3 Dow Stocks in the News

It's time to look beyond the election. As I noted earlier today, traders are now focused on the so-called "fiscal cliff," which kicks in this January in the absence of Congressional action. But we needn't look that far in the future to appreciate the nuances of today's performance of the Dow Jones Industrial Average (INDEX: ^DJI  ) . As of 2:50 p.m. EST, the blue-chip index is down about 60 points, or 0.47%.

The biggest winners among individual stocks today are Bank of America (NYSE: BAC  ) and JPMorgan Chase (NYSE: JPM  ) , the nation's two largest banks by assets. Bank of America is up 2.5% in intraday trading after falling precipitously yesterday on fears that President Obama's re-election could spell trouble for the financial sector. Earlier today, moreover, the research firm ISI Group upgraded Bank of America from hold to buy. According to the ISI:

Our change of heart is based on three main factors: 1) BAC has built its capital ratios rapidly and will be able to buyback stock much sooner and more robustly than we expected; 2) we now have more confidence that operating cost savings will be realized about in line with expectations; and 3) we are gaining confidence that BAC is getting its arms around its mortgage repurchase risk, and that future charges will be manageable and easily digestible (i.e. they won't change the 'story' of the stock or the long-term earnings profile of BAC).

Meanwhile, JPMorgan is up after the bank said it has "agreed in principle" to settle an investigation into how Bear Stearns, the investment bank that JPMorgan acquired in 2008, originated and sold mortgages in the lead-up to the financial crisis. The bank also said it intends to resume its $3 billion share buyback program earlier next year.

Finally, shares of McDonald's (NYSE: MCD  ) are trading sharply lower, down nearly 2% so far. This morning the company revealed that its same-store sales dropped in October by 1.8%. According to The Wall Street Journal, it was the company's first monthly decline in same-store sales since 2003. Analysts had predicted that the figure will come in around -1.07%.

Claim your investing edge
To learn more about the most-talked-about bank out there, check out our 
in-depth company report on Bank of America. The report details Bank of America's prospects, including three reasons to buy and three reasons to sell. Just click here to get access.


Read/Post Comments (1) | Recommend This Article (10)

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 November 12, 2012, at 10:45 PM, DanLu59 wrote:

    Have you eaten at McDonalds lately? I think their food taste/quality has diminished. Not a surprise to me.

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: 2102802, ~/Articles/ArticleHandler.aspx, 11/28/2014 2:47:24 PM

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