3 Stocks Sending the Dow Lower Today

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

The stock market is trading lower today, but as often happens during long bull-market runs, today's move more closely resembles a mere pause in a longer-term trend than a decline motivated by news in its own right. With continued rises in bond yields and weakness in commodities like gold, stocks are mostly holding their own. As of 12:45 p.m. EDT, the Dow Jones Industrials (DJINDICES: ^DJI  ) are down 57 points, but the broader market benchmarks have seen less significant declines on a percentage basis.

Intel (NASDAQ: INTC  ) has suffered the biggest drop among Dow stocks, falling 1.4%, but one thing to note is that the stock went ex-dividend today. With a payout of $0.225 per share, that reduces the actual economic loss for shareholders to just a fraction of a percent. But more important for long-term investors is that the company didn't boost its dividend this quarter, maintaining it at the same level for the fifth straight quarter after having regularly increased payouts at least every four quarters since 2010.

Exerting a much larger point influence on the Dow is Travelers (NYSE: TRV  ) , which has fallen 1.1%. With Berkshire Hathaway having posted strong earnings after the market closed last Friday, one takeaway from Warren Buffett's company was that it managed to avoid the rout in bonds that other insurers faced. Travelers, for one, saw a substantial drop in book value due to its bond-market exposure, and if rates continue to rise, it could lead to further declines in Travelers' book value.

Finally, ExxonMobil (NYSE: XOM  ) is down 0.9% as investors continue to react to weakness in big oil companies' profits. Integrated oil giants simply haven't been able to provide the growth that investors have seen from smaller, nimbler exploration and production companies, especially those that have concentrated on the more lucrative shale-oil and gas areas. Moreover, with tailwinds from refining operations starting to dissipate, investors can't be certain that Exxon and its large peers won't see even worse results in future quarters.

One thing Exxon has done well is pay dividends, but some other stocks look even more promising for dividend investors. Find about them in The Motley Fool's special report "The 3 Dow Stocks Dividend Investors Need." It's absolutely free, so simply click here now and get your copy today.


Read/Post Comments (0) | Recommend This Article (5)

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.

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: 2579301, ~/Articles/ArticleHandler.aspx, 12/20/2014 10:09:41 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...


Advertisement