Yellen Speaks, Cisco Falls, and Chevron Jumps Higher

Major indexes push higher as Fed chair speaks.

Feb 11, 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.

Federal Reserve Chairwoman Janet Yellen is testifying before a congressional committee today about her policies and what the central bank plans to do to help improve the economy and the jobs market. In a brief summary, Yellen told lawmakers she will continue with the policies started during Ben Bernanke's tenure as chairman. Yellen said she sees cyclical issues still present within the economy, and thus additional stimulus is needed.  

While it does not seem all committee members are completely satisfied with Yellen's answers, the markets certainly are liking what they are hearing as. The Dow Jones Industrial Average (DJINDICES:^DJI) is up 172 points, or 1.09%, as of 1 p.m EST, while the S&P 500 is higher by 0.92% and the Nasdaq has risen 0.88%.

All 30 Dow components except one, Cisco (NASDAQ:CSCO), are higher at this time. Cisco's decline of 0.13% comes as the company is set to release earnings tomorrow, and both analysts and investors seem to be getting nervous about what the company may report. This morning Sterne Agee maintained its buy rating on the stock with a $25 price target, but noted that shares should have a floor at $21 based on future earnings. To me the report reads as a big hedge against what may happen tomorrow. The analyst truly seems to have no clue where the stock may go and how the earnings release will affect shares, but I believe that is a good thing. All too often we read analysts' reports that seem to be filled with conviction about stock movements and no possibility of error. The problem is, analysts are wrong all the time. Telling me that you like a stock long term, but in the meantime shares may fall, but you honestly are not sure, is honest. Investors need to remember that analysts are not gods; they don't know the future, so don't take their word for it, do your own research and come up with your own opinions.

One big winner within the Dow is Chevron (NYSE:CVX), as shares are higher by 1.6% despite reports that the company is dealing with a well fire in Pennsylvania. One person has been hospitalized while another was missing as of noon. With the rapid increase of fracking in the U.S. one can only hope the problem was user error and not something caused by the process of removing oil and gas from the earth, which could lead to much large problems for Chevron and the whole industry.  

Outside the Dow, shares of retailer J.C. Penney (NYSE:JCP) are up 4.9%. The move comes with little news today, but management recently released holiday sales figures showing revenue rose 3.1% during November and December. This indicates that consumers are slowing coming back to the embattled department store chain, but some feel that customers are not coming back fast enough. Today's move higher may not be the best time to jump on the J.C. Penney bandwagon, as the company has a long road still ahead.  

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Matt Thalman has no position in any stocks mentioned. The Motley Fool recommends Chevron and Cisco Systems. 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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