Stocks Making the Dow Seesaw This Afternoon

This month's jobs report isn't due until Friday. So investors are, for now, forced to hold their breath another couple of days in anticipation of the news -- and what it will do to the Fed's plans for another round of fiscal stimulus, and what that will do to the stock market.

Result: The Dow Jones Industrial Average (INDEX: ^DJI  ) is basically coasting today -- up a bare 0.2%, hanging out around 13,062 and change.

Not everyone's just sitting on their hands, of course. Nokia (NYSE: NOK  ) , for instance, just unveiled two new smartphones running the new Windows 8 software, and in the latest example of investors "buying the rumor and selling the news," its stock is being sold off by roughly 11% as punishment for pulling back the curtain. Facebook, in contrast, is enjoying some rare good news as its recently unveiled plans to shore up a flagging stock price -- by putting a lid on insider selling -- help to lift the stock 5%.

And even within the Dow proper, we're seeing some sizable moves. Disney (NYSE: DIS  ) has tacked on 3% and counting, buoyed in part by confirmation that (Nasdaq: AMZN  ) will pay for access to films such as The Avengers via its deal to sell streaming video provided by Epix. That means more moola for the House of Mouse.

On the other side of the seesaw, American Express (NYSE: AXP  ) is weighing down the Dow, off 2.5% on no news of note. My best guess? This could be a bet on a weak unemployment report later this week. If the economy stalls, not only does it suggest fewer paid employees putting charges on their cards, but it also raises the possibility of a Fed intervention that could depress interest rates even further, hurting the profitability of financial firms like AmEx.

Silly rabbit -- seesaws are for kids!
Of course, that's just a guess. Because, as I said, there's no actual news out there today that would explain AmEx falling more than 10 times as steeply as the rest of the Dow. But if playing Wall Street's guessing game doesn't appeal to you, we think there's a better way to invest: Buy the kinds of undervalued, underappreciated stocks that "Wall Street's Too Rich to Notice." We've got three suggestions for you right here -- for free.


Fool contributor Rich Smith owns shares of Nokia, but he holds no other position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool owns shares of, Facebook, and Walt Disney. Motley Fool newsletter services have recommended buying shares of Walt Disney, Facebook, and Motley Fool newsletter services have recommended creating a write covered strangle position in American Express. 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.

Read/Post Comments (1) | Recommend This Article (3)

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.

  • Report this Comment On September 05, 2012, at 2:12 PM, bear9 wrote:

    That has got to be one of the most banal headlines I have ever seen, up there with "Weather to Vary Over Coming Year."

    Since the Dow Jones is an index of STOCKS, I think maybe we can all agree that stocks make it vary.

Add your comment.

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: 2006990, ~/Articles/ArticleHandler.aspx, 10/27/2016 3:00:10 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...

Today's Market

updated Moments ago Sponsored by:
DOW 18,200.46 1.13 0.01%
S&P 500 2,136.75 -2.68 -0.13%
NASD 5,227.13 -23.14 -0.44%

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 2:44 PM
AMZN $820.75 Down -1.85 -0.22% CAPS Rating: ****
AXP $66.99 Up +0.19 +0.28%
American Express CAPS Rating: ****
DIS $94.05 Up +0.56 +0.60%
Walt Disney CAPS Rating: *****
NOK $4.75 Down -0.41 -7.95%
Nokia CAPS Rating: **