On a day when the German court finally agreed to support Europe's most recent rescue, the Dow Jones Industrial Average (INDEX: ^DJI ) is trading slightly higher. At 12:30 p.m. EDT, the index was at 13,343, up 19.92 points, or 0.15%. Of the 30 Dow components, nine are currently trading down on the day, including McDonald's (NYSE: MCD ) , Dupont (NYSE: DD ) , and Bank of America (NYSE: BAC ) .
So why are they down?
This morning, McDonald's announced that beginning next week, it will list calorie counts for all items on its menus, both inside stores and at the drive-through. The company believes the move will inform customers and help them make nutrition-minded choices. Investors are signaling that they also believe customers will make healthier eating choices -- by no longer dining at the fast-food chain. McDonald's is currently 0.25% lower today.
Chemical manufacturer Dupont is trading down 0.59% today following a mixed crop report. Corn futures fell to a new seven-week low this morning after a larger-than-expected harvest was announced by the U.S. government. The drought has not been so kind to the soybean harvest, which has now been pegged at 2.634 billion bushels, below the 2.657 billion bushels analyst were expecting.
Finally, banking giant Bank of America is 0.61% lower today. After the German court announced approval for the European "bailout," investors ran into stocks, leaving U.S. Treasuries. The flow of cash out of treasuries moved the yield on the 10-year note from 1.69% to 1.74%. As Fool analyst Austin Smith pointed out yesterday, when rates are low, banks win. Although Treasuries are moving higher today, if the Fed announces QE3 tomorrow, as most analyst expect, rates will move lower again.
Foolishly thinking
While posting calorie counts next to items on a menu may slow traffic at McDonald's in the short term, it should not affect the long-term "health" of the organization. Consumers are creatures of habit, and all the nutritional content can already be easily found if an individual cares enough to look for it. With the world population increasing, food production is becoming more important every year, and a company like Dupont can give investors a great backdoor entrance into the industry. Although I own B of A, I understand it's not the right stock for every investor. Before you make a decision, check out this premium research report detailing Bank of America's prospects, including three reasons to buy and three reasons to sell. Just click here to get access.
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