Dow Surges 188 Points as Disney Works Its Magic

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.

Thus far in 2014, the stock market has been characterized by fear, talk of a bubble, worries over emerging markets, and chatter about slowing growth in China. It's quite a contrast to the happy-go-lucky days of 2013, when stocks posted their best year since the '90s as the Federal Reserve continued pumping money into the economy, and corporate profits reached new highs. But today, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) put on its best 2013 impression, soaring 188 points, or 1.2%, to log its best day of the young year. 

Fueling the blue chip index's gains, Walt Disney (NYSE: DIS  ) stock soared 5.3%, ending as the Dow's best performer by a long shot. Yesterday, Disney was also a standout performer, although its 1% gains Wednesday look paltry by comparison. Today's surge comes after the iconic entertainment behemoth crushed Wall Street's earnings expectations, as ESPN's steady growth and the blockbuster success of the animated feature film Frozen propelled shares higher. 

Beleaguered retailer J.C. Penney (NYSE: JCP  ) also ended as one of Wall Street's best performers, as shares staged an 8.4% rally Thursday. While we may be tempted to award J.C. Penney a golf clap for its showing today, the company is hardly worthy of applause at this point. Remember, it's not an admirable feat to gain 8% in a day when the stock has lost 70% in a year, as this one has. Shares were merely lifted by the overall bullishness of the market today, not because the business itself achieved any remarkable goal, or posted an astounding quarter. In fact, the stock plummeted earlier this week as same-store sales during the holiday period advanced by about 2%, far less than the 4.1% Wall Street was hoping for. 

Wall Street certainly wasn't hoping for the announcement Roundy's (NYSE: RNDY  ) gave on Monday, when the Midwest grocer warned investors of its plans to sell additional shares. This revelation helped send shares down more than 16% in the last five days, as investors brace for the increased supply of Roundy's common stock. Today's 2.8% drop follows yesterday's 4.4% slide. That said, there's a silver lining to all this: Roundy's is using the money it raises from the share issuances to fund expansion in Chicago, which should be a long-term plus for shareholders.

The Motley Fool's top stock tor 2014
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report, "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2827840, ~/Articles/ArticleHandler.aspx, 12/20/2014 5:31:51 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement