These 3 Dow Stocks Are Winning Today

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) is up after 2012 fourth-quarter GDP was revised upward. As of 1:20 p.m. EDT the Dow is up 33 points, or 0.23%, to 14,559. The S&P 500 (SNPINDEX: ^GSPC  ) is up 0.21% to 1,566.

There were two U.S. economic releases today.

Report

Period

Result

Previous

Weekly new unemployment claims

March 16 to March 23

357,000

341,000

GDP revision

Q4 2012

0.4%

0.1%

Weekly new unemployment claims rose 16,000 to 357,000. New unemployment claims can be rather volatile and had recently been hitting multiyear lows. This jump brings the four-week moving average up just 2,250 to 343,000. This is still below last year's average of 360,000 to 370,000.

US Initial Claims for Unemployment Insurance Chart

US Initial Claims for Unemployment Insurance data by YCharts.

The more interesting number today was the government's final revision of Q4 2012 real GDP to 0.4% growth. GDP was initially reported to be down 0.1% in Q4. That number was then revised to 0.1% growth in Q4, and it now has been updated to 0.4% growth. The increase was led by a 13.2% increase in business investment, particularly in nonresidential structures, equipment, and software. This is good news, as it shows the economy was stronger than previously thought going into 2013, when growth would be dampened by new taxes and the sequester.

Today's Dow leader
Today's Dow leader is United Technologies (NYSE: UTX  ) , up 0.9%. On Tuesday, United Technologies completed the divestiture of its electric power systems unit, which it agreed to do as part of regulatory approval of its acquisition of Goodrich. While some are worried about the sequester's impact on defense stocks, Fool Analyst Rich Smith recently picked United Technologies as his one stock to buy in March.

Second for the Dow today is IBM (NYSE: IBM  ) , up 0.7%. This morning IBM's chief consulting competitor, Accenture, reported better-than-expected earnings for the most recent quarter. Also pushing up IBM was news that the government had signed into law a new cyber-espionage review process for U.S. government technology purchases. This is good news for U.S. tech companies and consultants that work with the government.

Third for the Dow today is Hewlett-Packard (NYSE: HPQ  ) , up 0.4% on no real news. 2012 was a rough year for HP, with the stock down 47%. The stock fell so far that it made the 2013 Dogs of the Dow with its then-dividend yield of 3.72%. This year the stock has made a comeback, up 66% as investors realize the drop was overdone and the company continued executing on its turnaround plans. Last week the company also announced a 10% boost to the dividend, giving the stock a forward yield of 2.45%.

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 what investors need to know about HP in our new premium research report. Just click here now to get your copy today.


Read/Post Comments (0) | Recommend This Article (5)

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.

DocumentId: 2336931, ~/Articles/ArticleHandler.aspx, 7/23/2014 6:52:21 AM

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