Dow Futures Spike After Fed Race Shakeup

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

According to stock index futures as of 7:40 a.m. EDT, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) will rocket out of the gate today, spiking 150 points at the opening bell. The market is catching up to an eventful weekend of news: Lawrence Summers, the odds-on favorite to succeed Ben Bernanke as the head of the Federal Reserve, bowed out of contention, and the U.S. agreed to an end to the Syria crisis that doesn't involve a military attack.

World markets traded higher, celebrating the dip in geopolitical risk and the rising odds that the Fed won't quickly end its stimulus program. Emerging markets in particular jumped at the prospect of a continued easy-money stance from the Fed.

With those broader trends in mind, here are a few individual stock stories to watch for in today's market.

Boeing (NYSE: BA  ) should continue to fly high today. The company is close to securing an $8 billion deal to provide fighter jets to South Korea, according to Reuters. Boeing reportedly beat out rival Lockheed Martin with the only fighter bid that came in under budget. The next step will be a government committee meeting on the deal that could be held as early as next week. Boeing shares are up 2% in premarket trading.

Who says paper is boring? Shareholders in Boise (NYSE: BZ  ) stand to have an exciting day today after the paper and packaging company agreed to be purchased by Packaging Corporation of America (NYSE: PKG  ) . The companies will combine for about $6 billion in annual sales and nearly $1 billion in yearly profit. Packaging Corp. expects the deal to immediately boost its earnings. Both stocks are up in premarket trading, with Boise spiking 26.6% and Packaging Corp. rising 12.7%.

Finally, Scripps Networks Interactive (NYSE: SNI  ) could get a boost after Barron's argued over the weekend that shares are worth 20% to 30% more than their current valuation. The network behind HGTV, the Travel Channel, and the Food Network has seen its advertising revenue rise along with ratings, but it is cheaper than other media companies, such as Discovery Communications, on a P/E basis. Barron's says overseas expansion and higher cash returns to shareholders could power big gains in the stock. Scripps shares are unchanged in premarket trading.

With interest rates coming down from their recent highs, dividend stocks are back in focus. While they don't garner the notoriety of highflying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list  of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.


Read/Post Comments (0) | Recommend This Article (4)

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: 2638561, ~/Articles/ArticleHandler.aspx, 11/28/2014 8:46:56 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