3 p.m. The remarkable market comeback continues. The Dow Jones Industrial Average clawed back more than 580 points of its 589 point drop Wednesday. In fact, if it wasn’t for Walt Disney stock the Dow would be up on the day.
Disney (ticker: DIS) stock is down 4.9%, after earnings disappointed investors, costing the Dow 48 points. Overall, 14 of the 30 Dow stocks are now up on the day. Coca-Cola (KO) leads the way up more than 2%. Coke is contributing 7 points to the Dow Wednesday.
A portfolio of 30 stocks is supposed to offer investors enough diversification. At least, that’s what financial theory says. Still, one stock can have an outsize impact on a portfolio with that many holdings, especially when that index is price weighted, as the Dow is.
That’s the case today, meaning the underlying move of the index is a little more bullish that then headline number suggests.
Write to Al Root at firstname.lastname@example.org