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



Why These 3 Stocks Are Missing the Dow's Rally

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 (NYSE: ORCL  ) is lower by 1.7%, and Intel is going nowhere.

Foolishly investing
When it comes to dominating markets, it doesn't get much better than Intel's position in the PC microprocessor arena. However, that market is maturing, and Intel will find itself in a precarious long-term situation if it doesn't find new avenues for growth. In this premium research report on Intel, our analyst runs through all of the key topics investors should understand about the chip giant. Better yet, you'll continue to receive updates for an entire year. Click here now to learn more.

Read/Post Comments (0) | 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.

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: 2140712, ~/Articles/ArticleHandler.aspx, 10/28/2016 2:32:27 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 18,125.95 -43.73 -0.24%
S&P 500 2,126.94 -6.10 -0.29%
NASD 5,184.30 -31.68 -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

10/28/2016 2:16 PM
BA $142.75 Down -0.56 -0.39%
Boeing CAPS Rating: ****
IBM $152.60 Down -0.76 -0.49%
IBM CAPS Rating: ****
INTC $34.77 Down -0.04 -0.11%
Intel CAPS Rating: ****
AAPL $113.54 Down -0.94 -0.82%
Apple CAPS Rating: ****
ORCL $38.11 Down -0.11 -0.29%
Oracle CAPS Rating: ****