Sparked by intensified civil unrest in Spain and Greece, the Dow Jones Industrial Average (DJINDICES:^DJI) is moving lower today. As of 12:30 p.m. EDT, the index sits at 13436, down 21 points, or 0.16%. The other major indexes, the S&P 500 (SNPINDEX:^GSPC) and the Nasdaq, are also trading lower this afternoon, down by 0.48% and 0.81%, respectively.
Protests arose in Europe yesterday, and the Dow closed the day lower by more than 100 points. So far today is not as bad, but Bank of America (NYSE:BAC), Disney (NYSE:DIS), and General Electric (NASDAQ:INTC) are all showing sizable declines for the day.
So why are they down?
All three companies are down simply because of Europe. Bank of America is off by 1.24%, and other financials are not doing much better: JPMorgan Chase is lower by 0.72%, American Express is off 1.29%, and Travelers Companies is down 1.23%. The financials have a lot riding on Europe, and uncertainty regarding whether or when Spain will ask for another bailout is pulling the industry lower.
Back in May, Euro Disney reported a 21 million euro loss in the first half of the year. Now, with more social unrest from European Union nations, the likelihood that a profit will be turned is shrinking. Investors have seen Disney hit new all-time highs over the past few weeks, but today the stock is lower by 1.03%.
Lastly, conglomerate General Electric is lower by 0.54% today. Having its hands in a number of different industries, GE is seen as a microcosm of the world economy. This can be a good thing when the global economy is strong and moving forward, but when things slow down, GE will feel it in nearly all areas of its business.
While things look gloomy in Europe today, that could all change very quickly when decisions are made on how to handle the issues by European leaders. When Mario Draghi announced bailout plans, or when even our own Federal Reserve Chairman Ben Bernanke rolled out QE3, the markets quickly moved higher. Don't miss the next run-up by selling on bad news. Stay invested through the ups and downs and you'll end up better off. Learn about how to find the stocks you can buy and forget in this free special report. Just click here.