Dow Plunges While Apple Hits $500 on Celebrity Endorsement
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
Today's overseas trading ended in a mixed fashion as China's Shanghai composite dropped 0.3% and Australia's finished flat. Tokyo's Nikkei flipped early losses to gain 1.3%, and trading in Hong Kong was canceled because of a storm. The British FTSE 100 finished the day lower, but the French and German exchanges made gains after data was published showing better-than-expected economic growth for the latter two economies.
Back home, the Dow Jones Industrial Average has dropped significantly, down 83 points as of 3:15 p.m. EDT.
Boeing is one of the biggest losers in the Dow, down 1.7%. Boeing's harrowing 787 Dreamliner saga is still not yet over: This morning the model's biggest operator, ANA Holdings, found wiring defects in three aircraft.
"We will thoroughly examine this issue and take the appropriate steps," Boeing spokesman Rob Henderson said from Tokyo following the latest incident, according to Bloomberg. "The safety of those flying on Boeing airplanes is our top priority."
Outside the Dow, Ford is down 1.1% this afternoon. Ford's share price has nearly doubled over the last 12 months, but more insider selling was recorded in August than in the rest of the year combined. That shouldn't worry investors, as many executives are probably taking advantage of stock options. Despite the insider selling, Ford continues its hot streak of impressive sales, and the company recently announced that its Focus remains the best-selling nameplate in the world. Strong demand in China, up 153% compared to last year's first quarter, has fueled the sales growth.
Apple continued its rally after investors rushed to follow Carl Icahn's position in the company, which he announced yesterday via Twitter. The stock is currently up 2.6% and may close above the $500 mark for the first time since late January. Only time will tell how Apple's share price trades going forward, but if Icahn's wishes are met, investors can expect even more share buybacks and value returned to shareholders.
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The article Dow Plunges While Apple Hits $500 on Celebrity Endorsement originally appeared on Fool.com.Fool contributor Daniel Miller owns shares of Apple and Ford. The Motley Fool recommends Apple, Bank of America, and Ford. The Motley Fool owns shares of Apple, BAC, and F. 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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