Why the Dow Fell Today
After a flat day yesterday, the market was down today as all three major indices lost ground. Here's how they did.
|Dow Jones Industrial Average (INDEX: ^DJI)||-139.94 [-1.14%]||12,151.41|
|S&P 500 (INDEX: ^GSPC)||-15.79 [-1.25%]||1,249.64|
|Nasdaq (INDEX: ^IXIC)||-35.22 [-1.34%]||2,589.98|
In a word, the news that moved the market today was "Europe." We saw the euro hit an 11-month low versus the dollar as the market readies for a key Italian long-dated debt auction tomorrow. One euro now buys $1.2941 worth of greenbacks.
Looking at individual stocks, it was an almost unanimous down day. All 30 of the Dow stocks took a hit, ranging from -3.6% to -0.2%. In the S&P 500, all but 24 lost ground. The range there was -4.6% to 2%.
In the Dow, Bank of America (NYS: BAC) [-3.6%] and Alcoa (NYS: AA) [-3.1%] were the biggest losers. They didn't top the broader S&P 500 loser list, though. The dubious honors there went to Cliffs Natural Resources (NYS: CLF) [-4.6%] and Tesoro (NYS: TSO) [-4.2%]. The banking and commodities sectors both tend to react in an exaggerated fashion to the European news du jour, since both are highly affected by macro forces.
The daily market news wasn't pretty today, but remember to keep things in perspective and invest for the long term. For a stock that The Motley Fool's chief investment officer believes has a long, prosperous future ahead of it, check out our brand-new free report: "The Motley Fool's Top Stock for 2012." I invite you to take a copy, free for a limited time. Get access to the report and find out the name of this legendary company.
At the time this article was published Anand Chokkaveluand The Motley Fool own shares of Bank of America. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.