Intel is Leading the Dow Higher Today

Dow reclaims a chunk of Monday's losses.

Jan 14, 2014 at 1:32PM

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.

The Dow Jones Industrial Average (DJINDICES:^DJI) is rising in the face of mixed reports on the economy, up 83 points to 16,341 as of 1:30 p.m. EST. The S&P 500 (SNPINDEX:^GSPC) was up 17 points to 1,835.

There were four U.S. economic releases today.





NFIB small-business index




Retail sales




Retail sales ex-autos




Import price index




Business inventories




The one to pay attention is the retail sales report for last month. While at first it appears retail sales beat expectations, you have to look closer. Many economists worried about a weak holiday season for retail sales, especially as automobile sales were weak in December. As such, expectations were for a 0.1% drop in overall retail sales and just a 0.4% gain if automobile sales were excluded. Both measures at first glance beat expectations, with retail sales rising 0.2% and retail sales minus autos rising 0.7%.

However, October and November retail sales growth were revised downward. October growth was dropped from 0.6% to 0.5%, while November growth went from 0.7% to a revised 0.4%. So while retail sales grew in December, they grew from a lower than expected base.

Today's Dow leader
Today's Dow leader is Intel (NASDAQ:INTC), up 3.75% to $26.45, after being upgraded from neutral to overweight by JPMorgan Chase. The bank believes the PC market is stronger than the market expects; accordingly, it raised its price target on Intel from $20 to $29.

Analyst Christopher Danely wrote:

We are raising our rating on Intel from Neutral to Overweight due to two factors: we believe the PC market will remain relatively stable in 2014, and we believe Intel's new CEO will continue to provide realistic guidance and focus on areas where Intel has an advantage -- thereby improving margins and returns. We are raising our revenue and EPS estimates on Intel to reflect stabilization in the PC market and better spending habits at Intel, and believe the stock should experience multiple expansion as a result.

Intel is trading at a price-to-earnings level of 13.8, below the level of competitors Qualcomm (18.7) and NVIDIA (19.9).

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Dan Dzombak can be found on Twitter @DanDzombak or on his Facebook page, DanDzombak. He has no position in any stocks mentioned. The Motley Fool recommends Intel. The Motley Fool owns shares of Intel. 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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