Why 3 Dow Stocks Are Moving Lower Today

The Institute for Supply Management announced this morning that U.S. manufacturing surprisingly dropped in November. A reading of less than 50 indicates a contraction, and while economists expected a 51.3, the result of 49.5 shocked the markets and is the lowest reading in almost three years. On the other hand, investors found out this morning that Spain has requested a bailout from the EU and Greece has begun taking steps toward lowering its debts levels. But after the ISM report, even the good news we received from Europe couldn't keep the Dow Jones Industrial Average (DJINDICES: ^DJI  ) moving higher.

As of 1:10 p.m. EST, the Dow is down 0.25% to 12,992. So far during today's trading session, 10 of the Dow's 30 components are in the red. Below, I'll explain what's causing three of the losers to move lower today.

The Dow's big loserstoday
Shares of Du Pont (NYSE: DD  ) continue to slide lower today. It was announced last week that the company had lied to investors and a federal court about patient restrictions. Shares are now just slightly above their 52-week lows, and with a number of unknowns still surrounding the fraud issue, current shareholders and potential new investors should keep a close eye on future developments. Additionally, while the uncertainty of what may happen to the company continues to drag on, volatility may increase, and lower entree points will likely present themselves. Shares are down 1.2% thus far today.

Bank of America (NYSE: BAC  ) announced this morning that it would not consider raising banking fees until late next year. While this is a good thing for customers and the bank's public image, shareholders wanting increased revenue and profit are taking the news badly this morning. Shares are down about 0.5%, while it's fellow Dow banking stock JPMorgan Chase's (NYSE: JPM  ) shares have gained a couple of cents.

Shares of U.S. aircraft manufacturer Boeing (NYSE: BA  ) are moving lower this afternoon by 0.3%. It was announced this morning that Qatar Airlines will be ordering aircraft from Airbus, Boeing's largest competitor. The order was placed for a number of the Airbus A350 aircraft, which will compete directly with the Boeing 777. The order now gives Airbus more reason to continue developing the A350 design, which is not complete yet. This also puts additional pressure on Boeing, because now it will have one less design that lacks competition.

Foolishly investing
With big finance firms still trading at deep discounts to their historic norms, investors everywhere are wondering whether this is the new normal or if finance stocks are a screaming buy today. The answer depends on the company, so to help figure out whether JPMorgan is a buy today, I invite you to read our premium research report on the company today. Click here now for instant access!


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  • Report this Comment On December 03, 2012, at 4:49 PM, funfundvierzig wrote:

    DuPont executives have a long history of fraud and shady dealing. Before this ongoing case of deliberate theft and use of Monsanto's superior seed technology, DuPont has engaged in:

    * Criminal price-fixing.

    * Falsely, if not fraudulently marketing its tree-killing Imprelis weed-killer as "eco-SAFE", "very environmentally friendly."

    * Covering up two decades of pollution and critical studies involving the Company's extraordinarily toxic, cancer-linked Teflon chemical, C8.

    * Covering up its much touted but failed effort to create and commercialise a first generation GM seed trait to compete with Monsanto, known parodically as DuPont OptimumGAP.

    * Lying to 9,000 residents of Spelter, West VA about insidious metal contamination by DuPont of their entire town.

    The list goes on and on for this endlessly unethical chemical conglomerate based in Delaware. Investors should beware and be wary of any corporation whose "leaders" embrace a CHEAT-to-COMPETE business model. Ultimately such a model and culture kills shareholder value big-time.

    Merely the individual opinion of one retail investor and outraged DD shareholder...funfun..

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