Good Economic News Fails to Boost the Dow

The Dow Jones Industrial Average has begun to sink into the red an hour or so before noon, despite some pretty good economic reports and a moderate tone on the Federal Reserve's QE3 taper plans by the president of the St. Louis Fed.

James Bullard spoke about the taper this morning on CNBC, reiterating the Fed's position that tapering of the open-ended bond-buying program known as QE3 would be dependent upon economic data considered by the Federal Open Markets Committee at its scheduled meetings. Bullard pooh-poohed fears that the monetary easing program will cause a spike in inflation, and said that the Fed can afford to be patient concerning the timing of the taper.

The market seemed soothed for a short time after this interview, and perked up a bit more when the Census Bureau announced that September's factory orders increased 1.7%, after falling for two months in a row. The effect didn't last, however, and the Dow sunk by 0.12% by late morning.

Big banks up -- and down
The Dow big bank components are mixed today, as Goldman Sachs enjoys some investor love while JPMorgan Chase pulls a pout.

Although both banks are involved in the Twitter initial public offering, Goldman's 38.5% cut of the IPO proceeds makes the share offering price hike sweet, indeed. The original price of $17 to $20 per share has been increased to $23 to $25, giving the social site a valuation of up to $13.6 billion, and the prospects of raising around $1.75 billion, according to Bloomberg. JPMorgan would see its payday increase as well, but, at only 15% of the take, certainly not to the same extent as Goldman Sachs'.

In other news, The Financial Times reported over the weekend that JPMorgan Chase is feeling pressured again -- though this time it is by investors, not regulators. The bank's JPMorgan Asset Management division is rejiggering its fee structure, after international investors griped about performance fees on funds that did not outperform benchmarks. A bank spokesman noted that the unit will now account for volatility in its funds by charging fees on a three-year basis, which will take periods of subpar performance into account.

More premium stock picks
Dividend stocks can make you rich. It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.

The article Good Economic News Fails to Boost the Dow originally appeared on

Fool contributor Amanda Alix has no position in any stocks mentioned. The Motley Fool recommends Goldman Sachs. The Motley Fool owns shares of JPMorgan Chase. 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story