Why Facebook and DIRECTV are Surging

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) fell nearly 90 points as of 11:30 a.m. EST on Thursday, following worse-than-expected weekly jobless claims. Dow component Cisco (NASDAQ: CSCO  ) led the decline, shedding more than 2% following management's presentation at an analyst conference. Not every stock was down, however, with both Facebook (NASDAQ: FB  ) and DIRECTV (UNKNOWN: DTV.DL  ) enjoying relatively modest rallies.

Weekly jobless claims disappoint
Data on weekly jobless claims came in worse than economists anticipated early Thursday. The report showed that 368,000 new applicants filed for unemployment last week, while economists had projected 320,000. The figure is far from the most important on the U.S. labor market, but it does suggest the economy is weaker than otherwise thought.

The disappointment may have contributed to the fall in the Dow, but the market's decline this morning may simply be case of continuing momentum to the downside. 

Cisco's management sees challenges in emerging markets
Cisco shareholders have had a difficult week, and it didn't improve on Thursday. The networking giant presented at an analyst conference, where management warned the company is having some difficulty in emerging markets, particularly Russia and Brazil.

Cisco said that the U.S. was recovering, but investors seemed to key in on the company's emerging markets prospects. Yesterday, Cisco shares fell after Citigroup warned that the company's future looks uncertain.

Instagram starts messaging service
In contrast, Facebook shares were moving higher Thursday after Instagram introduced a private messaging service. Instagram is a photo-focused social networking app owned by Facebook. The new messaging service allows members of Instagram to send each other private photos and videos.

The growth of rival Snapchat demonstrates that there is a demand for such a service, though Instagram's take on it varies from Snapchat's. Rather than vanishing after a few seconds, the new Instagram feature is designed to let users post photos without sharing them to all of their followers. In theory, it should increase engagement.

DIRECTV makes encouraging remarks
Like Cisco, satellite TV provider DIRECTV also had an analyst day on Thursday, but like Facebook, shares were moving higher. DirecTV's management said it expects to earn $8 per share by 2016, a growth of about 15% on a yearly basis, while free cash flow is also expected to increase. DIRECTV said it added 139,000 new U.S. subscribers in the third quarter.

That growth defies a broader trend seen recently in the paid-TV industry, with cable companies losing subscribers or struggling to generate growth. DIRECTV's subscriber additions suggests that it is somewhat immune to this trend, a positive sign for investors.

Our top stock for 2014
The market stormed out to huge gains across 2013, leaving investors on the sidelines burned. However, opportunistic investors can still find huge winners. The Motley Fool's chief investment officer has just hand-picked one such opportunity in our new report: "The Motley Fool's Top Stock for 2014." To find out which stock it is and read our in-depth report, simply 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: 2762765, ~/Articles/ArticleHandler.aspx, 9/25/2016 8:35:19 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%
CSCO $31.34 Down -0.32 -1.01%
Cisco Systems CAPS Rating: ****
DTV.DL $0.00 Down +0.00 +0.00%
DirecTV CAPS Rating: ***
FB $127.96 Down -2.12 -1.63%
Facebook CAPS Rating: ***
C $47.15 Up +0.04 +0.08%
Citigroup CAPS Rating: ***