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.

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

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

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!