Why the Dow's Bouncing Back This Morning

Good news on the employment front gave stocks a slight boost, as claims for unemployment benefits remained at their lowest levels in years. But after a huge bull run to start 2012, the stock market isn't responding as positively to such news as it has recently. At around 10:45 a.m. EST, the Dow Jones Industrials (INDEX: ^DJI  ) were up just 15 points to 12,954.

Within the Dow, tech stocks went in dramatically different directions. Hewlett-Packard (NYSE: HPQ  ) opened down nearly 6% after reporting a 44% drop in earnings. Despite beating estimates, HP cut its profit forecast for the coming quarter, again calling into question the turnaround plan that new CEO Meg Whitman is trying to put into place. Meanwhile, IBM (NYSE: IBM  ) seemed to benefit from HP's weakness, climbing almost 2%. It's possible that investors don't want to wait for Whitman's long-term strategy to take hold and are instead moving money to IBM and its better-established strategic plan.

Disney (NYSE: DIS  ) rose about 0.75% after reports that it signed a deal to provide content for China's You On Demand. The deal could give 200 million cable subscribers in China access to a wide variety of recent and legacy movie titles from the company.

Finally, AT&T (NYSE: T  ) rose a bit after former takeover target T-Mobile said that it would invest $4 billion toward building a mobile-broadband network and launching 4G LTE services. The move shows how T-Mobile plans to spend the money that AT&T had to pay as a result of the merger falling through, and it also suggests that T-Mobile is aiming to become a larger competitor to AT&T in the years to come.

Be sure to focus on long-term prospects over daily movements. If you're interested in the one stock that our chief investment officer picked to crush the market, check out our brand-new report "The Motley Fool's Top Stock for 2012." It highlights a company that is revolutionizing commerce in Latin America. For a limited time, you can get instant access to the name of this company for free by clicking here.

Fool contributor Dan Caplinger doesn't own shares of the companies mentioned. You can follow him on Twitter here. The Motley Fool owns shares of IBM. Motley Fool newsletter services have recommended buying shares of Disney. 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 Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (13)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1787617, ~/Articles/ArticleHandler.aspx, 9/3/2014 1:02:30 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 3 hours ago Sponsored by:
DOW 17,067.56 -30.89 -0.18%
S&P 500 2,002.28 -1.09 -0.05%
NASD 4,598.19 17.92 0.39%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/2/2014 4:29 PM
^DJI $17067.56 Down -30.89 -0.18%
DOW JONES INDUSTRI… CAPS Rating: No stars
DIS $90.80 Up +0.92 +1.02%
Walt Disney CAPS Rating: *****
HPQ $38.05 Up +0.05 +0.13%
Hewlett-Packard Co… CAPS Rating: **
IBM $191.56 Down -0.74 -0.38%
International Busi… CAPS Rating: ****
T $34.84 Down -0.12 -0.34%
AT&T CAPS Rating: ***

Advertisement