What's Moving the Dow Other Than Cisco's Scare?

The tech giant is the biggest loser in the Dow, but other factors are of concern to investors as well. Find out about them here.

Feb 13, 2014 at 11:00AM

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.

On a day in which weather is a major factor on the East Coast, stock markets aren't making very dramatic moves, with the Dow Jones Industrials (DJINDICES:^DJI) up nine points at 11 a.m. EST after dropping as much as 100 points just after the open. Despite fear from the latest negative outlook from Cisco Systems, other events are also contributing to the Dow's moves this morning.

On one hand, the onslaught of sluggish economic data continued today. Dow futures reacted when retail sales figures for January came in worse than expected, with a drop of 0.4% led by falling auto sales. Downward revisions in December also pointed to sluggishness, and although many people immediately blamed the weather, that doesn't explain why economists hadn't built weather impacts into their projections for roughly unchanged retail sales for the month. Outside the Dow, neither Ford (NYSE:F) nor General Motors (NYSE:GM) appeared to react to the report, given that they've already reported sales figures. But GM stock fell 1.7% on news regarding a recall of almost 780,000 compact cars, including its Cobalt model, due to safety concerns linked to ignition switch problems.

Yet investors have to be pleased at the relatively calm way in which the U.S. government this week resolved the latest round of the debt-ceiling debate, with the House and Senate agreeing to suspend implementation of the ceiling until early 2015.The measure doesn't officially set a new higher limit, but makes it possible for the government to operate without a shutdown. United Technologies (NYSE:UTX) and Boeing (NYSE:BA), which have extensive defense contract relationships, should see their long-term prospects improve if Washington doesn't make things more difficult for them in the future.

When high-profile companies report big news, it's easy to get caught up in the story of the day. But keeping aware of other news items is essential to keep your balance and avoid knee-jerk reactions in your investing. Your long-term results will improve as a result.

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Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford. 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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