Lack of Confidence Drags Down the Dow

It's been an incredible run, but it looks like the Dow Jones Industrial Average's (DJINDICES: ^DJI  ) 10-day winning streak will come to an end today. The index is down 0.38% with 35 minutes left in the trading day, leaving little time to mount a rally. A disappointing reading of University of Michigan/Thomson Reuters Consumer Sentiment Index didn't give investors confidence to buy today. The reading fell to 71.8 in March from 77.6 in February -- the lowest level since December 2011.

JPMorgan Chase (NYSE: JPM  ) is the biggest drag on the Dow, falling 2.1% today. The Federal Reserve told the bank to fix flaws in how it determines capital payouts to shareholders, although the Fed did approve plans for dividends and buybacks. The Senate also released a report saying that JPMorgan ignored risks and misled investors in relation to its derivative portfolio.

On the flip side of banking, Bank of America (NYSE: BAC  ) is up 4% today after the Fed approved the company's capital plans. B of A will buy back $5 billion of stock and $5.5 billion of preferred stock, which is a deal for investors, because the company is buying at less than book value right now. This is another sign of strength at Bank of America.

Boeing's (NYSE: BA  ) stock is up 1.8% after the company said it may have its fleet of 787s back in the air within weeks. The company has gained approval to test its new battery design and thinks the FAA will soon be able to lift its grounding of the fleet. Shares have been trading higher every time there's news of progress on the 787's path back to production, and today is no different. Let's not forget that this will end up costing the company a lot of money, which investors seem to be looking past for the time being.

Is B of A a buy?
Bank of America's stock doubled in 2012. Is there more yet to come? With significant challenges still ahead, it's critical to have a solid understanding of this megabank before adding it to your portfolio. In The Motley Fool's premium research report on B of A, analyst Anand Chokkavelu, CFA, and Financials bureau chief Matt Koppenheffer lift the veil on the bank's operations and detail three reasons to buy and three reasons to sell. Click here now to claim your copy.

Read/Post Comments (0) | Recommend This Article (1)

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: 2316020, ~/Articles/ArticleHandler.aspx, 9/25/2016 5:11:08 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 1 day ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

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

9/23/2016 4:55 PM
^DJI $18261.45 Down -131.01 -0.71%
BA $131.78 Down -0.09 -0.07%
Boeing CAPS Rating: ****
BAC $15.52 Down -0.08 -0.51%
Bank of America CAPS Rating: ****
JPM $67.25 Down -0.14 -0.21%
JPMorgan Chase CAPS Rating: ****