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Now on the Dow: Knight Capital Looks to JPMorgan for a Life Preserver


Most Dow components are down today.


Today is not a great day for the blue chips.

Despite Mario Draghi's pledge to do "whatever it takes" to keep the euro together, markets aren't very excited about the European Central Bank's plan to purchase bonds to bring down yields for the most troubled eurozone countries. The Dow Jones Industrial Average (^DJI) is trading down by half a percentage point today at 12,907.07. This is just a modest 5.64% rise year-to-date, and 8.77% over the index's value one year ago.

The biggest gainer in the 30 components was Caterpillar (CAT), trading at $84.01 per share, up 1.65% over yesterday's close. The earth-mover company just completed the $750 million sale of its third-party logistics operations to Platinum Equity. Under the deal, Caterpillar will retain a 35% stake in Caterpillar Logistics Services. The business will be established later as a separate brand.

Intel (INTC) and Hewlett-Packard (HPQ) got a lift today after a California judge ruled that Oracle (ORCL) breached contract when it decided to stop developing software to support HP's servers that run on Intel's Itanium chips. HP might be able to shake half a billion out of Oracle if the ruling sticks. And Oracle will go back to supporting Itanium. HP and Intel are up 0.91% and 0.50% respectively. These two are among only five gainers in the Dow today.

The biggest loser today is JPMorgan Chase (JPM). A technical glitch resulted in Knight Capital (KCG) executing $5 billion in erroneous trades yesterday, leading to a pre-tax loss of $440 million. This is greater than Knight Capital's $355.9 million market capitalization today, after a 50.1% drop in the stock's price. The company is reportedly seeking an emergency loan from JPMorgan Chase.

[Editor's note: See also Oh What a Kinght! Glitch Triggers Extreme Stock Moves]

Twitter: @vincent_trivett
No positions in stocks mentioned.
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