Stocks

The Dow Is Down and It's All Home Depot's Fault.

The Dow was up earlier this morning, despite the fact that Home Depot stock was heading lower after reporting earnings. No longer, as Home Depot’s drop has overwhelmed the other stocks in the benchmark.

The Dow was up earlier this morning, despite the fact that Home Depot stock was heading lower after reporting earnings. No longer, as Home Depot’s drop has overwhelmed the other stocks in the benchmark.

10:29 a.m. It looks like Home Depot’s big drop did knock the Dow Jones Industrial Average into the red after all.

The Dow was up earlier this morning, despite the fact that Home Depot stock was heading lower after reporting earnings. That’s no longer the case. The Dow has fallen 52.26 points, or 0.2%, to 27,983.96, and Home Depot (ticker: HD) is the reason why. Its stock has dropped 4.9% to $227.11, which accounts for 75.71 Dow points. Remove Home Depot, and the Dow would actually be higher.

Of course, we don’t get to do that. But the Dow has always been quirky thanks to its price-weighting methodology—the higher the stock price, the bigger weight it gets, market-capitalization be darned—so it’s worth taking a peek at the other indexes for a better sense of what the market is doing.

The answer: Not much. The S&P 500 has dipped 1.06 point to 3120.97, while the Nasdaq Composite is up 0.1% to 8559.59.

Markets Now is a quick take on what’s happening with the Dow Jones Industrial Average and other major market indexes. Don’t forget to check out the rest of Barron’s markets coverage.

Write to Ben Levisohn at Ben.Levisohn@barrons.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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