For the third day in a row, the Dow Jones Industrial Average is moving by triple digits. Last Friday the Dow rose 149 points, yesterday it tumbled 129 points, and as of 12:45 p.m. EST today it’s up 104 points, or 0.75%, to 13,984. Only two of its 30 blue-chip components are down so far. The other major indexes are also moving higher, with the S&P 500 up 0.9% and the NASDAQ up more than 1%.
So who wasn’t invited to the party?
Shares of International Business Machines Corp. (NYSE:IBM) are down 0.3% today. The company launched a new server line this morning that’s priced just below $6,000. The company said it wants to take on Hewlett-Packard Company (NYSE:HPQ), Oracle Corporation (NASDAQ:ORCL), and other competitors by offering a more affordable server and Power Systems unit. IBM is attempting to attract the small to medium-sized business with this lower-priced product. Investors may be selling off shares due to fear that the low-price-point servers will ultimately hurt the brand. Additionally, future clients may decide to trade down to the cheaper products, rather than purchasing top-of-the-line units, which will likely hurt margins.
Shares of United Technologies Corporation (NYSE:UTX) are also trading lower today, down about 0.3%. It was announced this morning that the company and the Pentagon finally came to an agreement for the next patch of F-35 fighter engines. United Technologies’ Pratt & Whitney unit will supply 32 engines, support, and spare parts. The Pentagon did not disclose what the purchase price was, but Lieutenant General Chris Bogdan, the F-35 program executive officer, said, “Engine prices have decreased, and I appreciate everyone’s commitment to drive cost out of the program.” Shares are likely lower because of the belief that the engines were sold at a lower price than the market had previously expected.
The article Dow Moves More Than 100 Points for Third Day in a Row originally appeared on Fool.com and is written by Matt Thalman.
Fool contributor Matt Thalman has no position in any stocks mentioned. Follow Matt on Twitter @mthalman5513. The Motley Fool owns shares of International Business Machines (NYSE:IBM).
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