Tag Archives: Today Dow

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These 3 Stocks Are Surging Past the Dow

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By Dan Dzombak, The Motley Fool

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The Dow Jones Industrial Average is up 0.62% to 14,704 points as of 1:25 p.m. EDT, led by the technology sector. The S&P 500 is up 0.53% to 1,571.

Today’s Dow leaders
Today’s Dow leader is Microsoft , up 4%. This morning the FairSearch coalition, a group of 17 companies led by Microsoft, announced that it had filed a complaint with the European Commission alleging anticompetitive strategies by Google‘s Android. According to the group’s statement, “Google’s predatory distribution of Android at below cost makes it difficult for other providers of operating systems to recoup investments in competing with Google’s dominant mobile platform.” The group alleges that while Google gives its operating system away for “free,” in reality companies who want to use it must preload Google apps onto the phones, thus giving Google an unfair advantage that has helped Google acquire 70% of the smartphone market and 96% of the mobile search advertising market.

Google is already in hot water with EU regulators over its desktop search practices, which Microsoft and the FairSearch coalition complained of to the European Commission in 2010. Microsoft needs all the help it can get in the mobile-operating-system market. As of February, Microsoft is fourth in the U.S. among smartphone operating systems with a 3.2% market share.

Second for the Dow today is Intel , up 3.4%. Yesterday, at the National Association of Broadcasters conference, Intel unveiled its next-generation Thunderbolt interface technology, codenamed Falcon Ridge. The new Thunderbolt runs at 20 Gbs, twice the speed of its predecessor. Initial production is expected before the end of the year and will ramp up in 2014.

In other Intel news, yesterday the company announced that it is shipping samples of its new “Avoton” system-on-a-chip. It also announced that the chips will be included in Hewlett-Packard‘s new Project Moonshot servers, which will be available later this year. This is welcome news for Intel investors, as it shows the company has a headstart on ARM in shipping 64-bit server chips. ARM is not expected to start shipping until 2014 or 2015. For more on Intel, Fool analyst Anders Bylund recently laid out the case for owning Intel stock.

Third for the Dow today is Caterpillar , up 1.9%. Caterpillar’s stock has struggled this year as falling commodity prices, and thus declining activity in the worldwide mining sector, have weighed on the stock. The stock has fallen 4.5% year to date compared to the Dow’s 12% rise. We have to wait until Caterpillar reports earnings on April 22 to see whether the stock‘s decline is merited. Early signs are mixed: After yesterday’s market close, Alcoa reported better-than-expected earnings but disappointing revenue. Caterpillar has been taking steps to make itself more profitable, including slowing production and cutting jobs.

While Caterpillar’s results remain to be seen, over the long term it’s important to consider what really matters for the stock. Caterpillar is the market share leader in …read more

Source: FULL ARTICLE at DailyFinance

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These 2 Dow Stocks Are Winning Despite the Jobs Report

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By Dan Dzombak, The Motley Fool

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The Dow Jones Industrial Average is down big-time following a terrible jobs report. As of 1:20 p.m. EDT the Dow is down 88 points, or 0.6%, to 14,518. The S&P 500 is down 0.77% to 1,548.

There were two U.S. economic releases today.

Report

Period

Result

Previous

Nonfarm payrolls

March

88,000

268,000

Unemployment rate

March

7.6%

7.7%

Trade gap

February

($43 billion)

($44.5 billion)

Source: MarketWatch U.S. Economic Calendar.

The key report here is the jobs figures, particularly nonfarm payrolls. A drop in the unemployment rate is not necessarily a good sign, as it stemmed from people leaving the workforce. In March the labor force declined by 496,000, bringing the participation rate in the economy down 0.2 percentage points to 63.3% of the population.

On Wednesday ADP released its private-sector jobs report, which showed an addition of just 158,000 jobs in March, down from 237,000 in February. While ADP’s report does not always line up with the government‘s, investors were concerned that the result fell short of expectations.

Today the government released its own jobs report, which includes both public and private-sector jobs. The report showed that the U.S. added just 88,000 jobs in March, down from 268,000 in February. That is far worse than analyst expectations of 190,000 additional jobs.

US Change in Nonfarm Payrolls data by YCharts.

While some are blaming this on the sequester, the results were actually weak across the economy. In the private sector, the biggest decline was in retail jobs, which fell by 24,000. This is worrisome, as retail has been one of the strengths of the economy and the jobs market, adding an average of 32,000 jobs per month over the last six months. One theory is that consumers are beginning to feel the effects of higher payroll taxes and gasoline prices. We’ll have to wait for retail sales reports to see whether that’s the case.

In the government, the biggest decliner was the U.S. Postal Service, where employment fell by 12,000 in March. Motley Fool senior analyst Jim Royal took an in-depth look at how the Postal Service is being gutted. It’s a fascinating read.

Today’s Dow leaders
Today’s Dow leader is Boeing , up 0.5%. Boeing has been in the news a lot over the past three months since the FAA grounded its 787 Dreamliner. As I’ve said, the Dreamliner problems are embarrassing for Boeing in the short run but will be a minor blip in the 30- to 50-year future of the aircraft. After all, Boeing continued to get orders for 787s throughout this ordeal. In the first quarter the company received orders for 42 Dreamliners. Besides the 787, the company received 156 orders for 737 regional airliners, three orders for 747s, and 19 orders for the 777 airliner.

Boeing is a major player in a multitrillion-dollar market in which the opportunities are massive. …read more

Source: FULL ARTICLE at DailyFinance

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These 3 Stocks Are Beating the Dow Today

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By Dan Dzombak, The Motley Fool

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The Dow Jones Industrial Average is flat following a mixed unemployment claims report. As of 1:25 p.m. EDT the Dow is up six points to 14,557. The S&P 500 is up less than a point.

There was one U.S. economic release today.

Report

Period

Result

Previous

New unemployment claims

March 23 to March 30

385,000

357,000

Source: Department of Labor.

Following yesterday’s disappointing private-sector jobs report, all eyes were on today’s unemployment claims report. Seasonally adjusted unemployment claims came in at 385,000, which is 28,000 higher than last week and 35,000 above analyst expectations. The jump moved the four-week moving average up by 11,250 to 354,250.

US Initial Claims for Unemployment Insurance data by YCharts.

