Wal-Mart Helps Dow Reverse Early Losses
Mar 4th 2013 3:30PM
Updated Mar 4th 2013 3:36PM
U.S. stock markets swung into the black in late trading today, with the Dow Jones Industrial Average up 0.16% and the S&P 500 gaining 0.33% as of 3:15 p.m. EST. In early trading, news of stiffer requirements for home buyers in China had stocks sinking, and it's still holding some stocks back. Chinese officials said they would require higher down payments and mortgage rates on second homes. They'll even tax profits on second homes at 20% in an effort to slow down real-estate speculation.
The news has shares of Alcoa and Caterpillar down 1.4% and 1.9%, respectively. Both companies rely on growth in China for demand, and there's a bit of worry that growth may slow in 2013. I don't think curbs on second homes will have a huge impact on growth in China. They may actually keep the market from overheating like the U.S. market did a few years ago. There's no reason for long-term investors to sell on today's news, even if traders are fretting about China today.
Fear over China's economic growth also pushed oil below $90 per barrel for a period today. China is now the world's No. 1 importer of oil, so if Chinese growth slows, it will be bad for the oil trade.
On the positive side, shares of Wal-Mart pulled the Dow higher, gaining 1.9% today. Walmart Foundation president Sylvia Mathews Burwell was chosen as the new head of the Office of Management and Budget by President Obama today. The company also announced plans to install 4.7 MW of solar power in Ohio, which would make it the state's largest solar-power generator. Wal-Mart is one of the country's largest owners of commercial solar, which is a great revenue generator given the availability of rooftop space.
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The article Wal-Mart Helps Dow Reverse Early Losses originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw. The Motley Fool has no position in any of the stocks mentioned. 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.
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