Why the Dow Rocketed 227 Points Higher Today

Delta Air Lines, Disney, and J.C. Penney all rally as stocks gain on Ukraine.

Mar 4, 2014 at 6:27PM

It's funny how quickly talking points come and go on Wall Street. Just yesterday, global stock markets plunged as Russia amassed combat troops in a symbolic effort to threaten further aggression against Ukraine. But with Russian President Vladimir Putin ordering those same troops to go back home earlier today, Putin revealed his bluff -- and to the jovial pleasure of investors across the globe. Will geopolitical concerns about Ukraine be a distant memory to markets in just a few months' time? I hope so, for everyone's sake. The Dow Jones Industrial Average (DJINDICES:^DJI) has already moved on, roaring 227 points higher today, with the 1.4% gain sending the index to 16,395. 

The Dow couldn't have advanced quite so rapidly on Tuesday if it weren't for Walt Disney (NYSE:DIS) stock, which tacked on 2.8%, nearly finishing as the day's best blue chip performer. Disney's outperformance was driven by its unprecedented, brand-spankin'-new agreement with DISH Network, announced last night. The multi-year deal (specific terms weren't disclosed) gives DISH the right to stream content from Disney-owned stations like ABC, ESPN, ESPN2, and of course, the Disney Channel. I applaud both companies for the bold strategy, but Disney especially, because the company began recognizing the looming demise of cable years ago, and continues to adjust distribution deals accordingly. It's official: welcome to the age of streaming!

If J.C. Penney (NYSE:JCP) was a person rather than a company, I'd sure hate to be his physician. Less than a month ago, he appeared to be dying of lupus, a poor fellow living on the streets, disheveled and ignored. Now he's practically the Great Gatsby, gallivanting around town with anyone he chooses. J.C. Penney stock continued its unapologetic upswing today, gaining 4.2%; the stock is now nearly 50% higher than it was just last Wednesday. And what's not to be excited about? Margins and sales are increasing, it started promoting its spring 2014 collection during the Oscars, and S&P upgraded its debt yesterday. Remember: He had lupus just a week ago, old sport!

(Also before you start sending me hate mail, I am aware that J.C. Penney was actually a person. Pardon my phrasing.) 

Finally, Delta Air Lines (NYSE:DAL) shares also stood out in the stock market today, soaring 5.7% and briefly hitting an all-time high. Delta is one of those companies that likes to brag about its performance each month, and it so happens that last month's performance was almost impossible to find fault with. Despite thousands of flight cancellations due to weather patterns with names like Leon, Delta's passenger revenue per available seat mile, an important statistic in the industry, rose by 4% from February 2013. Moving forward, Delta's fuel price is expected to come in about 8% lower than last year's in March, which should beef up the bottom line. 

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John Divine owns shares of Apple and Google and has long January 2015 $10 calls on J.C. Penney. The Motley Fool recommends and owns shares of Apple, Google, Netflix, and Walt Disney. Try any of our Foolish newsletter services free for 30 days. 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.

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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