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



2 Stocks Beating a Downbeat Dow

As of 1:30 p.m. EST, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) is down 30 points, or 0.23%, while the S&P 500 (SNPINDEX: ^GSPC  ) is down just two points.

The three U.S. economic releases this morning were mixed for stocks.





Markit U.S. Purchasing Managers' Index




Institute for Supply Management PMI




Construction spending




Source: MarketWatch U.S. Economic Calendar.

This morning Markit announced its U.S. Manufacturing Purchasing Managers' Index, which gauges whether economic activity is expanding or contracting. Any reading greater than 50 indicates growth, and higher numbers indicate that managers are more confident in the improvement of the economy. The PMI's reading was 52.8 for November, 1.8 points ahead of October, indicating that more purchasing managers see the economy growing than last month. 

The Institute for Supply Management's PMI, however, gave a less optimistic outlook than Markit's. The ISM PMI dropped 2.2 points in November to 49.5, down from October's 51.7. This is the lowest level since July 2009 and far below analyst expectations of 51.7. The ISM PMI has been trending slowly downward for the past two years as purchasing managers surveyed by the ISM see less improvement in the economy. It's not unusual for the two PMIs to be different. As Markit notes: "Please note that Markit's PMI data, final and flash, are derived from information collected by Markit from a different panel of companies to those that participate in the ISM Report on Business. No information from the ISM survey is used in the production of Markit's PMI."

US Purchasing Managers Index data by YCharts.

The third U.S. economic release came from the U.S. Department of Commerce, which reported construction spending rose 1.4% last month, beating analyst expectations of a 0.5% rise. Private homebuilding led the way with a 3% rise. The housing market has been a source of strength for the U.S. economy recently, and that's been reflected by homebuilder stocks, which are up significantly this year. The SPDR S&P Homebuilders ETF (NYSEMKT: XHB  ) is up just more than 50% this year.

With no new news about Congress' negotiations over the fiscal cliff and a mixed bag of economic reports, it's no surprise that the market is largely unchanged. Some stocks are trying to get the Dow to finish higher. Here are the top two.

Today's Dow leaders
Today's Dow leader is Cisco (NASDAQ: CSCO  ) up 0.9%. The networking company made news last week when it announced it is buying network solutions company Cariden Technologies for $141 million. Cariden makes capacity-planning and management tools for IP/MPLS networks used by telecom companies. This is Cisco's third acquisition in November and Cisco's 10th acquisition for 2012. Fool analyst Tim Beyers recently spelled out the key areas Cisco investors need to watch. Click here for his take.

Second for the day is Merck (NYSE: MRK  ) , up 0.47%. Today, the company announced it has started a Phase 2 trial of MK-8931 to evaluate the safety of the Alzheimer's disease drug in 200 patients before undertaking a larger Phase 3 trial. The bigger news from last week was that the company is upping its dividend 2% from $0.42 per quarter to $0.43 per quarter. The stock is slowly rising, as investors find its dividend yield of 3.9% to be a compelling opportunity.

Get in the know
Once a high-flying tech darling, Cisco is now on the radar of value-oriented dividend lovers. Get the lowdown on the routing juggernaut in The Motley Fool's premium report. Our report also has you covered with a full year of free analyst updates to keep you informed as its story changes, so click here now to read more.

Read/Post Comments (0) | Recommend This Article (1)

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.

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: 2136966, ~/Articles/ArticleHandler.aspx, 10/24/2016 4:25:42 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 18,223.03 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
CSCO $30.46 Up +0.31 +1.03%
Cisco Systems CAPS Rating: ****
MRK $60.75 Down -0.45 -0.74%
Merck and Co. CAPS Rating: ****
XHB $32.92 Up +0.29 +0.89%
SPDR S and P Homeb… CAPS Rating: *