Today, industrials editor and analyst Brendan Byrnes discusses the Dow Jones Industrials' drop today. Not surprisingly, a plethora of bad news from Europe was a main factor in markets' decline, with disappointing earnings playing a role as well. Spanish five and 10-year bond yields hit a eurozone record high, while data showed that euro-area manufacturing activity shrank in July and Moody's cut Germany's outlook. It didn't help that bellwether UPS reported disappointing earnings, coming in below expectations and lowering its full-year earnings guidance. The shipping and logistics giant also predicted U.S. GDP growth for the rest of 2012 to be 1%, less than the around 2% that most economists predict. Check out the following video for more on what drove the Dow today, and why blue-chips Cisco and AT&T were the two biggest losers.
As evidenced with bad news out of Europe today, there is still a tremendous amount of uncertainty surrounding the market. That may tempt many investors to take their money and run far from stocks, but that can be one of the biggest mistakes investors can make. Some of the most successful stock picks are great dividend stocks purchased at attractive valuations on dips in the market. With that in mind, we've taken an in-depth look at all 30 Dow components and picked out our three favorite Dow dividend stocks that investors can buy right now. You can find the names and analysis of these companies in our brand-new free report: "The 3 Dow Stocks Dividend Investors Need." Read the report now -- it's absolutely free.
Brendan Byrnes owns no shares of any company mentioned above. The Motley Fool owns shares of Cisco Systems. Motley Fool newsletter services have recommended buying shares of Moody's. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days. The Motley Fool has a disclosure policy.
More from The Motley Fool
Does a Strong Start Make 2018 a Sure Winner for Stocks?
Find out whether the so-called "January effect" is real.
Meet the 2018 Dogs of the Dow
Learn the basics of this simple dividend-investing strategy.
The Dow's Worst Day in 2017
Even with big gains, there were some scary times for the average.