28 of 30 Dow Stocks Falling Today

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

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) is dropping as signs point to the Chinese economy getting close to slowing down. As of 1:30 p.m. EST, the Dow was down 128 points to 16,448. The S&P 500 (SNPINDEX: ^GSPC  ) was down 17 points to 1,831.

There were three U.S. economic releases today.





Weekly new unemployment claims




Markit Manufacturing PMI








New unemployment claims were little changed from their previous level, while the four-week moving average increased by 8,500 to 357,250 as unemployment claims temporarily spiked in the middle of the month. While recent results are all over the place, stemming from some reporting errors, the important thing to note is that unemployment claims continue to trend lower.

US Initial Claims for Unemployment Insurance Chart

U.S. Initial Claims for Unemployment Insurance data by YCharts.

Both purchasing managers' indexes show the U.S. manufacturing sector expanded in December. However, the market today is focused on the Chinese purchasing managers' indexes from the Chinese National Bureau of Statistics and HSBC, which were released Tuesday night and Wednesday, respectively, while the U.S. market was closed.





China NBS Manufacturing PMI




China HSBC Manufacturing PMI




Both purchasing managers' indexes dropped and are nearing 50. PMIs above 50 indicate economic expansion while readings below 50 indicate contraction. Investors are worried about economy of China, which is in the midst of a credit bubble. The Communist Party is trying to deflate the bubble while not slowing the economy too much. At the same time, the party is trying to make the economy less dependent on exports and infrastructure projects and more consumer-based. As part of this goal the Chinese government was slow to provide extra liquidity when the interbank lending rate for short-term loans spiked for the second time in less than six months. China has been one of the leaders of the world economic recovery, but it is a risk to future growth due to the large credit bubble. If the bubble pops and the economy slows, world economic growth will be hit hard.

With high valuations and the possibility of slowing economic growth, the Dow has sold off today, putting 27 of 30 stocks in the red.

Today's Dow leader is Wal-Mart (NYSE: WMT  ) , up 0.66% to $79.21. Wal-Mart is unique among Dow stocks in that more than 70% of its revenue comes from the United States. U.S. companies have been becoming more international to the point that nearly 40% of their profits come from their global operations. Even Wal-Mart is slowly expanding to China, which could be the retailer's next huge growth market if it can get its business model to work there. For now, though, Wal-Mart is set to benefit as the U.S. economy strengthens and China looks likely to slow.

Dividend stocks can make you rich. It's as simple as that. While they don't garner the notoriety 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: 2781389, ~/Articles/ArticleHandler.aspx, 8/31/2015 5:05:42 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...

Dan Dzombak

Dan Dzombak has written for The Motley Fool since 2008. He covers value investing, investing process, and success among other things. You can follow him on Facebook or Twitter by clicking the buttons below or head over to his blog at

Today's Market

updated 2 days ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

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

8/28/2015 4:55 PM
^DJI $16643.01 Down -11.76 -0.07%
^GSPC $1988.87 Up +1.21 +0.06%
S&P 500 INDEX CAPS Rating: No stars
WMT $64.94 Down -1.14 -1.73%
Wal-Mart Stores CAPS Rating: ***