Mixed Housing Data Has No Effect on the Dow: The Boeing Company (BA), Johnson & Johnson (JNJ), Caterpillar Inc. (CAT)

The National Association of Realtors released data this morning indicating that December’s existing-home sales fell by 1% from November. While the month-over-month number decreased, December of 2012 beat December of 2011 by 12.8%. Fool John Maxfield believes this year-over-year increase was a result of three things: record-low interest rates, a lower supply of homes on the market, and cash-rich investors buying up homes with the hopes of turning a profit later down the road.

At this time is doesn’t seem investors are too concerned about the slight drop in housing sales. As of 12:50 p.m. EST, the Dow Jones Industrial Average is up 30 points, or 0.22%, to 13,680. Eleven of the index’s 30 components are trading lower so far, and three of those losers are The Boeing Company (NYSE:BA), Johnson & Johnson (NYSE:JNJ), and Caterpillar Inc. (NYSE:CAT).

The Boeing Company (NYSE:BA)

So why are they down?
Shares of Boeing are again sinking today because of the company’s troubled new 787 Dreamliner aircraft. Since the Federal Aviation Administration grounded all 787s in the U.S. last week, the company has been scrambling to find the problem that has now caused two separate incidents involving the plane’s battery system. On Sunday regulators ruled out one simple explanation for the battery issues, which raises more concerns among investors over how long this delay will last. Currently there are only 50 787s in the hands of customers, but hundreds more have been ordered, and the possibility of canceled contracts rises every day this nightmare drags on. Shares of Boeing are down 1.3% today.

This morning Johnson & Johnson announced quarterly earnings that missed analysts’ estimates. Johnson & Johnson was expected to earn $1.17 per share but only made $0.91. The company did report a much better quarterly report than it did this time last year, but that was largely due to some one-time write-offs the company took last year. Shares of Johnson & Johnson are down 0.65%.

Finally, shares of Caterpillar are down 0.8% after the company announced it had uncovered an accounting scandal at its China ERA Mining Machinery unit. Caterpillar acquired this manufacturer last year, and in an internal investigation, Caterpillar found that several managers had engaged in deliberate accounting irregularities for a number of years prior to the acquisition. It has also been announced that Caterpillar will take a $580 million charge for the company, which Caterpillar had bought for $800 million.

The article Mixed Housing Data Has No Effect on the Dow originally appeared on Fool.com.

Fool contributor Matt Thalman owns shares of Johnson & Johnson. Follow Matt on Twitter @mthalman5513. The Motley Fool recommends Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson.

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

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!