What's Causing These Dow Stocks to Slide Lower?

So far it's a quiet day for the Dow Jones Industrial Average (INDEX: ^DJI  ) . As of 12:50 p.m. EDT the index is up 26 points, or 0.2%, to 13,128. More third-quarter results and a few downgrades are the cause for some moves today. Of the 30 Dow components, 15 are currently in the red. Three of today's losers are AT&T (NYSE: T  ) , Dupont (NYSE: DD  ) , and IBM (NYSE: IBM  )

So why are they down?
AT&T is sliding lower today after the company announced earnings. The company beat analyst expectations for earnings per share and raised free-cash-flow estimates by $2 billion. But compared to competitor Verizon (NYSE: VZ  ) , AT&T fell short. Verizon added 1.5 million new wireless subscribers in the third quarter, while AT&T only added 151,000. Verizon also had a wireless-service churn of 0.91%, while AT&T experienced its lowest-ever third-quarter churn at 1.08%. AT&T was beaten on a number of other metrics by Verizon this quarter, and the stock is trading lower by 0.27%, while Verizon is up 0.95%.

DuPont is having another down day. After yesterday, when the stock lost more than 9% of its value, shares are only down 0.76% today. This morning, analysts at JPMorgan downgraded the stock from "overweight" to "neutral." After the company's third-quarter earnings proved a sore disappointment, the company is likely to see a number of downgrades in the coming days and weeks.

Finally, IBM is trading lower today by 0.2%. The slide comes after data storage equipment company EMC (NYSE: EMC  ) announced earnings this morning and missed on both revenue and earnings per share. EMC increased revenue by 6% to $5.28 billion, but analysts were looking for $5.46 billion. The company also cut its 2012 profit forecast. The reason this announcement affects IBM is that the company also operates and sells software for the storage, servicing, and security of business data. If one big player is faltering based on low demand, the other players in that space usually will, too.

Foolishly investing
If you're looking for some long-term investing ideas, let me invite you to read the Fool's brand-new special report: The 3 Dow Stocks Dividend Investors Need. It's absolutely free, so just click here and get your copy today.

Matt Thalman has no positions in the stocks mentioned above. The Motley Fool owns shares of EMC and International Business Machines. Motley Fool newsletter services recommend International Business Machines and AT&T. 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.


Read/Post Comments (1) | Recommend This Article (7)

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.

  • Report this Comment On October 24, 2012, at 2:00 PM, funfundvierzig wrote:

    Investors and DD shareholders have been blindsided by DuPont's secretive and evasive Management. Only 90 days ago, DuPont execs issued Pollyannaish guidance for the full year 2012. And yesterday, Oct. 23, 2012, they retracted it with little in the way of helpful explanation. In response the stock sold off on six times normal volume, losing 9% of total market value.

    ...funfun..

Add your comment.

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: 2073362, ~/Articles/ArticleHandler.aspx, 10/25/2014 3:24:38 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