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



The Financial Industry Leads the Dow Lower

Now that the Dow Jones Industrial Average's (DJINDICES: ^DJI  ) 10-day winning streak is over, the index appears to be working on a losing streak. After falling 25 points on Friday, the Dow is down another 18 points, or 0.13%, as of 12:55 p.m. EDT.

On Friday, it appeared investors were ready for the streak to end, as they took money off the table and locked in profits. But today, a stressed world financial system is leading the markets lower following a controversial decision in the small country of Cyprus.

On Saturday, the European Union bailed out Cyprus, which really didn't make world news. But what did make headlines is the fact that part of the bailout will be paid for by the country's bank deposits. The deal imposes a tax on all checking and savings deposits within the country. This breaks the long-held rule that bank deposits are untouchable and the "safest" place to store your money.

Cyprus' government still needs to vote on the bailout deal, but the distant threat of bank runs not only in Cyprus but throughout Europe has the markets moving lower.

Today's Dow downers
My fellow Fool Alex Planes noted earlier today that on March 18, 1850, the modern U.S. financial industry began, and due to the announcement from Cyprus' government officials on Saturday, institutions that have survived for more than 162 years are under stress today. Shares of American Express (NYSE: AXP  ) and JPMorgan Chase (NYSE: JPM  ) are down 0.4% and 1%, respectively, as investors fear irrational consumers may bring the European financial system to a grinding halt.

As we saw with the financial crisis just a few years ago, the world banking system is more connected and intertwined than ever before. Once one domino is tipped over, it's difficult to save the rest before they have all fallen. If Cyprus' solution to its own problems spreads fear throughout Europe, the U.S. banking system and financial industry will also take a hit.

Shares of Boeing (NYSE: BA  ) are also losing altitude today after its closest competitor, Airbus, announced the largest commercial airplane deal ever. Lion Air, operating out of Indonesia, ordered 234 planes, worth $24 billion, from Airbus. The deal is not only a missed opportunity for Boeing, but it also represents a lost customer. Just last year, Lion Air cut a deal with Boeing for 230 of its new 737 Max airplanes worth more than $22 billion. That deal also gave Lion Air the right to buy 150 more, but it would now appear that the option for more 737s will not be exercised.

Boeing is a major player in a multitrillion-dollar market in which the opportunities are massive. However, emerging competitors and the company's execution problems have investors wondering whether Boeing will live up to its shareholder responsibilities. In our premium research report on the company, two of The Motley Fool's best industrial-sector minds have collaborated to provide investors with the must-know info on Boeing. They'll be updating the report as key news hits, so don't miss out -- simply click here now to claim 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 19, 2013, at 3:59 AM, prginww wrote:

    I'd like to see a currency comparison for the euro and dollar.

Add your comment.

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: 2318217, ~/Articles/ArticleHandler.aspx, 9/25/2016 3:45:36 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 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%
AXP $63.85 Down -0.78 -1.21%
American Express CAPS Rating: ****
BA $131.78 Down -0.09 -0.07%
Boeing CAPS Rating: ****
JPM $67.25 Down -0.14 -0.21%
JPMorgan Chase CAPS Rating: ****