Why the Dow Is Moving Lower Again

The Dow Jones Industrial Average (INDEX: ^DJI  ) continues its slow downward slide today. As of 12:55 p.m. EST, the Dow is down another 83 points, or 0.65%, to 12,672. All we really need to know is that no deal has been made -- or really even discussed -- when it comes to the fiscal cliff. Both sides of the political aisle have been announcing what they will be looking for in terms of a deal, and right now the two sides are no were close to being on the same page. Actually, they may not even be reading the same book at this point, and thus the markets move lower.

So far during today's trading session, 23 of the Dow's 30 components are in the red, and five are down more than 1%. But the three biggest losers thus far are Home Depot (NYSE: HD  ) , Bank of America (NYSE: BAC  ) , and Boeing (NYSE: BA  ) .

So why are they down?
Home Depot is the third-worst performing Dow component today, trading lower by 2% after shares of the company were downgraded this morning by analysts at Gabelli. The downgrade comes just days after the retailer announced blowout third-quarter earnings that beat estimates on the top line, bottom line, and everywhere else analysts made predictions. But Gabelli stated that the rebound in housing has already been priced into the stock, and at current valuations the stock does not have much room to go higher. Home Depot has been the second-best performing Dow component this year, with shares up nearly 48% year to date.

Bank of America shareholders are on a downhill ride today as well: The stock price has lost 2.2% so far. Yesterday another lawsuit was filed against the bank over $261 million worth of residential mortgage-backed securities. While it's no surprise the bank would be sued over these investments, and this number is rather small for Bank of America, it further highlights problems the bank has had since the start of the financial crisis. Every lawsuit costs the company money in legal fees and opens the door to other potential liabilities down the road. Bank of America is the best-performing Dow component year to date, but it's the worst today.

Aircraft manufacturing giant Boeing is down 1.7% today after the U.S. Department of Defense said fellow aircraft contractor Lockheed Martin (NYSE: LMT  ) must focus more on final products than short-term profit. Lockheed is currently being pressured by the Pentagon to improve the F-35 fighter while keeping within the agreed-upon budget. These sorts of talks will likely spread throughout the defense contracting industry, and Boeing, being part of that group, may see an impact on earnings in the future.

Foolishly investing
With great opportunity comes great responsibility. For Boeing, which operates as a major player in a multitrillion-dollar market, the opportunity is absolutely massive. However, the company's execution problems and emerging competitors have investors wondering whether Boeing will live up to its shareholder responsibilities. In this 
premium research report, two of The Fool's best industrial minds have collaborated to provide investors with info on the must-know issues regarding Boeing. They'll update the report as key news hits, so be sure to claim a copy today by clicking here now.

Read/Post Comments (1) | Recommend This Article (6)

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.

Add your comment.

Compare Brokers

Fool Disclosure

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: 2112738, ~/Articles/ArticleHandler.aspx, 10/26/2016 3:33:34 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...

Today's Market

updated Moments ago Sponsored by:
DOW 18,206.48 37.21 0.20%
S&P 500 2,140.49 -2.67 -0.12%
NASD 5,251.13 -32.27 -0.61%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/26/2016 3:18 PM
BA $145.81 Up +6.79 +4.88%
Boeing CAPS Rating: ****
BAC $16.84 Up +0.12 +0.72%
Bank of America CAPS Rating: ****
HD $122.98 Down -0.36 -0.29%
Home Depot CAPS Rating: ****
LMT $250.00 Up +0.74 +0.30%
Lockheed Martin CAPS Rating: ****