The Dow Rose, But These Stocks Missed the Rally

When the global economy looks better, stock markets usually head higher. That simple rule held true today, as the Dow Jones Industrials (DJINDICES: ^DJI  ) climbed more than 80 points on good news from China about its economic recovery. The broader market did even better, as the S&P 500 closed at another five-year high, inspiring many analysts to start talking about the potential for the widely-followed benchmark to challenge all-time high levels set before the financial crisis.

Still, not all of the Dow's 30 stocks managed to post gains. Alcoa (NYSE: AA  ) lost more than 1%, adding to its declines from yesterday, despite having reported a somewhat promising forecast in its quarterly earnings report on Tuesday. However, as Fool contributor Matt DiLallo explained earlier today, the outlook for aluminum prices in 2013 is starting to look better, and Alcoa will be in the best position to benefit if the aluminum market, in fact, improves.

Beyond the Dow, Suntech Power (NASDAQOTH: STPFQ  ) gave back 4%, after a big gain of nearly 13% in the previous session. Solar stocks have been volatile ever since Warren Buffett's MidAmerican Energy did a deal with SunPower (NASDAQ: SPWR  ) to buy a pair of California solar projects. Yet, Buffett's buy doesn't change the underlying economic challenges that the entire industry has faced, and solar companies still have to meet the challenge of falling government subsidies and cutthroat competition.

Finally, Smith & Wesson (NASDAQ: SWHC  ) fell 3.6%, as pension fund CalSTRS decided to eliminate certain firearms companies from the fund's investment holdings. The fund doesn't have a major stake in Smith & Wesson, but if more funds follow suit, then the impact could be sizable for Smith & Wesson and its peers in the gun industry.

Don't miss out
If you're tired of losers in your portfolio, try looking at some winning strategies instead. Motley Fool co-founder David Gardner's picks have frequently trounced the market, as David scouts out revolutionary stocks with disruptive potential and recommends them before Wall Street discovers them. If you're interested in how David discovers his winners, click here to get instant access to a personal tour of David's Supernova service.


Read/Post Comments (0) | Recommend This Article (3)

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.

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: 2190339, ~/Articles/ArticleHandler.aspx, 9/2/2014 10:30:49 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...


Advertisement