Stock Market Today: An Apple Downgrade and a Twitter Upgrade

Why Apple, Twitter, and Wal-Mart stocks are on the move today.

Jan 2, 2014 at 9:00AM

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.

Expect a weak start to the stock market today, as the Dow Jones Industrial Average (DJINDICES:^DJI) is set to fall by 41 points to begin the new trading year. The Dow ended 2013 with a total of 51 record-high closes, and while there's no telling how stocks will behave this year, signs are pointing to a sharply improving economy. For example, the unemployment rate is expected to keep falling, reaching as low as 6.5% in 2014. And consumer spending also looks primed to rise as home prices improve and energy costs continue dropping.

With that bigger picture in mind, here's a look at a few stocks that could see heavy trading in today's session.

Apple (NASDAQ:AAPL) shares could see some selling pressure after a Wells Fargo analyst downgraded the stock this morning. Despite some strong potential catalysts ahead in 2014, including launches into new categories like watches and televisions, the analyst expects Apple's gross margin to come under more pressure with the iPhone 6 launch and with wireless carriers potentially scaling back smartphone subsidies. Apple's stock is down 1% in premarket trading after surging nearly 40% in the second half of 2013.

Twitter (NYSE:TWTR) looks set to continue its volatile trading today after an analyst at Evercore hiked his price target to $70 per share. The social media stock is up nearly 50% since its November initial public offering despite mostly bearish Wall Street ratings and no profits to speak of. Still, Evercore sees a shift in online video content under way that Twitter should benefit from by grabbing billions in new ad revenue over the next few years. The stock is down 0.39% in premarket trading.

Finally, Wal-Mart (NYSE:WMT) is recalling a donkey meat snack it had been selling in China after tests showed traces of fox meat in the product. The scandal threatens to hurt Wal-Mart's food reputation in the world's largest grocery market. The company is investigating the incident, which will likely point to the need for more investment in Wal-Mart's supplier management in China. The stock is unchanged in premarket trading.

Start 2014 off right
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Fool contributor Demitrios Kalogeropoulos owns shares of Apple. The Motley Fool recommends Apple and Twitter. The Motley Fool owns shares of Apple. 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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