Morning Dow Jones Industrials Report: General Electric Company (GE), The Boeing Company (BA) Drop as the Dow Dips; Chevron Corporation (CVX) Climbs

Although we don’t believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes — just in case they’re material to our investing thesis.

The Federal Reserve’s decision to start cutting its bond-buying led to a nearly 300-point rally Wednesday for the Dow Jones Industrials . This morning, though, the Dow Jones Industrials  gave back some ground, falling 15 points as of 11 a.m. EST as investors considered the long-term implications of the end of quantitative easing. General Electric Company (NYSE:GE) and The Boeing Company (NYSE:BA) were among the stocks contributing to the Dow Jones Industrials’s decline, while Chevron Corporation (NYSE:CVX) was among the best performers to the upside.

General Electric Company (NYSE:GE) fell 1.4%, as investors weren’t satisfied with the conglomerate’s plan to boost revenue and earnings from its manufacturing businesses. CEO Jeff Immelt detailed plans to seek earnings growth of 10% or more from its core divisions, with major contributions expected from the aerospace engine-manufacturing segment and its oil-field services and equipment business. Yet even combined with cost-cutting initiatives, investors worry that the stock’s already impressive gains could put a lid on how much any growth from the company will translate into higher share prices.

The Boeing Company (NYSE:BA)

The Boeing Company (NYSE:BA) dropped 0.6% in the face of continued labor issues with its machinists’ union. Dozens of union members held a rally yesterday at The Boeing Company (NYSE:BA)’s primary Everett, Wash., facility, demanding the right to vote on a proposed deal that the union’s leaders turned down. With The Boeing Company (NYSE:BA) threatening to move production of the next-generation 777X outside the state, management and its Washington-based workers are playing a high-stakes game of chicken in the fight over whether the company should still provide a traditional pension plan and other benefits. With a huge number of states looking to host 777X production, The Boeing Company (NYSE:BA) appears to be in a strong position, but potential negative publicity from its labor strife could cause problems in future negotiations with its workers.

Chevron Corporation (NYSE:CVX) climbed nearly 1% as oil prices rose once again, leaving the price of West Texas Intermediate crude just $1.50 shy of the key $100 per barrel mark. Investors hope the Fed’s pronouncement about economic growth could lead to greater demand for energy in the near future, which could drive further oil-price gains. Moreover, Chevron Corporation (NYSE:CVX) is positioning itself well worldwide, with well-situated natural gas finds that could power a new industrial revolution in Asia. Overall, if the economy keeps firing on all cylinders, Chevron Corporation (NYSE:CVX) could be a big winner going forward.

 

The article Morning Dow Report: GE, Boeing Drop as the Dow Dips; Chevron Climbs originally appeared on Fool.com.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Chevron Corporation (NYSE:CVX). The Motley Fool owns shares of General Electric Company (NYSE:GE). 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.


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