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The Dow Now: Stocks Flat After Index Hit Four-Year High on Tuesday


GE and JPMorgan are among the gainers today.

MINYANVILLE ORIGINAL Despite good news from Germany, the Dow Jones Industrial Average (^DJI) stayed relatively flat in midday trading after the index closed at a more-than-four-year high yesterday.

Germany's Federal Constitutional Court decided to throw out a request for an injunction against the European Stability Mechanism bailout fund, paving the way for Germany to provide financial support to beleaguered eurozone nations. Nonetheless, the Dow is up 0.16% to 13,344.51 as of 12:07 p.m. EDT.

"Buy the rumor, buy the news continues to be the market pattern as long as participants have their central-bank beer goggles on, which turns all news into good news," Peter Boockvar, an equity strategist at Miller Tabak, told MarketWatch.

Among leading Dow gainers today are General Electric (GE) (+0.65% to $21.73) and JPMorgan (JPM) (+0.95% to $39.98). According to a Bloomberg report, GE is considering selling its 33% stake in Thailand's Bank of Ayudhya as part of its plans to reduce the size of its GE Capital branch. The Thai bank has a market cap of $6.7 billion, which puts GE's stake at a value of about $2.2 billion.

Meanwhile, at a financial services summit on Tuesday, JPMorgan CEO continued to defend big banks and criticize Dodd-Frank regulations.

The US has the "best, widest, deepest, and most transparent capital markets in the world. Let's make sure we keep that before we do a bunch of stupid stuff that destroys that," said Dimon, according to Dealbook.

Besides JPMorgan, two of the other three Dow financial stocks are up in midday trading. American Express (AXP) is up 0.19% to $57.34, while Travelers (TRV) is up 0.95% to $67.58. The bellwether Financial Select Sector SPDR ETF (XLF), which tracks all financial stocks in the S&P 500, is up 0.45% to $15.75.

Bank of America (BAC), however, is down 0.66% to $8.97. DuPont (DD) also fell 1.04% to $50.52.

Twitter: @sterlingwong
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