The jump may not be as bad as it appears. Economists from the Department of Labor seasonally adjust the numbers so that you can compare them across the year, taking into account seasonal fluctuations. For instance, extra workers hired before Christmas for the sales rush lower unemployment claims, so unemployment claims are adjusted upward to compensate. The end of March is a tough time to determine an appropriate adjustment, as some economists believe holidays and spring breaks cause the Department of Labor to seasonally adjust claims too much.

The actual number of unemployment claims, i.e., non-seasonally-adjusted unemployment claims, actually fell by 1,600 to 314,000. Investors thus see today’s number as a technical jump and not a real one and are thus overlooking the bad report. Tomorrow brings the much-anticipated jobs report for March. Analysts expect jobs growth of just 190,000 versus 236,000 in February.

Today’s Dow leader
Today’s Dow leader is AT&T , up 1.3%. Yesterday rumors surfaced, but were later denied, that AT&T and Verizon would team up to purchase Vodafone, with Verizon taking over Vodafone’s 45% stake in Verizon Wireless and AT&T getting the international operations of Vodafone. Today’s big news is the Facebook phone event, where analysts speculate the company will announce a “Facebook Phone.” AT&T and Verizon are loath to let another company create experiences between itself and people who use its network.

Second for the Dow today is Hewlett-Packard , up 1.3%. Yesterday HP plunged 5.2% after Goldman Sachs analyst Bill Shope downgraded the stock to sell. Shope believes that low sales will hurt prices and margins, that investors are overconfident in the turnaround of the business, and that the stock has run up too far. Today HP is gaining as some investors hope yesterday’s drop was a buying opportunity.

The massive wave of mobile computing has done much to unseat the major players in the PC market, including venerable technology names like Hewlett-Packard. However, HP is rapidly shifting its strategy under the leadership of CEO Meg Whitman. But does this make 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 …read more

Source: FULL ARTICLE at DailyFinance

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3 Dow Stocks Winning Today

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By Dan Dzombak, The Motley Fool

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The Dow Jones Industrial Average is down following a troubling private sector jobs report, having lost 67 points, or 0.46%, as of 1:15 p.m. EDT. Meanwhile, the S&P 500 is down 0.77% to 1,558 points.

There were two U.S. economic releases today.

Report

Period

Result

Previous

ADP private-sector jobs

March

158,000

237,000

ISM nonmanufacturing PMI

March

54.4

56

Source: MarketWatch U.S. Economic Calendar.

The one to pay attention is the ADP private-sector jobs report, as a weak Institute for Supply Management nonmanufacturing PMI had been expected.

Analysts had expected jobs growth of 215,000 in March, up slightly from February’s previously reported 198,000. In today’s report, however, February’s total was updated to 237,000 additional jobs. So when March’s jobs growth came in dramatically lower than that, the markets dropped.

ADP Change in Nonfarm Payrolls data by YCharts.

Small businesses added 74,000 jobs, while large businesses added just 47,000. Employment has been a positive so far this year, as both unemployment claims and jobs growth have been trending above last year’s levels. However, last week’s worse-than-expected unemployment report and today’s private-sector jobs report are worrisome. The government reports its jobs numbers later this week, which will include both public and private-sector jobs. We’ll have to wait and see what happens.

Today’s Dow leaders
Today’s Dow leader is Merck , up 2.4%. Merck was a top Dow stock yesterday after the government surprised investors by announcing that Medicare Advantage reimbursements will rise. While they don’t benefit Merck directly as they would health care plan providers, higher reimbursements should mean that drug revenue will not fall as previously expected.

This titan of the pharmaceutical industry stumbled into 2013 and continues to battle patent expirations and pipeline problems. Is Merck still a solid dividend play, or should investors be looking elsewhere? In a new premium research report on Merck, the Fool tackles all of the company’s moving parts, its major market opportunities, and reasons both to buy and to sell. To find out more, click here to claim your copy today.

var FoolAnalyticsData = FoolAnalyticsData || []; FoolAnalyticsData.push({ eventType: “TickerReportPitch”, contentByline: “Dan Dzombak”, …read more
Source: FULL ARTICLE at DailyFinance

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3 Stocks Trouncing the Dow Today

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By Dan Dzombak, The Motley Fool

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The Dow Jones Industrial Average is up after Cyprus negotiated better terms for its bailout. As of 1:20 p.m. EDT the Dow is up 86 points, or 0.59%, to 14,659. The S&P 500 is up 0.6% to 1,572.

There was just one U.S. economic release today.

Report

Period

Result

Previous

Factory Orders

February

3%

(1%)

Source: MarketWatch U.S. Economic Calendar.

Factory orders in February rose 3%, led largely by orders for aircraft. That was in line with analyst expectations. The big reason stocks were up today is that Cyprus completed its bailout negotiations with the International Monetary Fund, the European Central Bank, and the European Union. Cyprus negotiated an extra two years — until 2018 — to reach a budget surplus of 4%. The 10 billion euro bailout is a 22-year loan at a 2.5% interest rate that the country will begin paying in 10 years. After announcing the completion of negotiations, Cypriot Finance Minister Michael Sarris resigned. For the time being, concerns that Cyprus will affect the rest of the European Union appear to be moot. Indexes across Europe rose between 1% and 2%.

Today’s Dow leaders
Today’s Dow leader is UnitedHealth , up 5.5%. To investors’ surprise last night, Medicare Advantage announced higher reimbursement rates for 2014. In a draft statement in February, Medicare Advantage had signaled that reimbursement rates would drop. Following complaints and lobbying by the health care industry, Medicare Advantage pulled a 180. Medicare Advantage covers more than 14 million Americans, and as of the end of 2012, UnitedHealthcare had 2.6 million members enrolled in the program.

When President Obama was re-elected, shares of UnitedHealth and other health insurers fell immediately. Is Obamacare a death knell for health insurers, or is the market missing out on some of the opportunities the law presents? In this brand-new premium report on UnitedHealth, The Motley Fool takes a long-term view, honing in on prospects for UnitedHealth in a post-Obamacare world. So don’t miss out — simply click here now to claim your copy today.

var FoolAnalyticsData = FoolAnalyticsData || []; FoolAnalyticsData.push({ eventType: “TickerReportPitch”, contentByline: “Dan Dzombak”, …read more
Source: FULL ARTICLE at DailyFinance

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These 3 Dow Stocks Are Winning Today

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By Dan Dzombak, The Motley Fool

US Pending Home Sales Index Chart

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The Dow Jones Industrial Average is down after a second day of worse-than-expected reports on the housing market. As of 1:15 p.m. EDT the Dow is down 53 points, or 0.36%, to 14,507. The S&P 500 is down 0.31%.

