Stocks nosedived at the beginning of the trading day, but since then the markets have gotten back on course. The Dow Jones Industrial Average (DJINDICES:^DJI) is up less than a point as of 2:15 p.m. EDT. Most of the index is still in the red, but one tech giant's big gains are saving the day for investors. Let's check out the biggest stories you need to know.
Eye on the Mediterranean
Investors knew some kind of a shock was coming after Cyprus' bailout plan sent the euro plummeting this morning and shocked markets worldwide. The eurozone's plan to keep the nation's fiscal stability under control involves a one-time tax levy on bank deposits, sparking a run on ATMs in the Mediterranean nation and raising questions about what would happen if similar conditions were levied on larger debt-plagued European nations such as Italy and Spain. Cyprus' economic share of the eurozone is minuscule, and the impact of the tax won't be significant in the bigger picture; however, if such aggressive bailout methods spread across Europe, investors could see a much more volatile market in the future.
Financial stocks have fallen in general, but they haven't taken terrible losses on the news. Among the Dow components, JPMorgan (NYSE:JPM) ranks among the worst index laggards with losses of 1.1%, but Bank of America (NYSE:BAC) has actually made a 0.5% gain, having steadily risen since the opening drop. While the bailout plan will hurt average Cypriots, allowing Cyprus to default or leave the euro would be far more damaging to the banking sector at large -- especially considering that the nation's financial infrastructure greatly overshadows its GDP.
Some stocks have been happy to capitalize on the down day, however. Hewlett-Packard (NYSE:HPQ) has soared 3.2% to lead the Dow. Morgan Stanley upgraded the stock and announced that the company would likely beat cash flow guidance in 2013, spurring investors to snap up shares in the hopes of a turnaround. HP's still floundering in its rebuilding plan as it attempts to shake the PC market's decline, but the company's attempts to push into the mobile market -- including its first Android-powered tablet, announced earlier this year -- have some investors confident in its direction.
Boeing's (NYSE:BA) ended up on the wrong side of the Dow today. Shares of the aerospace giant have fallen 1.3% to lead the index lower after the company began putting its 787 Dreamliner batteries through a gauntlet of tests in the hopes of getting its newest aircraft flying soon. All Nippon Airways, the Japanese carrier that flies the largest fleet of the now-grounded 787s, wasn't so impressed: The company said Boeing's plan to get the 787 flying within weeks was a best-case scenario, considering the uncertainty regarding the FAA's completion of its battery checks. As the 787 saga drags on, expect more volatility from this stock while Boeing scrambles to get its newest plane back in the skies.