Blame IBM and United Health for the Dow’s 46 Point Drop

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Illustration by Michael Haddad

10:19 a.m. The Dow Jones Industrial Average erased early gains—and it is all the fault of International Business Machines (IBM) and UnitedHealth Group (UNH).

The Dow Jones Industrial Average has dropped 46.48 points, or 0.2%, to 26,4016.18, while the S&P 500 has fallen 0.1% to 2903.94, so it’s not like the rest of the market is particularly strong.

The price-weighted Dow, however, would be up if it weren’t for two stocks: IBM and UnitedHealth. Both have price tags well over $100 a share, and both are getting hit hard today, though for different reasons.

IBM stock has slumped 7.46, or 5.1%, to $137.68, after its sales fell short of analyst expectations. That’s accounted for 47.99 points of the Dow’s decline. UnitedHealth stock has fallen 6.65, or 3%, to $214.31, on continued fears about “Medicare for All.” Its drop accounts for 43.74 of Dow downside.

Together, the two stocks account for just nearly 92 points of downside, and without them, the index would be up just over 45 points. Today, you really can blame just two stocks for the decline.

Write to Ben Levisohn at Ben.Levisohn@barrons.com