Why the Dow Dropped Today
Jul 16th 2012 6:02PM
Updated Jul 16th 2012 6:06PM
Coming off a huge gain on Friday, the Dow Jones Industrial Average (INDEX: ^DJI) couldn't keep the momentum going, dropping 0.4% today. It was the seventh drop in eight sessions for the Dow. A disappointing retail sales report was the main catalyst for the decline today, as retail sales dropped for a third straight month, down 0.5%, versus analyst expectations for a small increase. Further stoking concerns over the global economy, the IMF cut its forecast for global growth and called on European leaders to do more to deal with the debt crisis.
Here's how the three major U.S. indexes fared on the day.
|Dow Jones Industrial Average||-49.88 [-0.39%]||12,727.21|
|S&P 500 (INDEX: ^GSPC)||-3.14 [-0.23%]||1,353.64|
JPMorgan Chase, which soared more than 6% after reporting earnings on Friday, gave back 2.7% of those gains today. The bank was also hit with a lawsuit by a former brokerage client for allegedly pushing investors to overpriced and underperforming funds. Home Depot, one of the more sensitive stocks on the Dow to the economy, fell 1.2% after the disappointing economic data, while Pfizer managed to buck the downward trend today, rising 1.4%. Check out the following video for more on what drove the Dow and the day's biggest winners and losers.
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The article Why the Dow Dropped Today originally appeared on Fool.com.Brendan Byrnes owns no shares of any company mentioned above. The Motley Fool owns shares of JPMorgan Chase. Motley Fool newsletter services have recommended buying shares of Pfizer and Home Depot. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days. The Motley Fool has a disclosure policy.
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