Dow Reclaims 16,000 as AT&T, UnitedHealth Lead Gains

With a nearly 64-point advance, the Dow regained a critical psychological support level. But can the Dow hold onto its gains?

Feb 13, 2014 at 9:00PM

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 Dow Jones Industrials (DJINDICES:^DJI) passed another milestone today in its attempt to recover from its January losses, climbing back above the 16,000 mark with a gain of almost 64 points. Without any obvious far-reaching rationale for the gains, investors found hot stories across all of the Dow's sectors, as AT&T (NYSE:T) and UnitedHealth (NYSE:UNH) outpaced the Dow on a percentage basis. Nike (NYSE:NKE) and Boeing (NYSE:BA) also rose more than 1%, showing the breadth of the advance.

AT&T's 1.7% gain came apparently at the expense of rival Verizon, which announced a change in the pricing structure with its "More Everything" plan. With Verizon making most of its savings contingent on customers choosing its Edge plan, the value of the plan isn't as apparent as some of the changes that AT&T and other rivals have made to their offerings. If AT&T can actually win a price-war against Verizon, it could potentially threaten Verizon's No. 1 position in the U.S. wireless market -- all the while paying investors the best dividend yield in the Dow Jones Industrial Average.

For UnitedHealth, news that enrollment under plans in the Affordable Care Act had risen in January might have played a key role in pushing shares up about 1.4%. UnitedHealth rival WellPoint said that the figures were consistent with its expectations, and its shares saw similar gains to those of UnitedHealth. Still, there's a lot uncertainty remaining about how Obamacare's rollout will fare as the key March 31 deadline approaches, and so the jury's still out on whether UnitedHealth's more conservative approach to the health-insurance exchanges will prove better than WellPoint's more aggressive exchange strategy.

Meanwhile, Nike's and Boeing's respective gains largely seem to reflect their underlying fundamental strength. For Nike, brand awareness has been a key component of its fight against up-and-coming rivals in the athletic apparel and footwear industry. With such a strong lineup of endorsement talent behind its products, Nike would have to misstep badly in order to give up its head start, but it also can't afford to stop innovating. Similarly, Boeing has a huge opportunity with trillions of dollars of potential future sales in the balance, and its efforts to boost efficient production of all the aircraft its customers have already ordered could well bear fruit for years, if not decades, to come. Doing so, though, requires enough discipline to avoid what could be costly mistakes if things go wrong.

Dow 16,000 is a reality once more, but some investors still wonder whether it will last. For now, though, most investors appear convinced that the correction is over and that it's back to the normal full-speed-ahead mode that we've seen for years.

These stocks don't need Dow 16,000 in order to soar
Find consistent outperformance in growth stocks? They said it couldn't be done. But David Gardner has proved them wrong, time, and time, and time again, with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently, one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Nike and UnitedHealth Group. The Motley Fool owns shares of Nike. 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.

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

Compare Brokers