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Why the Dow's Heading South This Morning

Dan Caplinger
September 20, 2012

It used to be that for the most part, the only news that would move the U.S. stock market involved the U.S. economy. Yet the economy has truly become global, and the market's moves this morning show evidence of how interlinked the whole world has become. Weak readings on the state of the economies of China and Europe contributed to the overall malaise in the markets this morning, and although the Philly Fed reading on business conditions improved more than expected, it is still below the zero level, indicating continuing pressure on economic activity. This, along with jobless-claims numbers that disappointed investors, set a negative opening tone, and the Dow Jones Industrials (INDEX: ^DJI  ) fell about 22 points around 10:45 a.m. EDT.

Focusing on Dow stocks, the usual economically sen