These Dow Stocks Yanked the Market Lower

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.

Even in the aftermath of an exciting weekend of economic action, the Monday blues ended up prevailing on Wall Street today. Listening to the news on Sunday night, you would've heard about a "rescue" in Spain and thought that it somehow solved every single problem on the Continent. Yet after some initial buying, investors woke up and realized that plenty of other troubles are still in front of European governments and stock markets. As a result, the Dow Jones Industrials (INDEX: ^DJI  ) swung wildly and reversed a big gain to end up falling well over 1% by the close.

If you've followed the Dow closely, you can probably guess that economically sensitive stocks were among those hit worst by the declines. Bank of America (NYSE: BAC  ) tried to improve its corporate image by announcing its pledge to lend $50 billion over the next 10 years toward green energy products, but it closed down more than 3% as investors still perceive the bank as being weak enough to be threatened by systemic shocks from Europe. JPMorgan Chase (NYSE: JPM  ) also fell 2.5%, even as some predicted that both it and B of A could benefit from increased regulation of savings and loan institutions that could make mortgages harder to get and lead to higher rates that could benefit mortgage lenders.

Hewlett-Packard (NYSE: HPQ  ) also fell nearly 3.5% after an analyst report pointed to slowing industrywide sales of PCs in the current quarter. Although CEO Meg Whitman is trying to transform HP into a more widely diversified business with strength in higher-margin areas, hardware like PCs and printers still make up a huge portion of HP's current business, and any weakness there has a big impact on the company overall.

Finally, Caterpillar (NYSE: CAT  ) was down almost 3%. Caterpillar's prospects center more on the U.S. and China than on Europe, but as the global economy becomes more interconnected, it's increasingly difficult to compartmentalize companies by geography -- especially in economically sensitive industries. If China holds up better than most fear, then the recent drop that has clipped off more than a quarter of its stock price so far could reverse itself quickly.

Stick with the best
When stocks are falling, your best bet is to focus on your best stock picks. If you're looking for a few more bright ideas, be sure to read The Motley Fool's brand-new special report, which includes stocks that only the smartest investors are buying. We invite you to download a free copy -- get started 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 JP Morgan Chase and 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 (0) | Recommend This Article (2)

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: 1909560, ~/Articles/ArticleHandler.aspx, 10/23/2016 5:55:02 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...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

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

10/21/2016 4:47 PM
^DJI $18145.71 Down -16.64 -0.09%
BAC $16.67 Up +0.11 +0.66%
Bank of America CAPS Rating: ****
CAT $86.33 Down -0.30 -0.35%
Caterpillar CAPS Rating: ***
HPQ $13.80 Down -0.30 -2.13%
HP CAPS Rating: ***
JPM $68.49 Up +0.23 +0.34%
JPMorgan Chase CAPS Rating: ****