Stock Market Today: Procter & Gamble's Venezuelan Headache and Deere's Sales Rebound

Why Procter & Gamble, Deere, and Owens Corning stocks are on the move today.

Feb 12, 2014 at 9:00AM

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

Investors can expect a flat start to the stock market today, as the Dow Jones Industrial Average (DJINDICES:^DJI) gained just three points in premarket trading. World indexes rose overnight, led by a rally in Chinese stocks after a new trade report pointed to surprising strength in the world's second-largest economy. But tech stocks could be in focus ahead of Cisco's (NASDAQ:CSCO) quarterly earnings report, which is due after the closing bell this afternoon. Analysts expect the networking giant to post an almost 10% decline in both revenue and profit.

Meanwhile, news is breaking this morning on several stocks that could see heavy trading in today's session, including Procter & Gamble (NYSE:PG), Deere (NYSE:DE), and Owens Corning (NYSE:OC).

Currency issues in emerging markets will take a bite out of Procter & Gamble's earnings this year. A large devaluation by the Venezuelan government is forcing P&G to take a $250 million charge, and will be a continuing drag on earnings, the company said. Thanks to that charge and general devaluations of other currencies, P&G now sees full-year sales growing by between 0% and 2%, rather than the 1% to 2% range it had forecast. However, the company still expects to grow organic sales by the planned healthy 3% to 4% range. P&G's stock is down 1% in premarket trading.

Agriculture and construction machinery maker Deere today posted surprisingly strong earnings for its fiscal first quarter. Sales rose by 3% to $7.65 billion, while analysts had expected a 3% dip to $6.6 billion. Profit also came in well ahead of estimates, climbing by 10% to reach $1.81 a share. Deere provided an updated forecast for the next nine months, saying that lower farm incomes should push agriculture sales down by about 6%, but a rebounding housing market will help its construction business post a double-digit gain. Deere's stock is up 2.1% in premarket trading.

Finally, Owens Corning this morning posted quarterly sales of $1.28 billion, on par with what Wall Street expected. Earnings were $0.44 a share, well ahead of forecasts, as the company's insulation business returned to profitability in the quarter. That development helped give the building materials maker confidence to institute its first quarterly dividend since 2000, of $0.16 a share. Owens Corning said that a rebound in the housing market should continue to give its business strong momentum through 2014. The stock is up 6.4% in premarket trading.

3 stocks to retire rich
It's no secret that investors tend to be impatient with the market, but the best investment strategy is to buy shares in solid businesses and keep them for the long term. In the special free report "3 Stocks That Will Help You Retire Rich," The Motley Fool shares investment ideas and strategies that could help you build wealth for years to come. Click here to grab your free copy today.


 
 
 

Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool recommends Cisco Systems and Procter & Gamble. 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 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