Morning Dow Report: What's Happening Beyond Earnings

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.

Earnings season for the Dow Jones Industrials (DJINDICES: ^DJI  ) is in full swing, and volatility levels are picking up as investors try to figure out the impact of the latest reports from major Dow components -- not just in the short run but throughout 2014 and beyond. The Dow initially climbed at the open, but quickly turned downward, falling 41 points as of 11 a.m. EST. Yet despite all the attention given to the companies that reported this morning, other companies are making news, including General Electric (NYSE: GE  ) .

GE fell 1.4% after announcing a deal yesterday to acquire a key energy business from oil-services peer Cameron International (NYSE: CAM  ) . The move involves GE buying Cameron's reciprocating compression division, a unit assists the processing, transmission, and storage of natural gas. Given the efforts that General Electric has made to become more involved in the energy industry, the $550 million purchase makes a lot of sense and adds to GE's ability to serve oil and gas exploration and production customers in its newly created downstream segment.

Boeing (NYSE: BA  ) , on the other hand, gained 1.5% after General Electric's capital aviation services division announced an order for 40 of the aircraft manufacturer's 737 model. With half of the $3.9 billion order slated for 737 MAX 8 airplanes and the other half representing orders for next-generation 737-800 models, GE cited demand among its customers for more fuel-efficient aircraft. Boeing is positioned to keep profiting from that trend going forward, especially if energy prices remain high.

Finally, Caterpillar (NYSE: CAT  ) fell more than 1%. News yesterday showed that economic growth in China fell slightly, leading to more concerns about the emerging market's ability to sustain its long expansion. With Caterpillar relying on China as a key component of its overall growth strategy, bad news there could further weigh on investor sentiment for the construction-equipment giant, just as an upturn in U.S. economic growth had started to pull the stock higher.

Get the stock you really need
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

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.

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: 2802370, ~/Articles/ArticleHandler.aspx, 9/4/2015 3:07:05 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...

Dan Caplinger

Dan Caplinger has been a contract writer for the Motley Fool since 2006. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world.

Today's Market

updated Moments ago Sponsored by:
DOW 16,067.80 -306.96 -1.87%
S&P 500 1,916.28 -34.85 -1.79%
NASD 4,674.82 -58.68 -1.24%

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

9/4/2015 2:52 PM
^DJI $16073.45 Down -301.31 -1.84%
BA $129.39 Down -1.63 -1.24%
The Boeing Company CAPS Rating: ****
CAM $65.27 Down -1.34 -2.01%
Cameron Internatio… CAPS Rating: ****
CAT $73.21 Down -1.25 -1.67%
Caterpillar, Inc. CAPS Rating: ***
GE $23.93 Down -0.58 -2.37%
General Electric C… CAPS Rating: ****