Hewlett-Packard Company (HPQ), Verizon Communications Inc. (VZ): Why Today’s Dow Justifies Ignoring the Fed

Page 1 of 2

Stocks held flat for the entire day up until the Federal Open Market Committee’s release this afternoon, when the Dow Jones Industrial Average dramatically plunged to session lows before rebounding just as fast. As of 2:30 p.m. EDT, the blue-chip index has lost a moderate 55 points after investors unleashed a furious sell-off in the wake of the Fed’s announcement, and then a second wave of traders swooped in to buy. Most Dow stocks are in the red now, but should you be concerned? Let’s check out what the Fed had to say — and why the Dow’s biggest movers are winning or losing today.

Volatility strikes again
All eyes have been on the Fed this week — a few too many eyes, as short term-focused Wall Street traders have looked for cues from the central bank as to the future of quantitative easing. Surprisingly, the dramatic sell-off wasn’t sparked by any change in the Fed’s stimulus plan. On the contrary, the FOMC decided to continue bond-buying at its current $85 billion-a-month rate. It’s another reminder that smart investors should focus on the fundamentals of businesses and stocks, rather than watch the movements of a frequently irrational market that has blown up over nothing today.

Hewlett-Packard Company (NYSE:HPQ)

Hewlett-Packard Company (NYSE:HPQ) has kept investors smiling today, up 1.1% so far to rank among the Dow’s leaders. Shareholders will have to be patient with the company as it continues its turnaround plan, but Hewlett-Packard Company (NYSE:HPQ)’s making moves to swing away from the downtrodden PC market. Former Hewlett-Packard Company (NYSE:HPQ) personal-computer chief Todd Bradley was reassigned as a vice president of strategic growth today, leaving the company’s dwindling computer business to focus instead on growing the firm’s geographic standing in nations such as China. While it’s a bit of a disappointment for Bradley, Hewlett-Packard Company (NYSE:HPQ)’s in desperate need of a shake-up in its PC business as it looks to transition to mobile and other higher-growth areas.

A number of other Dow stocks aren’t faring as well today, and Verizon Communications Inc. (NYSE:VZ)‘s the worst of the bunch, with shares down 1.5%. America’s leading telecom company announced that it’s weighing a potential entry into the Canadian market with a possible acquisition of Toronto-based wireless carrier Wind Mobile. Wind Mobile boasts more than 600,000 subscribers, and with the Canadian government pushing wireless competition in recent years, the purchase may not be too expensive for Verizon Communications Inc. (NYSE:VZ) to expand north of the border. However, Verizon Communications Inc. (NYSE:VZ) would likely have to bid against other Canadian suitors for the company, which could certainly drive the price of the deal higher.

Page 1 of 2
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 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways 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

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

The 10 Biggest Outlet Malls in USA

The 5 Most Popular Rap Songs of All Time

The 10 Countries that Eat the Most Meat

The10 Most Expensive Countries to Fly To

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!