Why Investors Are Down on the Dow This Morning

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

The fiscal cliff continues to approach, and after a long period of complacency, it appears that mainstream America is finally starting to pay attention. With the latest reading on consumer confidence posting a substantial drop in December, the nervousness about what will happen as the likelihood of a pre-Dec. 31 deal declines is becoming more palpable. Moreover, given that the survey's cutoff date was Dec. 13, even more pessimism could be coming down the road. Even a 4.4% rise in new home sales in November wasn't able to cushion the blow as the Dow Jones Industrials (DJINDICES: ^DJI  ) fell 63 points by 10:45 a.m. EDT. Only a couple of the Dow's 30 stocks managed to rise.

Chevron (NYSE: CVX  ) fell about a third of a percent despite announcing that it had made some new discoveries of natural gas off the western coast of Australia. With two new wells striking gas, Chevron has had 19 gas discoveries in Australia over the past three and a half years. The discoveries highlight the emerging boom in natural gas around the world, and with Chevron having bought a stake in a proposed liquefied natural gas plant in British Columbia earlier this week from Encana (NYSE: ECA  ) and EOG Resources, it's obvious that the oil and gas giant is aiming to be as big a part of the trend as possible.

Home Depot (NYSE: HD  ) sank about 0.6%. As one of the top-performing Dow stocks in 2012, the home-improvement retailer got in early on the trend toward an improving housing market, and with new home sales continuing to rise, it seems as though 2013 could be just as lucrative for Home Depot. Still, falling consumer confidence could put a stop to the housing recovery, which likely has investors nervous.

Finally, IBM (NYSE: IBM  ) rose about 0.1%. A financial analyst in Australia was charged with insider trading in connection with IBM's acquisition of analytics software provider SPSS in 2009. The charges don't implicate IBM, but rather involve information learned from corporate lawyers involved in the deal. 

Is this the stock you want?
If you're willing to go beyond the Dow, you may be able to find some of the most promising stocks in the market. For instance, the Motley Fool's chief investment officer has just selected his No. 1 stock for the next year, and you can find out all about it in our brand-new free report, "The Motley Fool's Top Stock for 2013." Go ahead and grab a free copy by clicking here and learn everything you need to know about this under-the-radar company.

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

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 December 27, 2012, at 11:09 AM, Paulson545 wrote:

    obama wants to destroy capitalism. obama's dad was a card carrying member of the communist party, the apple didn't fall far from the tree.

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: 2170214, ~/Articles/ArticleHandler.aspx, 10/27/2016 2:51:40 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 18,195.74 -3.59 -0.02%
S&P 500 2,137.73 -1.70 -0.08%
NASD 5,225.69 -24.58 -0.47%

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

10/27/2016 2:36 PM
CVX $100.70 Down -0.49 -0.48%
Chevron CAPS Rating: ****
ECA $10.40 Up +0.10 +0.92%
EnCana CAPS Rating: ****
HD $122.21 Down -0.50 -0.41%
Home Depot CAPS Rating: ****
IBM $153.61 Up +1.80 +1.19%
IBM CAPS Rating: ****