Intel and Microsoft Push Dow Higher

After a terrible start to the week, the major indexes have turned things around and are all moving higher.

Jan 14, 2014 at 1:00PM

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.

After the Dow Jones Industrial Average (DJINDICES:^DJI) lost 179 points on Monday, it seemed like last Friday's poor jobs report was going to make this week long and painful for the market. But as of 1 p.m. EST Tuesday that does not seem to be the case; the Dow is up more than 82 points, or 0.50% , the S&P 500 is higher by 0.86%, and the Nasdaq is up 1.45%. As earnings season picks up steam, let's take a look at two Dow components that saw their ratings change today.

The Dow's biggest gainer by early afternoon is Intel (NASDAQ:INTC), which is up 3.8%. The move higher comes after the stock was upgraded by two firms Jefferies and JPMorgan Chase today. JPMorgan upped its rating on the chip maker from neutral to overweight, while Jefferies believes that the stock will make a considerable move from where it is now. With the company moving more into mobile and operating valuable in-house production capabilities, Intel has an advantage over the competition when it comes to pricing.  

Shares of fellow Dow component Microsoft (NASDAQ:MSFT) are up 2.4% despite a downgrade from Citigroup this morning. The rating was cut from buy to neutral based on a balance risk profile with the company's new CEO decision. The analyst believes that an insider getting the job will push shares lower while an outsider will help them rally. Furthermore, the analyst believes that even an outsider may not be make changes as fast as some investors would like to see, which would also cause the share price to fall. Citi holds a $35 price target on Microsoft.  

Microsoft may be moving higher based partly on what GameStop (NYSE:GME) told investors this morning. The video game retailer told investors that fourth-quarter profits will likely be below analysts' estimates because of a larger-than-expected sales decline for PlayStation 3 and Xbox 360 games. While analysts had expected a profit of $2.14 per share, the company now believes the figure will come in somewhere between $1.85 and $1.95 per share. While this news is certainly bad for GameStop investors, it may be a sign that since shoppers were spending money on newer consoles, indicating that Microsoft's Xbox One and Sony's PlayStation 4 performed much better than many expected, and that the companies will report better-than-expected results for the coming quarter.  

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Fool contributor Matt Thalman owns shares of Citigroup, Intel, JPMorgan Chase, and Microsoft. Check back Monday through Friday as Matt explains what caused the Dow's winners and losers of the day, and every Saturday for a weekly recap. Follow Matt on Twitter @mthalman5513

The Motley Fool recommends Intel. The Motley Fool owns shares of Citigroup, GameStop, Intel, JPMorgan Chase, and Microsoft. 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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