Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Did Buffett Smack Down the Dow This Morning?

With so many investors nervous about the fiscal cliff, the last thing the market needed was for billionaire Warren Buffett to express his doubts about whether lawmakers could get a deal done by the end of 2012. Despite Buffett's saying that Congress would eventually reach a compromise, stocks opened lower and then plunged after poor new-home sales data cast the recovery into doubt. After sinking more than 100 points, the Dow Jones Industrials (DJINDICES: ^DJI  ) managed to claw back to just a three-point decline by 10:45 a.m. EST.

As often happens on days with poor economic data, financial stocks took the biggest hit, with Bank of America (NYSE: BAC  ) and JPMorgan Chase (NYSE: JPM  ) off about 1% each. Interestingly, Buffett suggested yesterday that JPMorgan CEO Jamie Dimon would be a good potential leader for the Treasury Department in the event of another financial crisis, and as current Treasury Secretary Tim Geithner is expected to step down, an Obama administration move to name Dimon would go a long way toward restoring confidence that anti-business regulation won't dominate the Washington agenda in the coming years.

3M (NYSE: MMM  ) rose about a quarter-percent as the company announced it had successfully completed its tender offer for Ceradyne. 3M's $35 per-share bid for the specialty ceramics maker should give 3M a chance to show its ability to innovate with potential applications for defense, power generation, and other industrial uses.

Finally, Travelers (NYSE: TRV  ) fell about half a percent. With insured losses due to Hurricane Sandy now pegged at $16 billion to $22 billion industrywide, investors will have to wait to see just how hard the storm hits Travelers' financials. Already, earnings estimates for the current quarter have plunged from $1.78 per share before the storm to just $0.32 per share, reflecting the possibility of substantial losses from Sandy.

Focus on the economy
Economic issues will dominate the markets in the near term, so looking at how they affect the stocks you own is important. Find out whether Bank of America is a buy despite economic uncertainty by reading our 
in-depth company report on B of A. The report details the bank's future prospects, including three reasons to buy and three reasons to sell. Just click here to get access.

Read/Post Comments (1) | Recommend This Article (4)

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 28, 2012, at 11:28 AM, Jarmbru wrote:

    I don't think that naming Jamie Dimon to head the Treasury Department would be an appropriate reward for his performance at JPM. The stock is STILL not great, and there's a new lawsuit and/or scandal every other month for JPM.

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: 2130454, ~/Articles/ArticleHandler.aspx, 10/25/2016 6:32:04 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...

Today's Market

updated 9 hours ago Sponsored by:
DOW 18,223.03 77.32 0.43%
S&P 500 2,151.33 10.17 0.47%
NASD 5,309.83 52.43 1.00%

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

10/24/2016 4:00 PM
BAC $16.77 Up +0.10 +0.60%
Bank of America CAPS Rating: ****
JPM $68.87 Up +0.38 +0.55%
JPMorgan Chase CAPS Rating: ****
MMM $171.27 Up +1.77 +1.04%
3M CAPS Rating: ****
TRV $109.07 Up +0.72 +0.66%
The Travelers Comp… CAPS Rating: *****