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Wal-Mart Leads the Dow Lower

Dan Carroll
September 25, 2013

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

Stocks are sinking on the day, and the Dow Jones Industrial Average (INDEX: ^DJI) has weathered a tough afternoon so far. As of 2:15 p.m. EDT, the Dow has recorded losses of around 45 points, with most member stocks in the red. Wal-Mart's (NYSE: WMT) leading the index lower in a tough day spurred by a poor inventory report. Let's catch up on what you need to know.

Wal-Mart's inventory battle
Shares of Wal-Mart haven't pleased investors today, falling about 1.5% to lead the Dow lower. A report from Bloomberg got the ball rolling, as an email revealed by the news service claimed that the retailer is looking to pare down orders in 2013's final quarters in order to combat higher-than-expected inventory levels.

Wal-Mart has come back in a response to CNBC, saying that the firm is managing inventory category-by-category and that an across-the-board inventory slash isn't in the works, but today's drop shows just how volatile this stock can be -- and why day-to-day drops and gains can be misleading for investors. W