Tag Archives: Dow Industrials

Business, Finance, Occupation & Industry

Market Minute: Twinkie Return Could Cost Rival Snack Maker Flowers

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By DailyFinance Staff

Twinkie return could cost rival snack maker Flowers Foods

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Brennan Linsley/AP

Boeing is set to bounce back, and we look at the Twinkie effect on the market.

The major averages all rallied last week, with the Dow Industrials and the S&P 500 ending at record highs. The Nasdaq soared 3.5 percent on the week; it has gained ground in 12 of 13 sessions.

Boeing (BA) could recoup some of Friday’s big loss, as an investigation shows the fire aboard a 787 Dreamliner in Great Britain was not related to the lithium ion battery that caused Boeing to ground the fleet earlier this year. However, there’s still uncertainty about what did cause this latest mishap. The focus right now is on the lightweight carbon fiber skin of the plane.

Twinkie fans are thrilled about the return of the snack food to store shelves today, but not everyone is celebrating. Flowers Foods (FLO), which makes a Twinkie rival — Tastykakes — could suffer. Tastykake sales have jumped almost 20 percent over a year ago, as desperate Twinkie fans sought an alternative.

Citigroup (C) kicks off a huge week for corporate earnings, posting better-than-expected profit and sales. Analysts are especially interested to hear what the company has to say about the economic outlook in Mexico and other emerging markets.

The three entertainment giants that own Hulu have decided not to sell the television streaming site after all. Comcast (CMCSA), Walt Disney (DIS) and 21st Century Fox (NWS) will pump an extra $750 million dollars into Hulu. Among the companies that had been interested in buying it: Time Warner Cable (TWC), Yahoo (YHOO), DirecTV (DTV) and Kohlberg, Kravis Roberts.

And we’re seeing more consolidation in the telecom industry. AT&T (T) has agreed to acquire Leap Wireless (LEAP) for $1.2 billion dollars. The per share price represents an 88 percent premium over Leap’s closing price. Leap provides prepaid wireless service under the Cricket brand. The deal also gives AT&T more wireless spectrum and access to the low-cost wireless market.

-Produced by Drew Trachtenberg

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Market Minute: Maker of Bushmaster Rifle Eyed for Acquisition

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By DailyFinance Staff

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Kevork Djansezian/Getty ImagesA Smith & Wesson .357 magnum revolver is displayed for customers to rent at the Los Angeles Gun Club.

On Wednesday the Dow Industrials fell 138 points, the S&P 500 lost 22 and the Nasdaq tumbled 60. The market has suffered two of its biggest losses of the year this week.
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Gun makers Smith & Wesson (SWHC) and Sturm Ruger (RGR) have reportedly expressed interest in acquiring Freedom Group, which makes the Remington and Bushmaster brands. The Wall Street Journal says Freedom could be valued at around a billion dollars. Defense contractor Alliant Techsystems (ATK) may also consider a bid.

On the earnings scorecard:

  • Verizon’s (VZ) net rose a better-than-expected 16 percent, as the company continued to add phone and FiOS customers.
  • UnitedHealth Group’s (UNH) profit fell 14 percent. The company also lowered its revenue estimate for the full year.
  • Investors are ready to hang up on phone maker Nokia (NOK) after its sales dropped 20 percent.
  • American Express (AXP) says its net edged up by two percent, but that still beat expectations.
  • EBay’s (EBAY) net rose 19 percent, but the internet retailer’s forecast for the current quarter was bit shy of expectations.
  • After the close we’ll hear from three tech industry giants: Microsoft (MSFT), Google (GOOG) and IBM (IBM).

Apple (AAPL) has lost $300 dollars a share since peaking in September. That’s a drop of more than 42 percent.
The company’s stock briefly dipped below $400 yesterday after a key supplier, Cirrus Logic (CRUS), warned its revenue would fall short of expectations.

The Federal Reserve is apparently considered new measures to make sure some banks are not “too big to fail.” A pair of Fed officials said major financial institutions may be required to hold even higher levels of capital.

And Gap (GPS) says it plans to expand its presence overseas, opening Old Navy stores in China and elsewhere.

