Dow Takes 102-Point Stumble, Melco Crown Rockets, Rite Aid Rebounds

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) broke a five-day win streak on Wednesday, as bears finally got their day in the spotlight. While no one likes to see stocks trade in the red, you can't expect the market to set record highs every day, as the Dow had in its previous four sessions. A cut to the year's global growth forecast by the World Bank was also partially to blame for the fall, as the outlook receded from 3.2% to 2.8%. The Dow lost 102 points, or 0.6%, to end at 16,843.

Home Depot (NYSE: HD  ) finished as one of the Dow's worst performers on Wednesday, shedding 1.2%. It's difficult to understand exactly why shares got hit worse than their blue chip peers, especially considering the company's best-in-class status and a resurgent real estate industry that's starting to recover from a woefully slow winter. On top of that, investors should be encouraged by the fact that Home Depot is betting on itself: the company issued $2 billion worth of debt earlier this week, in part to fund its own stock buybacks.

Source: Rite Aid

Rite Aid (NYSE: RAD  ) reversed a four-day sell-off today that took more than 10% off the stock price. Shares of the drugstore have been hammered by Wall Street since the company said it would be facing higher drug costs that would pressure its short-term margins last week. But Rite Aid stock rebounded today, adding 3.9% as investors reconsidered the bullish case for the company. Rite Aid's recent executional brilliance, evidenced in its focus on shutting down unprofitable locations and bringing down costs, has helped to make it one of the stock market's most brilliant performers in the last year.

Lastly, shares of Melco Crown Entertainment (NASDAQ: MPEL  ) , which are more prone to zigging and zagging than the crayon artwork of a kindergartener, soared 5.1% today. Melco Crown and other casino operators in the Macau region took a stumble after May's gaming revenue came in below expectations. While gambling is by no means an untested new market like 3-D printing or solar energy, it now carries a similar risk profile for Macau operators, since the industry is so dependent on Chinese regulations. Today's advance came as Citi analysts said the recent pullback was overdone, and that Macau remains an excellent engine for growth.

Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend-paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

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: 2991400, ~/Articles/ArticleHandler.aspx, 8/29/2015 5:15:17 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...

John Divine

Fool since 2012, unique fingerprints since birth. Age 7: Put lifetime savings ($18.37!) in the bank, became disillusioned with low interest, and a fascination with the stock market was born.

Today's Market

updated 19 hours 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%
HD $117.52 Down -0.14 -0.12%
Home Depot CAPS Rating: ****
MPEL $18.22 Down -0.21 -1.14%
Melco Crown Entert… CAPS Rating: ****
RAD $8.24 Down +0.00 +0.00%
Rite Aid Corp CAPS Rating: ***