Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



These 3 Stocks Cut the Dow's Gains

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

In a nutshell, you can sum up today's market action like this: China tried to throw a party, but Ben Bernanke ended up spoiling the mood. With China cutting interest rates overnight, investors hoped that the Federal Reserve might signal that it would follow suit with further easing of monetary policy of its own. But instead, the Fed not only failed to give hints that it would ease but also suggested stricter capital requirements for banks, and so after having gained almost 140 points early in the session, the Dow Jones Industrial Average (INDEX: ^DJI  ) had to settle for a 46-point rise, while the S&P 500 and Nasdaq finished down on the day.

Despite the Dow's overall gains, several stocks within the Dow didn't do well. The big loser on the day was Bank of America (NYSE: BAC  ) , which gave up part of its big gains yesterday and fell nearly 3%. The Fed's proposal would force B of A and other big banks to raise their capital reserves to 6% of assets, up from the current minimum of 4%. Even though B of A has been working hard to raise capital by selling off non-core assets, the higher standard would force it to go even further to build reserves and hamper its ability to boost its profits.

Hewlett-Packard (NYSE: HPQ  ) was also among the Dow's losers, falling about 1.3%. Between strategic announcements, job cuts, and new initiatives, HP has been pulling out all the stops in its effort to restructure and get back some of its past growth. But impatient investors see other companies making steps forward and wonder when HP's moves will finally bear fruit in the form of a higher stock price. So far, that hasn't happened.

Finally, AT&T (NYSE: T  ) lost more than 1% after Virgin Mobile announced that it will offer a no-contract iPhone starting June 29. Although the iPhone's initial price won't be subsidized, Virgin's $30-per-month plan is a big discount compared with rates that Verizon and AT&T charge. Virgin has the Sprint Nextel (NYSE: S  ) network behind its service, and sales will count toward Sprint's iPhone purchase obligations, so the move is a likely win for Sprint. But the big question is whether buyers will be willing to pay a whole lot more upfront -- $649 for an iPhone 4S, versus $199 from carriers requiring two-year contracts -- in exchange for the flexibility of not having a long-term obligation.

Don't be down
Uncertainty always holds back some stocks, even when the market's having a good rally. A big source of uncertainty for investors this year is the coming presidential election, but we've identified some stocks we think are poised to benefit once November ends. Discover the names of these companies in our brand-new special report, "Stocks That Could Skyrocket After the 2012 Presidential Election." Downloading a free copy is as easy as a click, so do it right now.

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 Bank of America. 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 (1) | Recommend This Article (4)

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.

  • Report this Comment On June 08, 2012, at 8:33 AM, swd042555 wrote:

    I think users will go for the investment upfront since the breakeven point is 7.5 months. $650 minus $200 = 450 divided $60 (difference between AT&T plan and Virgin plan)

Add your comment.

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: 1906674, ~/Articles/ArticleHandler.aspx, 10/25/2016 10:38:07 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 1 hour ago Sponsored by:
DOW 18,169.27 -53.76 -0.30%
S&P 500 2,143.16 -8.17 -0.38%
NASD 5,283.40 -26.43 -0.50%

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

10/25/2016 4:34 PM
^DJI $18169.27 Down -53.76 -0.30%
BAC $16.72 Down -0.05 -0.30%
Bank of America CAPS Rating: ****
HPQ $13.90 Down -0.07 -0.50%
HP CAPS Rating: ***
S $6.50 Down -0.42 -6.07%
Sprint CAPS Rating: **
T $36.70 Down -0.16 -0.43%
AT and T CAPS Rating: ****