Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



These Stocks Spoiled the Dow's Party

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.

For months, investors have been talking about a potential all-time record high for the Dow Jones Industrials (DJINDICES: ^DJI  ) . Today, the market took a run at the mark, boosted by favorable economic data and, for the moment, ignoring concerns about sequestration and global macroeconomic issues. In the end, though, the Dow fell short, and ended up losing about 21 points, leaving it more than 100 points shy of its closing record.

Several stocks in the Dow helped hold the average back. Health-insurance giant UnitedHealth (NYSE: UNH  ) fell almost 1%, as the company continued to struggle in the wake of last week's news about a potential slashing of reimbursement rates under Medicare Advantage supplemental insurance plans. A Wall Street analyst said that, even with the recent drop in UnitedHealth and other insurance companies, the increasing need for the federal government to keep health-care costs in check could lead to greater pressure on profits than investors are counting on. As long as the nation's long-term budget woes remain unaddressed, these potential problems aren't going to go away.

Boeing (NYSE: BA  ) also dropped two-thirds of a percent, as it continues to struggle with the grounding of its 787 Dreamliner. Although relatively few planes have shipped to carriers in the U.S., Japanese airlines are much more exposed to the current fate of the airliner, and Boeing has had to work closely with Japanese regulators to assure them that the company's proposed fix to prevent lithium-ion battery overheating is more than just a temporary stop-gap measure. The faster Boeing can put safety concerns behind it, the sooner it can focus on getting planes built and delivered in a timely fashion.

Beyond the Dow, bad earnings news sent Groupon (NASDAQ: GRPN  ) plunging about 25%. The company surprised investors by failing to post a profit for the quarter, but the really bad news came from its first-quarter revenue projections, which could come in as low as flat compared to last year's quarter. After the bell, Groupon announced that it had replaced CEO Andrew Mason, sending shares higher immediately thereafter in after-hours trading. Although the company has assured investors of its plans for growth, Groupon needs the numbers to confirm its success if it wants to rebound from its steep losses.

Finally, J.C. Penney (NYSE: JCP  ) crashed 17% after it, too, disappointed investors with a negative earnings report. A huge net loss and plunging same-store sales resulted in a bond-rating downgrade, and raised questions about how long the company can sustain its high cash-burn rate. Although some analysts pointed to some positives from J.C. Penney's restructuring efforts, investors are getting impatient, and need to see tangible results sooner rather than later in order to regain confidence in the stock.

Our Fool analysts have taken a closer look at J.C. Penney with the goal of shining a light on the company's attempted comeback. So far, the stock has been a train wreck, but our retail analysts have created an in-depth research report that includes both pros and cons about the company's restructuring to conclude whether J.C. Penney is a buy today. Learn everything you need to know about JCP's turnaround -- or lack thereof -- and, as a bonus, you'll receive a full year of expert guidance and updates as key news develops. Simply click here now for instant access.

Read/Post Comments (0) | Recommend This Article (5)

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: 2286613, ~/Articles/ArticleHandler.aspx, 9/28/2016 6:21:04 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...

Today's Market

updated 9 hours ago Sponsored by:
DOW 18,228.30 133.47 0.74%
S&P 500 2,159.93 13.83 0.64%
NASD 5,305.71 48.22 0.92%

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

9/27/2016 4:45 PM
^DJI $18228.30 Up +133.47 +0.74%
BA $131.32 Up +0.75 +0.57%
Boeing CAPS Rating: ****
GRPN $5.33 Up +0.15 +2.90%
Groupon CAPS Rating: *
JCP $9.55 Down -0.02 -0.21%
J.C. Penney CAPS Rating: *
UNH $140.79 Up +1.07 +0.77%
UnitedHealth Group CAPS Rating: ****