There was just one U.S. economic release today.

Report

Period

Actual

Previous

Pending home sales

February

(0.4%)

3.8%

Source: MarketWatch U.S. Economic Calendar.

Yesterday it was reported that new-home sales decreased in February to a seasonally adjusted annual rate of 411,000. Today there was more negative news on the housing front when the National Association of Realtors revised its January pending-home-sales index downward and reported a decline of 0.4% in February.

US Pending Home Sales Index data by YCharts.

While home prices rose in January, up 8.1% for the year, some economists are worried about the housing market. Professor Robert Shiller — of Case-Shiller Home Price Index fame — said yesterday in an interview with CNBC, “One thing that makes it very hard to forecast home prices right now is that we’re living in a totally artificial real-estate economy.” Shiller was referring to the continued long-term asset purchases by the Federal Reserve and the Fed’s efforts to keep the Federal Funds rate between 0% and 0.25%. He concluded: “All of these things are weighing on the futures of housing. One thing you learn from history is that bubbles can occur at any time.”

Today’s Dow leader
Today’s Dow leader is UnitedHealth , up 1.7%. The health care sector is up as a whole today. UnitedHealth has risen nearly 5% this month and 3% just this week. The company is in the unique position of both offering insurance and building the federally operated health-insurance exchange. As Obamacare comes into full effect, UnitedHealth should benefit as more Americans gain access to health care. While UnitedHealth is today’s top Dow stock, one Fool analyst thinks health care investors should focus on the company he calls “the investor’s best health care stock in the Dow.”

Second for the Dow today is Intel , up 0.8%. Intel shares are up 6.53% this year and up nearly 4% this week as the chip maker works to become a major force in the mobile-chip market. Intel has joined with Samsung to build a new operating system for mobile called Tizen to challenge Android and iOS’ dominance of the mobile-OS market. At the end of 2012, Android had a 68% market share, while iOS followed up with a 19% market share. Intel and Samsung hope to disrupt Android in Asia, where Android’s Web-application backbone is not the preferred option among telecoms. If the effort is successful, Intel and Samsung will have a significant advantage in some of the world’s largest telecom markets. While investors wait to see what will happen with Tizen, they can collect a 4.2% dividend from Intel — a high enough income for Intel to be included …read more
Source: FULL ARTICLE at DailyFinance

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The Dow Fights Back

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By Matt Thalman, The Motley Fool

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Even though the situation in Cyprus and its repercussions throughout Europe are still playing out, investors turned their attention to positive economic data here at home today. As of 12:50 p.m. EDT the Dow Jones Industrial Average is up 84 points, or 0.59%, to climb beyond the 14,500 mark once again. The S&P 500 has also joined in the fun, rising 0.52%, while the NASDAQ lags behind, gaining only 0.29%.

The moves were spurred by two data points released this morning: the Case-Shiller Index and the durable-goods orders for February. The Case-Shiller index tracks housing prices in the U.S. in the top 10 and top 20 largest U.S. cities. The 10 largest cities saw home prices rise 7.3% in January, while the top 20 cities saw prices rise 8.3%.

Durable-goods orders in February rose 5.7%, with transportation-related orders leading the charge. Both of these indicators point toward a strengthening U.S. economy, even while Europe and other parts of the world are experiencing slower growth or even struggling to grow at all.

Today’s Dow downers
Shares in JPMorgan Chase  and Citigroup  are slightly positive today. As the problems in Europe play out, some analysts believe the big U.S. banks may actually come out of this mess as big winners. If Europeans no longer trust that their deposits are safe in eurozone banks, they may move those funds to U.S. banks operating in the region.

Shares of Bank of America , however, are down a whopping 1.7%. B of A’s decline today is perhaps related to an internal issue. Bloomberg reported this morning that Derek DeVries, who was the acting head of European bank equity research at Bank of America’s Merrill Lynch unit in London, is no longer with the firm. Bloomberg News received this information via an email sent to clients, and the news outlet reported that DeVries couldn’t be contacted.

DeVries held a top position with Merrill Lynch, and it seems odd that news of his departure would not have been made public by the company. While I am totally speculating here, the sudden unannounced departure may be the result of a trading mishap or a poor decision that could ultimately hurt Bank of America.

Shares of DuPont are down 0.6% today. An announcement that DuPont and Monsanto settled an antitrust lawsuit was released late last night, which is likely the cause for the decline today. DuPont agreed to make royalty payments to Monsanto to the tune of $800 million from 2014 through 2017 for the rights to genetically modified soybean material. The settlement also dismisses a $1 billion verdict that had previously been imposed on DuPont when a court had found the company guilty of patent infringement.

More foolish insight
Bank of America’s stock doubled in 2012. Is there more yet to come? With significant challenges still ahead, it’s critical to have a solid understanding of this megabank before adding it to your portfolio. In The Motley Fool’s premium research report on …read more
Source: FULL ARTICLE at DailyFinance

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Why These 3 Dow Stocks Are Winning Today

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By Dan Dzombak, The Motley Fool

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The Dow Jones Industrial Average is down after Cyprus secured a bailout over the weekend by agreeing downsize the country’s financial sector and penalize depositors with more than 100,000 euros in their accounts. As of 1:20 p.m. EDT, the Dow is down 108 points, or 0.74%, to 14,404. The S&P 500 is down 0.6% to 1,548.

There were no U.S. economic releases today. Early this morning Cyprus agreed to a deal with the European Central Bank, the European Commission, and the International Monetary Fund wherein the three institutions would would give Cyprus a $10 billion euro bailout. In return, Cyprus agreed to restructure the country’s two largest banks and downsize the financial sector to a level in line with the EU average. The banks’ equity holders, bondholders, and bank accounts holding more than $100,000 euros will all take large hits. Deposits in Cypriot banks are insured to 100,000 euros, so bank accounts with less than 100,000 euros will not be hit.

Now investors are worrying about a spread of fear across the EU banking markets as people with large accounts in weak banks realize they could lose a significant amount of money if their banks ever went bankrupt. For more on the situation in Cyprus, Fool contributor John Maxfield took a look at “Why Cyprus Matters.”

