Intel and Google Lead Markets Higher as 3-D Printing Stocks Slump

Big-cap tech stocks were leading the market higher on Tuesday, with Intel and Google posting solid rallies. Shares of 3-D printing stocks, notably Stratasys, tumbled.

Jan 14, 2014 at 11:20AM

The Dow Jones Industrial Average (DJINDICES:^DJI) bounced back from an ugly Monday early today, gaining more than 60 points as of 11:30 a.m. EST. Dow component Intel (NASDAQ:INTC) led the index higher, while Google (NASDAQ:GOOGL) also rallied. Across the board, 3-D printing stocks were tumbling, with Stratasys (NASDAQ:SSYS) posting a double-digit decline.

Retail sales exceed expectations
Data released early on Tuesday showed retail sales beating economists' expectations. Core retail sales, a measure that excludes automobile purchases, rose 0.7% on a month-to-month basis -- economists had been looking for a gain of just 0.4%. Including autos, retail sales rose 0.2%, exceeding the anticipated 0.1% gain. Those numbers suggest a stronger U.S. consumer, which may be leading some investors to buy stocks on Tuesday.

Intel boosted by upgrade
Chip maker Intel was one of the Dow Jones' biggest gainers, rallying more than 3% early on Tuesday following two positive notes. Analysts at both Jefferies and JPMorgan Chase were positive on Intel, with JPMorgan upgrading the stock from neutral to overweight.

Jefferies is hopeful that Intel's push into providing chips for smartphones and tablets will prove fruitful in coming quarters, while JPMorgan believes the market for traditional PCs (and thus Intel's processors) will stabilize this year following a disastrous 2013.

Google rallies following Nest acquisition
Search giant Google wasn't seeing as big a gain as Intel, but its 1.7% rally was still quite significant for a company with a market cap near $400 billion. Yesterday afternoon, Google announced that it had acquired Nest Labs for $3.2 billion.

Nest is a maker of smart, Internet-connected thermostats and smoke detectors. With Nest in tow, Google could be well-positioned in the move toward more intelligent, Internet-connected homes. Google also picks up some qualified hardware designers, including the man who helped design the iPod.

Stratasys stumbles on guidance
Stratasys shares were dropping on Tuesday, at one point notching a loss of more than 12%. Although investors in 3-D printing companies should be used to such volatility, Stratasys' drop follows some notable news -- the company gave guidance for the coming year that fell short of analysts' expectations. On a positive note, Stratasys said that the performance of recently acquired MakerBot was exceeding its expectations, and it should add to the company's bottom line by the end of the year.

Stratasys' announcement was weighing on shares of other companies in the 3-D printing industry, with 3D Systems and voxeljet shares also falling.

Get our top stock pick for 2014
There's a huge difference between a good stock, and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report: "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

Sam Mattera has no position in any stocks mentioned. The Motley Fool recommends Google, Intel, and Stratasys. The Motley Fool owns shares of Google, Intel, and Stratasys. 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.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information