These Dow Stocks Took Supreme Hits Today
Jun 28th 2012 9:07PM
Updated Jun 28th 2012 9:08PM
In the end, today's decision from the Supreme Court didn't have a lasting impact on the stock market. Although markets initially fell on the decision, which upheld the controversial individual health-insurance mandate, the Dow Jones Industrials (INDEX: ^DJI) rallied into the close to cut almost all their losses from their earlier 180-point drop.
But several stocks still finished well in the red for the day. JPMorgan Chase (NYS: JPM) fell sharply on reports that its losses from its hedge-trading activities could be much larger than previously expected, although some later reports from different news services took the contradictory position that losses could end up much less than the feared $9-billion figure.
United Technologies (NYS: UTX) also fell more than 2% on the day. Two of the company's units pled guilty to criminal charges of helping export sensitive technology related to its military helicopter business to China. The company's agreement with the Justice Department and State Department, call for penalty payments of up to $75 million. The monetary value is insignificant, but the reputational hit that United Tech could take may have a much larger impact on its ability to do business with the U.S. government in the future.
Finally, a pair of tech companies were down about 1.5% on a day during which the Nasdaq Composite greatly underperformed the rest of the market. Intel (NAS: INTC) dropped on no apparent news, but the company still faces plenty of uncertainty, as it tries to diversify beyond its dominance of the PC microprocessor market to capture some of the growing mobile space. Meanwhile, Cisco Systems (NAS: CSCO) has the ongoing risk that government spending will remain under pressure, potentially hurting its business disproportionately compared to its peers. Given the municipal bankruptcy earlier this week of Stockton, California, Cisco will have to deal with those pressures for quite a while.
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The article These Dow Stocks Took Supreme Hits Today originally appeared on Fool.com.Fool contributor Dan Caplinger doesn't own shares of the companies mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool owns shares of Cisco Systems, Intel, and JP Morgan Chase. Motley Fool newsletter services have recommended buying shares of Intel. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool has a disclosure policy.
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