Microsoft Stock Leads the DJIA Higher

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

Microsoft's (NASDAQ: MSFT  ) stock is leading the Dow Jones Industrial Average (DJINDICES: ^DJI  ) upward after an analyst upgraded the stock. Also pushing up the stock market today is the Department of Labor's better-than-expected unemployment claims report. As of 1:25 p.m. EDT the Dow was up 51 points, or 0.33%, to 15,522. The S&P 500 (SNPINDEX: ^GSPC  ) is up 0.45% to 1,699.

New unemployment claims rose by 5,000 to 330,000 last week, beating analyst expectations of a steeper climb to 339,000. The less volatile four-week moving average of unemployment claims fell by 6,250 to 335,500. That's the lowest level for the four-week moving average since November 2007.

US Initial Claims for Unemployment Insurance Chart

US Initial Claims for Unemployment Insurance data by YCharts.

Last year the rate of unemployment claims averaged between 360,000 and 370,000 per week, so fewer people are applying for unemployment benefits, signaling growth in the employment market.

Today's Dow leader
For the second day in a row the Dow's leader is Microsoft, up 2.9%. Microsoft was yesterday's top Dow stock after news broke that the company had received an order for 30,000 Surface tablets from Meiji Yasuda Life Insurance. Microsoft needs good news for its Surface division after taking a $900 million writedown on the Surface in its last earnings report. That writedown and generally weak results sent the stock down from its high of $35.

Today, Evercore upgraded Microsoft stock from "equal weight" to "overweight" and boosted its price target from $35 to $38. Evercore believes that Microsoft's enterprise segment will continue to do well and that investor sentiment on PCs is overly negative. The firm also pointed out that the involvement of an activist investor, ValueAct Capital, should help the stock.

The tech world has been thrown into chaos as the biggest titans invade one another's turf, and Microsoft is right in the middle. At stake is the future of a trillion-dollar revolution: mobile. To find out which of these giants is set to dominate the next decade, we've created a free report called "Who Will Win the War Between the 5 Biggest Tech Stocks?" Inside, you'll find out which companies are set to dominate and give in-the-know investors an edge. To grab a copy of this report, simply click here -- it's free!


Read/Post Comments (0) | Recommend This Article (3)

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: 2586568, ~/Articles/ArticleHandler.aspx, 11/26/2014 9:59:25 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...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Advertisement