Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.
As of 1:10 p.m. EST the Dow Jones Industrial Average (DJINDICES:^DJI) is up 42 points, or 0.27%, to 16,004, while the S&P 500 has risen 0.01% to just below the 1,800 mark. The Nasdaq is slightly lower by 0.11%.
The moves higher may be related to the announcement last week that Chinese citizens will now be legally permitted to have two children, not just the long-mandated sole child, as long as one of the parents was an only child. This policy makes it likely the Chinese population will begin to grow even faster, meaning mores consumers and everything that comes along with a larger populace. That could help to recharge the Chinese economy and get it growing at double-digit rates again.
A few winners and losers
The Dow's biggest winner of the day is Boeing (NYSE:BA), with shares higher by nearly 2%. The move comes after the company announced that it had taken $106 billion worth of orders at the Dubai Airshow on Sunday. One of the reasons for the large number of orders was the introduction of the new 777X twin-engine passenger aircraft. Boeing touts the 777X as the largest, most efficient twin engine in the world. It is the first plane of this size to have 259 orders and order commitments made on the first day it was available for sale. Right now this seems like a company that just can hardly do anything wrong, and investors don't even seem to mind its missteps.
Outside the Dow, the major U.S. grocers are having a rough day. Shares of Kroger (NYSE:KR) the country's largest grocery chain, are down 2.84%, while No. 2 Safeway (UNKNOWN:SWY.DL) has lost 3.24%, and top "green" grover Whole Foods Market (NASDAQ:WFM) is off by 2.46%. All three stocks have had a very good year when compared to the Dow, respectively up 72%, 105%, and 28% over the last 52 weeks.
One reason Whole Foods has lagged the other two is because its share price had performed much better in the past, but this year earnings growth slowed and the stock dropped more than 11% just two weeks ago. Even more than that, the company also lowered guidance for sales growth from 13% to 11% per year, which was a percentage below what it had previously told investors. Management stated that increased competition is one factor for the lower sales growth in the future, which is a testament to Kroger and Safeway as they try to take back market share by introducing more organic offerings. Still, this is a difficult industry to operate in and investors should keep a close eye on their holdings if they decide to jump in.
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