Tag Archives: Among Dow

Business, Finance, Occupation & Industry

Why the Dow's Ignoring the Naysayers Again This Morning

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By Dan Caplinger, The Motley Fool

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For U.S. investors, international crises tend to be short-term events that have little long-term impact. That seems to be the direction the banking crisis in Cyprus is taking: Optimism that banks and government officials will successfully resolve the immediate problems before conditions worsen has helped push stocks higher around the world. As of 10:50 a.m. EDT, the Dow Jones Industrials are up 64 points, or 0.45%, erasing most of yesterday’s losses as investors instead focus on the recent positive news on the U.S. economic front.

Among Dow stocks, General Electric is up just a few cents, but a report from The Wall Street Journal revealed an interesting story involving the company’s GE Capital division. Apparently, GE Capital has been in talks with Dell to buy the computer maker’s financial-services business. Working alongside Blackstone, GE Capital is reportedly trying to take advantage of the turmoil resulting from Dell’s attempt to go private in order to snatch up lucrative assets opportunistically. The mechanics of the deal might be difficult, but such a move could greatly boost what has been a shrinking part of GE‘s overall business.

Outside the Dow, BP rose 2.5% after announcing that it would initiate a big buyback of its stock. Having sold off its 50% interest in its TNK-BP venture to Russian oil company Rosneft, BP expects to keep about $4.5 billion of the proceeds to pay down debt, but it should be able to return the rest to shareholders over the next year to 18 months. BP will also own nearly 20% of Rosneft, giving it continuing exposure to the vast opportunities in Russia.

Finally, Micron Technology has soared 10.5% on positive earnings news. Although the company posted a loss for the quarter, highly optimistic comments about rising prices for both DRAM and NAND memory chips point to better times for Micron, and the memory maker has also cut costs to improve margins. Given the up-and-down cycles in the industry, it’ll be important for Micron to take maximum advantage of the good times while they last.

GE survived the financial crisis by scaling back its GE Capital division in favor of making strategic bets in energy. But given the speculation about Dell’s financial business, where is General Electric really headed with its business strategy? Find out in our premium research report on the conglomerate, in which our industrials analyst breaks down GE‘s multiple businesses and gives reasons to buy or sell GE today. To get started, click here now.

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

These Stocks Couldn't Quite Push the Dow to New Highs

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By Dan Caplinger, The Motley Fool

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The Dow Jones Industrials rose 56 points today as investors looked past the European crisis to focus squarely on domestic concerns. With the Federal Reserve leaving its highly accommodative policy stance largely unchanged, investors took the occasion to send stocks broadly higher. As long as economic conditions continue to improve, it appears that the bull-market run for stocks should be able to continue.

Among Dow stocks helping lift the average was Chevron , which rose three-quarters of a percent to hit another new all-time high of its own. The oil giant today announced that it will join up with fellow natural-gas producers as well as environmental groups to create the Center for Sustainable Shale Development, which will set standards for hydraulic fracturing in the eastern United States. Given the concerns that many stakeholders have about the impact of fracking on air and water quality, the move should help Chevron stay ahead of the curve of potential regulation.

General Electric rose 0.6%, in part on speculation that it might decide to spin off its GE Capital division. GE Capital was responsible for the company’s near-collapse during the financial crisis, but it has recovered strongly over the past four years. Reports after the bell indicated that GE denied having any plans currently to break up the conglomerate, although CEO Jeffrey Immelt had initially responded to the rumors by saying “never say never.”

Finally, outside the Dow, Cobalt International Energy soared 8%. The company is a big beneficiary of what Anadarko Petroleum called a “potentially giant project” today. The good news comes from the Shenandoah-2 test well, which may prove to be the biggest discovery ever in the Gulf of Mexico. But with the well under 5,800 feet of water and drilled to a total depth of nearly 6 miles, it’ll be several years before Cobalt, which owns 20% of the well, and Anadarko, which owns 30%, will get any oil from the find. Anadarko climbed nearly 4% on the news.

Parting way with GE Capital may or may not be in the cards, but the real future for General Electric is in energy and its other industrial businesses. To help you understand everything going on at GE right now, we’re offering comprehensive coverage for investors in a premium report on General Electric, in which our industrials analyst breaks down GE‘s multiple businesses. You’ll find reasons to buy or sell GE today. To get started, click here now.

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Will Today Be Another Record Day for the Dow?

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By Dan Caplinger, The Motley Fool

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Given how negatively the market reacted early this week to renewed fears in Europe, it seemed the days of record-high closes for the stock market might be at an end. But this morning, as investors wait for the Federal Reserve to give its latest guidance on its plans for managing U.S. monetary policy, the mood is optimistic. As of 10:45 a.m. EDT, the Dow Jones Industrials were up 69 points, flirting with their record highs. It would take an 84-point gain for the Dow to set a new record, and the S&P 500 is just half a percent or so away from its own record high.

