Energy Stocks Lead Dow Lower

Stocks are moving significantly lower today as fiscal cliff negotiations heat up again. The president and Congress are back at the negotiating table and the rumor is that a small deal is on the table today. Growing fear that we'll go over the cliff has the Dow Jones Industrial Average (DJINDICES: ^DJI  ) moving 0.73% lower today and the S&P 500 (SNPINDEX: ^GSPC  ) has lost 0.64% of its value.

While the fiscal cliff is dragging the whole market lower, there is some specific news impacting some stocks. Hewlett-Packard (NYSE: HPQ  ) has fallen 2.4% today after the Justice Department said it was looking into the company's Autonomy unit. It's never good when the government begins looking at your company and the stock is selling off as a result.

Big oil isn't far behind HP, with Chevron (NYSE: CVX  ) falling 1.5% and ExxonMobil (NYSE: XOM  ) dropping 1.6% today. Investors are worried that a new EPA administrator may be harder on the oil industry than Lisa Jackson, who just resigned from the agency. There's also worry that big oil may be a target for fiscal cliff negotiations that need to raise revenue. A week ago, I highlighted a few loopholes that may be targets during fiscal cliff negotiations that would affect these companies going forward.

It's becoming more and more likely that we'll go over the fiscal cliff, and the market will likely continue a slow decline if we do. If that's the case, it provides a great opportunity for the long-term Foolish investor.

For a strong pick, The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.


Read/Post Comments (0) | 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.

Be the first one to comment on this article.

DocumentId: 2171947, ~/Articles/ArticleHandler.aspx, 4/20/2014 12:44:19 AM

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...


Advertisement