3 Dow Stocks That Beat the Monday Blues

For three months at the beginning of 2012, it seemed like stocks could do no wrong. Now, though, investors seem to be focusing on all the negatives, with a report on factory orders adding to concerns that last Friday's jobs report raised, stoking fear that the U.S. economy may stop expanding. Yet even though the Dow Jones Industrials (INDEX: ^DJI  ) couldn't even managed a minor bounced from Friday's big 275-point sell-off, dropping another 17 points on the day, the S&P 500 and Nasdaq both managed to post gains on the day.

Moreover, unlike Friday, some Dow components managed to beat the gloom and rise. Home Depot (NYSE: HD  ) was the big winner, rising 1.7% despite having no major news to report. Homebuilding stocks were generally lower, but optimism following rival Lowe's decision to boost its dividend last week seems to have carried over to Home Depot as well.

Alcoa (NYSE: AA  ) also gained more than 1% on the day. The move may seem odd given that automakers, which are some of its primary customers, gave up ground today. But with a combination of automotive, aerospace, and consumer-product demand for its aluminum, Alcoa's long-term success will remain dependent on the health of the overall industrial economy going forward.

Finally, Johnson & Johnson (NYSE: JNJ  ) rose 0.9% following a call from Goldman Sachs analysts for the company to split into three parts. Given that major competitors Abbott Labs (NYSE: ABT  ) and Pfizer are both looking at breakups of their own, a similar move from J&J might well add value for investors. But new CEO Alex Gorsky looks to be following a different path, perhaps seeking acquisitions to become even larger.

Don't be blue
One of the ways the Dow gets through tough times is through the dividends its component companies pay. But you can also find great dividend stocks outside the Dow. Let me invite you to read about some great examples in the Fool's special report on dividends, where you'll learn about nine stocks that will help you secure your future. It's free, so get your copy today!

Fool contributor Dan Caplinger doesn't own shares of the companies mentioned. You can follow him on Twitter, @DanCaplinger. The Motley Fool owns shares of Abbott Labs and Johnson & Johnson. Motley Fool newsletter services have recommended buying shares of Johnson & Johnson, Goldman Sachs, Home Depot, and Pfizer, as well as creating a diagonal call position in Johnson & Johnson and writing covered calls on Lowe's. 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.


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