Why the Dow Cratered 108 Points Today

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.

Just when the markets seem to start humming along smoothly and lulling investors into a false sense of security, a day like today sneaks up and catches investors off-guard. The jarring news that sent stocks lower today came courtesy of the newly released Federal Reserve minutes, which showed disagreement over how long to continue quantitative easing measures. The Dow Jones Industrial Average (DJINDICES: ^DJI  ) shed 108 points, or 0.77%, to close at 13,927. 

One of the few bright spots in the Dow Wednesday, Merck (NYSE: MRK  ) shares gained 1% as investors applauded a joint venture with South Korean pharmaceutical company Samsung Bioepis. Joint ventures are common in the health-care sector, and this new collaboration allows Merck to market drugs in the "biosimilars" market, a type of medicine that hasn't yet officially made its debut in the United States. 

Meanwhile, Bank of America (NYSE: BAC  ) was hit hard by the release of the Fed minutes, ending near the bottom of the Dow in sliding by 3.2%. Any continuation of quantitative easing policies would theoretically help provide support to the macroeconomy, and as a company with massive amounts of mortgages on its books, B of A has a vested interest in seeing widespread stability.

When it comes to more newfangled businesses, electric-car producer Tesla Motors (NASDAQ: TSLA  ) doesn't disappoint. However, when it comes to corporate earnings, Tesla does disappoint, or at least it did today. Falling 1.9% during the day, the stock plummeted as much as 7% in aftermarket trades, as the company lost $0.78 per share in the fourth quarter, a bit worse than the $0.65 loss Wall Street expected. The good news: Tesla expects to finally make some money this quarter.

Finally, shares in Apple (NASDAQ: AAPL  ) continued their epic stumble today, falling 2.4% to settle below $450 a share. This drop comes a day after the company announced that it was the victim of an enigmatic hacking attack. Reports today that Chinese supplier Foxconn has frozen hiring on assembly lines may spark further worries that product demand is weakening.

Despite its recent stumbles, there's no doubt that Apple is at the center of technology's largest revolution ever and that longtime shareholders have been handsomely rewarded, with more than 1,000% gains. However, there is a debate raging as to whether Apple remains a buy. The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on both reasons to buy and reasons to sell Apple and what opportunities are left for the company (and, more importantly, your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.

Read/Post Comments (0) | Recommend This Article (14)

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.

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: 2267392, ~/Articles/ArticleHandler.aspx, 9/28/2016 6:16:35 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 18,339.24 110.94 0.61%
S&P 500 2,171.37 11.44 0.53%
NASD 5,318.55 12.84 0.24%

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

9/28/2016 5:27 PM
^DJI $18339.24 Up +110.94 +0.61%
AAPL $113.95 Up +0.86 +0.76%
Apple CAPS Rating: ****
BAC $15.38 Up +0.09 +0.59%
Bank of America CAPS Rating: ****
MRK $63.30 Up +0.73 +1.17%
Merck and Co. CAPS Rating: ****
TSLA $206.27 Up +0.46 +0.22%
Tesla Motors CAPS Rating: **