3 Dow Stocks That Plummeted Today

Negative economic reports from around the world combined today to send the Dow Jones Industrial Average (INDEX: ^DJI  ) to its second worst loss of the year, down nearly 2%. Domestically, U.S. jobless claims from two weeks ago were revised higher, while manufacturing activity in the Philadelphia region declined at a faster pace than expected. Abroad, data showed that in June, Europe’s private sector shrank at the fastest rate in three years, and China’s manufacturing sector contracted yet again.

But while the Dow had a terrible day overall, there were individual stocks that fared much worse.

Company

Percent Change Today

Alcoa (NYSE: AA  )

(4.15)

Hewlett-Packard (NYSE: HPQ  )

(4.09)

Bank of America (NYSE: BAC  )

(3.93)

Alcoa sold off after Goldman Sachs cut its earnings estimate for the company through 2014, due to lower aluminum prices. HP continued its decline today as investors continue to wonder how the company will fare now that Microsoft has essentially become a competitor with its new Surface tablet. Finally, Bank of America lost nearly 4% as well, due mainly to its sensitivity to the global economy and in anticipation of the Moody’s credit rating downgrade that occurred after the closing bell. Check out the video below for more on what dropped the Dow and these three stocks in particular today.

Terrible days like today can tempt investors to take their money and run far from the market. But that can often be the worst approach for those trying to build wealth. Some of the most successful stock picks are great dividend stocks purchased at attractive valuations on dips in the market. With that in mind, we’ve taken an in-depth look at all 30 Dow components, and picked out our three favorite Dow dividend stocks that investors can buy right now. You can find the names and analyses of these companies in our brand new free report, "The 3 Dow Stocks Dividend Investors Need." Simply click here to read the report now; it’s absolutely free.

Brendan Byrnes owns no shares of any companies mentioned. The Motley Fool owns shares of Microsoft, Bank of America, and JP Morgan Chase. Motley Fool newsletter services have recommended buying shares of Goldman Sachs Group and Microsoft. Motley Fool newsletter services have recommended creating a bull call spread position in Microsoft. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


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