Boeing Flies Higher While U.S. Casino Operators Roll Snake-Eyes

Pressured by its second heaviest stock, the Dow closes in the red while the other major indexes move higher.

Jan 22, 2014 at 9:00PM

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.

The backwardness of the Dow Jones Industrial Average's (DJINDICES:^DJI) price-weighting system revealed itself today, when its second most heavily weighted stock, IBM, lost 3.28%, and singlehandedly dragged down the blue-chip index. While the Dow lost 41 points, or 0.25%, on the day, both the S&P 500 and the Nasdaq both finished higher -- up 0.06% and 0.41%, respectively.

Countering IBM's decline on the Dow was Boeing (NYSE:BA), which rose 1.91% as the company continues to show strong sales numbers and the ability to find new revenue sources. This morning brought the announcement that Boeing won a $17.8 million contract with the U.S. Navy to maintain and remanufacture F/A-18 fighter jets through September. That came after Congress' approval last Friday of a $75 million down payment for 22 Super Hornet fighter jets, which are being phased out of the military but will continue to be built for now because of delays with the F-35. If the Navy agrees to a full order, the contract could be worth as much as $2 billion, which would be a huge order for a plane whose production was supposed to be finished by now.  

Outside the Dow, the casino industry had a rough day. Shares of MGM Resorts (NYSE:MGM) declined 2.35%, while Las Vegas Sands (NYSE:LVS) fell 1.9% and Wynn Resorts (NASDAQ:WYNN) dropped 1.64% after analysts at JPMorgan Chase released a statement indicating that the go-go growth days in Macau may be over. The investment bank downgraded shares of MGM China -- which is controlled by MGM Resorts -- based on valuation and limited growth potential in the near term, as no new casinos are set to hit the Macau market within the next year. But while the analysts believe Wynn and Sands both have some upside potential -- 16% and 13%, respectively -- that's also limited compared with what the stocks have done the past few years. In the short term, JPMorgan believes Wynn and Melco Crown are both buys, while Las Vegas Sands will probably benefit the most in the long term, as it's positioned the best to take advantage of the lack of new casino openings in Macau.

That the whole industry tanked on the analyst statement, even though the comments were favorable to every company except MGM, may be a sign that investors think Macau may soon begin to lose its luster. For now, though, shareholders shouldn't panic. These are just the opinions of one analyst at one firm.  

Don't gamble with your future
It's no secret that investors tend to be impatient with the market, but the best investment strategy is to buy shares in solid businesses and keep them for the long term. In the special free report, "3 Stocks That Will Help You Retire Rich," The Motley Fool shares investment ideas and strategies that could help you build wealth for years to come. Click here to grab your free copy today.

Fool contributor Matt Thalman owns shares of JPMorgan Chase, Las Vegas Sands, and MGM Resorts International. 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 owns shares of IBM and JPMorgan Chase. 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.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.

Compare Brokers