How Europe Jilted the Dow
A few weeks ago, you'd have been hard-pressed to find anyone talking about Cyprus' role in the global economy. Today, the Mediterranean country -- whose population of just over 1 million pales in comparison with the Big Apple -- can't stay out of the headlines. Though today's $13 billion agreement to shore up the country's finances eased some fears, the scare still sent ripples through global markets: The Dow Jones Industrial Average slipped 64 points, or 0.44%, to close at 14,447 Monday.
Taking a cue from one of its many competitors, Wall Street bid up Wal-Mart today, as the 0.8% gain led all blue chips. Optimism was fueled by the success of Dollar General , which had a strong quarter and intends to expand its offerings. While Wally World's product offerings run the gamut from gum to home accessories, the retailer is starting to pay more attention to goods below $1 as the slow recovery underscores the importance of affordable retail.
As for the Dow's biggest underperformer, Bank of America takes the cake today, shedding 1.3% in response to the Cyprus circus. We've learned all too well recently how interconnected our global banking system is; financials are especially vulnerable to news of fiscal weakness overseas. After the Dutch finance minister verbalized his country's reluctance to participate in future European bailouts, investors were put on edge.
While not quite a rumor, all it took for shares in electric-car maker Tesla Motors to add 2.5% today was a Twitter post. Granted, the tweet was from CEO, founder, and full-time Renaissance man Elon Musk, who said the company will reveal an "exciting" announcement on Thursday. Though Tesla has yet to turn a quarterly profit, the innovative automaker hopes to end in the black this quarter.
Though it hasn't yet released its quarterly results, due Thursday, mobile-phone maker BlackBerry fell 4.6% today anyway. Comments from a Citigroup analyst insinuating that the launch of the new Z10 smartphone has been disappointing caused the dip. While remarkably popular in major foreign markets, BlackBerry has woes that are more domestic -- and unfortunately, that domestic market is massive, and if the company can't lock down the U.S., it could get stomped by its competitors.
Near-faultless execution has led Tesla Motors to the brink of success, but the road ahead remains a hard one. Despite progress, a looming question remains: Will Tesla be able to fend off its big-name competitors? The Motley Fool answers this question and more in our most in-depth Tesla research available for smart investors like you. Thousands have already claimed their own premium ticker coverage, and you can gain instant access to your own by clicking here now.
The article How Europe Jilted the Dow 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 Tesla Motors and owns shares of Bank of America, Citigroup, and Tesla Motors. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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