The Rising Dow Left These Stocks Behind

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service 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.

This article features Cisco Systems, Intel, Hertz Global, and Jabil Circuit. Fool contributor Dan Caplinger has no position in Cisco, Intel, Hertz, or Jabil. The Motley Fool recommends Cisco Systems and Intel. The Motley Fool owns shares of Hertz Global Holdings and Intel.

The Dow Jones Industrials (DJINDICES: ^DJI  ) managed to break its losing streak, rising 55 points as investors tried to look beyond current events in Washington to focus more on positive economic news. The gains didn't make a big dent in the declines that the market has suffered over the past week, but the Dow and the broader markets remain solidly higher for the month of September, encouraging investors as third-quarter earnings season approaches.

Nevertheless, several stocks failed to join in the Dow's overall gains. Cisco Systems (NASDAQ: CSCO  ) fell 2.7% as CEO John Chambers once again threw cold water on shareholder optimism, with comments emphasizing the potential downsides of the business. The move shows just how susceptible stocks are to negative insider comments, as Chambers didn't really reveal anything that investors weren't already aware of as potential threats. Along with those threats, Cisco has plenty of opportunities that could produce nice surprises for long-term investors who don't let the CEO's risk-related comments talk them out of holding onto their shares.

Intel (NASDAQ: INTC  ) also declined, falling 1.2%, but recovering from worse losses in the last hour of trading. As Fool contributor Travis Hoium noted earlier today, some investors might be disappointed that the company didn't raise its dividend, instead keeping its payout stable for the sixth quarter in a row. Unlike many companies that do annual dividend increases, Intel has consistently kept its payouts flat for longer periods of time. Nevertheless, over the long haul, Intel has provided substantial dividend growth to long-term investors.

Finally, earnings news hurt some companies outside the Dow. Hertz Global (NYSE: HTZ  ) dropped 16% after the rental-car company cut its guidance for the full year. By cutting its earnings per share projections by $0.10 per share, and reducing its revenue by half a billion dollars, the company made investors nervous about whether the industry giant can sustain its long-term profit growth. Meanwhile, Jabil Circuit (NYSE: JBL  ) fell 10% after similarly pulling back on its guidance for the current quarter, forecasting earnings and revenue well below expectations. Given that Jabil counts BlackBerry as a substantial customer, the smartphone maker's decline has hurt Jabil substantially, forcing Jabil to take large charges related to its relationship with BlackBerry.

What's next for the tech industry?
Declines in Cisco, Intel, and Jabil show just how much the tech world has been thrown into chaos as the industry's biggest titans invade one another's turf. At stake is the future of a trillion-dollar revolution: mobile. To find out which of these giants is set to rule the next decade, we've created a free report called, "Who Will Win the War Between the 5 Biggest Tech Stocks?" Inside, you'll find out which companies are set to dominate, and we'll give in-the-know investors an edge. To grab a copy of this report, simply click here -- it's free!

Read/Post Comments (0) | Recommend This Article (2)

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: 2657127, ~/Articles/ArticleHandler.aspx, 9/25/2016 1:58:07 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...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

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

9/23/2016 4:55 PM
^DJI $18261.45 Down -131.01 -0.71%
CSCO $31.34 Down -0.32 -1.01%
Cisco Systems CAPS Rating: ****
HTZ $46.50 Down -1.31 -2.74%
Hertz Global Holdi… CAPS Rating: ***
INTC $37.19 Down -0.36 -0.96%
Intel CAPS Rating: ****
JBL $21.89 Down -0.51 -2.28%
Jabil Circuit CAPS Rating: ***