Dow Drops Despite Intel Upgrade; Pfizer, Visa Drag

Worries about a correction led the stock market lower. Find out the details.

Apr 7, 2014 at 11:00AM

Over the weekend, many investors worried that Friday's drop in the Dow Jones Industrials (DJINDICES:^DJI) could be a precursor to a longer-term correction. That theory played out Monday morning, as the Dow fell 104 points by 11 a.m. EDT. Without any major economic data moving the market today, investors are looking forward to the beginning of earnings season this week, with reports from the aluminum and banking sectors giving the first read on the state of corporate America. Even amid the gloom this morning, Intel (NASDAQ:INTC) managed to post a solid advance, while Pfizer (NYSE:PFE) and Visa (NYSE:V) were among the worst performers in the Dow.


Source: Intel.

Intel's 1.9% gain came in the wake of an upgrade from Pacific Crest, which argued that the tech giant's enterprise-focused server and PC business is doing better than many investors give Intel credit for. Although the consumer side of the PC market has garnered the lion's share of attention among Intel bears, a reviving U.S. economy can generate greater activity from enterprise customers that are finally starting to bolster their tech spending. The same trend could help shares of many of Intel's peers, potentially lifting the entire Nasdaq after a particularly rough few days last week.

Pfizer's 2.6% drop, on the other hand, seemed somewhat odd given that the drugmaker announced over the weekend that its breast-cancer treatment palbociclib extended the amount of time patients survived without the disease progressing. Yet some investors had hoped to see even stronger results from the phase 2 trial, and Pfizer noted that while it hopes to get a faster-track approval for the treatment, it's too early to tell whether the FDA would be amenable to the idea at this point. The negative shareholder response also indicates just how much pressure Pfizer is under, especially regarding palbociclib and other drugs that investors see as potential blockbusters for the company.

Visa fell 2.7%, and its high share price had a much larger impact on the Dow than Pfizer's decline. Reports over the weekend suggested that Visa and other prominent payment networks will face increased competition from retailers seeking direct entries into the mobile-payment industry. After huge lawsuits between card companies and merchants, big retailers no longer want to share as much of their thin profit margins paying electronic-transaction fees. They see mobile-based digital wallets as a way of circumventing Visa and its peers to keep more of their revenue for themselves. With the ability to give discounts, retailers could prove a tough act for Visa to overcome in the long run.

Your credit card may soon be completely worthless
The plastic in your wallet is about to go the way of the typewriter, the VCR, and the 8-track tape player. When it does, a handful of investors could stand to get very rich. You can join them -- but you must act now. An eye-opening new presentation reveals the full story on why your credit card is about to be worthless -- and highlights one little-known company sitting at the epicenter of an earth-shaking movement that could hand early investors the kind of profits we haven't seen since the dot-com days. Click here to watch this stunning video.

Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Intel and Visa. The Motley Fool owns shares of Intel and Visa. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.

Compare Brokers