Why the Dow May Break Its Record-Setting Streak: General Electric Company (GE), Tronox Ltd (TROX)

General Electric Company (GE)After four straight days of record highs, the Dow Jones Industrials find their streak in jeopardy this morning. Analysts are pointing to negative news from China, where retail sales and industrial production rose less than expected and consumer inflation rose sharply from the previous month. In particular, industrial-production growth fell below 10% for the first time in four years. Meanwhile, in Europe, Italy had its sovereign-debt rating downgraded to “BBB+,” with a negative outlook suggesting the potential for further declines. Yet even with all these headwinds, the Dow sits at breakeven as of 10:45 a.m. EDT, although broader markets are down slightly.

General Electric Company (NYSE:GE) is among the Dow’s decliners, falling about 1.1%. CEO Jeff Immelt blamed the difficult political environment for some of the reasons why major U.S. corporations haven’t spent as much money on capital expenditures as policymakers would like. Pointing to the budget debate in Washington and the need for tax reform, Immelt instead believes that international growth, especially in emerging markets, is the key to GE’s future success.

Outside the Dow, Tronox Ltd (NYSE:TROX) dropped 3.9% after getting an analyst downgrade. The specialty chemical maker produces pigment and mineral sands. In its most recent financial report a couple of weeks ago, Tronox Ltd (NYSE:TROX) noted substantial weakness in its pigment sales, as revenue plunged due to falling prices for titanium dioxide. Still, a rebound in the housing market could pull Tronox Ltd (NYSE:TROX) up in the future.

On the plus side, Heckmann Corporation (NYSE:HEK) has climbed 3.4% in advance of its quarterly release this afternoon. The company has been a big player in providing water services to drilling companies using hydraulic-fracturing methods to extract oil and gas, and given the high levels of activity in the industry despite fairly low prices, Heckmann stands to see demand for its services increase over time.

The article Why the Dow May Break Its Record-Setting Streak 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 owns shares of General Electric and Heckmann and has the following options: Long Jan 2014 $4 Calls on Heckmann and Short Jan 2014 $3 Puts on Heckmann.

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

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 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

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!