Why the Dow Dropped Yet Again Today

It was yet another down day for the Dow Jones Industrial Average (INDEX: ^DJI  ) , which lost about a quarter of a percentage point. Perhaps not surprisingly, Europe was one of the drivers of the decline, as yields on Spanish benchmark 10-year bonds rose above 7%, around the unsustainable rate at which Greece, Ireland, and Portugal were forced to seek a bailout. There was also some disappointing inflation data out of China, and a decline in Japan's machinery-goods orders.

Here's how the three major U.S. indexes reacted to the news today.

Index

Change

Ending Value

Dow Jones Industrial Average -36.18 [-0.28%] 12,736.29
Nasdaq -5.56 [-0.19%] 2,931.77
S&P 500 -2.22 [-0.16%] 1,352.46

Today was also the beginning of earnings season, as aluminum giant Alcoa reported after hours. Earnings were about in line with expectations, though revenue came in above what analysts had expected. The stock was essentially flat in after-hours trading. But that wasn't the case for MAKO Surgical, which nosedived more than 30% after hours when it released results showing that the company sold only nine of its RIO systems in the second quarter and lowered its full-year sales forecast for the device. In the following video, Brendan gives more insight on what drove the market today and takes a look at individual winners and losers.

With all the uncertainty surrounding Europe and the global economy, many investors may be tempted to take their money and run far from the market. But that can be one of the biggest mistakes investors can make. Some of the most successful stock picks are great dividend stocks purchased at attractive valuations during dips in the market. We've identified three of these in our new report: "The 3 Dow Stocks Dividend Investors Need." It's absolutely free, so just click here and get your copy today.

Brendan Byrnes owns shares of MAKO Surgical and Caterpillar. The Motley Fool owns shares of MAKO Surgical. Motley Fool newsletter services have recommended buying shares of MAKO Surgical. We Fools don't 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. The Motley 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: 1937617, ~/Articles/ArticleHandler.aspx, 8/29/2014 2:13:17 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...


Advertisement