Today’s Dow leaders
Today’s Dow leader is UnitedHealth , up 0.7%. This morning Arizona’s Medicaid system announced that it would award acute-care contracts to UnitedHealth and Health Net. The big loser in this was Vanguard Health Systems, whose stock is down 7% on the news. The Arizona contract accounted for 13% of Vanguard Health‘s revenue. While not a massive mover for UnitedHealth, the Arizona win strengthens the company’s position in Arizona and generally shows the strength of the company’s operations and offerings.

Second on the Dow today is Cisco , up 0.6%. This morning Cisco announced it would acquire Austria-based SolveDirect, a provider of cloud-delivered services management. While the terms of the deal were not announced, Cisco is a serial acquirer, and this fits in with Cisco’s strategy of pursuing multiple small acquisitions to keep the company at the forefront of the IT world.

Once a highflying tech darling, Cisco is now on the radar of value-oriented dividend-lovers. Get the low down on the routing juggernaut in The Motley Fool’s premium report. Click here now to get started.

var FoolAnalyticsData = FoolAnalyticsData || []; FoolAnalyticsData.push({ …read more
Source: FULL ARTICLE at DailyFinance

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UnitedHealth Drops as the Dow Moves Higher

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By Matt Thalman, The Motley Fool

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Year to date, the Dow Jones Industrial Average is up 10.6%. While most market participants don’t believe this run can last much longer — and some even believe the index will now move horizontally for the better part of the year — even if that’s the case, it will be a strong year for equities. With the average yearly return falling around 7%, most investors would happily take a 10% return any year.

But one problem this year is that investors were handed the big return so quickly that they will likely become inpatient later in the year and perhaps begin trading or participating in other costly market activities.

Long-term investors need to remember that patience and time are your friends. Case in point: Had you sold yesterday when the Dow was down 80 points in an attempt to time the market correction, you would have missed today’s 77-point rise.

Today’s Dow downers
The Dow’s biggest loser today is UnitedHealth . The health care company is down 1.1%, with very little news pertaining to the company today. But with big changes coming to the health care industry through Obamacare and even the proposed payments under Medicare, a massive amount of uncertainty surrounds the company.

For this reason, new investors should stay away from the company until its future is clearer, but current shareholders with a long horizon should sit tight until further information is available. Buying or selling without the full story is like stock-picking by throwing darts at a board.

While UnitedHealth is the big loser today, only two Dow stocks are down overall for 2013: Caterpillar and Alcoa .

Year to date, shares of Caterpillar are down 2.5%, even though they are up 0.8% today. Caterpillar has seen sales slow down over the past few months, which has likely caused the stock price to falter. Most recently, Caterpillar released poor sales results on Wednesday, which sent shares falling as much as 1.7% during intraday trading. In a three-month rolling period ending in February, sales were down 13%, compared with a 4% drop for the previous time period ending in January. The company’s Asia-Pacific market experienced a sales decline of 26%, while the North American region saw sales contract 12%.

China has also been a soft spot for Alcoa, which has lost 2.7% year to date. China has been the world’s largest consumer for aluminum for quite some time, but the country still can’t seem to use the raw material fast enough. Stockpiles of aluminum throughout the country have increased by 50% over the past year, and this is causing the price of the metal to decline. Over the past year alone, aluminum prices on the London Exchange have fallen more than 7.7%.

More foolish insight
When President Obama was re-elected, shares of UnitedHealth and other health insurers fell immediately. Is Obamacare a death knell for health insurers, or is the market missing out on some of the opportunities the law …read more
Source: FULL ARTICLE at DailyFinance

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Big Tech Stocks Hammer the Dow

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By Matt Thalman, The Motley Fool

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As investors wait for news from Cyprus, they seem to have missed another strong jobs report this morning. The Department of Labor released its initial jobless claims report today, and while claims did rise, it was only a 2,000-claim increase. For the week ending March 16, 336,000 individuals filed initial jobless claims, and the four-week moving average fell by 7,500 claims to 339,750.

But that wasn’t enough to get the markets moving higher, and as of 12:55 p.m. EDT the Dow Jones Industrial Average is down 46 points, or 0.31%. The S&P 500 is performing slightly worse, down 0.35%, and the NASDAQ has fallen the furthest, down 0.56%.

Today’s Dow downers
2013’s darling of the Dow, Hewlett-Packard , is moderately lower today. At yesterday’s shareholder meeting, all of the board members were re-elected even though a number of investors and activists wanted those involved in the acquisition of Autonomy — the software company for which HP overpaid by $8 billion — to be removed. However, all of the members in question managed to earn majority votes in their favor.

Those investors who wanted new board members are likely selling today, even though the board raised the dividend by 10% — or perhaps because the dividend was raised. HP is in the midst of a turnaround, and global PC sales are flatlining, so the company may need all the cash it can get if the economy turns south again before Meg Whitman has righted the ship.

Shares of Intel are lower by 0.69% after analysts from both Citigroup and JPMorgan Chase published cautious reports this morning. Citigroup’s Glen Young cut his first- and second-quarter revenue estimates, while JPMorgan’s Christopher Danely noted that PC shipments to Asian countries will grow at lower-than-normal rates. Both analysts believe results will come in lower than Intel’s guidance and consensus estimates.

Currently, however, Cisco is not only the Dow’s worst-performing technology stock, but also the index’s worst-performing component, with shares down 3.8%. Like Intel, Cisco was recently downgraded, but that cannot fully account for this massive drop today. Oracle , one of Cisco’s closest competitors, is down 8.3% today after reporting last night that it is seeing weak demand in virtually all of its operating segments. Cisco and Oracle compete in all of the same areas with similar products and offerings. Oracle’s weak performance could mean that Cisco is gaining market share, but based on today’s stock performance, I think it’s safe to say investors feel that the market for these tech devices is weakening.

Once a high-flying tech darling, Cisco is now on the radar of value-oriented dividend lovers. Get the lowdown on the routing juggernaut in The Motley Fool’s premium report. Click here now to get started.

…read more
Source: FULL ARTICLE at DailyFinance

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Today's Top 3 Dow Stocks Eagerly Await the Fed's Statement

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By Dan Dzombak, The Motley Fool

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The Dow Jones Industrial Average is up as investors ignore the events in Cyprus and wait for the Federal Open Market Committee’s statement at 2 p.m. EDT. As of 1:15 p.m. EDT the Dow is up 52 points, or 0.36%, to 14,508. The S&P 500 was up 0.57% to 1,557.

