A Bigger Yelp, a Smaller Tweet, and a New Fed Chief Lead the Week in Review

Here are the five things you need to know about the market this week.

Feb 8, 2014 at 7:00PM

Still trying to figure out who would ever risk his or her life doing the luge at the Winter Olympics? At least it's not as dangerous as staying in a Sochi hotel. Now check out why Wall Street deserved a bronze medal last week.

1. January employment report disappoints
In its big monthly announcement, the Labor Department reported that although unemployment dipped from 6.7% to 6.6%, the U.S. added only 113,000 jobs in January -- well below economists' expectations of 200,000. Although that's the second straight disappointing month after the economy had so much jobs momentum over 2013, both November and December's jobs reports were revised upward. Some economists think absurdly cold weather may have affected hiring, but overall investors weren't too upset Friday, because a mediocre jobs report most likely means the Federal Reserve will continue its economic stimulus policies.

2. Fourth-quarter earnings winners: Yelp
Powered by a calorie-packed 47% jump in reviews and 67% rise in registered restaurants, Yelp (NYSE:YELP) earnings impressed investors with $70 million in revenues last quarter.
The big excitement for Yelp comes down to two main factors. First, the activity among its users is as busy as a five-star restaurant's kitchen. Nearly 70,000 restaurants are now listed on the site, and that's after a 69% jump over the last quarter. Plus, an epic 53 million reviews are now simmering on the site, driving a major increase in traffic.
For Wall Street, the question now is whether Yelp can pivot to the soon-to-be-most-hashtagged theme of 2014: mobile. Plenty of companies are solid on desktops, but now more users are accessing the review site on their iPhones than on their bulky home computers. Yelp's execs made clear in the earnings announcement that this is their priority.

3. ... and fourth-quarter earnings losers: Twitter
Twitter (NYSE:TWTR) shares fell from the sky by a tweet-worthy 25% after announcing a disappointing $511 million loss in its first ever earnings report.
Profits have never been the focus for Twitter, because it wasn't a publicly held company before last Thanksgiving and its primary business strategy was to gain users (not advertisers). Plenty of tech companies use this approach (think Facebook -- scooping up all your friends in the mid 2000s before they started cramming your news feed with local sushi restaurant promotions last year). Facebook's proved profitable now, so investors are looking for the same kind of move from Twitter.
The good news for Twitter is that it's enjoying some solid user growth among its 241 million users, which is about 30% more than last year. Plus, the advertising revenues of $243 million are starting to stream in.

4. The Fed's new chairwoman sworn in
After months of job interviews with Congress, Janet Yellen was finally sworn in as the first female chair of the Federal Reserve, and investors are expecting her to most likely continue with her predecessor's fun economic stimulus policies. Well-bearded outgoing Fed Chairman Ben Bernanke isn't hitting the links for retirement -- he's already signed a new position at the Brookings Institution, a D.C.-based think tank.

5. Other econ data wasn't too hot, either
If the jobs data didn't get you pumped going into the weekend, neither did the other econ data coming out of America. According to research firm ADP, U.S. manufacturing slowed for the second straight month to its lowest level since last May. And, blaming cold weather for freezing away consumers, U.S. car sales got smacked in January -- Ford (NYSE:F) suffered a 7% drop and General Motors (NYSE:GM) fell 12%. (Maybe they were just embarrassed by their mediocre Super Bowl ads.)

What MarketSnacks is checking out this week:
  • Monday -- earnings: Hasbro, Loews, Pizza Pizza
  • Tuesday -- NFIB Small Business Index; earnings: CVS Caremark, Sprint
  • Wednesday -- Fed President James Bullard speaks; earnings: Dr Pepper Snapple, Manchester United
  • Thursday -- New Fed Chairman Yellen speaks; retail report; earnings: Burger King Worldwide, PepsiCo
  • Friday -- Reuters/University of Michigan Consumer Sentiment Survey; earnings: Campbell Soup, World Wrestling Entertainment

MarketSnacks Fact of the Day:  Ford Field (home of the Detroit Lions) sells the most expensive beer in the NFL at $0.67 per ounce, while Bank of America Stadium (home of the Carolina Panthers) sells the cheapest at $0.27 per ounce.

As originally published on MarketSnacks.com

Stocks for the really long haul
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. 

Nick Martell and Jack Kramer have no position in any stocks mentioned. The Motley Fool recommends ASP, Burger King Worldwide, Facebook, Ford, General Motors, Hasbro, Loews, PepsiCo, Twitter, and Yelp and owns shares of Facebook, Ford, Hasbro, and PepsiCo. Try any of our Foolish newsletter services free for 30 days. 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.

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 fool.com.

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 www.fool.com/beginners, 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 www.fool.com/podcasts.

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