Why the Dow Shed 70 Points Today
Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.
Wall Street continued with its stubbornly bearish behavior Monday, losing ground for a fourth straight session. The official minutes from July's Federal Reserve meeting are set for release on Wednesday, when investors will get a better sense of what the central bank thinks about its quantitative easing policies. The Dow Jones Industrial Average dropped 70 points, or 0.5%, Monday, ending at 15,010.
Chipmaker Intel was the standout performer in the Dow, adding 1.7% after an upgrade from the investment research group Piper Jaffray. Of course, a mere analyst endorsement is hardly a compelling reason to pile into a stock -- especially when that "endorsement" comes in the form of a neutral rating and a price target below the current price of the stock.
Boeing jumped 1.2% as the aerospace behemoth looks primed to win a contract, potentially worth more than $7 billion, with the South Korean military. Boeing shares also edged higher Friday, as the market reacted to news that the company won't be held responsible for a defect found in several fire extinguishers on its Dreamliner models.
Alcoa lost 2.2%, as aluminum makers worldwide struggle to deal with an excessive supply of the metal. Today, Rusal, the world's largest aluminum producer, reported higher-than-expected losses and announced that it will scale back production to help drive prices back to previous levels. With markets also betting on a Fed scaleback today, commodity prices faced pressure as the dollar gained value.
Lastly, JPMorgan Chase is in big trouble with the U.S. Department of Justice, which is investigating whether the bank rigged U.S. energy markets. Shares shed 2.7% Monday, as scrutiny from federal officials also mounts on a separate issue; the financial institution is also alleged to have bribed Chinese officials to win business in the country.
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The article Why the Dow Shed 70 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 Intel and owns shares of Intel and JPMorgan Chase. 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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