Dow Soars 192 Points, Walgreen Stock Rallies 5.9%

Wal-Mart Stores, J.C. Penney also end as big gainers Tuesday

Feb 11, 2014 at 6:08PM

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 Dow Jones Industrial Average (DJINDICES:^DJI) had an amazing year in 2013, as it soared to an all-time high, posting its highest single-year return since the red-hot days of the '90s. Then 2014 came around, and stocks clumsily skid into the New Year; at one point the Dow was off more than 1,000 points from its fresh record. The roller coaster ride continued today, as the Dow advanced for a fourth straight day, adding 192 points, or 1.2%, to end at 15,994. The index is up more than 550 points in the last four sessions.

Dow component Wal-Mart Stores (NYSE:WMT) was a clear beneficiary of the renewed bullish attitude on Wall Street today, gaining 1.4% in trading. The new chair of the Federal Reserve, Janet Yellen, lured the bulls out Tuesday with her testimony before Congress -- her first as the central bank's head honcho. She expressed solidarity with the outgoing Fed leader, Ben Bernanke, saying the Fed would continue to taper the stimulus but keep interest rates low. Wal-Mart, as one of the largest companies in the world, stands to benefit from a steady economy in which consumers remain price-conscious. 

J.C. Penney (NYSE:JCP) faces a far tougher road ahead; the company is still feeling the hurt from Ron Johnson's failed turnaround efforts, in which the former Apple executive eliminated sales and alienated core customers. That nightmare may finally be reversing itself, as J.C. Penney just reported long-awaited holiday sales figures. While official fourth quarter results won't be out for a few more weeks, same-store sales growth in November and December came in at 3.1%. Shares jumped yesterday and are up another 4.9% today as investors count their lucky stars that there actually was sales growth. Next up: restore profitability. 

Lastly, Walgreen (NASDAQ:WBA) stock surged 5.9% today, reaching a 52-week high during its trading session. Walgreen is generously extending an offer for Americans recently insured under the Affordable Care Act: the pharmacy will give customers with new insurance coverage 30 days' worth of prescriptions at no upfront cost through April 15. The program originally ran through the end of January, but because of Obamacare adoption rates and gaffes with new health insurance coverage, Walgreen is extending the promotion. It's a clever way to lock in new customers and with rival pharmacies scrambling for loyal customers, Walgreen is on the right track.

Everything you need to know about Obamacare
Obamacare seems complex, but it doesn't have to be. In only minutes, you can learn the critical facts you need to know in a special free report called "Everything You Need to Know About Obamacare." This free guide contains the key information and money-making advice that every American must know. Please click here to access your free copy.

John Divine owns shares of Apple and has options on J.C. Penney. You can follow him on Twitter, @divinebizkid, and on Motley Fool CAPS, @TMFDivine.

The Motley Fool recommends and owns shares of Apple. 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.

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.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information