Jobs Report Doesn’t Hurt Boeing or Travel Websites

Investors shrug off weak January jobs figure and push major indexes higher.

Feb 7, 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 U.S. Labor Department reported this morning that 113,000 jobs were added to the nation's economy in January, higher than the 74,000 jobs created in December but far lower than the 189,000 new jobs analysts were predicting. Additionally, though the jobless rate declined to 6.6%, many are attributing the weak labor force participation rate for this decline and not a truly healthy economy.

Despite the weak jobs number, the major indexes were higher across the board as of 1 p.m. EST. The Dow Jones Industrial Average (DJINDICES:^DJI) was up 105 points, or 0.68%, the S&P 500 was higher by 0.86%, and the Nasdaq climbed more than 1.27%.

Only seven of the 30 Dow components were in the red. The best performer was Boeing (NYSE:BA), which was up more than 3.3% following reports that Ethiopian Airlines appears likely to order 10 of Boeing's next-generatiom 777X aircraft. That order is estimated to be worth $3.8 billion at list price and would substantially increase Boeing's sales year to date  for both the 777X aircraft and overall. As of yesterday, Boeing had in 2014 only sold one 787 Dreamliner, four 777Xs, and 33 737 regional airliners.  

Speaking of travel, shares of a number of the large travel websites are shooting higher today. Expedia (NASDAQ:EXPE) stock is more than 12%, (NASDAQ:PCLN) is up more than 3.5%, and TripAdvisor (NASDAQ:TRIP) has climbed more than 10%. The moves come after Expedia this morning reported quarterly earnings that beat analysts estimates on both the top and bottom lines; the number of hotel room nights booked through the travel website increased by 25% compared to the year-ago quarter, while gross bookings increased by 21%. Lastly, investors received news that the company believes it will increase earnings in 2014 by 13%-16%, which is a rather healthy increase on a year-over-year basis.  

That confidence about the future is what is likely pushing Expedia's competitors higher today on anticipation that they will also beat estimates and report solid earnings for the quarter.TripAdvisor is set to report on Feb. 11, followed by Priceline on Feb. 20. But investors need to remember that basing a buy decision on what another company is did essentially guessing and is not a very smart way to invest.

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Matt Thalman owns shares of The Motley Fool recommends and TripAdvisor. The Motley Fool owns shares of 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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