New Year Rings Hollow for the Dow

The Dow closed 2013 with a bang, but starts the new year with a whimper.

Jan 2, 2014 at 12:02PM

The Dow Jones Industrial Average (DJINDICES:^DJI) may have ended 2013 with an impressive gain of nearly 27%, but 2014 certainly isn't following suit. By noon EST on the new year's first day of trading, the Dow is down by more than 119 points, as the vast majority of its membership glows bright red.

Why all the long faces? The Department of Labor released its initial jobless claims data for last week, showing a decrease of 2,000 from the prior period. The number of claims opened totaled 339,000, though the market was expecting claims not to exceed 333,000.

The Institute for Supply Management's December Manufacturing Report was disappointing, falling to 57% from November's 57.3%. There were two bright spots in the report, however. The New Orders Index rose 0.6 percentage points to 64.2%, the highest since the April 2010 print of 65.1%. The Employment Index also rose, to 56.5%, registering its highest level since it hit 59% in June 2011.

Banks a mixed bag
Goldman Sachs
is beginning to stir as lunch time approaches, but JPMorgan Chase (NYSE:JPM) has lost 0.6% this morning. JPMorgan's slump shows no signs of abating, despite some rather upbeat news concerning the big bank earlier today.

Showing a commitment to tightening its money-laundering controls -- and probably looking to avoid any cause for additional scrutiny by U.S. regulators -- JPMorgan has exited its role in transacting dollar transfers for Latvian lenders, according to Bloomberg. That leaves Deutsche Bank AG and Commerzbank AG to handle the load until Latvia finds additional partners.

Earlier today, Citigroup gave JPMorgan cause to celebrate when its analysts noted in an investors' preview that the bank has earned a higher price target of $72, based upon an expected 27% upside this year.

The Citi report also gave a glowing recommendation to former Dow component Bank of America (NYSE:BAC), which has experienced a nice boost of 2.7% this morning. Citi analysts raised the bank's target price to $19 and gave the stock a buy recommendation.

An analyst from Raymond James joined in, noting a "positive fundamental outlook" and keeping his outperform rating on BofA intact.

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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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