Dow Falls for 6th Consecutive Day

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

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.

This past year, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) has had a number of notable consecutive streaks: the consecutive Tuesdays the market moved higher, a number of days in a row that the index set all-time new highs, and even a few consecutive winning-day streaks that were great for investor. The blue-chip index, however, is currently deep into a streak that many investors would rather not see.

As the Dow closed today down 105 points, or 0.7%, it marked the sixth consecutive day in which the index has moved lower. Today's slide was likely caused by investors reading into the Federal Reserve's most recent meeting minutes, which indicates that most of the central bank's members believe tapering of its economic stimulus bond-buying program should start before the end of 2013. Many believe that is not good news for the economy or the stock market as cheap money will be a thing of the past and the economic recovery may suffer because of it.

Within the Dow, losers were plentiful as only three of the index's 30 components closed the day in the black. So, let's take a look at a few of the big losers of the day.

Shares of Caterpillar (NYSE: CAT  ) fell 1.1%. The company recently reported sales for the three months ending July and sales dropped for the eighth consecutive month. Rising inventories and tough year-over-year comparisons have made it difficult for the company to post strong growth in sales this year, and led to the stock price falling lower in 2013 by 7.44%. Furthermore, with Fed tapering and interest rates likely going higher, it will be more expensive for companies to borrow money and purchase heavy machinery from Caterpillar, which also could put downward pressure on sales in the coming months.  

Shares of Alcoa (NYSE: AA  ) lost 2%, making it the Dow's worst performer of the day. Similar to Caterpillar, the company needs a strong, healthy, growing economy in order to be profitable, and that hasn't been the case for the past few years either here in the U.S. or around the world. But now that interest rates will surely continue to rise in the coming months, capital spending and building projects by both companies and governments will likely take a backseat for some time as the costs of these projects will rise. That hurts Alcoa, as aluminum is a major component in buildings and major infrastructure, but with low demand, the price of the metal may continue to fall.

With very little news pertaining to Coca-Cola (NYSE: KO  ) today and no major negative news, shares dipped 0.96% this afternoon. The company is one of the world's most dominant beverage companies and one of the strongest, most recognizable brands. But as consumers become more concerned about how Coke's beverages affect their health, sales of their soda products have begun to slide during the past few quarters. This has caused some investors to flee the stock and move onto what they consider less risky investments that may not have the negative sentiment attached to its key product. The stock may not continue to have days like today, but investors also shouldn't expect very many massive moves higher in the future, either. 

More Foolish insight

It's often assumed that small investors are at a great disadvantage relative to hedge fund managers and other institutional investors. But that's not always true. Bound by multibillion-dollar portfolios and strict bylaws that govern what they can and can't invest in, these giants are often prohibited from tapping the market's greatest stocks until it's too late -- that is, after the stocks have already shot into large-cap status. In this free report, our analysts identify one such stock that Warren Buffett himself wishes he could buy but is effectively restricted from doing so because of its size. To discover the identity of this stock instantly (and for free!), simply click here now.

Read/Post Comments (0) | Recommend This Article (4)

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: 2605306, ~/Articles/ArticleHandler.aspx, 9/26/2016 10:23:21 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 1 hour ago Sponsored by:
DOW 18,094.83 -166.62 -0.91%
S&P 500 2,146.10 -18.59 -0.86%
NASD 5,257.49 -48.26 -0.91%

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

9/26/2016 4:35 PM
^DJI $18094.83 Down -166.62 -0.91%
AA $9.68 Down -0.08 -0.82%
Alcoa CAPS Rating: ***
CAT $82.37 Down -0.07 -0.08%
Caterpillar CAPS Rating: ***
KO $42.05 Down -0.69 -1.61%
Coca-Cola CAPS Rating: ****