Why Microsoft Corporation (MSFT)’s Drop Isn’t Holding the Dow Back

The Dow Jones Industrials is continuing its run toward another record high today, as a relative lack of troubling news concerning global markets or the government budget impasse allowed the positive momentum of yesterday’s record to continue today. By 12:45 p.m. EST, the Dow was up 42 points, shrugging off a drop in new factory orders that ate into more extensive gains earlier in the day.

Microsoft Corporation (NASDAQ:MSFT)But Microsoft Corporation (NASDAQ:MSFT) didn’t join in the Dow’s gains, falling more than 1% after regulators in the European Union imposed a fine of more than $730 million on the software giant. The fine is the latest in a string of decisions against Microsoft Corporation (NASDAQ:MSFT) and comes amid allegations that the company failed to comply with the terms of its early 2009 settlement with regulators, as it didn’t offer software on tens of millions of computers that should have given users a full suite of competing Internet browsers to choose from. Microsoft Corporation (NASDAQ:MSFT) has paid billions in fines, but it continues to draw scrutiny regarding antitrust concerns over the way it handles its various software offerings.

Elsewhere, unmanned-aerial-vehicle specialist AeroVironment, Inc. (NASDAQ:AVAV) plunged 11.4% after a poor earnings report last night. The company not only missed top- and bottom-line estimates by a wide margin, but also cut its guidance for 2013, blaming delays in government orders for the shortfall. As budget pressures increase, it’s hard to see the Department of Defense getting any faster with its order process, so these problems could plague the industry for a long time to come.

Finally, Hovnanian Enterprises, Inc. (NYSE:HOV) fell more than 2% even after reporting a smaller-than-expected loss for its most recent quarter. Although rising contracts and backlogs led CEO Ara Hovnanian to predict that the company will become profitable this year, investors have already taken a lot of good news into account in bidding up the stock throughout the past year. Investors will have to see increasingly strong results from Hovnanian in order to justify further gains from current lofty share prices.

The article Why Microsoft’s Drop Isn’t Holding the Dow Back 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 AeroVironment. The Motley Fool owns shares of AeroVironment and Microsoft.

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 World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

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

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!