Stocks Plummet as Correction Looms

Strategic Insights -

Several stocks within the Dow Jones industrial average have dipped significantly in recent weeks, with some even meeting the criteria for a correction, a decline of 10% or more from a stock's high. Coca-Cola, for instance, has lost almost 13% since its high in July, while DuPont has plummeted a staggering 36%. The Dow itself has fallen 9.8% from its high in July, raising concerns of an impending correction.

Key Takeaways:

  • The Dow Jones industrial average is nearing a correction, with several stocks already experiencing declines of 10% or more from their highs.
  • Coca-Cola (KO) has lost almost 13% since its high in July, falling from $87.93 3/4 to $76.81 1/4.
  • DuPont (DD) has plummeted 36% since its high, closing at $53.25 on Friday after falling $1.75.
  • The merger between Tellabs (TLAB) and Ciena (CIEN) is being called into question after Ciena announced it will miss third-quarter earnings expectations, causing a significant decline in both stocks.
  • Tellabs (TLAB) fell $13.68 1/4 to $58.12 1/2, while Ciena (CIEN) dropped $17.06 1/4 to $54.12 1/2.
  • J.P. Morgan (JPM) shares jumped $9.62 1/2 to $126.87 1/2 after speculation that Deutsche Bank may be in talks to buy the company for $30 billion.
  • Lucent Technologies (LU) dropped $2.18 3/4 to $85.87 1/2 after announcing a $65 million charge for in-process research and development costs related to Lannet, a supplier acquired in July.

Statistics:

  • Coca-Cola (KO) fell 12.8% since its high in July.
  • DuPont (DD) plummeted 36% since its high.
  • The Dow Jones industrial average has fallen 9.8% from its high in July.
  • Tellabs (TLAB) fell $13.68 3/4 on market-leading volume of 32.2 million shares.
  • Ciena (CIEN) lost $17.06 1/4 to $54.12 1/2 on trading volume of 24.4 million shares.
  • J.P. Morgan (JPM) shares jumped $9.62 1/2 to $126.87 1/2.
  • Lucent Technologies (LU) announced a $65 million charge for in-process research and development costs related to Lannet.

Sources:

  • "Coca-Cola" ticker symbol KO.
  • "DuPont" ticker symbol DD.
  • "Tellabs" ticker symbol TLAB.
  • "Ciena" ticker symbol CIEN.
  • "J.P. Morgan" ticker symbol JPM.
  • "Deutsche Bank" spokesman Armin Niedermeier.
  • "Lucent Technologies" (LU) press release announcing a $65 million charge for in-process research and development costs related to Lannet.