Dow Settles Slightly Lower After Early Triple-Digit Dip

After three strong days of triple-digit gains, the Dow Jones Industrial Average
opened lower by triple digits amid growth concerns from Europe, but then
recovered, sitting about 0.7% off at around 11,400 in the morning session.
Economic growth in Germany fell to 0.1% in the second quarter from 1.16% in the
first quarter. Strong earnings were released by Wal-Mart (NYSE: WMT ) and Home
Depot (NYSE: HD ). The financial sector continued to suffer, with Bank of
America (NYSE: BAC ) and JP Morgan (NYSE: JPM ) declining in early trading. The
Dow Jones Industrial Average is now up 1.25% for the week but down 1.7% for the
year. Bank of America was off about 4%, around 30 cents, to under $7.50 on news
that uber-investor John Paulson was selling. Research released on Bank of
America this morning also focused on the struggles ahead as it deals with its
mortgage woes from its Countrywide Credit acquisition from 2008. Bank of America
is up about 20% for the week on rebound trading, but it is down more than 20%
for the month, 30% for the quarter and 40% for the year. Bank of America is the
worst-performing stock on the Dow for 2011. Down by more than 2% in early action
was Walt Disney (NYSE: DIS ), losing about 70 cents a share to under $33.
Recession concerns had Merrill Lynch issuing a cautionary note of Walt Disney
and other media and entertainment stocks. Up almost 2% for the week, Disney is
down almost 15% for the month and 18% for the quarter. Alcoa (NYSE: AA ) was
down on global growth concerns as the aluminum maker fell by more than 2%, about
25 cents, to trade around $12 per share. Bouncing back by more than 11% this
week, Alcoa still is down about 20% for the month, 25% for the quarter and 30%
for the half-year. Strong earnings had Home Depot higher by more than 5% to over
$33, a gain of more than $1.60. Yesterday, Home Depot was up thanks to poor
numbers from its main competitor, Lowes. Reporting profits rising by 14% today,
Home Depot is up about 9% for the week and almost 20% for the half-year. Home
Depot also received a positive analyst recommendation yesterday. Despite many
recent gloomy articles about its future, Wal-Mart rose by about $1.30, more than
2.5%, to over $52. Profits at Wal-Mart rose by 5.7%, despite U.S. consumer
confidence now at a 30-year low. Wal-Mart is up almost 3% for the week.
Hewlett-Packard (NYSE: HPQ ) was up about 0.35%, a gain of around 11 cents, to
over $32.50 on a favorable analyst article this morning. Up more than 5% for the
week, Hewlett-Packard is down about 20% for the quarter. The tech sector was
weak in morning trading because of concerns about the global economy. Jonathan
Yates does not own any of the stocks mentioned in this article.