Among Dow stocks, Hewlett-Packard has risen 1.5% as it holds its annual shareholder meeting today. Given the number of setbacks the company has had to deal with recently — most notably the multibillion-dollar writedown of its botched Autonomy acquisition — the meeting could prove contentious. Some analysts believe shareholders may take the extremely unusual step of voting out sitting directors on HP‘s board after proxy-services company ISS recommended votes against three directors. Still, investors need to focus less on placing blame and more on whether the company’s turnaround will continue.

On the down side, Caterpillar fell another 1.3% as it announced a 13% drop in sales among its worldwide network of dealers. The drops were widespread geographically, including a massive 26% decline in the Asia-Pacific sector and losses of 12% in North America. Until buying activity bounces back, it’ll be hard for Caterpillar to rebound from its recent share-price weakness.

Outside the Dow, Francesca’s Holdings has gained 6.4% after beating earnings and revenue estimates in its fourth-quarter results last night. Same-store sales came in 9.2% higher, and the retailer gave positive guidance for the current quarter. Given the number of retailers that have seen weak holiday quarters, Francesca’s bucked the trend, and investors are getting rewarded for it.

Finally, trucking company Con-Way fell 3.9% after giving a guidance update on its current quarter last night. The company reported that its anticipated weight-per-day of transported goods would fall 1.5% during the quarter, citing adverse weather, field training expenses, and one-time charges and reserves for the impact on profitability. In response, an analyst firm downgraded the stock, although the company says its longer-term initiatives are still working.

The massive wave of mobile computing has done much to unseat Hewlett-Packard as a leading-edge tech company. However, HP is rapidly shifting its strategy under the leadership of CEO Meg Whitman. Is HP one of the least appreciated turnaround stories on the market, or is this a minor detour on its road to irrelevance? The Motley Fool’s technology analyst details exactly what investors need to know about HP in our new premium research report. Just click here now to get your copy today.

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

These Dow Stocks Missed the 4-Year Rally

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By Dan Caplinger and Mike Klesta, The Motley Fool

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In the following video, Fool markets analyst Mike Klesta talks with Fool contributor Dan Caplinger about the stock market‘s four-year rally to new record highs. Although the Dow Jones Industrials have gained 120% since March 2009, several stocks in the Dow haven’t done nearly as well.

Mike and Dan discuss why four stocks in particular have badly lagged the Dow’s overall performance in the past four years and evaluate their future prospects. Dan notes that of these four companies, one has been taking steps to prepare itself for a rebound, looking into strategic acquisitions to take advantage of poor industry conditions and pick up assets at fire-sale prices.

Among Dow stocks, Alcoa is in prime position to take advantage of growth that some expect will lead to massive growth in industrywide revenue in the next five years. Based on this trend and several other company-specific factors, Alcoa is certainly worth a closer look. For a Foolish investment perspective on this global giant, simply click here to get started.

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Will the Dow Ever Stop Setting Records?

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By Dan Caplinger, The Motley Fool

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Obviously, no market ever rises forever. But for the fourth straight day, the Dow Jones Industrials are pushing into record territory, this time responding to much-stronger-than-expected gains in employment. A jump of 236,000 jobs in nonfarm payrolls caused the unemployment rate to fall to 7.7%, its lowest level in more than four years. Job gains were broad across various industries, pointing to general strength but leading some economists to point out that gains this big were commonplace in past expansions. By 10:55 a.m. EST, the Dow had given back a big part of its earlier gains but was still up 28 points, while the broader market was also up modestly.

Among Dow stocks, McDonald’s was one of the best performers, climbing about 1.5% despite seeing global same-store sales drop 1.5%. Despite hopes that new products like its Fish McBites would help boost revenue, comps fell throughout its Europe, U.S., and Asia-Pacific regions, although sales were positive in China. Looking forward, McDonald’s needs to execute well on its expansion plans in order to get sales moving in the right direction.

Sticking with the Golden Arches theme, Latin-American McDonald’s franchisee Arcos Dorados saw its shares fall 0.4% after announcing its quarterly earnings despite opening higher on apparent strength in its results. Despite a slight drop in net income, Arcos Dorados managed to post comparable-sales growth of 8.6% during the fourth quarter, even though weakness in the Brazilian economy has weighed on the company’s performance in its biggest market. Guidance for 2013 was even more optimistic: Arcos Dorados expects a potential economic rebound to allow double-digit sales growth and further market-share expansion. With new stores also coming, Arcos Dorados appears to have its growth story still intact despite investors’ uncertainty.

Finally, Pandora soared 16.4% following a favorable earnings report. A 54% jump in revenue wasn’t enough to make Pandora profitable, but with an 8.5% share of radio listeners, the service is clearly gaining traction among users. Further, news that CEO Joe Kennedy is leaving the company may signal a new phase in Pandora’s growth as the key to the company’s future changes from innovation to better execution of its existing strategy.

Learn more about McDonald’s
McDonald’s may be up today, but it was one of the worst-performing blue-chip stocks of 2012. Our top analyst on the company will tell you whether you should be worried by this trend, and he’ll shed light on whether McDonald’s is a buy at today’s prices. Click here now to read our premium research report on the company.

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Source: FULL ARTICLE at DailyFinance