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The Dow Is Getting Blasted

Sam RoOct 17, 2013, 19:12 IST

Gene Page / AMC

U.S. markets are open and stocks are selling off.

The S&P 500 is down 5 points or 0.3%.

But the Dow is off by 110 points or 0.7%.

The Dow is getting slammed by sell-offs IBM and Goldman Sachs, two of the three largest constituents of the index.

You see, the Dow is a price-weighted index, which means a stock with a high per-share price will have a greater influence on the index's fluctuation. A one-point move in any single Dow stock moves the Dow by 6.4219 points.

IBM is down $12.52, which hacks 80 points from the Dow.

Goldman is down $4.42, which shaves 28 points from the Dow.

So that's 108 of the 110 point sell-off in the Dow.