Dow Settles Slightly Lower After Early Triple-Digit Dip

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After three strong days of triple-digit gains, the Dow Jones Industrial Average opened lower — by triple digits — amid growth concerns from Europe, but then recovered, sitting about 0.7% off at around 11,400 in the morning session. Economic growth in Germany fell to 0.1% in the second quarter from 1.16% in the first quarter. Strong earnings were released by Wal-Mart (NYSE:WMT) and Home Depot (NYSE:HD). The financial sector continued to suffer, with Bank of America (NYSE:BAC) and JP Morgan (NYSE:JPM) declining in early trading. The Dow Jones Industrial Average is now up 1.25% for the week but down 1.7% for the year.

Bank of America was off about 4%, around 30 cents, to under $7.50 on news that uber-investor John Paulson was selling. Research released on Bank of America this morning also focused on the struggles ahead as it deals with its mortgage woes from its Countrywide Credit acquisition from 2008. Bank of America is up about 20% for the week on rebound trading, but it is down more than 20% for the month, 30% for the quarter and 40% for the year. Bank of America is the worst-performing stock on the Dow for 2011.

Down by more than 2% in early action was Walt Disney (NYSE:DIS), losing about 70 cents a share to under $33. Recession concerns had Merrill Lynch issuing a cautionary note of Walt Disney and other media and entertainment stocks. Up almost 2% for the week, Disney is down almost 15% for the month and 18% for the quarter.

Alcoa (NYSE:AA) was down on global growth concerns as the aluminum maker fell by more than 2%, about 25 cents, to trade around $12 per share. Bouncing back by more than 11% this week, Alcoa still is down about 20% for the month, 25% for the quarter and 30% for the half-year.

Strong earnings had Home Depot higher by more than 5% to over $33, a gain of more than $1.60. Yesterday, Home Depot was up thanks to poor numbers from its main competitor, Lowe’s. Reporting profits rising by 14% today, Home Depot is up about 9% for the week and almost 20% for the half-year. Home Depot also received a positive analyst recommendation yesterday.

Despite many recent gloomy articles about its future, Wal-Mart rose by about $1.30, more than 2.5%, to over $52. Profits at Wal-Mart rose by 5.7%, despite U.S. consumer confidence now at a 30-year low. Wal-Mart is up almost 3% for the week.

Hewlett-Packard (NYSE:HPQ) was up about 0.35%, a gain of around 11 cents, to over $32.50 on a favorable analyst article this morning. Up more than 5% for the week, Hewlett-Packard is down about 20% for the quarter. The tech sector was weak in morning trading because of concerns about the global economy.

Jonathan Yates does not own any of the stocks mentioned in this article.


Article printed from InvestorPlace Media, https://investorplace.com/2011/08/dow-jones-europe-growth-wmt-hd-bac-jpm/.

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