The stock market initially fell Tuesday after a planned Wednesday meeting of European financial leaders about the Greek bailout got taken off the calendar. Continuing concerns about the ramifications of the Obama administration's proposed federal budget also weighed on various parts of the market for much of the day. But in a late rally, the broader market regained most of its losses, and the Dow Jones Industrials
Nevertheless, some stocks still fell. Let's take a look at three of the worst losers on the day.
Bank of America
Once again, B of A played its role as the most volatile member of the Dow. Today, though, it has a former Dow component and peer to blame for the damage.
Citigroup downgraded B of A to neutral this morning, citing the stock's big rise this year. Many investors see its risk level decreasing as it raises capital and sees an improving economic environment, but Citi thinks that until B of A deals with its long-standing mortgage-loss problems, growth won't come in as strong as other analysts expect.
In addition, reports said the bank signed a tentative deal to sell its 37-story Boston tower at 100 Federal for about $600 million. The move follows similar plans to sell real estate in New York and at its Charlotte headquarters.
Sometimes, stocks drop despite seemingly good news. DuPont said that it would open a new facility in Beijing to develop new corn hybrids for Chinese farmers, hoping to improve sustainability in the emerging nation's agricultural industry and boosting its Pioneer seed business. As part of a growing network in China, the plant will increase DuPont's presence there, as will a strategic agreement announced yesterday with solar company Yingli Green Energy
Emerging markets have been a great source of growth, but when geopolitical events push emerging-market stocks down, stocks that stand to benefit from emerging growth also tend to drop. That seems to be what's hitting DuPont today, even if the longer-term implications of the moves seem positive.
You'd think finishing a $100 million project to rebuild a 50,000-ton forging press would be a positive for a stock. But while the completion of the Cleveland project will help the company cut costs and meet its obligations to help build parts for military and commercial aircraft, it can't change the fact that low demand seem poised to keep prices down indefinitely.
Until industry fundamentals change, Alcoa will likely stay under pressure. Only a prolonged recovery can help restore the aluminum giant to its former glory.
What will tomorrow bring?
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