Dow Slips As IBM Falls After Hours; BlackBerry Jumps

The blue chips dipped after weak earnings from IBM and other companies, while BlackBerry shares gained on news from the Pentagon.

Jan 21, 2014 at 10:00PM

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 a three-day break from earnings season, stocks finished mixed once again today, with the Dow Jones Industrial Average (DJINDICES:^DJI) sliding 0.3% while the Nasdaq and S&P 500 both finished up. Investors seem to be searching for a theme to guide them through the new year, coming off a 2013 performance that saw the broad market jump nearly 30%, as the stock market has been mostly flat through three weeks.

There were no economic reports released today, but the stampede of major earnings releases continued as Dow stocks Travelers, Verizon, and Johnson & Johnson all dropped more than 1% after announcing results this morning. IBM (NYSE:IBM) shares were also off 2.6% after Big Blue once again disappointed the market in its quarterly report, missing sales estimates for the fourth straight quarter on sliding demand for servers and storage in China and other emerging markets. A slowdown in IT spending by government-owned corporations in China seemed to ding the company the most in the quarter, as overall revenue dropped 5% to $27.7 billion, below expectations of $28.25 billion. Still, IBM's CFO promised that sales growth will get back to the mid-single digits by 2015. Helped by a lower tax rate, IBM's adjusted earnings rose to $6.13 a share, above estimates at $5.99.

Staying in the tech world, BlackBerry (NASDAQ:BBRY) shares finished up 9% after the ailing smartphone maker got a vote of confidence from the Pentagon last week. In a press release, the Defense Department said the BlackBerry was still the choice of the vast majority of its staffers, as about 80,000 employees were using the smartphone, most prized for its security features. The news actually came out on Thursday, and the stock has risen 16% in just the past two trading sessions. In news more reflective of BlackBerry's current situation, the Ontario-based company said it will divest a majority of its Canadian real estate holdings, a move that will unload about 3 million square feet of commercial real estate from the company's books. Shares gained another 1.6% after markets closed amid speculation that the company will move its headquarters, though it said in the release that it wouldn't. Despite the after-hours gain, the decision seems to be reflective of a struggling company's desperation to sustain cash flow, as BlackBerry has seen massive operating losses recently. For long-term investors, the sale is not a positive sign.

What's next in the smartphone war?
Want to get involved in the smartphone phenomenon? Truth be told, one company sits at the crossroads of smartphone technology as we know it. It's not your typical household name, either. In fact, you've probably never even heard of it! But it stands to reap massive profits no matter who ultimately wins the smartphone war. To find out what it is, click here to access The Motley Fool's latest free report: "One Stock You Must Buy Before the iPhone-Android War Escalates Any Further."

Fool contributor Jeremy Bowman has no position in any stocks mentioned. The Motley Fool owns shares of IBM. 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.

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