The Dow Jones Industrial Average (DJINDICES:^DJI) looks like it will end the week on a down note. As of 1 p.m. EDT the index is down 24 points, or 0.18%. Although the Dow was up at the opening bell because of the better-than-expected 2% increase in U.S. gross domestic product, the market has pulled lower after the University of Michigan's consumer sentiment numbers for October were revised from 83.1 to 82.6.
So why are they down?
Both of the Dow's banks are moving lower for a number of reasons. The Wall Street Journal is reporting that Bank of America has received a subpoena which relates to an ongoing investigation into the LIBOR scandal which broke a few months ago. The journal now says that 16 banks in total have been issued subpoenas. Another hit to the banks is coming from European banks, which say they will no longer trade certain derivatives with U.S. banks. The decision to stop trading comes because of regulation imposed by the Dodd-Frank bill. It imposes stricter rules on financial intuitions which break an $8 billion threshold. The smaller banks around the world would like to avoid hitting the $8 billion mark and stay out of U.S. regulators' crosshairs. Bank of America is down 1.2%, while JPMorgan is off by about 1.3%.
Home Depot is another of today's big losers, down 1.26%. Yesterday's poor existing-homes sales numbers and today's disappointing consumer-sentiment report are definitely taking their toll on the company's stock price. When people don't see their neighbors' homes selling, they're unlikely to dump more money into their own homes for fear they'll never recoup their investments. In addition, even if homes were selling, but consumers were still worried about the economy and their futures, it's unlikely any big-time home remodels would take place. Over the long run, Home Depot should be just fine, but the day-to-day ups and downs will happen; investors just need to sit tight.
Matt Thalman owns shares of Bank of America and JPMorgan Chase. The Motley Fool owns shares of Bank of America and JPMorgan Chase & Co. Motley Fool newsletter services recommend The Home Depot. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.