Back to Main

Market Wrap-Up for Oct.19

Posted: 10/19/2012 4:11:00 PM
Referenced Stocks: BA;BHI;CAT;COF;GE

Poor earnings fundamentals caught up to the markets today, as we saw plenty of well-known companies feeling selling pressure from investors.

Yesterday's early release of disappointing Google ( GOOG ) numbers set the stage for weak after-hours and Friday morning sessions. Some of the biggest disappointments we were watching today included Parker-Hannifin ( PH ), McDonald's ( MCD ), Microsoft ( MSFT ), General Electric ( GE ), and Baker Hughes ( BHI ). There were some pockets of strength however in today's weak tape. Honeywell ( HON ) and Capital One Financial ( COF ) bucked the early selling following better-than-expected results.

We've covered all of this week's pivotal earnings reports in depth on, so be sure to check out The Dividend Daily for all the latest important news in the world of dividend stocks.

Remembering the Crash

The business media is having a ball with the 25th anniversary coverage of the Black Monday Crash of 1987. The thing is, the media circles this date on its calendar literally every year as a way to get investors back on the ledge and keep them moving in and around the markets. This practice goes hand in hand with most of the media focus today pushing investors to check the financial scoreboard as frequently as possible.

As a result, many modern market watchers are more like gamblers than real investors. It's gotten to the point where most people will simply ask "What did the market do today?" to get a gauge on the state of stock investing. You can bet there will be plenty of discussion on whether another stock market crash similar to 1987 could happen today. I'm sure there will be guests on both sides of this potential scenario paraded on business television all day long.

Anyone that reads my newsletters knows I shake my head often when I talk about today's business media and the "cheap pop" tactics they use to bring in ratings and placate advertising sponsors. As I always say, you should find yourself a few key sources of financial information that can keep you focused on building wealth. The rest is nothing but noise.

Consider what really matters to your bottom line, and leave the sideshows to others who think entertainment is essential to their investing results.

Dividend Stock Removed from Recommended List

We removed another dividend stock from our Best Dividend Stocks List this morning. We still like the company overall, but would wait to add new money to the shares for now. Check out the name we downgraded along with a full explanation here .

Looking ahead to the next week for stocks, fourth quarter earnings will continue to pick up considerably. On tap are results from the likes of Caterpillar ( CAT ), Boeing ( BA ), Altria Group ( MO ), and Procter & Gamble ( PG ), just to name a few. The focus will also continue to be on the economic data, the Presidential election, and as usual, the latest Wall Street analyst calls.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .