Boeing, AT&T, and Disney Drive Dow Lower

Uncertainty about the Federal Reserve and a few poor earnings outlooks pull the major indexes lower.

Jan 29, 2014 at 1:00PM

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.

With Federal Reserve Chairman Ben Bernanke's last meeting coming to an end this afternoon and investors anxiously waiting to hear what the central bank will do with its stimulus efforts, the major indexes are once again heading south. As of 1 p.m. EST, the Dow Jones Industrial Average (DJINDICES:^DJI) is off by 140 points, or 0.88%, while the S&P 500 is lower by 0.65% and the Nasdaq has been cut down by 0.63%.

These moves come after the three indexes ended a five-day losing streak yesterday; it would appear a new streak may be starting today. Along with uncertainty over the Fed's next moves, investors received some bad earnings reports this morning.

Aircraft manufacturer and Dow component Boeing (NYSE:BA) is one of the culprits. The company's earnings report showed $1.88 in earnings per share on revenue of $23.8 billion in the fourth quarter. Both revenue and earnings came in much better than last year, but shares of the company are down 6% due to a weaker than expected forecast by management. Boeing said it expects revenue to increase by 1%-2% in 2014, which is rather weak and not what investors want to hear. The stock is trading at 23 times earnings, or 17 times future expected results, and with a 1%-2% revenue increase that valuation is unlikely to get much better anytime soon unless the share price really falls.  

Shares of AT&T (NYSE:T) are also down nearly 2% this afternoon after the company released earnings and (like Boeing) gave weaker than expected guidance for the future. This comes even though the company reported better than expected sales and earnings for the past quarter. The guidance indicates management only believes it will grow adjusted earnings per share by the middle single-digit range, while revenue growth will only hit 2%-3% in 2014. Again, not the kind of growth investors want or expect from a stock trading at 24 times earnings.  

Shares of Walt Disney (NYSE:DIS) have fallen 1.8% today, even without an earnings report. The move lower comes as the National Association of Theater Owners politely asked for shorter movie trailers before a film and that films are only advertised for five months prior to their release. The film studios and other groups are fighting these regulations, but it is clear that customers would like to see the marketing time reduced. Some have complained about the number and length of trailers before the film and that all that advertising takes away from the experience of going to the movies. It will be interesting to see how this plays out and if any changes come from it; if it does happen, it will likely cost the studios more money to market both at the theater and through other mediums.  

There is no denying it, technological innovation is the future

There are few things that Bill Gates fears. Cloud computing is one of them. It's a radical shift in technology that has early investors getting filthy rich, and we want you to join them. That's why we are highlighting three companies that could make investors like you rich. You've likely only heard of one of them, so be sure to click here to watch this shocking video presentation!


Matt Thalman owns shares of Walt Disney. The Motley Fool recommends Walt Disney. The Motley Fool owns shares of Walt Disney. 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.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

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.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

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. The show is also heard weekly on dozens of 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. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.


Compare Brokers