This Dow Stock Draws a Line in the Sand

For the third straight day, all three major indexes are trading essentially flat. As of 2:30 p.m., the Dow Jones Industrial Average (INDEX: ^DJI  ) is up six points, or about 0.05%. Meanwhile, the S&P 500 is down a mere 0.15%, and the Nasdaq trails the others with a 0.25% loss. Volatility, as measured by the VIX (INDEX: ^VIX  ) , is up more than 4% ahead of tomorrow's big options expiration.

On the Dow, the biggest headlines go to Wal-Mart (NYSE: WMT  ) , which has announced it has joined competitor Target in no longer selling Amazon's (Nasdaq: AMZN  ) Kindle e-reader. This isn't an e-reader ban either; Wal-Mart will continue to sell Apple's iPad tablet, along with Barnes and Noble's Nook. Why? Because Amazon threatens to disrupt the big-box business model (sorry, B&N -- try as you may, you don't measure up).

Over time, Amazon will continue to encroach on the brick-and-mortar retailers' turf (especially as more shipping centers allow same-day delivery), and those retailers don't intend to accelerate their demise by selling customers a device that encourages them to shop elsewhere. Wal-Mart investors clearly agree with the move, as shares are trading up half a percent.

Off the Dow, it may seem like Starbucks is similarly encroaching on Green Mountain Coffee Roasters' (Nasdaq: GMCR  ) turf -- by expanding sales of its single-shot espresso machine from website-only to select retail outlets. Shares of Green Mountain are down 8% in response, but this seems like an overreaction. Starbucks' Verismo is not really a direct competitor to the well-known Keurig line. Sure, they both produce caffenated beverages, but they largely appeal to two different buyers. While Green Mountain certainly has significant challenges in front of it, Verismo won't have blood in its latte if Green Mountain fails.

For an in-depth look at the challenges I'm referring to, try The Motley Fool's new premium report on Green Mountain. This report outlines key opportunities and risks facing the company and comes with a year of updates. Click here to receive your copy now!

David Williamson holds no position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool owns shares of Apple and Starbucks. Motley Fool newsletter services have recommended buying shares of Apple, Starbucks, and Green Mountain Coffee Roasters. Motley Fool newsletter services have recommended creating a lurking gator position in Green Mountain Coffee Roasters. Motley Fool newsletter services have recommended writing puts on Barnes & Noble. Motley Fool newsletter services have recommended writing covered calls on Starbucks. Motley Fool newsletter services have recommended creating a bull call spread position in Apple. The Motley Fool has a disclosure policy.

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