Mixed Earnings Keep the Dow Flat Today

With a number of companies reporting today, the one most investors are focusing on is Wells Fargo (NYSE: WFC  ) because of its heavy ties to the housing market and the overall economic health of the U.S. Based on its falling share price, it's safe to say investors wanted more out of this morning's earnings report. While Wells is not part of the Dow Jones Industrial Average (DJINDICES: ^DJI  ) , it is having some effect on the index today -- more on this later.

As of 12:50 p.m. EST, the Dow is up just seven points, or 0.05%, to 13,478. The Dow's 30 components are currently split, with half trading higher for the day and the other half in the red. Three of the index's big losers are Boeing (NYSE: BA  ) , Bank of America (NYSE: BAC  ) , and Helwett-Packard (NYSE: HPQ  ) .

So why are they down?
Shares of Boeing are down 2.7% today thanks to continuing problems with the new 787 Dreamliner aircraft. Recently, there have been problems with five different 787s in as many days. To make matters worse, each incident was unique: The Dreamliner has suffered a fire, brake problems, a fuel pipe leak, an engine oil leak, and a cracked cockpit window. The Federal Aviation Administration held a press conference today and announced that it would take a closer look into the plane's assembly, parts, and design.

Shares of Bank of America are down 1.8% this afternoon after Wells Fargo announced its earnings this morning and posted worrying numbers in the net-interest-margin category. My Foolish colleague John Maxfield explained earlier today that this is one of the most important metrics in the banking industry, and when it falls at Wells, that's a sign that it has likely fallen at the other big banks.

Lastly, shares of Hewlett-Packard have slipped 1.6%. Yesterday, after the markets were closed, a report was released stating that worldwide personal-computer sales had fallen by 6.4% in the fourth quarter. Some analysts had estimated that sales would fall 4.4% in the last quarter of the year, so the larger decline was a shock to most. In the U.S., PC sales were down 7% for the full 2012 year.

More foolish insight
The massive wave of mobile computing has done much to unseat the major players in the PC market, including venerable technology names like Hewlett-Packard. However, HP's rapidly shifting its strategy under the new leadership of CEO Meg Whitman. But does this make HP one of the least-appreciated turnaround stories on the market, or is this a minor detour on its road to irrelevance? The Motley Fool's technology analyst details exactly what investors need to know about HP in our new premium research report. Just click here now to get your copy today.


Read/Post Comments (0) | Recommend This Article (2)

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: 2191776, ~/Articles/ArticleHandler.aspx, 11/23/2014 7:45:35 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...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Advertisement