The Dow Can't Keep Its Head Above Water
Feb 6th 2013 2:30PM
Updated Feb 6th 2013 3:30PM
After an up-and-down start to the week, the Dow Jones Industrial Average is giving investors a breather today. The index hasn't strayed too far since the open, down 25 points, or 0.18%, as of 2:15 p.m. EST. Dow stocks are roughly split between riser and fallers, but most of the biggest movers are on the losing end. Let's check out which companies are making waves today.
Pharma and tech lead the Dow downward
Big Pharma isn't having the best day, crimping the Dow's progress as Merck and Pfizer drop 1% and 0.4%, respectively. Both companies are still navigating the aftermath of losing patent protection on top-selling drugs, but Merck has recently run into trouble elsewhere, too. A federal jury ordered the company to pay $285,000 in a lawsuit regarding the safety risks of osteoporosis drug Fosamax -- and after Merck earlier delayed the regulatory-approval filing of promising osteoporosis drug candidate odanacatib until 2014, the company could use a bit of good news soon.
Big Pharma's hardly the only sector down today, however. Many tech stocks on the Dow can't get their feet under them. Intel ranks among the worst Dow laggards, with down 1%, while Microsoft and IBM have lost 0.8% and 0.7%, respectively. Intel and Microsoft are feeling the effects of negative early reviews of Microsoft's Surface Pro tablet, which runs on Intel tech. While some reviewers praised the product's performance, others found it an uncomfortable cross between a PC and a tablet that might not appeal to either market successfully.
That's not good for Microsoft and Intel shareholders, who have already suffered plenty of losses. Over the past six months, shares of Microsoft have fallen 8.2%, while Intel's shares have dropped 19.5%.
There is a bit of optimism from tech today, however. Hewlett-Packard , the stock that seemingly swings wildly in either direction depending on the day, is up 0.5% so far. Earlier reports surfaced that the company may be looking to break up, and while sources familiar with the issue contradicted that rumor, it's not outside the realm of possibility after HP said earlier this year that it may cut underperforming business units. Struggling PC rival Dell announced a $24 billion deal to go private on Tuesday, and it would be surprising if HP didn't make a move to shore up losses.
Interested in Intel?
As far as the PC market goes, Intel's still in a tough spot. It dominates the PC microprocessor arena, but that market is maturing, and Intel must find new avenues for growth. In this premium research report on Intel, our analyst runs through all of the key topics investors should understand about the chip giant. Better yet, you'll continue to receive updates for an entire year. Click here now to learn more.
The article The Dow Can't Keep Its Head Above Water originally appeared on Fool.com.Fool contributor Dan Carroll has no position in any stocks mentioned. The Motley Fool recommends Intel. The Motley Fool owns shares of Intel, International Business Machines, and Microsoft. 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 Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.