The Dow is Up as Financials Rebound and Tech Continues to Fall

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.

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) is up 94 points, to 15,930, at 1:30 p.m. ET as stocks rebound after yesterday's fall. Financial stocks are leading the Dow higher, while the technology sector continues to drop after Apple (NASDAQ: AAPL  ) reported weaker than expected guidance. The S&P 500 (SNPINDEX: ^GSPC  ) was up 10 points to 1,791.

Yesterday, financial stocks joined with technology stocks to push the Dow down. Today, though, financial stocks are rebounding. Technically, Pfizer is leading the Dow's rise today with a 2.9% rise, but because the Dow is a price-weighted index the drugmaker's low stock price means the company has a small effect on the blue-chip index. Visa (NYSE: V  ) is No. 2 for the day, up 2.1%. Its significantly more expensive stock price means Visa is having a seven times larger effect on the Dow today than Pfizer. Trailing Visa are American Express, General Electric, and JPMorgan Chase, which are all up just more than 1%.

There is no company-specific news for Visa's rise. The payment processor reports earnings on Thursday before the market opens. Financial stocks are up as the Conference Board's Consumer Confidence Index rose for the second straight month; it now sits at 80.7, above analyst expectations of 77.1. As confidence rises consumers are expected to spend more which means more transactions and more money for Visa. 

Technology stocks are continuing yesterday's fall after Apple reported weaker than expected guidance. While Apple is not a member of the Dow, as the world's largest technology company its actions, outlook, and movement have a large effect on the technology sector. Apple fell more than 7% after yesterday reporting first-quarter guidance of revenue of $42 billion-$44 billion. Analysts had expected the company to report a revenue guidance of $46 billion. Activist investor Carl Icahn is taking advantage of the lower stock price; he tweeted this morning that he had bought another $500 million shares, bringing his Apple stake to nearly $4 billion dollars. Icahn continues to advocate for Apple to buy back shares, while I believe that the company should pay out a large special dividend.

Carl Icahn and Warren Buffett didn't make billions by betting on half-baked stocks. They isolated their best few ideas, bet big, and rode them to riches, hardly ever selling. You deserve the same. That's why our CEO, legendary investor Tom Gardner, has permitted us to reveal The Motley Fool's 3 Stocks to Own Forever. These picks are free today! Just click here now to uncover the three companies we love. 

Read/Post Comments (0) | Recommend This Article (1)

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: 2813096, ~/Articles/ArticleHandler.aspx, 8/30/2015 4:11:04 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 1 day 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
AAPL $113.29 Up +0.37 +0.33%
Apple CAPS Rating: ****
V $72.46 Up +0.06 +0.08%
Visa CAPS Rating: ****