Disney and Coke Push Dow Higher While Green Mountain Explodes

All three of the major indexes are up close to 1% after a better than expected jobless claims number.

Feb 6, 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.

The major U.S. indexes are rallying this morning after an unexpectedly positive initial jobless claims report. The Labor Department this morning reported that 331,000 claims were filed last week, a 20,000-claim decline from the previous week and below the anticipated 337,000 count. Still, most market participants are waiting for the January employment rate report that is scheduled to be released tomorrow. As of 1 p.m. EST, the Dow Jones Industrial Average (DJINDICES:^DJI) is up 152 points, or 0.98%, the S&P 500 has risen 1.01%, and the Nasdaq is higher by 1.08%.

One big winner helping push the Dow higher is Walt Disney (NYSE:DIS), as shares were up 5%. The company posted quarterly earnings this morning that beat on both the top and bottom lines as revenue increased 9%. A major reason for the beat was the company's movie studio unit, which produced the major hit Frozen this past year. The film grossed more than $870 million worldwide and will soon spawn a play on Broadway. After a number of flops in the past few years investors were beginning to wonder if Disney's movie studio was a waste of money, but Frozen has certainly turned those skeptics into believers. Additionally, while the movie itself was a huge hit, Disney's ability to build off the brand to increase revenue in other areas of its business is what makes the company a true powerhouse.  

Another winner within the Dow today is Coca-Cola (NYSE:KO) ; shares are higher by more than 1.4% after it was announced that the soft drink king was taking a 10% stake in Green Mountain Coffee Roasters (NASDAQ:GMCR). The two also signed a 10-year deal in which Green Mountain's at-home device for making cold drinks will be able to produce Coke products. Green Mountain is still working on the system, which appears likely to be similar to SodaStream's (NASDAQ:SODA) device for making carbonated beverages at home. Shares of Green Mountain are up more than 30% at this time. Surprisingly, SodaStream has also climbed higher by more than 11% today.  

Some analysts believe SodaStream will receive a boost when Green Mountain begins to advertise its device; since SodaStream was the first mover in the space it could have the advantage. The other cause for SodaStream's move higher is that a number of market participants believe PepsiCo might buy the company or enter into an agreement similar to the Coke-Green Mountain deal  

Both Coke and Pepsi have seen sales slow over the past few years as soda consumption in the U.S. has begun to weaken, so the move by Coke is a small bet on the future and perhaps a way to help boost sales without taking on much risk.

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Matt Thalman owns shares of Walt Disney. The Motley Fool recommends Coca-Cola, Green Mountain Coffee Roasters, PepsiCo, SodaStream, and Walt Disney. The Motley Fool owns shares of Coca-Cola, PepsiCo, SodaStream, and 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.

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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