Cisco Systems, Inc. (CSCO), Merck & Co., Inc. (MRK), The Coca-Cola Company (KO): Will These Stocks Stop the Dow’s Record Run Today?

This morning’s movements in the Dow Jones Industrials look eerily familiar to those who have been watching the day-to-day movements of the average in recent months. The stock market opened modestly lower this morning, with most blaming general concerns, rather than any specific news, for stocks’ lackadaisical open. Yet within the first couple of hours, the Dow overcame its modest decline and turned positive, climbing 15 points as of 12:45 p.m. EDT. The broader market posted similar gains, with the S&P 500 also pushing further into record territory, rising to 1,670.

Cisco Systems, Inc.But some of the Dow’s components are under pressure today. Cisco Systems, Inc. (NASDAQ:CSCO) has led the Dow’s decliners with a loss of about 1.7%, giving back some of the huge gains the tech giant posted last week. An analyst report this morning noted that despite NetApp Inc. (NASDAQ:NTAP)‘s collaboration with Cisco Systems, Inc. (NASDAQ:CSCO) on the FlexPod validated data-center platform, Cisco Systems, Inc. (NASDAQ:CSCO) was unlikely to seek to acquire NetApp. By itself, that doesn’t justify the drop in Cisco Systems, Inc. (NASDAQ:CSCO)’s share price, but it serves as a reminder that despite Cisco Systems, Inc. (NASDAQ:CSCO)’s strong earnings report last week, the industry on the whole is suffering from intense competitive pressure that isn’t likely to subside anytime soon.

Merck & Co., Inc. (NYSE:MRK) has also dropped, falling 1.4% after the FDA expressed concerns about the side effects of the company’s suvorexant insomnia drug. Citing increased daytime drowsiness and suicidal thoughts, the FDA suggested that a smaller dose might prove equally effective while reducing side effects. A panel of outside experts is expected to rule on the drug’s safety later this week, and with so much riding on Merck & Co., Inc. (NYSE:MRK)’s ability to boost its pipeline, a negative finding could hurt the company’s chances of replacing lost revenue from off-patent drugs as quickly as it had hoped.

Finally, consumer giants The Coca-Cola Company (NYSE:KO) and The Procter & Gamble Company (NYSE:PG) have both fallen more than 1%. Neither company reported significant news today, but value investors have grown increasingly concerned about the rise in both companies’ share prices relative to their earnings. Despite their reputations as defensively oriented stocks that hold up well in market reversals, their above-market multiples seem out of line with the companies’ growth prospects. With Coke facing the potential restraint of anti-obesity sentiment and The Procter & Gamble Company (NYSE:PG) still dealing with activist investors looking over its shoulder, investors in both companies may simply see better opportunities elsewhere.

The article Will These Stocks Stop the Dow’s Record Run Today? originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Cisco Systems, Coca-Cola, and Procter & Gamble.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!