Disney Can't Pull Dow Higher After ADP Jobs Figure

Nike falls lower after Adidas reports, while investors push Disney higher following Dish Network deal and GameStop jumps on dividend hike.

Mar 5, 2014 at 1:00PM
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The latest ADP employment update today shows 139,000 new U.S. nonfarm jobs added during in February, which was lower than the 155,000 economists were hoping for. Furthermore, ADP revised its January figure of 175,000 down to 127,000, which is never a good sign.  

With this news and more uncertainty about what the Labor Department's job figure will look like on Friday, as of 1 p.m. EST the Dow Jones Industrial Average (DJINDICES:^DJI) was down 35 points, or 0.22%, while the S&P 500 was flat and the Nasdaq was up 0.18%.

Two Dow movers today are Nike (NYSE:NKE), as shares are down 1.4%, and Disney (NYSE: DIS) where shares are up 1.4%.

Nike's fall comes after rival Adidas reported earnings this morning. Although Nike is still the market leader in athletic apparel, the competition seems to be heating up with Adidas posting a sales increase of 3.3% during the latest quarter. Furthermore, Adidas expects to have a good 2014; the World Cup is being played this summer in Brazil and Adidas still owns soccer when it comes to apparel and shoes -- though Nike has made it clear it wants to make headway in this area. Lastly, Adidas did warn that currency exchange rates will likely impact results in 2014, an issue Nike will also likely have to deal with and one reason the stock may be down today. 

Meanwhile, it seems that investors like Disney's recently announced deal with Dish Network. The deal enables Dish customers to stream Disney shows on mobile apps; in exchange, Dish will disable its commercial-skipping feature for three days after a show originally airs. The deal is likely a win-win for both companies. Dish will now be able to offer its customers the sought-after ability to watch TV anywhere at any time. The ad-skipping features allows Disney to make more money on the shows its produces, meaning the return on investment should be greater.

Outside the Dow, shares of GameStop (NYSE:GME) are up more than 3.2% today following yesterday's announcement that the company's board of directors approved a 20% dividend boost. The previously yearly dividend amount of $1.10 per share will now be $1.32 per share, with the first increased quarterly payment set for distribution on March 25 to shareholders of record as of March 17. Since 2010, the company has spent $2.1 billion on share repurchases, dividends, and paying down debt.  

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Matt Thalman owns shares of Walt Disney. The Motley Fool recommends Nike and Walt Disney. The Motley Fool owns shares of GameStop, Nike, 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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