following options: short Jan 2014 $55 calls on 3D Systems and short Jan 2014 $30 puts on 3D Systems. 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.

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