Evening Dow Report: Fifth Day of Declines Sends Microsoft, JPMorgan Chase Plunging as Intel Climbs

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.

For the fifth straight day, the Dow Jones Industrials (DJINDICES: ^DJI  ) posted a decline, with the average losing 68 points even after positive GDP data suggested a stronger economy than most economists had expected. Yet, even though much of the gains came from rising inventory levels, investors instead seemed resigned to the idea that the Fed might taper its bond-buying program sooner rather than later. Microsoft (NASDAQ: MSFT  ) and JPMorgan Chase (NYSE: JPM  ) bore the brunt of the Dow's losses, but Intel (NASDAQ: INTC  ) managed to post a solid gain.

Microsoft fell 2.4% as investors reacted negatively to comments from Ford CEO Alan Mulally that he intends to remain as the automaker's leader through the end of next year, as planned. Investors had hoped that the software giant would poach the renowned turnaround expert to replace outgoing CEO Steve Ballmer, and the prospect of missing out on Mulally left shareholders less excited about alternatives to take over the top-executive role. Whoever leads Microsoft will face a tough road in reorganizing a massive corporate structure, and making the most of different opportunities in the tech world.

JPMorgan Chase also declined 2.4%, with the much-maligned bank taking a hit from a much different angle. After getting hit with an 80 million euro fine yesterday from European Union regulators for alleged collusion in manipulating key interest rates, JPMorgan found out overnight that it was the victim of a cyber attack. The bank warned nearly half a million UCard prepaid-card customers that hackers might have had access to their personal information. Given the increased use of prepaid cards by employers in lieu of paychecks and by government agencies to issue benefits, banks will have to be ever more vigilant to prevent identity theft related to their use.

On the positive side, Intel bucked the prevailing trend and rose more than 2%. The chipmaker has taken criticism for its sluggishness in entering the mobile market, relying instead on decaying sales of PCs to drive its legacy microprocessor business. Increasingly, however, Intel and its rivals are working to go beyond their traditional areas of expertise, and Intel sees some opportunity in designing networking chips that could end up challenging fellow Dow component Cisco Systems and other networking specialists. Even if the PC market continues to decline, Intel could have opportunities elsewhere to rescue itself from obsolescence.

Think long term
A single day's results don't tell you much about a company's true prospects. Your best investment strategy is to buy shares in solid businesses and keep them for the long term. In the special free report, "3 Stocks That Will Help You Retire Rich," The Motley Fool shares investment ideas and strategies that could help you build wealth for years to come. Click here to grab your free copy today.

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

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: 2754579, ~/Articles/ArticleHandler.aspx, 9/27/2016 1:21:42 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 4 hours 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%
INTC $36.65 Down -0.54 -1.45%
Intel CAPS Rating: ****
JPM $65.78 Down -1.47 -2.19%
JPMorgan Chase CAPS Rating: ****
MSFT $56.90 Down -0.53 -0.92%
Microsoft CAPS Rating: ****