Economic data released today indicates that there was a recent rise in factory orders, but a drop in jobs initially caused the Dow Jones Industrial Average (DJINDICES: ^DJI ) to get off to a rocky start. But around 11:30 am E.S.T. the index surged upward, and as of 12:55 p.m. EST it has climbed 122 points, or 0.95%, to 13,075. At this point in today's trading session, only one Dow stock is in the red. Below I'll explain why certain stocks are putting a damper on the day.
The Dow's Debbie Downers
Shares of Boeing (NYSE: BA ) were down as much as 0.41% this morning, though they've since turned the plane around to make a 0.3% gain. This morning's slide followed confirmation that the Federal Aviation Administration is requiring inspections of all of Boeing's brand-new 787 Dreamliner aircraft. The FAA discovered fuel leaks and traced them back to a flaw made during manufacturing at the Boeing plant. Additionally, a Boeing 787 Dreamliner had to make an emergency landing yesterday because of mechanical problems. There are currently only three 787 Dreamliners operating in the U.S.
Shares of Intel (NASDAQ: INTC ) have recovered early losses to sit perfectly flat for the day. Hans Mosesmann, an analyst at Raymond James, downgraded the stock this morning, causing shares to drop by 0.25%. The previous rating of "market perform" was lowered to "underperform." Two main reasons for the downgrade were CEO Paul Otellini's departure and shrinking gross margins. The margins should be more of a concern for current and future investors. With PC sales declining and the mobile revolution happening without Intel, maintaining high margins will be difficult moving forward.
International Business Machines (NYSE: IBM ) is currently the only real loser on the Dow at the moment, with shares down 0.3%. Year to date, IBM is just slightly higher, up 2.47% versus a gain of 6.86% for the Dow. With little negative news about the company today, we can look at other big tech companies and see an industrywide move lower. Shares of Apple (NASDAQ: AAPL ) are down 4.3%, Oracle (NASDAQ: ORCL ) is lower by 1.7%, and Intel is going nowhere.
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