Ukraine Fears Ease as Disney Leads the Dow's 200-Point Rise

Disney's deal with Dish leads a day of huge gains for the market, while Qualcomm heads up the tech sector's bounce.

Mar 4, 2014 at 2:30PM

After yesterday's market plunge, investors are feeling much more confident about things today. Tensions about Russia and Ukraine's territorial standoff have scaled back on the day, pushing the Dow Jones Industrial Average (DJINDICES:^DJI) to a gain of more than 214 points as of 2:30 p.m. EST. Every blue-chip stock on the index has gained so far, with entertainment giant Disney (NYSE:DIS) leading the way by rising 2.6%. Outside the Dow, it's been a big day for Qualcomm (NASDAQ:QCOM) after the semiconductor giant released good news of its own to eager investors. Let's catch up on what you need to know.

Ukraine fears simmer, but it's far from over
RussianPresident Vladimir Putin today called the use of force in the standoff centered on the Crimea region a "last resort," although only time will tell if the situation spirals into the type of conflict that could destabilize Europe's meager economic progress. While it's unlikely, there are reasons to be concerned: As fellow analyst Rich Smith noted, major companies from the energy sector, steel industry, and more have stakes in the Eastern European nation.

Dow leader Disney today, however, appears immune to geopolitics. Its stock pop comes after the company announced it had reacheda new deal with Dish Network (NASDAQ:DISH) for streaming Disney's content. Dish conceded to Disney in disabling the ad-skipping feature of its video recorder, and the ability to stream ESPN and other of the company's networks on Dish's network will add to Disney's visibility and reach to customers. Dish's stock also jumped on the news, gaining 0.9% so far.

It's just the latest in what's been a huge rise for Disney's media networks division, its largest business group by revenue. Increasing advertising rates at networks such as ESPN and ABC have helped spur growth in the division, which saw revenue jump 4% year over year in its most recent quarter while operating income jumped by a whopping 20%. While Disney has done a great job finding growth across its impressive portfolio of businesses, it's the media group that offers perhaps the most potential going forward with Disney's reach into the sports market, news, and programming from the likes of its Disney Channel.

Elsewhere on the markets, Qualcomm jumped 3.6% after announcing a 20% increase in its quarterly dividend and a $5 billion addition to its share buyback, designed to spur a sluggish stock over the past year into action. Qualcomm has thrived by making semiconductors for the surging mobile and smartphone markets, but its stock has gained only around 10% over the past year. Still, company leadership sees solid growth ahead for the smartphone market despite its rise, with growth still a huge play in China, in particular.

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Dan Carroll has no position in any stocks mentioned. The Motley Fool recommends Walt Disney. The Motley Fool owns shares of Qualcomm 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.

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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