Dow Hits New 3-Month Low

After spending most of the day on higher ground, the Dow Jones Industrial Average (INDEX: ^DJI  ) finished the session down 58 points, or 0.5%. Markets rose late in the morning on promising news about Greece, as a group of finance ministers met and decided to give the struggling country two more years to implement necessary austerity measures. They also delayed a decision on the next round of bailout money until November 20. Leaders hinted that Greece was likely to receive an injection of $56 billion by that date.

Meanwhile, uncertainty loomed at home about the fiscal cliff. President Obama, who will meet with business leaders on Wednesday, and senior lawmakers on Friday, discussed the matter with top labor officials today. The union bosses pushed to keep the Medicare eligibility age at 65, and staked out positions on taxes and unemployment insurance. Tomorrow's meeting should shed more light on a possible solution.

Home Depot (NYSE: HD  ) jumped to a multi-year high today on a bright earnings report, gaining 3.6% in the session. The home-improvement retailer benefited from a recovering housing market, posting earnings per share of $0.74, adjusted for the closing of seven stores in China, as the company decided to refocus its strategy on North America. Same-store sales were up 4.2%, and the retailer grew overall revenue by 4.6%, to $18.1 billion. Both top and bottom lines beat estimates, and management raised guidance to an EPS of $2.92 for the year.

Cisco Systems (Nasdaq: CSCO  ) was also a big winner on the day, climbing 7.5% in after-hours trading, after topping estimates in its quarterly report. The networking king said profits rose 18% on a 5.5% sales increase, as adjusted EPS of $0.48 beat the consensus at $0.46. Cisco shares had dropped more than 10% within the last month, as pessimism built about a slowdown in the tech sector; so even after this evening's gain, the stock is still trading below its September level. The company also experienced headwinds in Europe, and saw revenue drop in its core switching and routing segments, so there are still plenty of concerns in spite of today's results.

On the other end of the tech spectrum was Microsoft (Nasdaq: MSFT  ) , which was down 3.2% on news that its Windows chief was shown the door. Steve Sinofsky had spent 23 years with company but, on Monday night, Microsoft said he was leaving, and will be replaced by Julie Larson-Green, who will be in charge of hardware and software, and Tami Reller, who will take over the day-to-day business of the division. The market seems to believe this is an early sign that the recently unveiled Windows 8 is not performing as expected.

Find out what's in store for Microsoft after today's shakeup. Grab a copy of our new premium report, that's all about the software giant. It details the opportunities and risks it's facing, and tells you the key areas of the company to follow. The report neatly packages all the information you need to understand the company, and comes with free updates, so you won't have to sweat over any breaking news. Get your copy now. All you have to do is click right here.


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: 2111420, ~/Articles/ArticleHandler.aspx, 10/1/2014 6:43:59 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