Concern about U.S. consumer confidence was taking a toll on stocks Tuesday, and the Dow Jones Industrial Average fell about 50 points, or 0.4%, to around 11,490. Now at its lowest level since April 2009, consumer confidence had its biggest point decline since October 2008, according to Tuesday morning’s report from the Conference Board. The last week has been strong for the Dow, which has gained more than 2.5%. For the year, however, the Dow still is in negative territory.
Coming back to earth was Bank of America (NYSE:BAC), off 22 cents, or more than 2.6%, to around $8.17 per share. Bank of America is up recently from Warren Buffett’s $5 billion investment and the $8 billion sale of its holdings in the China Construction Bank Corp. For the week, Bank of America is up more than 30%. For the past six months, Bank of America is down almost 40%.
Also declining after a good week was Cisco (NASDAQ:CSCO), losing more than 20 cents per share to about $15.50, a loss of about 1.35%. Cisco is facing competition in videoconferencing from LifeSize, which anticipates higher sales. While up almost 5% for the week, Cisco is down more than 20% for the year.
Alcoa (NYSE:AA) also was retreating after a strong week, giving back more than 2% of recent gains to fall under $12.15 per share, a drop of more than 25 cents. The aluminum maker is up more than 10% during the past week. For the quarter, Alcoa is down more than 25%.
McDonald’s (NYSE:MCD) was up early but retreated after the disappointing consumer confidence numbers were released, trading around $90.40 a share, a 0.4% loss of about 40 cents. Now being viewed as a safe-haven stock, McDonald’s is up almost 28% for the year.
Boeing (NYSE:BA) soared by about 50 cents a share to over $65, about a 0.75% gain. This morning, it was reported that Boeing had redesigned the engine for the 737 with commitments for almost 500 planes, with more to come. For the week, Boeing is soaring higher by more than 10%. The most recent analyst rating for Boeing from BB&T Capital Markets on July 20 was a “buy.”
Microsoft (NASDAQ:MSFT) rose by about 0.4% in early trading, picking up more than 10 cents per share to trade over $26. An article in Forbes focused on Microsoft doubling its dividend rate, which is now at 2.48%. Microsoft certainly has the cash to do so, as its payout ratio is only 23.33%.
Jonathan Yates does not own any of the stocks mentioned in this article.
