Tech Stocks Lead the Dow's 150-Point Rise

Facebook soars after reporting a better than expected quarter and is pulling tech stocks up with it.

Jan 30, 2014 at 1:30PM

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 (DJINDICES:^DJI) is making back yesterday's drop on the back of tech stocks, rising 137 points, to 15,876, as of 1:30 p.m. EST. Facebook (NASDAQ:FB) is leading tech stocks up after it reported better than expected quarterly earnings. The S&P 500 (SNPINDEX:^GSPC) was up 22 points to 1,796.

There were two U.S. economic releases today.





Weekly Initial Jobless Claims








Weekly jobless claims rose for the second straight week, as did the four-week moving average. The important thing to note, though, is that generally we are seeing fewer claims than in the past 12 months. The economy is steadily improving and more and more people are finding jobs.

US Initial Claims for Unemployment Insurance Chart

U.S. Initial Claims for Unemployment Insurance data by YCharts.

Meanwhile, the latest GDP report showed the economy grew 3.2% in the fourth quarter. That was slightly below analyst expectations of 3.3% growth, but this is a first estimate of fourth-quarter GDP that will be updated twice more in the coming months. Leading the GDP rise was a 3.3% jump in consumer spending and a 6.9% boost in business investment.

The estimate for 2013 full-year GDP growth is 1.9%, below 2012's 2.8% but still positive. On the bright side, GDP growth was slowest in the first two quarters and ramped up in the latter two. If it can keep its momentum and not be hurt by rising interest rates or the problems affecting the rest of the world, the U.S. economy could have its best growth in years.

After eBay and Yahoo!'s disappointing earnings reports, investors had low expectations for Facebook's quarterly earnings. But the social media giant did not disappoint. Facebook stock is up 15% to $61.36 after the company reported that, for the first time, half its revenue was from mobile ads. Facebook reported adjusted earnings per share of $0.31, above analyst expectations of $0.27 per share. Revenue was up 63% year ove year to $2.59 billion, better than analyst expectations of $2.33 billion.

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Dan Dzombak has no position in any stocks mentioned. The Motley Fool recommends Facebook. The Motley Fool owns shares of Facebook. 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.

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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