Please ensure Javascript is enabled for purposes of website accessibility

A Handful of Losers Missing Today's Rally

By Matt Thalman - Apr 23, 2013 at 1:03PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Six of the Dow's 30 components are in the red this afternoon as the index climbs higher.

Today the Dow Jones Industrial Average (^DJI 0.97%) is regaining some of the ground it lost last week. As of 12:50 p.m. EDT the blue-chip index is up 129 points, or 0.88%, putting it within striking distance of the elusive 15,000-point mark. The other two major indexes are also on the rise: The S&P 500 has gained 0.94%, and the NASDAQ is up 1.14%. Of the Dow's 30 components, only six are in the red at the time of writing.

Shares of Home Depot (HD 0.67%) are again moving lower today, down 0.27% despite the report that new-homes sales rose 1.5% in March. This report comes one day after the existing-homes sales number was reported to have fallen 0.6% in March. While an increase in new-home sales is great for homebuilders and should be a sign that the economy is strengthening, Home Depot would likely prefer to see existing-home sales performing better. People who buy new homes aren't likely to spend a ton of money changing things like wall paint and flooring. But with an existing home, those are some of the first things a new owner will replace -- and such things are found at Home Depot. Additionally, preparing an existing home for sale could lead homeowners into a Home Depot to spruce things up, but that's not something that happens when a new home is sold.

Shares of UnitedHealth (UNH 0.55%) have fallen 0.6% today. The company announced earnings on Thursday of last week, and shares tanked 3.7% that day alone. The company beat on the bottom line but missed on the top line and announced that a large customer had reduced it policy coverage from full risk to a fee-based plan. Given the uncertainty about Medicare reimbursement rates and how Obamacare will affect the health insurance industry, investors are not sure what to expect from a revenue or earnings standpoint. UnitedHealth will likely be a volatile stock moving forward, and any shareholder should watch the industry closely for any signs of future weakness.

Lastly, shares of United Technologies (RTX 2.35%) are down 2.5%, making United Tech the worst-performing Dow component of the day. The company announced first-quarter earnings of $1.39 per share, while analysts were only expecting $1.29 per share. However, revenue of $14.4 billion fell short of analyst expectations of $14.9 billion. The company also reiterated its 2013 full-year EPS estimate of $5.85 to $6.15 on sales of $64 billion to $65 billion. The miss on the top line and the fact that management did not raise its full-year EPS estimate higher are two likely reasons the shares have headed south today.  

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Dow Jones Industrial Average (Price Return) Stock Quote
Dow Jones Industrial Average (Price Return)
$32,536.01 (0.97%) $312.59
UnitedHealth Group Incorporated Stock Quote
UnitedHealth Group Incorporated
$491.92 (0.55%) $2.70
Raytheon Technologies Corporation Stock Quote
Raytheon Technologies Corporation
$94.65 (2.35%) $2.17
The Home Depot, Inc. Stock Quote
The Home Depot, Inc.
$297.98 (0.67%) $1.99

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/17/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.