3 of Today's Biggest Dow Losers

The Dow Jones Industrial Average (INDEX: ^DJI  ) has now wiped out all of its gains from yesterday's rally. As of 12:30 p.m. EDT, the index sits at 13,437 points, down more than 77 points, or 0.57%. At this time yesterday, the Dow was up more than 150 points, and it looked as if we may be in store for a great fourth quarter. But then the market slid back and closed the day up only 77 points, so now we're almost exactly where we started the fourth quarter. Even with all of the rollercoaster-riding, the Volatility Index (INDEX: ^VIX  ) is well below where it was in June and more than 25% lower than where it sat at this point last year.

A number stocks are pulling the Dow lower this afternoon. Currently, 17 Dow components are in the red, and now I'll highlight three in particular: American Express (NYSE: AXP  ) , JPMorgan Chase (NYSE: JPM  ) , and DuPont (NYSE: DD  ) .

So why are they down?
The Consumer Financial Protection Bureau released a statement on Monday that American Express subsidiaries illegally charged, discriminated against, and deceived customers. The credit card company will have to refund $85 million to 250,000 customers and pay a fine of $27.5 million, which will be split among a number of government agencies. American Express is trading lower today by 0.73% after closing yesterday up 0.96%.

JPMorgan is also facing heat from the U.S. government after a report this morning said the New York Attorney General sued the bank because of issues involving Bear Stearns. Attorney General Eric Schneiderman claims that Bear Stearns has defrauded investors when selling mortgage-bonds. JPMorgan took over Bear in 2008 during the financial crisis' most pressing days. JPMorgan is trading lower by 0.29% this afternoon.

And finally, chemical manufacturer DuPont is one of the worst-performing Dow components thus far, down more than 1.23%. The slide comes after Wells Fargo reduced estimates on the company because of general global economic concerns and discontinued operations relating to Performance Coating. The Wells Fargo estimate is a little late; the Carlyle Group announced on August 30 that it would be purchasing Performance Coating.

Foolishly thinking
When the market was up 150 points yesterday, I mentioned that investors who are looking to sell should do so on up days. On that same token, investors looking at add to their positions or start new ones should do so on down days. All three companies mentioned above would be good buys today, but there may be a better financial institution on the market now. Our analysts have found what they believe to be "The Only Big Bank Built to Last." Click here to find out which one it is. 

Matt Thalman owns shares of JPMorgan Chase. The Motley Fool owns shares of JPMorgan Chase & Co. and has the following options: short OCT 2012 $55.00 puts on American Express Company, short OCT 2012 $60.00 calls on American Express Company, and long OCT 2012 $65.00 calls on American Express Company. Motley Fool newsletter services recommend American Express Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On October 02, 2012, at 2:57 PM, funfundvierzig wrote:

    For years, DuPont's top executives and their high-price army of PR artists and lobbyists and media liaisons have tried to charade this old-line chemical and materials conglomerate, which also peddles seeds, mostly conventional low-tech corn and soya, as some sort of "dynamic science-powered" tech outfit. Investors are not buying it. DD has not touched 60 since February 3, 2000, over 12 1/2 years ago. ...funfun..

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