IBM, Chevron, Boeing: Dow Losers (Update 1)

The Dow Jones Industrial Average finished out 2011 with a decrease of 0.6%, or 70 points, on Friday to 12,217.56, led lower by blue-chip tech, financial and energy issues. For the year, the Dow finished with a gain of 5.5%, proving that amid the European sovereign debt crisis, the U.S. economy offered some shelter. The Dow bested the S&P 500, which had a losing day on Friday to finish 2011 in the red by a hair with an annual decline of 0.04%.

Breadth within the blue-chip index was negative with 22 of the 30 components finishing lower. Overall volumes were light as is typical during the holiday week bridging Christmas and New Year's Day. IBM(IBM) was the biggest decliner of the day, losing 1.24% to $183.88. Shares of Big Blue rose more than 25% in 2011. Warren Buffett announced a 5.5% stake in IBM, his first major foray into technology stocks, earlier this year. IBM was the second-best performer in the Dow in 2011, behind only fast food king McDonalds(MCD). Critics of the Buffett investment noted he was buying into IBM while it hit multi-year highs, but Buffett has outlined his investment as one based on a five-year outlook. Analysts seem to agree headed into 2012. The Armonk, N.Y.-based computer company has been a buy on many analysts lists over the past decade and appears on TheStreet's list of 21 stocks that almost all experts are bullish on.Shares of Chevron(CVX) were also lower, declining 1% to $106.40. The energy company's shares increased more than 16% in 2011, as the safety of dividends and high crude oil prices buoyed the shares of the Big Oil stocks towards the end of the year. Exxon Mobil(XOM) shares also ended 2011 up 16%.Chevron, though, continues to face a string of negative headlines resulting from an offshore oil spill in Brazil which will carry over into 2012. On Friday, it was hit with a third fine by Brazil's oil watchdog, ANP, for the November spill in its Frade field off the coast of Rio de Janeiro state, according to a Reuters report. The size of the fine wasn't specified.The larger headline in the Chevron oil spill story is the lawsuit filed by Brazilian federal prosecutors seeking close to $11 billion from Chevron in damages. This fine would dwarf existing precedents, including those in the U.S., for calculating damages per barrel in oil spills. Boeing(BA) was the third worst Dow performer on Friday, closing with a decline of slightly more than 1% to $73.35. Boeing shares increased about 12.5% in 2011.Boeing finally introduced its 787 Dreamliner to much fanfare this year, but its shares didn't fly quite as high as expected. Jim Cramer recently wrote that although he thought Boeing's stock could hit $85 this year, it was too optimistic an outlook. Here's the price he anticipates the airliner stock will hit in 2012. Travelers(TRV) shares slid 51 cents to $59.17. The insurance stock has gained more than 6% in 2011, and 14 of the 25 analysts covering it are bullish with strong buy (4) or buy (10) ratings.Cramer recently characterized Travelers as the "best insurance company in the world and it can't get out of its own way." Cramer added that since the stock already trades at one of the highest multiples in financials, the stock won't likely go above $60 a share.



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