These Stocks Are Leading the Dow Higher

At the halfway point of the trading day, the Dow Jones Industrial Average (INDEX: ^DJI  ) was down 21 points (-0.15%) to 13,557. The S&P 500 (INDEX: ^GSPC  ) is down five points (-0.37%) to 1,456.

There were three economic releases this morning which were mixed for stocks.

 Report

Period

Actual

Previous

Weekly unemployment claims

Sept. 8 to Sept. 15

382,000

385,000

Markit Purchasing Managers' Index

September

51.5

51.5

Leading Economic Index

August

(0.1%)

0.5%

Source: MarketWatch U.S. Economic Calendar.

This morning the U.S. Department of Labor reported that weekly unemployment claims fell by 3,000 to 382,000 on a seasonally adjusted basis. The level of claims was higher than the 375,000 analysts had expected. New claims have been steady near 380,000 per week since the spring, signaling little improvement in the labor market. The Markit PMI was unchanged in September. Numbers greater than 50 are positive, while numbers below 50 signal contraction. The final economic release was the Conference Board's Leading Economic Index, which was down 0.1%, in line with analysts' expectations. The index is made up of 10 indicators and is designed to signal peaks and troughs in the business cycle.

The markets as a whole are down slightly, but a few stocks are pushing the Dow higher.

Today's Dow leaders
Today's Dow leader is Kraft (Nasdaq: KFT  ) , up 1.22% ($0.50) to $41.34. The company is likely gaining because competitor General Mills (NYSE: GIS  ) reported positive results yesterday, growing earnings 35%. Both companies are continuing to rise today. In Kraft-specific news, the company is splitting up its business next month. The stock had been down earlier this month, as the post-split earnings guidance for the companies was below analyst expectations. However, the stock has been on a winning streak this week, rising a total of 3.5%. It should be noted that because of the split, Kraft will no longer be a Dow stock and is being replaced by UnitedHealth Group. Fool analysts Catherine Baab-Muguira and Isaac Pino recently discussed the company and why investors are enamored with it. Click here for their take.

Second for the day is Microsoft (Nasdaq: MSFT  ) , up 1.12% ($0.35) to $31.40. Yesterday Microsoft announced it will raise its quarterly dividend by 15% to $0.23 per share. The dividend increases raises Microsoft's yield to 2.9% from its current 2.6%. The company paid out 40% of its earnings in the past year, leaving plenty of room to raise it further. In other news, today it was announced that Microsoft has lodged a complaint in China against four Chinese companies that are using unlicensed Microsoft products. Piracy has proven a continual challenge for Microsoft. To learn more about Microsoft, check out our premium research report on the company. Grab your copy today and get regular updates at no additional cost.

The best approach
Watching the broad market each day is exciting, but investing doesn't have to be gut-wrenching and stressful. If you're in the mood to pick up some solid buys for the long term, The Motley Fool has created a brand-new free report from Motley Fool's expert analysts called "2 Dirt-Cheap Stocks With Huge Dividends." It won't be available forever, so click here -- it's free.

Dan Dzombak can be found on his Facebook page. He holds no position in any company mentioned. Click here and like his Facebook page to follow his investing articles. The Motley Fool owns shares of Microsoft. Motley Fool newsletter services have recommended buying shares of Microsoft. Motley Fool newsletter services have recommended creating a synthetic covered call position in Microsoft.The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2025296, ~/Articles/ArticleHandler.aspx, 10/24/2014 8:46:24 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement