The Fed Pushed These Dow Stocks Higher

Stocks got a little pre-weekend boost from long-awaited news from the Federal Reserve about potential plans for future measures to bolster the economy. As everyone's come to expect from the Fed, the pronouncement was vague, and details were sketchy, but that leaves investors plenty of room to make their own interpretations of what the central bank is likely to do. At least looking at the movement in the stock market, the assessment was generally positive, with the Dow Jones Industrials (INDEX: ^DJI  ) ending the day up 90 points, making back most of the ground the average lost the previous day.

Some Dow stocks, however, got much more of a boost than others. Intel (Nasdaq: INTC  ) , and its 2.3% jump, led the Dow. Yet, as Fool tech analyst Andrew Tonner wrote today, Intel's biggest appeal right now is its cheap valuation. Even after today's gains, the stock still trades barely above 10 times earnings. If the company can capitalize on any of its multiple growth prospects, it's poised for huge gains.

American Express (NYSE: AXP  ) also gained almost 2%. The company's Campus Edition prepaid card is getting a lot of attention during the back-to-school season, as it offers no monthly maintenance fee. Its $2 fee for withdrawals after the first each month, however, could lead to some additional revenue for the card giant.

Finally, Microsoft (Nasdaq: MSFT  ) made a nice push forward, gaining more than 1.5%. Investors are getting excited about the potential for a new Windows Phone-based device. With Nokia (NYSE: NOK  ) slated to have a press event next week, new releases to the Lumia line could be coming. Whether that's enough to overshadow the iPhone 5 is an entirely different story, but Microsoft has been quietly rising lately, even though it remains reasonably priced.

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Fool contributor Dan Caplinger doesn't own shares of the companies mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool owns shares of Intel and Microsoft. Motley Fool newsletter services have recommended buying shares of Microsoft and Intel, as well as creating a synthetic covered call position in Microsoft and writing a covered strangle position in American Express. 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 Fool has a disclosure policy.


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  • Report this Comment On September 01, 2012, at 12:02 PM, fortuitoustrade wrote:

    Oversold is oversold. It is extremely hard to push something that is oversold any lower without a bounce. The bounce will come, and I will humbly take the market's gift. Sold all 3522 shares of INTC at 24.96 for a tidy profit. I bought all 3522 shares of INTC over the last few days originally at a 24.52 cost basis. I might re-enter in the 24.5X or lower handle, but I have a couple days to think about that http://fortuitoustrade.blogspot.com

  • Report this Comment On September 02, 2012, at 7:06 PM, usgoods wrote:

    Everyone is expecting QE3 to push the markets higher. I predict the markets will do the opposite of what everyone is expecting. The markets kept their value over the summer which is unusual. I believe they are just setting up a nice correction leading into election day. Right now I am selling short.

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