2 Plunging Stocks Couldn't Stop the Dow's Record Climbhttp://www.fool.com/investing/general/2013/07/18/2-plunging-stocks-couldnt-stop-the-dows-record-cli.aspx Dan Caplinger
July 18, 2013
Earnings season has gone just about exactly the way bullish investors would have expected so far. Many companies managed to overcome lowered expectations for earnings growth and posted positive surprises that, in turn, lifted their share prices. As a result, the stock market climbed to more all-time record highs, with the Dow Jones Industrials (INDEX: ^DJI) rising 78 points, and the S&P 500 (INDEX: ^GSPC) matching the Dow's half-percent gain.
But two prominent Dow stocks didn't deliver on the earnings front to investors' satisfaction. Intel (NASDAQ: INTC) was the leading loser in the Dow, falling 3.75% after only matching earnings estimates, and falling short on top-line revenue figures. The company forecast lower sales for the current quarter, giving further evidence of the major challenges Intel faces with its PC business, as falling demand for desktops and laptops in favor of mobile devices like smartphones and tablets pose a continuing threat to the company's growth. Even if it's successful in entering the mobile market, Intel will face immense competition there that will likely keep margins relatively low compared to its legacy PC chips, where it had a commanding market share and, consequently, greater pricing power.