Can Anything Hold Down the Dow?

Though the Dow Jones Industrial Average (DJINDICES: ^DJI  ) remained in the red for the majority of the trading session, it still managed to fight its way into the black just prior to the closing bell. The Dow closed at 14,450, marking another record-breaking close, after it gained 2.77 points. After just barely closing up, this index of blue-chip stocks managed to continue its now eight-day winning streak.

The S&P 500 and Nasdaq, unfortunately, did not manage to follow the Dow, closing lower by 0.24% and 0.32%, respectively. But the S&P 500 remains within striking distance of its all-time high of 1,565, after closing at 1,552 this afternoon.

A few Dow winners
The blue-chip index's top performer today was Merck (NYSE: MRK  ) , whose shares rose 3.16%. The move higher came after an advisory board approved the continuation of a trial for Merck's Vytorin. Some analysts believe the cholesterol-fighting compound could become a major blockbuster drug for the company.

Vytorin hit a bump in the road in 2008, when one smaller trial's evidence suggested that the drug increased patients' likelihood of cancer. During the same year, another study found Vytorin to be no more effective than a generic cholesterol-reducing drug. This latest nine-year trial of 18,000 participants, scheduled to conclude late in 2014, will have serious implications for Merck's future.  

Although Boeing (NYSE: BA  ) continues to have issues with it 787 Dreamliner, shares keep on heading higher, rising 1.47% today. Bloomberg reported today that the aircraft manufacturer received an order from Ryanair Holdings worth $15.1 billion. Boeing will provide Ryanair with 170 of its 737 jets. Insiders familiar with the deal said that it should be formally announced sometime next week.  

Shares of Hewlett-Packard (NYSE: HPQ  ) rose by 1.76% today, after Britain's Serious Fraud Office confirmed that it was investigating HP's allegations that Autonomy misrepresented its value before HP purchased the British company in 2011. In Nov. 2012, HP wrote down $8.8 billion related to its $10 billion purchase of Autonomy and claimed that the previous management team altered sales figures in an attempt to increase Autonomy's total enterprise value.

The U.S. Justice Department opened an investigation into the matter shortly after HP made the writedown announcement. Today was the first official statement that British authorities also were looking into the matter.  

The massive wave of mobile computing has done much to unseat the major players in the PC market, including venerable technology names such as 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 blip 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 (1) | 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.

  • Report this Comment On March 12, 2013, at 9:38 PM, sabby2013 wrote:

    The thing that will bring down the dow is once again high gas prices.The thresh hold is 3.80 per gallon.We're there now.Gas prices can only go higher at this point.The economy can hold up with those high prices.Will it be a repeat of '07? Looks that way.

Add your comment.

DocumentId: 2309108, ~/Articles/ArticleHandler.aspx, 7/13/2014 4:24:59 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