These Dow Stocks Helped the Market Cut Its Losses

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.

All good things must come to an end, and with the stock market, today finally represented a break from recent success. Although the Dow Jones Industrial Average (INDEX: ^DJI  ) suffered one minor loss last week, the S&P 500 (INDEX: ^GSPC  ) was on a six-day winning streak entering the day. But the broad average couldn't sustain its strength today, and even though a late rise helped cut the market's losses, stocks generally fell, with the Dow losing 39 points.

Despite the weakness, a handful of Dow stocks rose. American Express (NYSE: AXP  ) gained about half a percent even as most of its credit-card network rivals lost ground. Despite no apparent news today that would explain the gains, AmEx has taken great strides lately to stay relevant by focusing more on mobile payments and other technological innovations. The news last month that a WTO victory regarding China's UnionPay card payment processing network stands to open the door for AmEx to compete in Chinese market, which could drive growth for years to come.

Disney (NYSE: DIS  ) also climbed almost half a percent. Follow-through from last week's earnings beat may have contributed to the gains, but Fool Blog Network member Kevin Gill suggests an interesting driver for long-term growth: a possible baby boom. His theory is that the recession led some would-be parents to delay having children, which could spark a catch-up in birth rates in the coming years, benefiting Disney's child-focused businesses.

Finally, 3M (NYSE: MMM  ) gained fractionally after Barron's mentioned it in an article about the recent stock market rally. 3M is just one example of a stock whose dividend yield exceeds the interest rate on its 10-year bonds. As long as that situation continues, many companies may face pressure to increase buybacks, given the positive impact on cash flow that such moves would create.

Taking a break
Speaking of dividends, it can be nice on a down day for the market to realize that owning healthy dividend stocks means getting quarterly income that can offset any losses or add to gains. The Motley Fool's special report on the Dow can tell you a whole lot more about three Dow stocks with fast growth as well as dividend strength. 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 Walt Disney. Motley Fool newsletter services have recommended buying shares of 3M and Walt Disney, as well as creating a diagonal call position in 3M and writing a covered strangle position in American Express. 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 (1)

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: 1983166, ~/Articles/ArticleHandler.aspx, 10/28/2016 5:11:04 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 7 hours ago Sponsored by:
DOW 18,169.68 -29.65 -0.16%
S&P 500 2,133.04 -6.39 -0.30%
NASD 5,215.97 -34.29 -0.65%

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

10/27/2016 4:35 PM
^DJI $18169.68 Down -29.65 -0.16%
^GSPC $2133.04 Down -6.39 -0.30%
S&P 500 INDEX CAPS Rating: No stars
AXP $66.93 Up +0.13 +0.19%
American Express CAPS Rating: ****
DIS $94.02 Up +0.53 +0.57%
Walt Disney CAPS Rating: *****
MMM $165.76 Down -0.75 -0.45%
3M CAPS Rating: *****