Why The Dow Tanked Today

U.S. stock markets began the week with a loss today, as mixed news events ultimately failed to buoy stocks.  Despite reverting into positive territory late in the afternoon, the Dow Jones Industrial Average (INDEX: ^DJI  ) shed just more than 20 points by day’s end, to end 0.2% lower. 

Source: Google Finance

The Dow opened abruptly lower on concerns of diverging opinions from key European leaders Francios Hollande of France, and Angela Merkel of Germany, about forging the much-need banking union to stanch the ongoing European debt crisis. Following the Dow southbound, both the S&P 500 and Nasdaq also posted losses, dropping 0.2% and 0.6% respectively. The market’s "fear gauge," or the VIX (INDEX: ^VXX  ) , rose 1.4% on investor’s renewed fears.

Around The Markets
Shares of weight loss drug maker VIVUS (Nasdaq: VVUS  ) fell a fresh 9.7% today, coming off its sharp fall on Friday. The stock now sits some 20% lower than it did at the beginning of last week.  It's coming off a day where the company announced negative commentary from EU regulatory bodies for its Qsymia (Qsiva in the U.S.). 

Facebook also took an absolute beating today, falling 9.1% after the investing publication Barron’s ran a story opining that the social media powerhouse remains overvalued. The article cited an estimated fair value price for Facebook at around $15 a share.

Day to day, markets can send prices of companies miles away from their actual worth. That's why investors will do well to invest in companies with sustainable business models that can perform well over the long term. The Fool recently highlighted three companies on the Dow that should easily stand the test of time. We break down their relative merits and weaknesses in our new research report, which you can grab for free today. Just click here to get started.

Andrew Tonner holds no position in any company mentioned. Follow me on Twitter at @Andrew Tonner. The Motley Fool owns shares of Facebook. Motley Fool newsletter services have recommended buying shares of Facebook. Motley Fool newsletter services have recommended creating a bear put spread position in SPDR S&P 500 ETF. The Motley Fool has a disclosure policy.


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