Last night, Cyprus’ parliament voted against the controversial plan to tax the country’s bank accounts. While the EU has offered 10 billion euros in bailout funds, Cyprus needs another 6 billion euros to 7 billion euros to shore up its financial system. Cyprus is considering numerous options to close the gap, including reaching out to Russia for support. If Cyprus is unable to raise the necessary funds, banks will go bankrupt and the country’s economy will be crushed, possibly necessitating an exit from the euro.

While it’s unclear what will happen in Cyprus, the markets are primarily focused on the Federal Open Market Committee’s impending statement. As part of QE3, the Fed is currently buying $85 billion worth of long-term assets each month and has continued to keep the target for the federal-funds rate between 0% and 0.25%. The committee said in December that its plan to keep rates low “will be appropriate at least as long as the unemployment rate remains above 6.5%, inflation between one and two years ahead is projected to be no more than a half percentage point above the Committee’s 2% longer-run goal, and longer-term inflation expectations continue to be well anchored.”

With the unemployment rate at 7.7% and the most recent consumer price index showing 0.7% inflation, I expect the Fed to stick with its stated policy.

Today’s Dow leaders
Today’s Dow leader is Merck , up 1.1%. Merck and the pharmaceutical sector as a whole are up today. Pharmaceuticals are affected by government policy, but their results are largely independent from the health of the economy and the Federal Reserve’s policies. Merck faces some difficult challenges with upcoming patent expirations, which likely will not allow the company to raise its dividend. That said, Merck shares currently yield a substantial 3.9%, and the company is a member of the 2013 Dogs of the Dow.

Second for the day so far is Bank of America , up 1%. Yesterday it was announced that Bank of America and numerous other banks were sued by Freddie Mac for losses from the bank’s supposed manipulation of Libor, which many mortgage bonds and derivatives are based upon. It’s unclear whether the lawsuit will have any meaningful effect on the bank. As the economy improves, Bank of America’s results are likely to improve with it. Investors got a boost last week when the bank passed its Federal Reserve stress tests and earned approval of its plan to buy back $5 billion worth of stock over the next year.

Third for the day is American Express , up 0.9%. Last week American Express passed the Fed’s stress …read more
Source: FULL ARTICLE at DailyFinance

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The Dow Pops While These 3 Stocks Fizzle

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By Matt Thalman, The Motley Fool

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After fears from Europe hurt the markets over the past two days, investors are patiently waiting for Federal Reserve Chairman Ben Bernanke’s press conference, and the markets are all moving higher. As of 12:45 p.m. EDT the Dow Jones Industrial Average is up 59 points, or 0.41%. The S&P 500 is up 0.57%, while the NASDAQ has risen 0.58%.

Although the problem in Cyprus still looms, investors are clearly focusing on the home front today, and they would love to hear the same old song from the Fed: more bond-buying and cheap money for all as the economy continues to grow stronger.

Today’s Dow downers
After shares rose 1.5% on Monday and a few points more yesterday, Verizon is lower by 0.6% today. The company recently received an upgrade from analysts at Citigroup and announced that it would like to pay for TV channels based on unique views, rather than the traditional subscriber model. The company defines a “unique view” as an instance when an individual spends more than five minutes on a channel. This proposal will likely be met with resistance from content providers, but it’s one step closer to the a-la-cart TV subscription model most consumers want.

Shares of JPMorgan Chase have been trading sideways since the Federal Reserve released the result of its stress test, and although JPMorgan didn’t perform poorly, it wasn’t a standout, either. Investors have likely been trading out of Jamie Dimon‘s empire and into Bank of America, which has seen its price rise more than 15% since the beginning of March.

While B of A still has its problems, JPMorgan’s “London Whale” scandal and recent Senate hearings on the matter have shaken investors’ confidence in Dimon’s leadership and risk-management abilities. My Fool colleague Alex Dumortier recently dug further into the matter; click here to see what he found.

Shares of Caterpillar are down 1.7% after the company released sales results for the last three months. Worldwide dealer sales fell by 13% during the rolling three-month period that ended in February, compared with a decline of 4% for the three months ending in January. The largest decline occurred in the Asia-Pacific region, which saw sales drop 26%, while North American figures fell 12%.

Caterpillar’s most recent quarterly earnings report showed a 55% drop in profit, and management cited weak demand and oversupply. Last year the company cut production to help lower supply, but as sales figures continue to fall, inventory levels will likely increase.

Caterpillar is the market share leader in an industry in which size matters, and its quality products, extensive service network, and unparalleled brand strength combine to give it solid competitive advantages. Read all about Caterpillar’s strengths and weaknesses in The Motley Fool’s brand-new report. Just click here to access it now.

…read more
Source: FULL ARTICLE at DailyFinance

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Today's Top 3 Dow Stocks

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By Dan Dzombak, The Motley Fool

US New Housing Permits Chart

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The Dow Jones Industrial Average is down after news out of Cyprus outweighed a better-than-expected housing report. As of 1:15 p.m. EDT the Dow is down 65 points, or 0.45%, to 14,387. The S&P 500 is down 0.85% to 1,539.

There was just one economic release today.

Report

Period

Result

Previous

Housing starts

February

917,000

890,000

Building permits

February

946,000

904,000

Source: MarketWatch U.S. Economic Calendar.

Following yesterday’s poor homebuilder confidence numbers, investors were relieved to see positive housing data. This morning the Department of Commerce reported that housing starts increased 0.8% to a seasonally adjusted rate of 917,000, up from January’s 890,000. February’s results are 27.7% higher than the February 2012 rate of 718,000. The positive housing-starts data shows continued strength in the housing market, which was a boon for the economy last year.

The number that really deserves a closer look is the positive building-permits figure. Building permits rose 4.6%, or 42,000, to a seasonally adjusted rate of 946,000. Building permits are an indication of future housing starts, so when building permits rise it’s a good sign of future housing-market strength.

US New Housing Permits data by YCharts.

The housing market took a beating in the most recent recession, but activity rose significantly last year. If the housing market can continue to improve, it bodes really well for the U.S. economy.

Still, the stock market is overlooking the positive news, as Cyprus‘ parliament is currently abstaining from a bailout vote, while the Cypriot finance minister has reportedly submitted his resignation. Cyprus is in turmoil as European leaders argue over how to bail out the country’s bankrupt banks. Investors are worried that if the country follows through on its plans to institute a one-time tax on bank accounts in the country, a run on banks could occur across Europe. If you want to know more, Fool banking analyst Morgan Housel took a long look at the situation in Cyprus and what it means for investors.

