Obama Speech Fails to Boost the Dow as Emerging Markets Fears Rise

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

The Dow Jones Industrial Average (DJINDICES: ^DJI  )  has lost 84 points as of noon EST. Possibly weighing on investors' minds is the winding down of the Federal Open Market Committee meeting, which may deliver another round of tapering of quantitative easing. Also causing problems is the concern regarding a global currency crisis, as Turkey's lira tanks this morning despite a big 4.25% boost in Turkish interest rates yesterday.

President Barack Obama's State of the Union address last night probably isn't helping things. Obama's speech was expectedly assertive, basically telling legislators that, while he is still willing to work with them, he won't hesitate to move his own agenda forward if they try to stymie his plans for the economy. The prospect of more haggling in Washington is likely not what markets wanted to hear.

In other disheartening news, the Mortgage Bankers Association reported that its weekly survey revealed a 0.2% drop in mortgage applications last week from the week before.

JPMorgan Chase close to sale of commodities unit
JPMorgan Chase 
(NYSE: JPM  ) is reportedly on tap to sell its commodities section, valued at $2 billion. The bank has had the unit on the block for some time, as it tries to shed segments that continually invite regulators' scrutiny. Several entities have submitted bids for the business, including the Blackstone Group, and JPMorgan will request more information from all bidders in order to decide which will ultimately prevail. According to Bloomberg, a decision could be made as early as this week.

JPMorgan is taking steps to avoid other risky ventures as well. The bank has been shedding customers like crazy over the past year, declining to do business with check-cashing entities, as well as individuals with ties to persons convicted of a crime. All this housecleaning hasn't helped the stock so far today, though, and it remains down by approximately 0.29% at noon.

Goldman Sachs (NYSE: GS  ) has fallen by about the same percentage as its Dow fellow, despite some feel-good news about the bank's involvement in social-impact bond investments. The Boston Globe reported that Goldman, in conjunction with other investors, is backing an $18 million bond to support an effort to reduce recidivism in young men. While the program's ultimate success would pave the way for future socially important investments of its kind, failure will cause the loss of the investors' money -- perhaps not something Goldman investors are very excited about.

The secret to investing success

It's no secret that investors tend to be impatient with the market, but the 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.

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: 2814875, ~/Articles/ArticleHandler.aspx, 9/2/2015 11:09:54 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...

Amanda Alix

Foolish financial writer since early 2012, striving to demystify the intriguing field of finance -- which, contrary to popular opinion, is truly what makes the world go 'round.

Today's Market

updated Moments ago Sponsored by:
DOW 16,156.63 98.28 0.61%
S&P 500 1,924.40 10.55 0.55%
NASD 4,663.98 27.88 0.60%

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

9/2/2015 10:54 AM
^DJI $16149.31 Up +90.96 +0.57%
GS $182.83 Up +0.71 +0.39%
Goldman Sachs CAPS Rating: ***
JPM $61.75 Up +0.30 +0.49%
JPMorgan Chase & C… CAPS Rating: ****
BX $32.63 Up +0.18 +0.55%
The Blackstone Gro… CAPS Rating: *****