Myriad Genetics Rebounds, DryShips Craters on Surprise Announcement

McDonald's stock faces a tough year ahead, and so does the Dow if today's 135-point drop is any indication of 2014.

Jan 2, 2014 at 6:11PM

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.

How is Wall Street supposed to follow up a year like 2013? Boosted by low interest rates, last-minute congressional compromises, and surging real estate markets, stocks posted their highest gains since the 1990s. Unfortunately, the first economic data of 2014 saw four-week average jobless claims jump by 8,500 to more than 357,000, triggering some investors to cash in on last year's profits. After a series of all-time highs to close out December, the Dow Jones Industrial Average (DJINDICES:^DJI) fell 135 points, or 0.8%, to end at 16,441. 

McDonald's (NYSE:MCD) stock, although it fell 0.6% today, wasn't a terrible performer relative to its peers, as 28 of 30 blue chips ended in the red Thursday. The year 2014 should, however, be an interesting one for the international fast-food giant, as a fiercely competitive industry forces McDonald's to rethink its offerings, pricing, and efficiency. The Wall Street Journal called out CEO Don Thompson as one of six head honchos with a lot on the line this year, as slowing sales and so-so new product launches caused the stock to vastly underperform the red-hot stock market. 

Elsewhere in the broad-encompassing services sector, Myriad Genetics (NASDAQ:MYGN) stood out as one of the top gainers, adding 3.5%, and resolving to hopefully never repeat 2013's performance. The stock is more than 20% lower than it was just a year ago, although it's worth noting that Myriad Genetics is down more than 10% in the last five days of trading alone. That's because it looks like Medicare won't be willing to dole out what it used to for Myriad's services; the proposed new rate for its BRACAnalysis gene test was actually cut in half. As you might imagine, this didn't go over well with investors.

Another big mover on the day, DryShips (NASDAQ:DRYS) stock, slumped 8.3% to begin 2014 on a very sour note. It was evident that the Greek shipper would get off to a poor start this year after the company announced -- after market close on the last day of the year -- that it would resume its $200 million equity offering. This is an odd turn of events, since just last month, DryShips mysteriously cancelled these same plans, only to reintroduce them weeks later, when the stock was trading at a much higher price.

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The Motley Fool recommends McDonald's. The Motley Fool owns shares of McDonald's. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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