Today’s Dow leaders
Today’s Dow leader is Coca-Cola , up 1% to $39.14 on no real news. The beverage giant’s results are largely unaffected by the health of the economy, so the news in Cyprus isn’t scaring off Coke investors. Last week the company finished down 1% as Chinese authorities announced an investigation into Coca-Cola employees’ use of GPS devices. Some mapping and geographic information is regulated in China due to concern for “national security.”

There’s a lot to like about Coca-Cola. The company currently yields 2.9%, has the top two soda brands in the U.S. in terms of market share, and is expanding around the world. Investors and analysts are taking note of the company’s increasing dominance over PepsiCo, and just last week an analyst from CLSA upgraded the stock from underperform to outperform.

The second-best Dow stock today is Bank of America , up 0.5%. Bank of America’s results are largely dependent on …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Dow Starts Strong but Quickly Turns Negative

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By Matt Thalman, The Motley Fool

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The Department of Commerce released data on the housing starts and permits requested in February this morning, and all signs pointed toward a strengthening housing market. Permits rose 4.6% in February, while housing start rose 0.8% above January’s figure. With both starts and permits increasing, it would seem the housing market is not only strong, but improving at a healthy clip.

Those positive housing numbers helped the Dow Jones Industrial Average move higher this morning, but investor sentiment turned negative just before midday, and as of 1:05 p.m. EDT the index is down 44 points, or 0.31%. Of the Dow’s 30 components, 18 are currently trading down.

Today’s Dow downers
As the issues in Cyprus remain unresolved, the financial industry is rather mixed today. Shares of Bank of America are higher by 1.1%, while Citigroup, Morgan Stanley, and JPMorgan Chase are lower by 1.3%, 2.2%, and 1%, respectively. The problems in Europe and the peril of the region’s banking industry are certainly dampening investor confidence today. Widespread bank runs and failing EU financial intuitions would likely hurt not only Europe, but global financial markets as well.

Shares of Cisco are down 0.9% after a competitor announced a new product today. Polycom, the maker of audio and video conferencing equipment, will now offer a software extension to its current products that will help seamlessly connect all of its devices. Polycom is moving more toward a cloud-based system, which will allow users more freedom and accessibility in the future.

The video-conferencing market is dominated by Cisco, but Polycom believes its new offerings will allow the company to maintain, if not grow, its market share in the years to come.

U.S. aluminum giant Alcoa is trading lower by 1.2% today after a European competitor’s stock rating was cut. Norsk Hydro ASA was downgraded by Nordea Bank AB because of a subdued recovery in aluminum prices. Additionally, Hydro recently said it sees world aluminum demand, excluding China, growing only 3% to 4%, while Alcoa’s management claimed growth would hit 7% this year.

Materials industries are traditionally known for their high barriers to entry, and the aluminum industry is no exception. Controlling about 15% of global production in this highly consolidated industry, Alcoa is in prime position to take advantage of growth that some expect will lead to total industry revenue approaching $160 billion by 2017. Based on this prospect 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 now to get started.

var FoolAnalyticsData = FoolAnalyticsData || []; …read more
Source: FULL ARTICLE at DailyFinance

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HP Leads the Dow in a Shaky Trading Session

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By Dan Dzombak, The Motley Fool

NAHB/Wells Fargo US Housing Market Index Chart

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The Dow Jones Industrial Average is down slightly following worse-than-expected homebuilder confidence and worries that the Cyprus bank deposit tax will cause unrest in Europe. As of 1:15 p.m. EDT the Dow is down 15 points, or 0.1%, to 14,599. The S&P 500 is down % to 1,556.

There was just one U.S. economic release today.

Report

Period

Result

Previous

NAHB Housing Market Index

March

44

46

Source: MarketWatch U.S. Economic Calendar.

The National Association of Home Builders reported that its housing-market index fell by two points to 44 in March, falling short of analyst expectations of a rise to 47. The housing market improved throughout 2012 but leveled off at the end of the year, with the housing-market index hitting a five-year high of 47 in December. A level below 50 indicates that more builders see conditions as negative, rather than positive. It’s important to note that 46 is still far above the HMI’s March 2012 level of 28 and up more than fivefold from the low of eight hit in January 2009. Hopefully, this is not the start of a downward trend for the year.

NAHB/Wells Fargo US Housing Market Index data by YCharts.

NAHB Chief Economist David Crowe had this to say about the drop:

“In addition to tight credit and below-price appraisals, home building is beginning to suffer growth pains as the infrastructure that supports it tries to reestablish itself. During the Great Recession, the industry lost home building firms, building material production capacity, workers who retreated to other sectors and the pipeline of developed lots. The road to a housing recovery will be a bumpy one until these issues are addressed, but in the meantime, builders are much more optimistic today than they were at this time last year.”

While the housing market weighs on the U.S., the big reason stocks are down today was news over the weekend of the Cyprus bailout and bank account tax. To bailout the country’s bankrupt banks, in addition to a cash infusion from Europe, the country is instituting a tax of between 6.75% and 9.9% on the cash in people’s bank accounts, to be taken tomorrow. After the tax was announced, Cypriots immediately rushed to ATMs, which quickly ran out of cash; bank accounts have since been frozen. Investors are worried that the bank levy could cause runs on weaker banks across Europe. If you want to know more, Fool banking analyst Morgan Housel took a long look at the situation in Cyprus and what it means for investors.

Today’s Dow leaders
Today’s Dow leader is Hewlett-Packard , up 2.7%. Earlier today HP announced in a press release a new analytics and information-management service to help clients gain value from big data. Big data has been a hot topic the past few years as cheap computing power and memory allow companies to collect more data than ever before. The easy part is collecting …read more
Source: FULL ARTICLE at DailyFinance

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The Financial Industry Leads the Dow Lower

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By Matt Thalman, The Motley Fool

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Now that the Dow Jones Industrial Average‘s 10-day winning streak is over, the index appears to be working on a losing streak. After falling 25 points on Friday, the Dow is down another 18 points, or 0.13%, as of 12:55 p.m. EDT.

On Friday, it appeared investors were ready for the streak to end, as they took money off the table and locked in profits. But today, a stressed world financial system is leading the markets lower following a controversial decision in the small country of Cyprus.

