Bank of America and Wells Fargo Highlight First Week of Earnings Season

Good morning, good lookin'. Here are the five things you need to know on Jan. 21.

Jan 21, 2014 at 6:00AM
Links Worth Snacking On:
  • Chart of the Week: 7 habits of the world's wealthiest people
  • Fast Company: 7 weirdest, most promising jobs of 2014
  • Business Insider: A salary guide for your 20s, 30s, and 40s
  • Bloomberg: This cold winter will cause higher McDonald's burger prices
  • The Atlantic: An economic explanation for all the great movies in 2013
  • Harvard Business Review: How to answer the interview question 'What's your greatest weakness?'
  • The Verge: now ships products to you before you ordered them
  • Fast Company: 3-D printing Hershey chocolate in the nearish future
Just like a Chipotle burrito overflowing with extra guac, everyone loves a three-day weekend -- especially Wall Street. The Dow Jones Industrial Average (DJINDICES:^DJI) reached record highs last week but fell Friday heading into the MLK holiday as big banks got the fourth-quarter earnings season rolling.

1. Banks with good earnings ...
Bank of America
's (NYSE:BAC) earnings were up a handsome 800% from last year, now that the company didn't have to deal with any huge lawsuits in 2013 (unlike painful 2012). Wells Fargo enjoyed a personal record of $5.6 billion in earnings as it grows its mortgage biz with the improving housing market. And Morgan Stanley's (NYSE:MS) profits fell from last year, but its report topped expectations and MS execs announced that they could be raising their dividend this year, (Fun!)

2. ... And banks with bad earnings
JPMorgan Chase
's (NYSE:JPM) $5.3 billion in earnings were down a bit from last year and just missed analysts' expectations thanks to that pesky recent $2.6 billion Bernie Madoff fine. And Goldman Sachs' $2.3 billion earnings were an un-shiny 19% drop from last year's thanks to a slowdown in its core bond-trading business.
3. A big week for Google and Jim Beam acquisitions
Google (NASDAQ:GOOGL) dropped a cool $3.2 billion to buy digital thermostat creator Nest in its quest to eventually control your entire home. Beam, meanwhile, is (literally) turning Japanese after it was bought by Osaka-based Suntory Distillery for a tasty $13.6 billion. 

4. Lululemon and J.C. Penney's scary earnings warnings
Two companies that had a worse 2013 than the New York Knicks have started 2014 with some more unfortunate news. J.C. Penney and lululemon athletica both took the time last week to warn investors that their upcoming earnings reports aren't going to look good thanks to some mediocre holiday sales for each.

5. And the World Bank is pumped for 2014
The Washington-based lender to Planet Earth's emerging-market governments has stars in its eyes -- that's because the World Bank raised its forecast for global economic growth this year from 3% to 3.2%. The European debt crisis is fading into the Spanish Riviera sunset, and developed countries with recovering economies from the '08 financial crisis continue to increase trade with developing ones.

What MarketSnacks is checking out this week:
  • Tuesday -- earnings: Delta Airlines, Halliburton
  • Wednesday -- earnings: Coach, eBay
  • Thursday -- weekly jobless claims, earnings: McDonald's, Starbucks
  • Friday -- earnings: Samsung, Kia

As originally published on

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Fool contributors Jack Kramer and Nick Martell have no position in any stocks mentioned.The Motley Fool recommends, Bank of America, Chipotle Mexican Grill, Coach, eBay, Goldman Sachs, Google, Halliburton, lululemon athletica, McDonald's, Starbucks, and Wells Fargo and owns shares of, Bank of America, Chipotle Mexican Grill, Coach, eBay, Google, JPMorgan Chase, McDonald's, Starbucks, and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. 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.

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.

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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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