The Dow Also Rises

Finally, the stock market gave investors a little bit of good news. After four straight days of disappointing declines that lopped another 480 points off the average, the Dow Jones Industrials (INDEX: ^DJI  ) managed to bounce just a little bit, rising almost a quarter-percent. The tech-heavy Nasdaq Composite (INDEX: ^IXIC  ) and the broader S&P 500 both managed larger percentage gains, as investors chose to ignore the ongoing European crisis to look instead at more favorable U.S. economic data. Interest rates on bonds rose after hitting record lows last week, and oil and gold prices also moved slightly higher.

Among stocks in the news, Hewlett-Packard (NYSE: HPQ  ) was one of the big winners in the Dow, rising almost 3% as it announced an expansion of its Converged Cloud portfolio of solutions. The company's attempt to deliver a single architecture combining private and public cloud environments as well as regular IT solutions is part of CEO Meg Whitman's long-term strategic vision for the company, and Whitman delivered a keynote speech this morning that emphasized how hard HP is working to return to its former glory.

But 13 of the Dow's 30 stocks fell. Despite a generally positive day for energy stocks overall, both ExxonMobil (NYSE: XOM  ) and Chevron (NYSE: CVX  ) posted declines. The plunge in crude oil has translated into lower prices at the pump, but Exxon warned that government regulation of unconventional shale gas production threatens to bring the huge expansion in the sector to an abrupt halt. The comments added to previous calls from industry leaders calling for a unified U.S. energy policy.

Looking forward to tomorrow, stocks in London will have their first chance to trade this week after a two-day holiday. Given the U.K.'s proximity to continental Europe but its clearly independent fiscal policy and currency, how its stocks react to ongoing events on the continent could give investors valuable clues as to whether attempts to rein in the crisis are building confidence there.

Will the Dow rise again?
Stocks rise and fall over the short run, but truly dominant companies assert their strength and superiority over the long haul. Find out which stocks our experts are the most bullish on in the Fool's special free report: "3 American Companies Set to Dominate the World." Get your free copy now.

Fool contributor Dan Caplinger doesn't own shares of the companies mentioned. You can follow him on Twitter, @DanCaplinger. Motley Fool newsletter services have recommended buying shares of Chevron. 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 (8)

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: 1903937, ~/Articles/ArticleHandler.aspx, 10/21/2014 2:10:55 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