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



Why the Dow Gave Up Its Gains Today

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.

Unless you're a short-term trader, what happens to the stock market in a single day rarely makes a big difference. But on a day like today, when the Dow Jones Industrials (INDEX: ^DJI  ) traded with extreme swings in both directions, paying attention can make a big difference. After rising nearly 95 points early in the session, the Dow gave up all its gains by mid-morning, and after treading water for much of the next few hours, it fell to as much as a 130-point loss before recovering somewhat to finish down 83 points.

With earnings season having started, part of the drop is likely due to nervousness about how the second quarter shaped up for Corporate America. Just in the past day, semiconductor stocks AMD (NYSE: AMD  ) and Applied Materials (Nasdaq: AMAT  ) both came out with warnings about revenue and net profit, with AMD pointing to falling demand for PCs and Applied Materials reporting weak foundry demand. Even worse, Cummins (NYSE: CMI  ) , which has benefited from its foray with Westport Innovations (Nasdaq: WPRT  ) into the natural-gas engine market, plunged after saying it expects only flat sales this year rather than its previously projected 10% growth.

But other factors are also at play here. The U.S. dollar soared to a two-year high against the euro. A court in Germany charged with determining whether the country can participate in Europe's bailout fund said that it could take up to three months to issue a ruling, raising doubt about the Continent's ability to respond to the ongoing crisis there.

Commodities weren't beneficiaries of the dour mood, either. Both oil and gold suffered substantial losses, with oil down $2 to around $84 per barrel, while gold fell $22 to $1,567 per ounce, weighing on stocks in those respective sectors. Only bonds managed to eke out gains, with the yield on the 10-year Treasury falling back down to 1.5%.

Don't lose hope
It's way too early to declare the second quarter a lost cause. Start thinking more in terms of the long run. The Fool's latest special report can help you by combing through the 30 stocks in the Dow to find the three Dow stocks investors can count on for dividend income and growth. The report is absolutely free, so get your copy today.

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 Westport Innovations. Motley Fool newsletter services have recommended buying shares of Westport Innovations and Cummins. 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 (12)

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: 1939230, ~/Articles/ArticleHandler.aspx, 10/7/2015 5:04:56 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...

Dan Caplinger

Dan Caplinger has been a contract writer for the Motley Fool since 2006. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world.

Today's Market

updated 7 hours ago Sponsored by:
DOW 16,790.19 13.76 0.08%
S&P 500 1,979.92 -7.13 -0.36%
NASD 4,748.36 -32.90 -0.69%

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

10/6/2015 4:33 PM
^DJI $16790.19 Up +13.76 +0.08%
AMAT $15.24 Up +0.14 +0.93%
Applied Materials,… CAPS Rating: ****
AMD $1.83 Up +0.03 +1.67%
Advanced Micro Dev… CAPS Rating: **
CMI $112.17 Up +0.41 +0.37%
Cummins CAPS Rating: *****
WPRT $3.01 Up +0.21 +7.50%
Westport Innovatio… CAPS Rating: ****