Dow Kicks Off Q3 With a Win

Stocks moved higher today as bullish economic data helped start off the third quarter on the right foot. The Dow Jones Industrial Average (DJINDICES: ^DJI  ) was up by nearly 200 points early in the session but finished up just 65 points or 0.4% because of a late sell-off. Aside from the economic reports, investors seem to have come to terms with the reality that the Federal Reserve plans to end its monthly bond-buying program and are back to focusing on other economic data points such as the June employment report, which comes out this Friday. World markets were also trending upward today, as indexes in Japan, Hong Kong, and Tokyo all topped gains of 1%.

Today, the Institute of Supply Management's June manufacturing index topped expectations of 50.5, coming in at 50.9. Investors were also happy to see an expansion after May's reading of 49.0 indicated a contraction. May construction spending, meanwhile, increased 0.5% to an annual rate of $874.9 billion, in line with estimates, and hit a near four-year high in the process. The revamped housing market has driven much of the growth in construction, as the commercial real estate market and new factory demand continue to be slow.

United Technologies (NYSE: UTX  ) topped all Dow stocks today, gaining 1.9%. Though there was no major news out on the maker of Otis elevators and aircraft engines, the company stands to benefit from the strong manufacturing and construction reports. United Technologies was recently slapped with $473 million in damages in a lawsuit related to bogus pricing in a contract with the Air Force more than 20 years ago. While no investor likes to see news like that, for a company taking in more than $5 billion in profit annually, the suit is just a bump in the road.

On the flip side, Intel (NASDAQ: INTC  ) was the Dow's biggest loser, falling 1.4% despite a strong performance by the tech-heavy Nasdaq. Again, there was no company-specific news on Intel, but new CEO Brian Krzanich said Friday that the company was finally making a push into mobile, an area that's been a thorn in the side of the chipmaker. Krzanich said the company was speeding up its development of its Atom chip for mobile devices and is producing chips for wearable technology.

Finally, Disney (NYSE: DIS  ) shares were up 1.2% on the same day it extended CEO Bob Iger's contract by 15 months to June 2016. Iger, who is now 62, figures to retire when that date arrives. Disney shares also reacted to the split between News Corp. and 21st Century Fox, which will create a more streamlined rival, as Fox, the entertainment house, sheds its publishing and news wing in News Corp. Fox Sports is scheduled to launch this summer, which could present a serious challenge for ESPN, one of Disney's cash cows.

It´s not only the sports television landscape that´s changing quickly. New entrants such as Netflix and Amazon.com are just beginning to disrupt traditional networks. Does their rise spell doom for the likes of Disney and Fox? Find out in The Motley Fool's new free report "Who Will Own the Future of Television?" which details the risks and opportunities in TV. Click here to read the full report!


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: 2519639, ~/Articles/ArticleHandler.aspx, 10/22/2014 7:15:30 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