The 3 Worst Dow Stocks You Could Own Last Week

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.

Despite some big intraday swings last week for the Dow Jones Industrial Average (DJINDICES: ^DJI  ) and the rest of the market, Friday came along and saved the week, as the Dow gained back its losses from the day before, adding 168 points and finishing the week up 146 points, or 0.93%. One reason for the great Friday was the October jobs number from the Bureau of Labor Statistics, which showed that 204,000 new positions had been created during the month, compared with the 125,000 economists had been expecting. The bureau also revised August and September's numbers higher by a combined 60,000.  

That news also helped the S&P 500 gain 0.5%. But it wasn't enough to save the Nasdaq, which ended the week down 0.07%.

Before we jump into the Dow's big losers, let's review the big winner. Microsoft (NASDAQ: MSFT  ) stock climbed after news broke that the company had created a short list of possible candidates to take over the CEO role when Steve Ballmer steps down sometime in the coming months. One name mentioned was Ford CEO Alan Mulally. Another was former Nokia COO Stephen Elop, who, once Microsoft's acquisition of Nokia's handset division closes, will be employed by Microsoft regardless of whether he gets the CEO spot. It's difficult to say who will win the job and whether that person will even want the job, so investors should sit tight for now.  

Last week's big losers
Shares of Intel (NASDAQ: INTC  ) fell 0.94% over the past five trading sessions, making it the third worst performing Dow component. That seem like a big deal, but the stock went ex-dividend on Tuesday, reducing the price by $0.225, which is nearly the whole $0.23 the stock declined by this past week. However, Intel's performance for the year lags the Dow's, as investors lack the confidence that Intel can gain substantial market share in the mobile-chip market.

The runner-up for top loser of the week was Home Depot (NYSE: HD  ) , whose shares declined 1.96%. The move comes as interest rates again began to rise this past week, with investors fearing that the strong jobs number may push the Federal Reserve to begin tapering sooner than previously expected. Home Depot also dealt this week with bit of a PR nightmare this week, after a Tweet regarded as racially insensitive was sent from the company's account. While the company acted quickly to remove the Tweet and has already fired those involved in posting the message, we won't know for a while if Home Depot will experience any long-term backlash. Investors should keep an eye out during the coming quarter.  

Finally, the biggest loser within the Dow this past week was AT&T (NYSE: T  ) , as shares declined 2.95%. While rising interest rates may have had an effect on the Dow's highest-yielding stock this week, news that the company is receiving money from the U.S. government in exchange for giving it information on international phone data. On Thursday, shares fell 1.98% after the news hit. Americans take their privacy seriously, and if they think AT&T is turning over their information, they may choose to defect and take their business to a different carrier, even though there's a reasonable chance that if one telecom provider is doing this, others are as well. But before investors jump ship, it may be best to wait for a while to see whether cancellations and defections actually do increase over the next few quarters.

The other Dow losers this week:

  • American Express, down 0.35%
  • McDonald's, down 0.23%
  • Verizon, down 0.57%
  • Visa, down 0.43%
  • Walt Disney, down 0.94%

More Foolish insight
Regardless of whether dividend paying stocks fall out of favor with investors as interest rates move higher, the fact remains that dividend stocks can make you rich. It's as simple as that. While they don't garner the notability of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.


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.

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: 2720271, ~/Articles/ArticleHandler.aspx, 11/29/2014 1:21:34 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