Dow Surges 165 Points as Pandora Media Rebounds

Wal-Mart Stores and Redbox owner Outerwall, Inc. also gain big.

Feb 7, 2014 at 6:13PM

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.

Wall Street is not known for its rationality. It's a place of chaotic swings, where billions of dollars change hands each day as the emotional pendulum swings between euphoria and despair. Today, for some reason, Wall Street was much closer to euphoria, even as the long-awaited monthly jobs report came in significantly below expectations. The economy added just 113,000 jobs last month, a far cry from the 189,000 analysts were calling for. Despite this, the Dow Jones Industrial Average (DJINDICES:^DJI) surged 165 points, or 1.1%, to end at 15,794. 

Wal-Mart Stores (NYSE:WMT) tagged along for the ride, adding 1.3% on Friday, ending as one of the Dow's top gainers. There was no significant news today surrounding the world's largest retailer, but going forward, keep an eye on Wal-Mart's international expansion plans, which should be closely scrutinized by shareholders. Its push into the low-margin grocery business in the last decade has proven to be a sound strategy, and the company recently announced plans to invest heavily in the grocery business in its Canadian locations, as well.

Shares of a company with far greater growth potential, Outerwall (NASDAQ:OUTR), rallied 12.2% Friday, as it announced plans to execute a $350 million share repurchase program, which began in earnest today. The current market value of Outerwall stock is just $1.93 billion, so today's announcement represents a significant commitment by the owner of the DVD-rental service Redbox, and change-conversion kiosk Coinstar. Today's announcement is great on the face of things, but competitively speaking, Outerwall's Redbox service will need to embrace online streaming to stay relevant -- a task that could be hard to do with such a multitude of competitors in the space already. 

Lastly, shares of Pandora Media (NYSE:P) added 6.6% Friday, rebounding from Thursday's steep 10.1% sell-off. Shares of the streaming music provider took a hit yesterday after the company's full-year guidance managed to underwhelm investors. Pandora's growth is inevitably slowing as, like Redbox, the business faces an increasingly crowded field of competition in streaming media. It's nice to see Pandora finally turn a quarterly profit, but I don't think the company's competitive advantages are strong enough to merit the stock as a long-term cornerstone of a solid portfolio.

The Motley Fool's three stocks to own forever
As every savvy investor knows, Warren Buffett didn't make billions by betting on half-baked stocks. He isolated his best few ideas, bet big, and rode them to riches, hardly ever selling. You deserve the same. That's why our CEO, legendary investor Tom Gardner, has permitted us to reveal The Motley Fool's 3 Stocks to Own Forever. These picks are free today! Just click here now to uncover the three companies we love. 

John Divine has no position in any stocks mentioned. You can follow him on Twitter @divinebizkid and on Motley Fool CAPS @TMFDivine.

The Motley Fool recommends Pandora Media. 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.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

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.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

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. It's also featured on several dozen 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 ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.

Compare Brokers