On Saturday, the European Union bailed out Cyprus, which really didn’t make world news. But what did make headlines is the fact that part of the bailout will be paid for by the country’s bank deposits. The deal imposes a tax on all checking and savings deposits within the country. This breaks the long-held rule that bank deposits are untouchable and the “safest” place to store your money.

Cyprus‘ government still needs to vote on the bailout deal, but the distant threat of bank runs not only in Cyprus but throughout Europe has the markets moving lower.

Today’s Dow downers
My fellow Fool Alex Planes noted earlier today that on March 18, 1850, the modern U.S. financial industry began, and due to the announcement from Cyprus‘ government officials on Saturday, institutions that have survived for more than 162 years are under stress today. Shares of American Express and JPMorgan Chase are down 0.4% and 1%, respectively, as investors fear irrational consumers may bring the European financial system to a grinding halt.

As we saw with the financial crisis just a few years ago, the world banking system is more connected and intertwined than ever before. Once one domino is tipped over, it’s difficult to save the rest before they have all fallen. If Cyprus‘ solution to its own problems spreads fear throughout Europe, the U.S. banking system and financial industry will also take a hit.

Shares of Boeing are also losing altitude today after its closest competitor, Airbus, announced the largest commercial airplane deal ever. Lion Air, operating out of Indonesia, ordered 234 planes, worth $24 billion, from Airbus. The deal is not only a missed opportunity for Boeing, but it also represents a lost customer. Just last year, Lion Air cut a deal with Boeing for 230 of its new 737 Max airplanes worth more than $22 billion. That deal also gave Lion Air the right to buy 150 more, but it would now appear that the option for more 737s will not be exercised.

Boeing is a major player in a multitrillion-dollar market in which the opportunities are massive. However, emerging competitors and the company’s execution problems have investors wondering whether Boeing will live up to its shareholder responsibilities. In our premium research report on the company, two of The Motley Fool’s best industrial-sector minds have collaborated to provide investors with the must-know info on Boeing. They’ll be …read more
Source: FULL ARTICLE at DailyFinance

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Bank of America Is Rallying the Dow

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By Dan Dzombak, The Motley Fool

US Consumer Price Index 1-Month Percent Change Chart

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The Dow Jones Industrial Average is down following some mixed economic reports and worse-than-expected consumer-confidence numbers. As of 1:10 p.m. EDT the Dow is down 38 points, or 0.26%, to 14,502. The S&P 500 is down 0.12% points to 1,561.

There were three U.S. economic releases today.

Report

Period

Result

Previous

Consumer Price Index

February

0.7%

0%

Core CPI

February

0.2%

0.3%

Industrial production

February

0.7%

0%

Capacity utilization

February

79.6%

79.2%

UM Consumer Sentiment Index

March

71.8

77.6

Source: MarketWatch U.S. Economic Calendar.

The CPI which rose 0.7% in February, just slightly above analyst expectations. The rise owed mainly to energy prices, which rose 5.4% in February. Core CPI, which excludes energy and food, rose only 0.2% in February. Many economists and investors are worried the Federal Reserve‘s QE3 will stoke inflation. While that hasn’t been the case yet, it’s something to keep in mind as the Fed does everything it can to make that happen.

US Consumer Price Index 1-Month Percent Change data by YCharts.

The second economic release was the Federal Reserve‘s industrial-production and capacity utilization report, which showed a small surprise on the upside for industrial production. Industrial production rose 0.7% in February, beating analyst expectations of a 0.6% rise. Year over year, industrial production was up 2.5%. Capacity utilization rose to 79.6%, slightly below the 40-year average of 80.2%. Both stats are positive for the economy and show a strengthening manufacturing sector.

The final economic release was the University of Michigan’s Consumer Sentiment Index, which unexpectedly took a big drop, falling to its lowest level since December 2011. The Dow started the day down but dropped noticeably after the survey was released. Analysts had expected consumer sentiment to remain largely unchanged at 78. Consumers’ opinions of the state of the economy sank as energy prices rose, the payroll tax increase ate into consumers’ wallets, and Congress let sequestration take effect. While this is only a survey of consumers’ opinions, it’s generally seen as correlated with consumer spending. If consumers stop spending, the economy will definitely slow, as consumer spending makes up 70% of the U.S. economy. That said, the survey can be extremely volatile, so it remains to be seen whether this is a blip or a new trend.

Source: dshort.com.

Today’s Dow leader
Today’s Dow leader is Bank of America , up 3.7% to $12.56. Yesterday, the Federal Reserve announced the results of its stress tests of U.S. banks. Bank of America had requested authorization of a $5 billion stock buyback and a $5.5 billion preferred-stock buyback, which the Federal Reserve approved. Meanwhile, Goldman Sachs and Dow bank JPMorgan Chase were both asked to resubmit capital plans by the end of the third quarter, while BB&T’s capital plan was rejected. If you want to learn more, you can read Fool …read more
Source: FULL ARTICLE at DailyFinance

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Why the Dow's Winning Streak May End Today

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By Matt Thalman, The Motley Fool

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The Dow Jones Industrial Average‘s 10-day winning streak and nine-day run of record-setting highs may come to an end today. The University of Michigan posted preliminary results from its Consumer Sentiment Index this morning, and economists were expecting a reading of 78. But the report indicated that sentiment fell to 71.8 in March from a previous reading of 77.6 in February. Not only does the falling number frighten investors, but because it was much worse than estimates, some fear the economy may quickly and unexpectedly head in the wrong direction.

As of 12:45 p.m. EDT, the Dow has lost 30 points, or 0.21%, with only eight of its 30 components currently trading in the green.

Today’s Dow downers
The poor consumer sentiment numbers are affecting a number of Dow components today. Blue-chip telecoms AT&T and Verizon are down 1.1% and 1%, respectively. These declines come a day after Samsung launched its new Galaxy S4, which might ordinarily spur upgrades and perhaps even attract new consumers to smartphones. Both trends would help AT&T’s and Verizon’s profits, as smartphones come with higher margins.

But the University of Michigan report clearly shows that consumers are losing confidence in the economy, which may signal that they will curb their spending. That would hurt not only the telecommunications industry, but also every retailer and consumer service provider. The Dow’s big retailers, Wal-Mart and Home Depot , have lost a respective 1% and 1.1, while entertainment giant Walt Disney has lost 0.1% today.

Fellow Fool Morgan Housel recently pointed out that Wal-Mart performs better when the economy is struggling because it can offer quality products at low prices. When consumers have a poor view of the economy and turn to counting pennies, they flock to the lowest-price retailers.

