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A Handful of Losers Missing Today's Rally

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

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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.  

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Stocks Mentioned

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

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

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