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The Dow Jones Industrial suffered its worst drop in a month as political turmoil in Italy rekindled concerns about the future of the eurozone. In today's After the Bell, we... 
•...wonder if this too shall pass;
•...highlight Align Technology's (ALGN) market-topping gain;
•...explain why BorgWarner (BWA) dropped to the bottom of the S&P 500.

Another Day, Another Worry

Just when everything is looking good, something comes along to mess it up, and today was no different. An Italian election that occurred weeks ago—and resulted in a choice for prime minister that happened on Friday—suddenly upended markets today, when Italy's president appointed someone else as PM. That move raised concerns about new elections that would become a referendum on whether to stay in the eurozone.

The Dow Jones Industrial Average slid 391.64 points, or 1.6%, to 24,361.45, while the S&P 500 dropped 1.2% to 2689.86, and the Nasdaq Composite fell 0.5% to 7396.59. It's funny, in a way. In the Trader column over the weekend, I warned that it wasn't time to relax even though the market finished higher last week despite problems that could, woulda, shoulda derailed it. I had no way of knowing that Italy would go from troubled to troubling, and yet here we are.

And we could remain here for a while. Capital Economics' Andrew Kenningham notes that if an election were held today, the same two populist parties would win, and then the president might reject their choice of prime minister again.

"These parties may again struggle to agree on policies and candidates which the president would be willing to approve, in which case there is a risk of a drawn-out constitutional crisis," he explains. "Meanwhile, higher government bond yields are likely to drag on economic growth, which was already fairly lackluster."

There could be good news in the middle of this mess. In the same way that trade-war concerns no longer rock the market the way once did, it no longer reacts to every twist and turn in the North Korean trade saga. "The ongoing carousel of concerns, which has been a mainstay of this bull market, continues to turn," writes SunTrust Private Wealth's Keith Lerner. "As one point of tension declines, another concern arises." Lerner, though, takes comfort in the fact that recession indicators are still benign, which means that this should just be more of the same.

And that will have to do for now.


Align Technology (ALGN) rose to the top of the S&P 500 on Tuesday.

Align gained $7.64, or 2.4%, to $326.18. There wasn’t an obvious reason for Align’s gain, but given the market’s selloff on Italy worries and renewed tariff concerns, investors were likely comforted by the fact that the Invisalign braces maker gets most of its revenue domestically (although it did start to expand into China last year). In addition, Align’s $25.5 billion market cap helped it on a day when mega-caps were hit harder than their smaller peers.

Align Technology is up 46.8% year to date, and has jumped 129.5% in the past 12 months. —Teresa Rivas

The S&P 500's Top Five

Align Technology (ALGN): 2.4%
Applied Materials (AMAT): 2.3%
Kohl’s (KSS): 2.2%
Equinix (EQIX): 2.1%
Micron Technology (MU): 2.1%


BorgWarner (BWA) dropped to the bottom of the index, hurt by the White House’s surprise decision to ramp up the trade dispute with China.

BorgWarner slumped $2.98, or 5.8%, to $48.48. The administration announced plans to impose tariffs on some $50 billion worth of Chinese imports, and the “sudden, harsh message” was a jolt that, along with Italy, sent markets tumbling. BorgWarner was caught in the crosshairs because autos (and auto suppliers) are seen as especially vulnerable to Chinese retaliation against the U.S.

BorgWarner is down 5.1% year to date, although it’s gained 18.3% in the past year. —T.R.

The S&P 500's Bottom Five

BorgWarner (BWA): -5.8%
Morgan Stanley (MS): -5.8%
State Street (STT): -5.4%
MetLife (MET): -5.3%
PG&E (PCG): -5.2%