Putin Sends Dow Up 200 as Threat of War Recedes; Disney Soars on New Deal

Stocks soar as the Russian President backs down from immediate war, but not all of today's gains are related to the potential for peace.

Mar 4, 2014 at 11:00AM

As quickly as investors went into a mini-panic on Monday over the possibility of armed conflict in Ukraine, they breathed a huge sigh of relief this morning as Russian President Vladimir Putin took steps to ease tensions in the region. The Dow Jones Industrials (DJINDICES:^DJI) responded favorably, with stocks soaring almost 200 points as of 10:45 a.m. EST to completely wipe out yesterday's loss. Yet even though all 30 stocks in the Dow were up, leading gainer Disney (NYSE:DIS) had more to celebrate than just a brighter geopolitical situation.

For the Dow Jones Industrials overall, the episode showed the danger of reacting in knee-jerk fashion to news events. Those who panic-sold yesterday were left feeling whiplash from the speed of the reversal. Moreover, this morning's gains were broad-based, with even some industries that arguably might have benefited from a conflict showing solid rises in their share prices. For instance, Boeing (NYSE:BA) was up nearly 2% and United Technologies gained 1%, as investors apparently concluded that the positive benefits to their respective commercial businesses were greater than any upsurge in military-related activity that could have bolstered the companies' defense contract divisions.

Disney's news showed the Dow isn't entirely captive to global politics. The entertainment giant announced last night that it had signed what it called a "groundbreaking long-term, wide-ranging agreement" with Dish Network (NASDAQ:DISH) covering everything from Dish's rights to carry Disney programming to new channels and video-on-demand content. In addition, the two companies agreed to dismiss all lawsuits pending between them. The deal allows satellite-video provider Dish a chance to become a bigger Internet-streaming competitor to Netflix (NASDAQ:NFLX). For Disney, the deal only highlights the value of its popular content, and it also points to better profits for the content provider and its peers in the years to come.

As the Dow surges, keep in mind that as quickly as yesterday's bad news became today's good news, future events could send stocks back downward again. In times of volatility, it's important to make sure you have a long-term investing strategy to follow no matter what news events hit the Dow and the broader stock market.

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Dan Caplinger owns shares of Walt Disney. The Motley Fool recommends Netflix and Walt Disney. The Motley Fool owns shares of Netflix and Walt Disney. 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.

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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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