Why the Dow Has the Earnings Blues This Morning

With thousands of companies reporting earnings this season, it's inevitable that some won't give investors everything they want to see. That's what happened with Wells Fargo (NYSE: WFC  ) this morning when it reported better-than-expected earnings thanks to mortgage-related fee income but also saw interest margins and mortgage loan volume decline. The resulting fallout sent Wells down more than 1% and pushed the entire banking sector downward, and given that financials have been such a big source of strength for the Dow Jones Industrials (DJINDICES: ^DJI  ) lately, their reversal of fortune also sent the Dow lower, with the average falling 13 points by 10:45 a.m. EST.

Among Dow stocks, Boeing (NYSE: BA  ) was once again in the news, falling about 2.5% after the FAA said it would start a review of Boeing's new 787 Dreamliner aircraft. Following additional incidents involving an engine oil leak and a cracked cockpit window on two separate All Nippon Airways flights in Japan earlier today, Boeing may actually benefit from the review if it ends up restoring confidence in the battered aircraft-manufacturer.

In other news, Dendreon (NASDAQ: DNDN  ) has soared more than 15% in early trading due to a favorable analyst review and upgrade from Bernstein. The analyst argued that Dendreon's prostate cancer drug Provenge is seeing improving market conditions despite tough competition, and anecdotal evidence suggests that physicians are starting to feel more comfortable prescribing Provenge, often as part of a combination of therapies.

Finally, Cliffs Natural Resources (NYSE: CLF  ) fell 4% on a generally bad day for coal stocks. With natural-gas prices having retreated from a substantial rise in late 2012, coal continues to face the same challenges that plagued the industry last year. But if industrial activity picks up, Cliffs could rebound on demand for iron ore and more specialized metallurgical coal.

Betting on companies with big potential
Dendreon is just one example of a stock with revolutionary potential to be a game-changer in its industry. If that sort of stock interests you, then I recommend taking a look at Motley Fool co-founder David Gardner's picks. They've frequently trounced the market, as David prefers companies that are disrupting their industries with innovative ideas and business techniques. Learn more with an exclusive personal tour of David's Supernova service, available for a limited time. Click here to claim your tour now.


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.

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: 2191515, ~/Articles/ArticleHandler.aspx, 10/23/2014 2:19:49 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