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Wednesday
Oct242012

Dow 30 -- A Bunch of Losers

To say that Dow 30 stocks have had a rough earnings season would be the understatement of the year.  Since Alcoa (AA) glowingly kicked off earnings season on October 10th with a decline of 4.60%, we've seen bloodbath after bloodbath for Dow stocks reporting earnings.  So far this season, 17 Dow stocks have released their quarterly results, and 15 of them have declined on the day of their reports!  Just two Dow stocks -- Johnson & Johnson (JNJ) and Caterpillar (CAT) -- have managed to react positively to earnings, and they only went up a little more than 1%.

Below is a table of the 17 Dow stocks that have reported this season.  For each stock, we highlight its one-day change in response to its earnings report.  (For companies that report after the close, we use the next day's change.)  As shown, the average Dow stock has declined 2.23% on its report day.

Because of the way it's weighted (price instead of market cap) and its small sample size, the investment community barely pays attention to the Dow anymore anyways.  With the amount of losers in the index this earnings season, the Dow isn't making a very good case to draw investors back in.  The "Dogs of the Dow" are supposed to be just the 10 highest yielders in the index, but these days the entire index seems to be made up of dogs.