Furthermore, fellow Fool John Maxfield argues that the same could be said of Home Depot. He feels that when the economy is bad, average homeowners are more inclined to perform their own household projects, rather than pay contractors.

While I agree more with the argument for Wal-Mart, I can also see why cash-strapped customers might do home improvements themselves. Regardless, though, when consumers are not confident about the economy or the reliability of their future paychecks, they will likely increase savings and cut spending, which will hurt every retailer.

Should you buy Disney?
It’s easy to forget that Walt Disney is more than just the House of Mouse. True, Disney amusement parks around the world hosted more than 121 million guests in 2011. But from its vast catalog of characters to its monster collection of media networks, much of Disney’s allure for investors lies in its diversity, and The Motley Fool’s new premium research report lays out the case for investing in Disney today. This report includes the key items investors must watch, as well as the opportunities and threats the company faces going forward. So don’t miss out — simply click here …read more
Source: FULL ARTICLE at DailyFinance

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Hewlett-Packard Leads the Dow to New Highs

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By Dan Dzombak, The Motley Fool

US Initial Claims for Unemployment Insurance Chart

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The Dow Jones Industrial Average is up after for the 10th day in a row following multiple positive reports on the state of the economy. As of 1:15 p.m. EDT the Dow was up 59 points, or 0.41%, to 14,515. The S&P 500 was up 0.4% to 1,561.

There were three U.S. economic releases today.

Report

Period

Result

Previous

Weekly new unemployment claims

March 2 to March 9

332,000

342,000

Producer price index

February

0.7%

0.2%

Core PPI

February

0.2%

0.2%

Current account deficit

Q4

($110 billion)

($112 billion)

Source: MarketWatch U.S. Economic Calendar.

While the PPI was up 0.7%, which was expected as higher energy costs impacted producers. Absent energy costs, the PPI was just up 0.2%.

The one to pay attention is the unemployment claims report. Weekly new unemployment claims fell to a seasonally adjusted 332,000. That’s down from last week’s 342,000 and below analyst expectations of 350,000. Last year, new unemployment claims averaged between 360,000 and 370,000 and never really broke out of that range. The declining level of new unemployment claims is a good sign for the economy, indicating that the jobs market is strengthening. It remains to be seen whether this is a trend or just a blip.

US Initial Claims for Unemployment Insurance data by YCharts.

New unemployment claims can be volatile, so it is generally better to watch the four-week moving average, which dropped by 2,750 to 346,750. That’s the lowest level since 2008.

While the jobs market is strengthening, the economy is still not adding jobs fast enough to significantly reduce the unemployment rate anytime soon. The Federal Reserve Open Market Committee has said it plans to continue QE3 until the unemployment rate hits 6.5% or inflation picks up. Until then, the Fed will continue buying up $85 billion worth of long-term assets every month to prop up the economy.

Today’s Dow leaders
Today’s Dow leader is Hewlett-Packard , up 1.8% to $21.71 on no real news. Earlier this week the British Serious Fraud Office opened an investigation into HP‘s accusations of fraud against former executives of Autonomy. If you recall, HP acquired Autonomy for $10 billion in 2011, only to write the acquisition down for $8.8 billion last year. HP accused former executives — including Autonomy’s founder and former CEO, Mike Lynch — of fabricating sales to boost Autonomy’s financials. While American authorities commenced investigations soon after HP‘s accusations, this is the first notice that British authorities are also investigating.

While the stock was hit hard last year, dropping 47% in 2012, there have been no repercussions for the board members who approved the deal. Institutional proxy advisor Institutional Shareholder Services is recommending that investors vote against HP chairman Ray Lane, audit committee head G. Kennedy Thompson, and finance and investments committee head John Hammergren.

HP is rapidly shifting its strategy under the new leadership of CEO …read more
Source: FULL ARTICLE at DailyFinance

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3 Stocks Trying to Hold the Dow Back

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By Matt Thalman, The Motley Fool

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Once again, the Dow Jones Industrial Average is pushing higher today. As of 12:55 p.m. EDT, the index has added 64 points, or 0.44%. It’s poised not only to set a new record closing high, but also to stretch its winning streak to 10 days.

The markets in general are moving higher today. The S&P 500 has gained another 0.41%, leaving it just four points away from its all-time high of 1,565, while the NASDAQ is higher by 0.33%. But even as the markets move closer to setting new highs, a few losers are attempting to hold the indexes back.

Today’s Dow downers
Shares of Merck have fallen 1% today after new reports indicated that the U.S. Food and Drug Administration is reviewing documents connecting Merck’s Januvia drug to serious health issues. The study from JAMA Internal Medicine claims to have found a link between certain diabetes medications, including Januvia, and increased pancreatic problems. The FDA‘s looking into how JAMA collected the data and what led the study’s authors to their conclusion.

At this time, the FDA has not given any official statement on whether Januvia is harmful or not. But if officials find the drug does cause further harm, it may be taken off the market. At the very least, it could come with much more severe side-effect warnings, which would likely lead doctors to prescribe it less frequently.

In the world of retail, shares of Wal-Mart are down 0.4%. The company relies on shoppers receiving and spending their tax refunds during this time of year, and so far 2013 has not been good for refunds.

First, the IRS pushed the earliest possible filing day back by more than a week because of tax code changes resulting from the fiscal-cliff compromise. In February, those claiming earned-income tax credits were hit by refund delays. Now the IRS is claiming that refunds for more than 6000,000 taxpayers who claim an education credit will be delayed for up to six weeks.

On Tuesday a Wal-Mart executive said customers had cashed in refund checks worth $2.7 billion. But at this time last year, the company had processed about $4 billion worth of refund checks, much of which was later spent in its big-box stores.

Lastly, Caterpillar is trading lower by 0.6% following reports that company employees in Europe are protesting against recent moves to cut its European workforce. The EU‘s manufacturing industry has struggled since the recession hit. Combine industry layoffs and wage cutbacks with the austerity programs many EU countries have been forced into, and it’s easy to see how further job cuts could set off protests and, possibly, strikes. If the company is hit with a strike, both its short-term and long-term costs will likely climb, lowering its profits.

Caterpillar is the market share leader in an industry in which size matters, and its quality products, extensive service network, and unparalleled brand strength combine to give it solid competitive advantages. …read more
Source: FULL ARTICLE at DailyFinance