J.C. Penney, Melco Crown Entertainment Swing in Different Directions

Walt Disney stock jumps but can't reverse the Dow's loss today.

Jan 22, 2014 at 6:05PM

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 (INDEX: ^DJI) managed to lose ground for a second straight day Wednesday, despite another generally bullish day on Wall Street. The price-weighted blue chip index was largely dragged down by IBM (NYSE: IBM) stock, which exerts more influence over the average than 28 of its 29 peers. Although Big Blue beat earnings estimates for the fourth quarter, falling revenue failed to impress investors. IBM's disappointment was the main factor behind today's 41-point, or 0.3%, Dow slump. The index closed at 16,373, and has posted a 1.1% loss thus far in 2014.

Walt Disney (NYSE: DIS) stock did its best to offset IBM's fall, tacking on 1.6% today. The gains came on the heels of bullish commentary from a Bernstein analyst touting the success of A&E, which Disney owns jointly with the Hearst Corporation. Comcast (NASDAQ: CMCSA) was formerly the third partner with an ownership stake in the network, but decided to sell its roughly 16% stake to Walt Disney and Hearst in July 2012. A&E boasts one of the biggest and most controversial shows currently on TV, Duck Dynasty.

J.C. Penney (NYSE: JCP) surged 4% today, though swings of that magnitude are actually becoming quite routine for shareholders (although usually they're swings lower). Just three weeks into 2014, J.C. Penney shares have lost more than 25% of their value, as investors read between the lines to divine how the company's doing financially. With the retailer staying suspiciously mum about holiday sales, closing stores, and laying off employees, the message hasn't seemed overwhelmingly positive, to put it gently. In context, today's gains are but a brief reprieve from what's sure to be a bumpy ride moving forward. 

Speaking of bumpy rides, Melco Crown Entertainment Limited (NASDAQ: MPEL) investors could be headed for some tough times. Stock in the gaming company dropped 2.6% Wednesday in reaction to a JPMorgan (NYSE: JPM) report questioning whether the prospects of Macau were over-represented in the valuations of the world's biggest casinos. If China's Macau -- which hauled in more than seven times the revenue Vegas saw last year -- is indeed too heavily represented in current valuations, Melco Crown Entertainment shares are primed for a steep drop. Play your hand carefully with this one, folks!

Say goodbye to "made-in-China"
While China's Macau may be the place to gamble right now, America is in the middle of a full-on techno-industrial renaissance. For the first time since the early days of this country, we're in a position to dominate the global manufacturing landscape thanks to a single, revolutionary technology: 3-D printing. Although this sounds like something out of a science fiction novel, the success of 3-D printing is already a foregone conclusion to many manufacturers around the world. The trick now is to identify the companies -- and thereby the stocks -- that will prevail in the battle for market share. To see the three companies that are currently positioned to do so, simply download our invaluable free report on the topic by clicking here now.

John Divine has options on J.C. Penney. You can follow him on Twitter, @divinebizkid, and on Motley Fool CAPS, @TMFDivine.

The Motley Fool recommends Walt Disney and owns share of IBM, JPMorgan Chase, and Walt Disney. 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.

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