Stocks Fell on Economic Concern. Dow Laggards: HPQ, T, GE, MMM, and BAC

Published on Friday, 20 August 2010 18:26 Written by Christopher Lynn

New York, August 20^th (TradersHuddle.com) – Stocks fell, extending a second straight weekly decline for the Dow Jones Industrial Average and the S&P 500. Concern over economic growth pushed energy and industrial shares lower, dragging on the overall market. Bearish action in expiring August options added to the downward pressure.

The market started to the downside early on, as the overhang of yesterday’s dismal economic data pushed market participants to push equities lower on concern the economic recovery will falter. Stocks closed off their worst levels, as they found support in midday trade and started to move to the upside.

The NASDAQ outperformed the overall market as Intuit (NASDAQ:INTU), the financial management and tax preparation software provider, surged more than 15% after it posted a profit of $1.78 per share and announced a $2 billion repurchase program. Tech stocks particularly semiconductors also helped, lifting the tech heavy index. Marvel (NASDAQ:MRVL), the maker of integrated circuits for communications-related markets, jumped more than 8% after it announced a $500 million share repurchase program.

Despite the technology sector turning higher, Hewlett Packard (NYSE:HPQ), the largest PC maker in the world, tumbled 2.23% to $39.85, posting the biggest percentage decline in the Dow Jones Industrial Average, after it reported its earnings report yesterday was in-line with analysts’ estimates.

Energy, Industrials, and telecom dragged on the overall market, with utilities, staples, along with technology turning positive for the session. The industrial scetor felt the economic jitters and the Dollar strength, with the Dollar Index reaching its best level since July. General Electric (NYSE:GE), the diversified conglomerate maker of aircraft engines and power turbines, and 3M (NYSE:MMM), the diversified manufacturer maker of Post-It Notes and respirators, led the sector lower after falling at least 1.41% for the session. GE and 3M were the third and fourth worst Dow components, respectively.

AT&T (NYSE:T), the owner of the second largest U.S. wireless carrier, helped dragged the telecom sectors, after it posted the second biggest decline in the blue chip index. Shares of AT&T fell 1.93% to $26.45 on the session.

Energy stocks fell 1.2% as crude oil prices dragged on the sector. Crude oil fell 1.3% to $73.85 per barrel on concerns over economic activity and its impact on fuel demand.

Financials were also weaker, with Bank of America (NYSE:BAC), the largest U.S. lender, rounding up the five worst Dow components, as shares dropped 1.15% to $12.87. After the close, Fitch Ratings upgraded Bank of America’s preferred stock rating to investment grade of BBB- from BB- and its individual stock rating to C from C/D.