The Dow Jones Industrial Average (DJIA) is clearly in fighting shape. The heavyweight index has already pounded out 17% gains this year, on top of gains of 10% to 11% in 2010, 2011 and 2012 as well. Yet a quick look at what’s not working in the Dow gives a glimpse of the index’s weak points. Four of the Dow’s 30 stocks are lagging behind the broader index by a wide margin. Yet only one of those can simply be seen as having an off year due to cyclical economic factors. The other three simply lack the strength and… Read More
The Dow Jones Industrial Average (DJIA) is clearly in fighting shape. The heavyweight index has already pounded out 17% gains this year, on top of gains of 10% to 11% in 2010, 2011 and 2012 as well. Yet a quick look at what’s not working in the Dow gives a glimpse of the index’s weak points. Four of the Dow’s 30 stocks are lagging behind the broader index by a wide margin. Yet only one of those can simply be seen as having an off year due to cyclical economic factors. The other three simply lack the strength and stamina to duke it out for the long haul, and you might want to reconsider their place in your portfolio. The four big laggards: 1. AT&T (NYSE: T ) Ma Bell’s shares were generating a small loss for the year before the recent Washington fiscal agreement pushed it slightly into the black. If the market retreats from the current euphoria by year’s end, AT&T will surely end up posting a down year. In fact, short sellers are anticipating such a move. As I noted last month, both AT&T and Sprint (NYSE: S) have seen rising short interest in recent months. Read More