Why the Dow Dropped 100-Plus Points This Morning

After days of being stuck in neutral, the stock market finally made a move, but it wasn't one that made investors very happy. Most analysts pointed to weak confidence figures from Europe as a reminder that the sovereign-debt situation on the Continent is far from solved. Nervousness about tomorrow's speech from Ben Bernanke also took its toll, as the Dow Jones Industrials (INDEX: ^DJI  ) traded down more than 100 points this morning.

Around 10:45 a.m. EDT, just one Dow component traded higher: Coca-Cola (NYSE: KO  ) , by a single penny. News reports that the beverage company got the go-ahead to produce energy drinks in India is a sign of the continuing importance of emerging markets to Coca-Cola's overall growth, even if the energy-drink segment is coming under pressure from regulators and government officials.

Meanwhile, losses were consistent across most sectors. AT&T (NYSE: T  ) was off 0.6% even as it announced plans to open its first flagship retail location, choosing Chicago's high-profile Magnificent Mile shopping district for the store. With increasing competition from Verizon as the companies prepare for the coming release of the iPhone 5, AT&T hopes to take a page from Apple (Nasdaq: AAPL  ) and duplicate the iPhone-maker's retail success.

Finally, Johnson & Johnson (NYSE: JNJ  ) fell 0.7%. The company's Janssen subsidiary announced a deal by with Danish biotech Genmab to gain the global licensing rights to daratumumab, a cancer-fighting antibody in development. Although the upfront license fee of $55 million is relatively small, J&J also agreed to invest $80 million in Genmab shares. The move shows how important it is for big pharma companies like J&J to keep their pipelines full.

Find the winners
When markets fall, you want to be sure the stocks you own will end up on top. Apple has done an excellent job of being a market beater, but can its outperformance continue? Get the latest analysis from our top Fools in the Motley Fool's premium report on Apple.

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 Apple, Coca-Cola, and Johnson & Johnson. Motley Fool newsletter services have recommended buying shares of Coca-Cola, Apple, and Johnson & Johnson, as well as creating a diagonal call position on Johnson & Johnson and a bull call spread position on Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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 (18)

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: 2001798, ~/Articles/ArticleHandler.aspx, 9/17/2014 7:39:45 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