Why the Dow Shed 70 Points 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.

Wall Street continued with its stubbornly bearish behavior Monday, losing ground for a fourth straight session. The official minutes from July's Federal Reserve meeting are set for release on Wednesday, when investors will get a better sense of what the central bank thinks about its quantitative easing policies. The Dow Jones Industrial Average (DJINDICES: ^DJI  ) dropped 70 points, or 0.5%, Monday, ending at 15,010.

Chipmaker Intel (NASDAQ: INTC  ) was the standout performer in the Dow, adding 1.7% after an upgrade from the investment research group Piper Jaffray. Of course, a mere analyst endorsement is hardly a compelling reason to pile into a stock -- especially when that "endorsement" comes in the form of a neutral rating and a price target below the current price of the stock.

Boeing (NYSE: BA  ) jumped 1.2% as the aerospace behemoth looks primed to win a contract, potentially worth more than $7 billion, with the South Korean military. Boeing shares also edged higher Friday, as the market reacted to news that the company won't be held responsible for a defect found in several fire extinguishers on its Dreamliner models. 

Alcoa (NYSE: AA  ) lost 2.2%, as aluminum makers worldwide struggle to deal with an excessive supply of the metal. Today, Rusal, the world's largest aluminum producer, reported higher-than-expected losses and announced that it will scale back production to help drive prices back to previous levels. With markets also betting on a Fed scaleback today, commodity prices faced pressure as the dollar gained value. 

Lastly, JPMorgan Chase (NYSE: JPM  ) is in big trouble with the U.S. Department of Justice, which is investigating whether the bank rigged U.S. energy markets. Shares shed 2.7% Monday, as scrutiny from federal officials also mounts on a separate issue; the financial institution is also alleged to have bribed Chinese officials to win business in the country.

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  • Report this Comment On August 19, 2013, at 8:08 PM, SSBN620 wrote:

    If the monetary base has been increased by 400% since 2008, and margin buying is setting new records, and the Hindenburg Omen has two weeks to go, and consumer spending is dying, I wonder if this 'correction' might be radically different than anything we've seen in our lifetimes.

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