Dow's Demise Deepens

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.

Worries about the Fed's stimulus cutbacks continued to torment investors today as the Dow Jones Industrial Average (DJINDICES: ^DJI  ) fell for the second day in a row, ending down 1,4%, or 217 points, today to finish at 14,960. It was the first time the blue chips finished below 15,000 in exactly a month, and the descent has been much faster than the climb as the Dow reached its all-time closing high of 15,409 just over a week ago. All 30 Dow components closed lower.

Today, investors reacted to a poor jobs report and the release of the Fed's Beige Book, or its report on current economic conditions, in which it said that the nation's economy was experiencing "modest to moderate" growth, adding that "hiring had increased at a measured pace" in several regions. In an Orwellian state of affairs, investors had recently been reacting positively to bad news, sending stocks higher in the hopes that poor economic data would convince Fed officials to keep the bond-buying program in place. Today, that fever seemed to break as the blue chips fell more than 200 points even with mostly disappointing economic reports.

In a precursor to Friday's official jobs report. payroll processor ADP said only 135,000 private-sector jobs were added in May, short of expectations of 157,000. April factory orders grew by less than expected, and the Institute for Supply Management Services Index grew at 53.7 against expectations of 53.5.

After gaining more than 4% in the first two days of the week, Intel (NASDAQ: INTC  ) was the worst performer on the Dow, falling 2.6%, after a JPMorgan Chase analyst warned that it and rival Advanced Micro Devices, which finished down 2.5%, would likely report lower-than-expected earnings. JPMorgan pointed out that, among other factors, recent PC sales in Asia had come in below expectations. Analysts from Bernstein Research and Morgan Stanley also reiterated sell-equivalent ratings today, noting that expectations in the PC market have been extremely weak. 

Alcoa (NYSE: AA  ) was another poor performer, falling 2.2% as aluminum prices hovered near three-year lows. Still, prices were rising today in response to a decision by the Chinese state aluminum producer Chalco to temporarily cut capacity by 380,000 tons, or 10% of total output. Alcoa also recently saw itself downgraded to junk status by Moody's.

When it comes to dominating markets, it doesn't get much better than Intel's position in the PC microprocessor arena. However, that market is maturing, and Intel finds itself in a precarious situation longer term if it doesn't find new avenues for growth. In this premium research report on Intel, a Motley Fool analyst runs through all of the key topics investors should understand about the chip giant. Click here now to learn more.

Read/Post Comments (1) | Recommend This Article (8)

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 June 06, 2013, at 5:05 PM, roguesisland wrote:

    "When it comes to dominating markets, it doesn't get much better than Intel's position in the PC microprocessor arena. However, that market is maturing, and Intel finds itself in a precarious situation longer term if it doesn't find new avenues for growth."

    Isn't this getting very long in the tooth?

    How about a different ending to your regurgitated "news" stories?

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: 2474454, ~/Articles/ArticleHandler.aspx, 9/26/2016 1:36:38 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 2 days 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%
AA $9.76 Down -0.02 -0.20%
Alcoa CAPS Rating: ***
INTC $37.19 Down -0.36 -0.96%
Intel CAPS Rating: ****