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Morning Dow Report: Microsoft, P&G Earnings Can't Lift the Dow

http://www.fool.com/investing/general/2014/01/24/morning-dow-report-microsoft-pg-earnings-cant-lift.aspx

Dan Caplinger
January 24, 2014

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.

Even in the middle of earnings season, global economic issues have started to play a key role in the stock market's moves in 2014. After spending much of 2013 focused almost solely on improving conditions in the U.S. economy, today's 166-point drop in the Dow Jones Industrials (INDEX: ^DJI) as of 11 a.m. EST reflects some of the stresses in key foreign economies such as China. Even with favorable earnings reports that sent Microsoft (NASDAQ: MSFT) and Procter & Gamble (NYSE: PG) higher this morning, worries about emerging-market inflation and capital outflows show that even the U.S. market is vulnerable to financial crises overseas.

On the earnings front, Procter & Gamble led the Dow's gainers, rising 3.5% even as its quarterly earnings fell 16% from year-ago levels. The consumer-products giant was able to beat expectations, and investors are increasingly satisfied that the company has turned some previous challenges around and could continue to boost its growth prospects. Yet trouble in emerging markets coul