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.

Why the Dow Isn’t Rising On General Electric Company (GE)’s News

General Electric Company (GE)In recent months, all it took to push the market higher was a prominent company announcing unexpected good news. Considering last night’s news from General Electric Company (NYSE:GE) , it would have been reasonable to assume that the Dow Jones Industrial Average (INDEX:.DJI) would head higher today. Yet even with retail sales data showing modest growth, concerns about the political fallout of the State of the Union speech last night have held markets in check. As of 10:50 a.m. EST, the Dow is down 22 points, losing its grip on the 14,000 level. Broader market measures show modest gains.

Pushing GE higher by more than 3% is news that NBC Universal partner Comcast Corporation (NASDAQ:CMCSA) will buy out GE’s 49% stake in the media venture. With GE collecting a whopping $16.7 billion from the deal, the company said this morning that it would return $18 billion to investors through dividends and stock buybacks. Comcast soared 6% on the deal.

On the downside is McDonald’s Corporation (NYSE:MCD) , which has fallen 1.3%. In his speech last night, President Obama called for hikes to the minimum wage. With fast-food restaurants among the biggest employers of low-wage workers, such a rise would potentially hit McDonald’s a lot harder than other major companies whose employees earn higher wages.

Finally, Cliffs Natural Resources Inc (NYSE:CLF) has plunged 19% after announcing massive charges in its earnings report and slashing its dividend. Although the charges had been preannounced, news that Cliffs would cut its annual payout from $2.50 per share to $0.60 per share was definitely a negative surprise. With the stock’s former 7% dividend yield having been a major drawing point for the stock, income investors will likely flee the company until it can demonstrate a lasting turnaround in the hard-hit iron-ore and metallurgical-coal markets.

The article Why the Dow Isn’t Rising On GE’s News originally appeared on and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends McDonald’s. The Motley Fool owns shares of General Electric and McDonald’s.

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.