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From: http://www.dailyfinance.com/on/smith-wesson-sturm-ruger-bushmaster/

News, Politics, Government

The Ten Most Overbought Dow Stocks

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By Tom Aspray, Contributor

It was quite a quarter for the stock market as the Dow Industrials had its best gain in 15 years. The S&P 500 and the widely watched Spyder Trust (SPY) finally closed at new all-time highs, which was a good sign for those stock market bulls that were concerned about this non-confirmation. …read more
Source: FULL ARTICLE at Forbes Latest

News, Politics, Government

Dow At New High With Two-Thirds Of Stocks Overvalued

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By John Dobosz, Forbes Staff

The Dow Industrial Average followed the Dow Transportation Average to new all time closing highs last week and both set new closing highs on Friday reconfirming a Dow Theory Buy Signal. Dow Industrials ended the week at 14,397.07 above my semiannual risky level, now a pivot until the end of June at 14,323. Dow Transports ended the week at 6143.48 well above my semiannual pivot at 5955. …read more
Source: FULL ARTICLE at Forbes Latest

Business, Finance, Occupation & Industry

The Only Dow Average Not Near a Record High

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By Dan Caplinger, The Motley Fool

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Investors will watch until the final minute of the trading day to see whether the Dow Jones Industrials hits a record closing high. But one market measure they don’t need to worry about is the Dow Jones Utility Average , which is more than 10% below its own record highs of December 2007.

A brief recent history of utilities
Since late 2007, utility stocks have basically followed a similar path to the Dow Industrials. Even though utilities are seen as defensive plays, they plunged precipitously during the financial crisis, but they rebounded strongly after hitting bottom in early 2009. Since then, the average has slowly made back ground, and in 2011 dividend-hungry investors got heavily involved in the sector, pushing prices higher. Fears of a utility bubble even emerged briefly, as dividend stocks have become so popular that many of them fetch much higher valuations than they normally do.

But over the past year, utilities have badly lagged the rest of the stock market, with a combination of factors contributing to their weak performance. Hurricane Sandy certainly didn’t help matters, straining Dow Utility components Consolidated Edison and FirstEnergy , which were hit especially hard by the storm.

Low natural-gas prices have led to a renaissance in the utility industry, with many power companies converting to natural-gas-fired plants. For some electric utilities, that’s been a positive move, but Dow Utility component and nuclear specialist Exelon has struggled as the lower electricity prices resulting from cheap gas have hurt its margins. Since the Dow Utilities‘ record high, Exelon has been the worst performer, losing half its value.

Don’t panic
Even though the Utilities Average isn’t near a record high, one thing to remember about the Dow averages is that they don’t incorporate dividends. When you consider the rich yields that utility stocks pay, most of them have done quite well for their investors in terms of total return. Even if the Dow Utilities don’t set a record soon, they can still give shareholders the dependable income and slow growth they have offered in the past.

Despite Exelon‘s woes, some still believe Exelon is the best long-term fit for utility investors. Find out why by reading our premium research report on Exelon, in which you’ll get the latest scoop on what’s happening with the nuclear and renewable-energy powerhouse. Simply click here now for instant access.

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

The Other Dow Is at All-Time Highs, Too

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By Dan Caplinger, The Motley Fool

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With all the hoopla over the possibility that the Dow Jones Industrials will set a brand-new closing record today, few investors are looking beyond the blue-chip average. But the Dow’s sister benchmark, the Dow Jones Transportation Average, has been hitting new highs for a while now, and it’s poised to hit a brand-new one today as well.

So far today, 19 of the 20 Dow Transports are trading higher, and the average has gained 1.6% as of 2:35 p.m. EST, outpacing even the strong performance of the Dow Industrials. FedEx is among the leading gainers, climbing more than 2.3% to a new multiyear high. As optimism about the economy grows, FedEx stands to gain from the accompanying jump in demand for its delivery services. Moreover, favorable trends like the push toward same-day delivery among retailers gives both FedEx and rival United Parcel Service good prospects for further growth, regardless of how strong the overall economy performs.

Airlines within the average also did well, with United Continental and Alaska Air Group up about 2.4% each. Airlines have seen their stocks soar in recent months, but some analysts had expected that once the merger between US Airways and American Airlines was complete, that run would come to an end. Yet airlines have seen their financial condition improve dramatically with the imposition of fees for baggage and other ancillary services, and even the lack of further consolidation in the industry shouldn’t pose a threat to that lucrative revenue stream going forward.

Keep moving
The Dow Industrials make some of the most important products in the economy, but the Dow Transports make sure those goods get to you. With both averages poised to set records, it’s no wonder investors are feeling good about the prospects for the U.S. economy today.

Find some long-term investing ideas by reading the Fool’s special report: “The 3 Dow Stocks Dividend Investors Need.” It’s absolutely free, so just click here and get your copy today.

The article The Other Dow Is at All-Time Highs, Too originally appeared on Fool.com.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends FedEx and United Parcel Service. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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Source: FULL ARTICLE at DailyFinance