The stock market's recent decline got ugly today, as a modestly lower session throughout much of the day turned into a rout in the last half-hour of trading. Bad news in the economy was probably at least partially responsible for the decline, as the Philadelphia Fed's index fell into negative territory, while the index of leading economic indicators dropped 0.1%. The Dow Jones Industrials
Although the vast majority of Dow stocks fell, a few suffered particularly hard hits. JPMorgan Chase's decline was easily understandable after the revelation that the bank's bad derivative trade, which it said earlier this week had cost it at least $2 billion, now appears to have led to losses of at least $1 billion more. Given the nature of certain derivative-based positions, it can be extremely challenging to unwind a large stake, and so JPMorgan may be vulnerable to further losses if it can't take steps to hedge what was supposed to have been a hedging transaction in the first place.
But the other big losers in the Dow were more economically sensitive stocks. Home Depot
Down markets seem to last forever, especially if you're fully invested. But even though these Dow stocks were on the losing end today, you can still find smart choices if you're willing to be patient. Check out The Motley Fool's special report on long-term investing and figure out how to escape the day-to-day grind and invest for the long haul. Get your free report today!
Fool contributor Dan Caplinger doesn't own shares of the companies mentioned. You can follow him on Twitter. The Motley Fool owns shares of JPMorgan Chase. Motley Fool newsletter services have recommended buying shares of Southwest Airlines and Home Depot. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool has a disclosure policy.