Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Exxon Mobil Corporation (XOM), Microsoft Corporation (MSFT), Intel Corporation (INTC): With the Dow at New Highs, Why Did These Stocks Fall?

Often, on the first day of the month, you’ll see a lot of buying activity as money tied to monthly paychecks and automatic investing programs comes into the market. When you combine that natural support with excellent economic news on the manufacturing and employment front, you set the stage for a massive rally like today’s. The Dow Jones Industrials climbed 128 points to a new record, but the S&P 500 had an even more momentous day, rising above the 1,700 mark for the first time.

Exxon Mobil Corporation (NYSE:XOM)But several stocks weren’t able to share in the gains. The biggest decliner in the Dow was Exxon Mobil Corporation (NYSE:XOM), which fell more than 1% after reporting worse-than-expected results for its second quarter. Net profit fell 57% from the year-ago quarter, falling almost 20% below expectations. Arguably more troubling was a 1.9% drop in oil and gas production, despite extensive efforts from the company to bolster production levels through new acquisitions. With the company’s refinery operations failing to add to earnings the way they did in past quarters, Exxon Mobil Corporation (NYSE:XOM) could face new difficulties in producing earnings growth in the future.

Tech giants Microsoft Corporation (NASDAQ:MSFT) and Intel Corporation (NASDAQ:INTC) both fell about half a percent. Investors appeared to react simply to positive results from newer-generation technology companies, with Facebook, in particular, returning to its IPO share price for the first time since its first day of trading. Moreover, with Google‘s release of its new Motorola smartphone offering, investors might be concerned about the extent to which Microsoft Corporation (NASDAQ:MSFT) and Intel Corporation (NASDAQ:INTC) have failed to capitalize on the mobile revolution, instead re-allocating their money to more growth-oriented investments in light of the big surge in stocks today.

Finally, outside the Dow, the lights went out for SunPower Corporation (NASDAQ:SPWR) today, as the solar giant fell more than 13%. It’s not entirely clear what investors were focusing on in pushing shares down, as the company beat earnings estimates last night and raised its earnings guidance, showing every sign of strength ahead. Long-term investors should likely see this as an unusual buying opportunity.

The article With the Dow at New Highs, Why Did These Stocks Fall? originally appeared on 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 Facebook, Google, and Intel. The Motley Fool owns shares of Facebook, Google, Intel, and Microsoft.

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

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.