3 Dow Stocks That Didn't Bounce Back Today

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

After five days of declines, the stock market was due for a little respite. Relief came today, as the market bounced after a favorable earnings report from Dow component Alcoa as well as promising news on the economic front from the Federal Reserve's Beige Book. When all was said and done, the Dow Jones Industrial Average (INDEX: ^DJI  ) posted a gain of 89 points to close at 12,805.

But even though the Dow, S&P, and Nasdaq all rebounded today, some of the Dow's component stocks weren't as lucky. Let's take a closer look at a few of them.

Microsoft (Nasdaq: MSFT  ) , down 0.4%
Microsoft can't seem to catch a break. Just as some excitement was building over its expected launch of Windows 8 later this year, bad news from Nokia (NYSE: NOK  ) threatens to undercut its attempt to become competitive in the mobile market. Nokia shares fell more than 15% after the company gave negative guidance on its coming first-quarter results. Even worse, the mobile-device maker said that it doesn't believe the second quarter will bring any improvement.

Microsoft's partnership with Nokia resulted in the Lumia 900, which recently suffered a software glitch that resulted in data-connection problems. After being so late to the game, the last thing Microsoft needs is a problem-plagued device. Microsoft desperately needs success in the smartphone market, but relying on Nokia to deliver it could prove to be a fatal mistake.

Chevron (NYSE: CVX  ) , down 0.5%
With oil prices still above $100 per barrel, you'd think that Chevron should be having no problems. But on the other side of the business, natural gas futures plunged below the $2 level today, and some analysts expect even further declines as companies apparently haven't reined in production enough to restore supply and-demand equilibrium at a higher price.

The company got some good news in Brazil, as a federal judge there ruled to allow Chevron to keep operating in the Latin American country despite two offshore spills in the past six months. Still, the Brazilian problems hang over Chevron's head, and until they're resolved once and for all, it will keep investors nervous.

Kraft Foods (NYSE: KFT  ) , down 0.3%
Kraft didn't release any market-moving news today, so it's unclear what's behind today's decline. You'd expect a defensive stock like Kraft not necessarily to do as well as the market on up days, but the stock lost a fair amount of ground during the market's recent swoon.

Uncertainty about the company's upcoming split may be to blame. Although Kraft released some details about what the two post-split businesses will look like, investors will need more information before they can feel comfortable making investing decisions regarding the stock. Until they get it, Kraft may trade without much direction.

Bouncing back
There's no telling where the market will go tomorrow, but the best choice is to look for stocks you can believe in for the long run. Take a look at The Motley Fool's special report on retirement, where you'll find three promising stock picks for investors looking for long-term opportunity. Get your free report today before it's gone forever.

Fool contributor Dan Caplinger doesn't own shares of the companies mentioned. You can follow him on Twitter. The Motley Fool owns shares of Microsoft. Motley Fool newsletter services have recommended buying shares of Chevron, Microsoft, and Nokia, as well as creating a bull call spread position in Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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 (5)

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.

Compare Brokers

Fool Disclosure

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: 1860075, ~/Articles/ArticleHandler.aspx, 10/24/2016 12:48:26 PM

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 Moments ago Sponsored by:
DOW 18,217.89 72.18 0.40%
S&P 500 2,147.84 6.68 0.31%
NASD 5,298.92 41.52 0.79%

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

10/24/2016 12:33 PM
^DJI $18217.69 Up +71.98 +0.40%
CVX $100.29 Down -1.01 -1.00%
Chevron CAPS Rating: ****
KRFT.DL $0.00 Down +0.00 +0.00%
Kraft Foods CAPS Rating: *****
MSFT $60.41 Up +0.75 +1.26%
Microsoft CAPS Rating: ****
NOK $4.98 Up +0.06 +1.12%
Nokia CAPS Rating: **