International Business Machines
Click to Enlarge Most importantly, the most heavily weighted stock in the Dow Jones Industrial Average is in free fall. International Business Machines (IBM) has spent the last two years sliding sideways near $200 a share, which an excursion towards $215 back in March that helped lift the Dow Jones for 10 consecutive days that month.
Now, IBM’s outsized influence (due to its high share price and the Dow Jones’ price-weighted construction) is working in reverse.
How severe is the decline? On a weekly basis, we’re looking at the strongest downtrend in IBM since late 2008.
That’s right. For the most important stock in the most closely followed stock market measure, we’re in the midst of a financial-crisis style selloff.
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