4 in a Row: Dow Up 75 Points Tuesday

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

A common piece of advice -- running the gamut across disciplines as diverse as sports, academics, and the workplace -- is to never set the bar too low. Challenging yourself drives performance. But that maxim doesn't seem to translate to the insular world of Wall Street. Today the International Monetary Fund trimmed its global growth prospects, and stocks jumped, posting their fourth consecutive day of gains.

While some investors may have been betting that global economies can grow faster than the 3.3% IMF projection, the 1.8% earnings growth figure domestically is an easier target to eclipse as second-quarter earnings season begins. The Dow Jones Industrial Average (DJINDICES: ^DJI  ) gained 75 points, or 0.5%, to close at 15,300.

Caterpillar (NYSE: CAT  ) was the top blue-chip performer today, jumping 2.6%. The mining and construction equipment provider smiled upon higher gold prices today, as the precious metal posted a second straight day of gains. Gold is frequently used as a currency hedge against inflation; Tuesday's report from China that the country's consumer price index rose more than expected stoked the feeling inflation is rising, a bullish signal for gold bugs and for mining equipment makers such as Caterpillar.

Tech mainstay Cisco Systems (NASDAQ: CSCO  ) also surged, adding 2.2% Tuesday. The networking technology giant announced a new joint venture with Microsoft yesterday to roll out new cloud infrastructure for businesses around the world. The partnership aims to help "align sales teams and channel partners," according to the press release, with Cisco lending its expertise and reputation for quality data centers as an additional offering.

On the bearish end of the index, Verizon Communications (NYSE: VZ  ) lost 0.4%; telecommunications ended as the only sector in the red today, so it's not terribly surprising. A Wall Street Journal piece yesterday covered a seldom-discussed aspect of the landmark Dodd-Frank financial reform legislation -- an aspect that could be a big headache for Verizon. The law, which becomes enforceable next May, will require companies to ensure that suppliers of parts including tantalum, tin, tungsten, and gold aren't getting those materials from high-conflict areas. Critics say tracking core components back to their original source is asking for transparency in the supply chain that's nearly impossible in practice. 

Lastly, IBM (NYSE: IBM  ) fell 1.9%, posting the largest losses in the Dow. Today's slip shows the power that Goldman Sachs wields on markets: The investment bank downgraded shares of the IT powerhouse from "buy" to "neutral," citing potentially declining margins. Investors will see how prescient Goldman's thesis is next Wednesday, when IBM reports quarterly earnings. 

The amount of data we store every year is growing by a mind-boggling 60% annually! To make sense of this trend and pick out a winner, The Motley Fool has compiled a new report called "The Only Stock You Need to Profit From the NEW Technology Revolution." The report highlights a company that has gained 300% since first recommended by Fool analysts but still has plenty of room left to run. To get instant access to the name of this company transforming the IT industry, click here -- it's free.

Read/Post Comments (0) | Recommend This Article (1)

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.

Compare Brokers

Fool Disclosure

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: 2529205, ~/Articles/ArticleHandler.aspx, 9/25/2016 1:53:07 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...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 4:55 PM
^DJI $18261.45 Down -131.01 -0.71%
CAT $82.44 Down -1.06 -1.27%
Caterpillar CAPS Rating: ***
CSCO $31.34 Down -0.32 -1.01%
Cisco Systems CAPS Rating: ****
IBM $154.98 Down -1.13 -0.72%
IBM CAPS Rating: ****
VZ $52.56 Up +0.21 +0.40%
Verizon Communicat… CAPS Rating: ****