The Dow's Record Rise Couldn't Save These Stocks

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Over the past few days, it's been the Dow Jones Industrials (DJINDICES: ^DJI  ) that have lagged behind the broader markets, failing to set new records even while the S&P 500 posted four winning days in a row. Today, though, it was the Dow's turn to shine, rising 22 points to a new record close even as the S&P and other broad-market indexes ended the day with losses. For the most part, earnings news ruled the day, especially with key reports coming both before the market opened and after the bell this afternoon.

Travelers (NYSE: TRV  ) was today's big earnings victim in the Dow, falling almost 4% despite the insurance company having posted an 85% jump in profits. The company saw its book value drop about 2% as a result of the substantial declines in the bond market during the second quarter, which weighed on the company's extensive $63 billion portfolio of bond investments. Travelers' net unrealized gains fell by $1.77 billion, and although the company noted that higher rates will help it reinvest maturing bond proceeds at better returns, the hit more than offset earnings that beat expectations. Challenges in the auto insurance market also prompted the company to announce rate cuts that could dampen margins in the future.

Other losses among Dow stocks were less extreme. McDonald's (NYSE: MCD  ) , for example, fell 0.8% in a continuation of its nearly 3% drop yesterday following its disappointing earnings report. Burger rival Wendy's (NASDAQ: WEN  ) managed to post upbeat earnings today, with its stock jumping more than 8% as it seeks to sell more of its company-owned stores to franchisees and guided future earnings to the upper end of its previous range. Wendy's isn't a huge threat to McDonald's given its limited size and geographical scope, but the trend is still a troubling one for the fast-food giant.

Finally, outside the Dow, Advanced Micro Devices (NASDAQ: AMD  ) fell 6%, continuing its slide from negative earnings last week. Investors aren't sure that the company's strategy of concentrating on gaming-console sales will be a long-term winner for AMD, especially given its history of falling short against competition in the PC and mobile spaces. Until AMD proves otherwise, its stock could continue to see pressure from investors losing patience in the tech company's turnaround story.

Whether you like blue chips or up-and-coming start-ups, the best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

Read/Post Comments (0) | Recommend This Article (6)

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: 2553026, ~/Articles/ArticleHandler.aspx, 9/27/2016 12:03:24 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 Moments ago Sponsored by:
DOW 18,174.85 80.02 0.44%
S&P 500 2,153.78 7.68 0.36%
NASD 5,286.80 29.31 0.56%

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

9/27/2016 11:48 AM
^DJI $18175.88 Up +81.05 +0.45%
AMD $6.52 Up +0.20 +3.16%
Advanced Micro Dev… CAPS Rating: **
MCD $116.53 Down +0.00 +0.00%
McDonald's CAPS Rating: ***
TRV $114.25 Up +0.31 +0.27%
The Travelers Comp… CAPS Rating: *****
WEN $10.79 Down -0.01 -0.09%
Wendy's CAPS Rating: ***