Dow Ends Erratic Week With a Whimper

As investors try to absorb everything that has happened this past week and determine what it means for the future, stocks are generally flat. As of 12:50 p.m. EDT the Dow Jones Industrial Average (DJINDICES: ^DJI  ) is up a modest 21 points, while the the S&P 500 is up just 0.1%. Only the Nasdaq has moved the needle, down 0.38%.

Over the past few months we've grown accustomed to seeing big one-day drops followed by a session of strong gains -- likely a result of the "buy on the dip" mentality of traders. While yesterday's decline was, in most market participants' opinions, unwarranted, the fact that the markets have stalled today is worrying, as it may signal that those who have been buying on the dips are waiting for a deeper decline before they re-enter the markets.

A few Dow losers
Shares of Bank of America (NYSE: BAC  ) , down 1.8%, are leading all Dow laggards today. The journalist who discovered and first reported the robo-signing of foreclosure documents has now pulled another cat out of the bag. This time it appears that Bank of America and other mortgage servicers have been feeding incorrect information to bond trustees about the status of previously foreclosed homes. At this time we don't know whether Bank of America will face a fine, but we will surely learn more before long. To read more about this developing story, click here

Shares of IBM (NYSE: IBM  ) are down 1.3% today, perhaps because of the disappointing fourth-quarter results Oracle (NYSE: ORCL  ) posted yesterday. This is especially troubling because, as my colleague Alex Dumortier noted earlier today, the fourth quarter is historically Oracle's best in terms of sales. Investors may be concerned that this slowdown for Oracle will prove a trend for the  whole IT sector, includes Big Blue. Investors have been concerned about IBM growth prospects moving forward. The stock has struggled in 2013, rising only 1.85% year to date to make it the fourth-worst-performing Dow component of the year.

Lastly, another Dow tech stock is moving lower today, but not likely due to Oracle's announcement. Shares of Hewlett-Packard (NYSE: HPQ  ) are down 1.1%, likely because Michael Dell is once again pressuring Dell shareholders to allow the company to go private. Both Dell and HP are in the first stages of turning around their business, and if Dell goes private, it may hurt HP down the road, as Dell may be able to offer customers certain concessions that HP could not as a public company.

The massive wave of mobile computing has done much to unseat the major players in the PC market, including venerable technology names like Hewlett-Packard. However, HP is rapidly shifting its strategy under the 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 detour 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.


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  • Report this Comment On June 21, 2013, at 1:41 PM, crackdclaw wrote:

    What, am I standing in line at the grocery store and reading headlines from a cheap tabloid.

    Investors are "Dazed" by "Staggering Losses".

    TMF is so high school. Way too much drama. You should be embarrased.

  • Report this Comment On June 21, 2013, at 1:44 PM, gyol wrote:

    With the benefit of 1:30 hindsight, the market appears to have bottomed out. All the talk of the "selloff" ignores the buyers as usual. If there is a selloff, there is also a mirror buyoff going on.

    Who was doing the selling? Speculator/traders? Who was doing the buying? Institutions?

    WHO is milking the panic? WHO bought?

    It would be really nice to see figures on selling volume by type of trader, and buying volume by type of trader.

    WHO made money in this (day-trader?) panic?

    How far did it go down before sellers turned into buyers, and "harvested" the panic?

    The talking heads have really gone blather on this one.

    Regards, Gyol

  • Report this Comment On June 21, 2013, at 2:43 PM, TMFKlesta wrote:

    Thanks for the feedback, crackdclaw. We agree that the initial headline was too strong and have since tweaked it.

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