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.

Hewlett-Packard Company (HPQ), JPMorgan Chase & Co (JPM), Cisco Systems, Inc. (CSCO): August’s Worst Dow Jones Industrial Average 2 Minute (^DJI) Stocks

Although we don’t believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes — just in case they’re material to our investing thesis.

Dow Jones Industrial Average 2 Minute (INDEXDJX:^DJI)

Investors hadn’t seen a month as bad as August was for the Dow Jones Industrial Average 2 Minute (INDEXDJX:^DJI) in 15 months, with the Dow Jones Industrial Average 2 Minute (INDEXDJX:^DJI) falling almost 4.5%. Even though the Dow Jones Industrial Average 2 Minute (INDEXDJX:^DJI) remains up double-digit percentages for the year, the drop of 690 points has some investors wondering if the worst declines for the market are still in the future.

Several Dow Jones Industrial Average 2 Minute (INDEXDJX:^DJI) components, however, posted much steeper losses. Let’s look at the Dow Jones Industrial Average 2 Minute (INDEXDJX:^DJI)’s worst performers in August.

Hewlett-Packard Company (NYSE:HPQ) was by far the worst performer in the Dow Jones Industrial Average 2 Minute (INDEXDJX:^DJI) in August, falling 13% for the month. The culprit was Hewlett-Packard Company (NYSE:HPQ)’s earnings report, which scared shareholders and led to nearly all of the stock’s loss in August. The company only managed to match earnings estimates and fell short with an 8% drop in revenue, but long-term investors should nevertheless take heart that HP remains disciplined in its turnaround strategy. Rather than using discounts to keep sales up, CEO Meg Whitman is focusing on keeping margins up and cutting costs — strategies that should serve Hewlett-Packard Company (NYSE:HPQ) well in the long run.
JPMorgan Chase & Co (NYSE:JPM) dropped 9.3% in August. Despite its best efforts to resolve outstanding disputes, JPMorgan Chase & Co (NYSE:JPM) continues to face new legal allegations. Early in the month, the bank said the Justice Department had targeted it in an investigation of its sales of mortgage-backed securities. Then mid-month, the SEC chimed in, investigating whether JPMorgan hired family members of government officials in China to get better treatment. Add to that an uncertain environment in the financial markets, and JPMorgan Chase & Co (NYSE:JPM) investors clearly want the bank to get itself under better control.
Cisco Systems, Inc. (NASDAQ:CSCO) posted an 8.9% loss for the month, most of which resulted from its poor guidance in its quarterly report. Although the company beat expectations in the report, CEO John Chambers said sales growth at the networking giant will slow and that margins will probably remain flat. In addition, a dramatic set of layoffs that will reduce Cisco Systems, Inc. (NASDAQ:CSCO)’s workforce by 5% highlighted the need for the company to cut costs.

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.