Why Salesforce Smacked Down the Dow Thursday
The stock market has done well over the past several weeks, as investors have grown more comfortable with the prospects for long-term growth even as inflation has remained obstinately high. The Dow Jones Industrial Average (DJINDICES: ^DJI) has performed the best of the major stock market indexes, and Wednesday's big Fed-spurred jump brought the Dow to within 7% of its all-time high in a colossal bounce from its bear market declines earlier in the year.
Yet the Dow isn't moving higher on Thursday, and it largely has Salesforce (NYSE: CRM) to blame. A steep drop in the share price of the customer relationship management software pioneer is weighing on the price-weighted value of the Dow, and it's just the latest example of the challenges that have faced software companies that rely on subscription-based revenue for a large portion of their overall sales.
As of early Thursday afternoon, shares of Salesforce were down almost 10%. The roughly $15 drop in the CRM software provider's stock price represented more than 100 points of downward pressure on the Dow, making it responsible for the majority of the average's 170-point drop as of 1 p.m. ET.
Source Fool.com
