Why the Dow's on French Leave This Morning

Socialist Francois Hollande's victory in the French presidential election over the weekend didn't come as a shock to anyone, but it's still being blamed for big stock market losses in many areas of the world. Although French stocks jumped, with the CAC 40 (INDEX: ^FCHI  ) rebounding from an initial drop to rise more than 1%, markets in Asia and the U.K. were sharply lower. In the U.S., though, initial losses were much more moderate, and at about 10:45 a.m. EDT, the Dow Jones Industrials (INDEX: ^DJI  ) were down 46 points to 13,005.

Among Dow stocks, Wal-Mart (NYSE: WMT  ) got a small boost after Warren Buffett said in a CNBC interview that he sees the company's Mexican bribery scandal as an isolated event from a small set of players within Wal-Mart. With Berkshire Hathaway being a significant shareholder in Wal-Mart, Buffett's opinion carries even more weight than usual with the retail giant.

On the down side, AT&T (NYSE: T  ) fell slightly. As fellow Fool Jeremy Bowman discussed earlier, the company is looking to set up wireless home-monitoring service to give homeowners remote mobile access to everything from thermostats to security cameras. With home security a big business in its own right, the foray could be just the first in a series of moves from AT&T to try to expand the reach and utility of its wireless network.

Finally, General Electric (NYSE: GE  ) was off about 0.3% after announcing that it would work with China's XD Electric to bring complete electrical infrastructure packages to the global market. GE said that XD's expertise in electrical transmission and distribution equipment should be a good complement to GE's grid automation and service capabilities. The arrangement involves GE taking a 15% equity stake in XD.

Say bonjour to profits
Stop focusing on one-day moves and look for long-term strength from the stocks you buy. You can pick up some pointers in The Motley Fool's special report on retirement investing, where you'll find some useful general investing tips as well as three promising stock names that are a great choice for many investors saving for retirement. Click here to get your free report today!

Fool contributor Dan Caplinger owns shares of Berkshire Hathaway. You can follow him on Twitter here. The Motley Fool owns shares of Berkshire Hathaway. Motley Fool newsletter services have recommended buying shares of Berkshire Hathaway and creating a diagonal call position on Wal-Mart. 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 (12)

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: 1880772, ~/Articles/ArticleHandler.aspx, 11/27/2014 5:52:03 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...


Advertisement