Why the Dow Dropped Yet Again Today
It was yet another down day for the Dow Jones Industrial Average (INDEX: ^DJI) , which lost about a quarter of a percentage point. Perhaps not surprisingly, Europe was one of the drivers of the decline, as yields on Spanish benchmark 10-year bonds rose above 7%, around the unsustainable rate at which Greece, Ireland, and Portugal were forced to seek a bailout. There was also some disappointing inflation data out of China, and a decline in Japan's machinery-goods orders.
Here's how the three major U.S. indexes reacted to the news today.
|Dow Jones Industrial Average||-36.18 [-0.28%]||12,736.29|
|S&P 500||-2.22 [-0.16%]||1,352.46|
Today was also the beginning of earnings season, as aluminum giant Alcoa reported after hours. Earnings were about in line with expectations, though revenue came in above what analysts had expected. The stock was essentially flat in after-hours trading. But that wasn't the case for MAKO Surgical, which nosedived more than 30% after hours when it released results showing that the company sold only nine of its RIO systems in the second quarter and lowered its full-year sales forecast for the device. In the following video, Brendan gives more insight on what drove the market today and takes a look at individual winners and losers.
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At the time this article was published Brendan Byrnes owns shares of MAKO Surgical and Caterpillar. The Motley Fool owns shares of MAKO Surgical.Motley Fool newsletter serviceshave recommended buying shares of MAKO Surgical. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days. The Motley Fool has adisclosure policy.
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