The 3 Stocks Behind the Dow's Mini-Crash

For the second time this week, the Dow Jones Industrials (INDEX: ^DJI  ) posted a decline of 200 points or more. Today's 243-point drop was particularly worrisome, coming as it did on the tail of multiple earnings disappointments as well as a general lack of enthusiasm about the stock market and the prospects for the global economy. Beyond just earnings numbers, a sentiment shift seems to be pointing toward an increased likelihood that a long-anticipated correction may finally be near.

But a few stocks really stood out in hurting the market. DuPont (NYSE: DD  ) ended the day down a whopping 9% after big declines in revenue and earnings, coupled with a major pullback in forward earnings guidance, shook shareholders. What was particularly disturbing was that the company hadn't missed analyst estimates in 14 straight quarters, building expectations that DuPont would be able to manage its earnings effectively to avoid surprises like this one.

3M (NYSE: MMM  ) plunged 4% after making its own cut to its full-year guidance. Shareholders were merciless, as a cut from a range of $6.35 to $6.50 to a range of $6.27 to $6.35 was enough to cause the big plunge. The company used the convenient "slow-growth economy" excuse, which you'll probably hear several more times before earnings season ends.

Finally, Hewlett-Packard (NYSE: HPQ  ) fell more than 3% on the heels of Apple's (Nasdaq: AAPL  ) string of new product announcements. With everything from the anticipated release of the iPad Mini to a full-sized fourth-generation iPad, a smaller iMac, and a new MacBook Pro, Apple is capitalizing on the weakness in the PC market to make advances on all fronts. Judging from the response in HP's stock, investors aren't sure whether the company can adequately answer Apple's offensive.

Don't crash
More earnings are coming, and anxiety levels are high. One key report will come from Apple, which now has to deliver results after announcing an ambitious new product line. With so many new devices coming out, is Apple finally a buy at these levels? Find out in the Fool's premium report on the stock, where you'll learn everything you need to know about the launches and receive ongoing guidance as key news hits. Claim your copy today by clicking here now.

Fool contributor Dan Caplinger has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple. Motley Fool newsletter services recommend Apple and 3M. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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 24, 2012, at 5:25 AM, Hestheone wrote:

    Yeah, HP dumped because of new Apple Mac products since the two are in such direct competition. Everyone I know was totally on the fence about whether to go with HP or Mac. Right.

  • Report this Comment On October 24, 2012, at 5:39 AM, Mathman6577 wrote:

    Investors and analysts didn't like the iPad mini price point. What do they want? I don't $30 or $40 is going to make a big difference. The Apple cult will buy Apple no matter what. They aren't going to go with Amazon or Microsoft. Most analysts didn't think the original iPhone would sell either.

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