How the Dow's Reacting to Warren Buffett

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The stock market is dropping modestly following last week's run toward Dow 13,000. Over the weekend, Warren Buffett's annual letter to investors pointed to stocks as a better bet than bonds or gold, but that didn't take the sting out of the meeting of the Group of 20 and its message that Europe will need to spend even more money to resolve its sovereign debt crisis. Just before 11 a.m. EST, the Dow Jones Industrials (INDEX: ^DJI  ) were down 15 points at 12,967.

Among Dow stocks, General Electric (NYSE: GE  ) was down about 0.8%. The company said it would be part of a joint venture investing $225 million in a Texas wind farm. The project, owned by NextEra Energy, will add to GE's portfolio of wind energy in the Lone Star State, with more than 2,100 megawatts of capacity. Moreover, it should add to GE's status as an alternative energy producer.

Boeing (NYSE: BA  ) also fell about 0.6%. Reports last week showed that United Continental (NYSE: UAL  ) had revealed efforts to recover potential damages from the aircraft manufacturer over the late delivery of Boeing's new 787 Dreamliner aircraft. The filing didn't give many details, but it's just the latest in a series of problems connected to the project. Boeing moved 777 program head Larry Loftis to be the new leader of the Dreamliner program in the hopes of getting it back on track.

Finally, Bank of America (NYSE: BAC  ) was down more than 1%. Bloomberg reported that the settlement of its foreclosure practices will have the extra benefit of protecting B of A and its fellow banks from some losses on home equity loans. With more than $100 billion in home equity loans on its books, B of A will benefit from proportional loss-sharing between first and second liens against real estate.

Dow stocks can make good investments, but they aren't necessarily your best bet. To learn about the one stock the Fool's chief investment officer picked to crush the market, check out this free report: "The Motley Fool's Top Stock for 2012." Instant access is just a click away.

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 Bank of America. 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.

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updated 4 hours ago Sponsored by:
DOW 18,169.27 -53.76 -0.30%
S&P 500 2,143.16 -8.17 -0.38%
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Related Tickers

10/25/2016 4:34 PM
^DJI $18169.27 Down -53.76 -0.30%
BA $139.02 Up +1.57 +1.14%
Boeing CAPS Rating: ****
BAC $16.72 Down -0.05 -0.30%
Bank of America CAPS Rating: ****
GE $28.65 Down -0.27 -0.93%
General Electric CAPS Rating: ****
UAL $54.63 Down -0.41 -0.74%
United Continental… CAPS Rating: **