Stock Market News Overshadows Economic Data to Push the Dow Jones Higher Today

News of Facebook's acquisition of WhatsApp is pushing U.S. stock markets higher, while economic data is also signaling growth.

Feb 20, 2014 at 1:30PM

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.

Major U.S. stock indices are all rising on the news of Facebook's (NASDAQ:FB) acquisition of WhatsApp and today's economic data. As of 1:30 p.m. EST, the Dow Jones Industrial Average (DJINDICES:^DJI) was up 110 points to 16,150. The S&P 500 (SNPINDEX:^GSPC) was up 11 points to 1,839.

Facebook is acquiring WhatsApp for $19 billion, or roughly 10% of Facebook's current market cap. The social media giant's stock is up 0.25% to $68.23 on the news. While not in the Dow, Facebook is a large component of the S&P 500. This continues Facebook's strategy of buying potential disruptors at a high price. Facebook's purchase price values each of WhatsApp's 450 million users at roughly $40 per user; that is a bargain compared to Facebook's value of $130 per user, but remains a very high cost nonetheless. The acquisition involves $4 billion in cash, $12 billion in Facebook shares, and $3 billion in restricted stock units for WhatsApp's founders and employees.

There were four U.S. economic releases today.

Report

Period

Result

Previous

Weekly new unemployment claims

2/8-2/15

336,000

339,000

Consumer price index Inflation Rate

January

1.6%

1.5%

Core CPI

January

1.6%

1.7%

Markit flash PMI

February

56.7

53.7

Leading indicators

January

0.3%

0%

The one to pay attention is the Conference Board's Leading Economic Index which jumped 0.3% in January, indicating the economy will continue to expand -- albeit at a slow rate. The index was led higher by the continued large spread between the federal funds rate and the 10-year Treasury bond, indicating easy profits for lenders, and a drop in the four-week average of new unemployment claims to 333,000, from a weekly average of 358,000 in December.

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 Dzombak can be found on Twitter @DanDzombak or on his Facebook page, DanDzombak. He has no position in any stocks mentioned. The Motley Fool recommends Facebook. The Motley Fool owns shares of Facebook. 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.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

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.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

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. The show is also heard weekly on dozens of 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. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers