S&P 500 Hits Another Record as Apple Hints at TV Expansion, MercadoLibre Jumps

The blue chips gained 0.3%, while the S&P 500 hit another record high. Apple held its shareholders meeting, and MercadoLibre shares jumped on earnings.

Feb 28, 2014 at 10:02PM

Despite a downward revision to the GDP, stocks still found a way to win today as the Dow Jones Industrial Average (DJINDICES:^DJI) gained 49 point,s or 0.3%, and the S&P 500 moved up by the same percentage to hit yet another record high, closing at 1,858. The market was up close to 1% for much of the day, but fell late on concerns about instability in Ukraine, as two airports in Crimea were taken over by armed men purported to be from Russia.

Back home, the Commerce Department lowered its estimate of fourth-quarter GDP growth from 3.2% to 2.4%, a significant drop from the 4.1% growth rate reported in the third quarter. Even worse, economists said that GDP will grow less than 2% in the current quarter. Still, not all of today's economic data was negative. The Chicago Purchasing Managers Index improved from 59.6 last month to 59.8, ahead of estimates at just 56.0, while the University of Michigan's consumer confidence rating inched up from 81.2 to 81.6, indicating that consumers continue to have faith in the economic recovery. Finally, pending home sales were essentially flat in January, increasing just 0.1%. That was better than December's fall of 5.8%, but worse than expectations of an increase of 0.8% as the housing market seems to have been a victim of the recent cold weather.

Turning to individual stocks, Apple (NASDAQ:AAPL) held its annual shareholders' meeting today, finishing the session down 0.3%. There was no proposal for the massive buyback that Carl Icahn had been demanding earlier, and Tim Cook spoke optimistically about a number of improvements in the pipeline, calling the new iPad Air "really profound," and said the company made more than $1 billion in revenue from Apple TV last year, indicating it could expand its ambitions in that arena. Still, Cook did not mention any brand-new products, and even teased the audience about a new launch, perhaps hitting a sore spot, as many investors have been waiting for another breakthrough product from Apple.

Elsewhere, MercadoLibre (NASDAQ:MELI) shares jumped higher as the Latin American payments processor beat estimates on both top and bottom lines in its earnings report. Revenue in the quarter jumped 29.8%, to $134.6 million, ahead of expectations of $133.2 million, while EPS of $0.93 was better than the consensus at $0.78. We've seen a number of e-commerce players spike this week, and MercadoLibre seems to be the latest to join the party. As Latin American consumers move into the middle class and get accustomed to online shopping, I'd expect more earnings beats from MercadoLibre.  

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Jeremy Bowman owns shares of Apple. The Motley Fool recommends Apple and MercadoLibre. The Motley Fool owns shares of Apple and MercadoLibre. 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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