Hewlett-Packard Company (HPQ), The Dogs of the Dow (.DJI) Are Outperforming Their Index

US Change in Nonfarm Payrolls data by YCharts.

The worrisome part of the report was that the largest drop was from the retail sector, which shed 24,000 jobs. This shift perhaps indicates that consumers are beginning to feel the effects of the payroll tax increase and are spending less. We don’t have long to wait for more reports on the retail situation as earnings season starts on Monday, with Alcoa Inc (NYSE:AA) the first to report.

Movers and shakers
The biggest mover this past week among the Dogs of the Dow was Hewlett-Packard Company (NYSE:HPQ), which fell 7.84%. Hewlett-Packard Company (NYSE:HPQ)’s shares sank this week for two reasons. First, on Tuesday Hewlett-Packard Company (NYSE:HPQ) was down 5.2% after Goldman Sachs downgraded the company from “hold” to “sell,” citing weakness in the PC industry that will pressure prices and margins.

Then on Thursday, the stock dropped 1.4% after the three embattled members of the board of directors announced they will relinquish their posts at the next board meeting in May. At last month’s Hewlett-Packard Company (NYSE:HPQ) annual meeting, three board members found themselves on the hot seat after proxy firm Institutional Shareholder Services recommended that investors vote against them. The board members — Chairman Ray Lane, audit committee head G. Kennedy Thompson, and finance and investments committee head John Hammergren — were all in charge during Hewlett-Packard Company (NYSE:HPQ)’s acquisition of Autonomy for $10 billion in 2011. Hewlett-Packard Company (NYSE:HPQ) wrote down that acquisition by $8.8 billion last year and accused Autonomy’s former management of inflating sales. The board members squeaked by with narrow majority votes, with Lane getting 58%, Thompson getting 55%, and Hammergren getting 54%. Typically, any votes with less than a 70% majority are looked upon unfavorably. Although Lane will no longer be chairman, he will remain on the board, while the other two are leaving the board altogether.

The article The Dogs of the Dow Are Outperforming Their Index originally appeared on Fool.com.

Find Dan Dzombak on Twitter, @DanDzombak, or on his Facebook page, DanDzombak. He has no position in any stocks mentioned. The Motley Fool recommends Intel, Johnson & Johnson, and McDonald’s and owns shares of General Electric, Intel, Johnson & Johnson, and McDonald’s.

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