Why the Dow Is Shedding Some of Last Week's Winnings

After last week's bull rally, when the Dow Jones Industrial Average (^DJI -0.98%) gained 497 points, the S&P 500 (^GSPC -0.46%) spiked 4.56%, and the NASDAQ (^IXIC -0.64%) picked up 4.94%, the bears seem to have the market in their clutches today. As of 12:50 p.m. EST, all three of the indexes are trading lower: The Dow is down 0.59%, the S&P 500 is down 0.56%, and the NASDAQ is lower by 0.38%. Only seven of the Dow's 30 components are in the green today, and three of the biggest losers are Walt Disney (DIS -1.01%), Bank of America (BAC -1.07%), and Boeing (BA 1.51%).

So why are they down?
Shares of Walt Disney are leading all Dow losers today, sliding 2.6% on the heels of a report indicating that the company is looking for new ways to save money, which may include cutting jobs. Disney reported record earnings back in November, and I believe the company is now trying to continue that streak by implementing proactive changes to cut the fat when times are good. Traders are overreacting to this announcement, and long-term shareholders should not worry about this temporary move lower.

Shares of Bank of America are down 0.5% after it was announced that the bank has agreed to pay $10 billion to Fannie Mae to settle claims dating back to the financial crisis. Additionally, B of A and nine other banks have agreed today to pay a combined $8.5 billion to end claims relating to foreclosure abuse and fraud. That's a lot of money, but the silver lining is that now the cloud of lawsuits will be lifted from the bank, and shareholders will no longer need to worry about what fines and penalties could be handed down. Many investors, myself included, believe the bank could double again in the coming years, and today's pullback should be seen as a decent buying opportunity.

Lastly, shares of Boeing are trading lower by 2.3% after a parked 787 Dreamliner caught fire at Boston's Logan International Airport this morning. The Dreamliner is one of Boeing's newest planes, and this is the fourth major incident with the aircraft in just the past few months.