1 Dow Stock Lower Today and 3 Lower on the Year

The Dow Jones Industrial Average (INDEX: ^DJI  ) is surging this afternoon. As of 12:30 p.m. EDT, the index sits at 13,589, up more than 151 points, or 1.13%. The index is up more than 11.24% year to date, and only one stock, Microsoft (Nasdaq: MSFT  ) , is trading in the red today. But other Dow components are lower for the year. Three of them are Caterpillar (NYSE: CAT  ) , McDonald's (NYSE: MCD  ) , and Hewlett-Packard (NYSE: HPQ  ) .

So why are they down?
Microsoft is down by 0.75% following a report that Intel has delayed the delivery of software that will help conserve computer battery life. The program is needed in order for Microsoft to continue development of some of its Windows-based tablets. The delay comes at a time when Microsoft needs operations to run smoothly and quickly in order to gain market share and become a relevant player in tablet computing.

As tablets become more important to Microsoft, PC giant Hewlett-Packard has been left out of the party this year. The company has seen its stock slide more than 32% year to date. As more consumers move to mobile computing, PC sales have slipped not only in the U.S. and other developed nations, but also in emerging markets.

Caterpillar, meanwhile, has seen shares decline 4.48% this year. With uncertainty running amok in the U.S., the European debt crisis, and China's GDP slowdown, the heavy-machinery manufacturer has not been a friend to investors.

Finally, McDonald's has seen shares slide by 8% so far this year. The yellow arches have seen a slowdown in same-store sales growth this year, and further concerns over higher food prices as a result of the drought have been dragging the stock lower. The company is also facing tough comps from last year in the coming months. All these factors could mean a few more rough months for shareholders.

Foolishly thinking
"Sell high, buy low" is one of the first things new investors are told. So on a day when the markets are moving higher, investors should be looking about what they could be selling, not buying. As for McDonald’s and Caterpillar, investors should hold strong and wait out these mild downturns. If you're still holding on to Hewlett-Packard, today may be a good time to start lowering your share count. The Dow is beating HP by more than 40% this year alone, and if the shift away from PC’s continues, things will only get worse.

Like HP, Microsoft has a number of opportunities and risks it will face in the future -- and investors need to know what they are before making any decisions. Get in the know today simply by clicking here.  

Matt Thalman owns shares of Microsoft. The Motley Fool owns shares of Microsoft and McDonald's. Motley Fool newsletter services have recommended buying shares of McDonald's and Microsoft. Motley Fool newsletter services have recommended creating a synthetic covered call position in Microsoft. 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 (0) | 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.

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: 2038428, ~/Articles/ArticleHandler.aspx, 8/28/2014 1:21:55 AM

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