Stock Market Today: Honeywell’s Big Plans and Brown-Forman’s Profit Spike

Why Honeywell, Brown-Forman, and Navistar stocks are on the move today.

Mar 5, 2014 at 9:00AM

Investors can expect a flat start to the stock market today, as the Dow Jones Industrial Average (DJINDICES:^DJI) has gained an insignificant one point in pre-market trading. After two straight days of 2% swings, stocks in Europe took a break from Ukraine-fueled volatility: European shares fell only slightly in overnight trading.

Next up on today's economic calendar is a fresh report that is expected to show steady expansion in the services industry in February. The Institute for Supply Management reading should come in at 53.5 when it is released at 10 a.m. EST. Any reading of more than 50 indicates growth.

ISM Non-Manufacturing Index Chart

ISM Non-Manufacturing Index data by YCharts.

Meanwhile, news is breaking this morning on several stocks that could see heavy trading in today's session, including Honeywell (NYSE:HON), Brown-Forman (NYSE:BF-B), and Navistar (NYSE:NAV).

Ahead of its investor meeting later today, Honeywell updated shareholders on both its short-term and long-term outlook for the business. The conglomerate expects to nearly double its free cash flow over the next five years while also improving earnings at a double-digit annual pace and pushing sales to more than $50 billion. The company's leading market position in key, high-margin industries is the reason why management is so confident that it can continue to outperform. Honeywell also affirmed its guidance for 2014, saying that sales should grow by 3% as profits rise by 10%. The stock is up 0.9% in pre-market trading.

Brown-Forman announced this morning that sales improved by 5% in its fiscal third quarter, to $1.1 billion, as profit jumped by 14% to $0.82 a share. Analysts had expected sales of $1.1 billion and earnings of $0.76 a share. The alcoholic beverage maker saw solid growth in many of its key brands, including a 10% rise in Jack Daniels and Finlandia products. The company also slightly boosted its earnings outlook for next quarter, saying that it now expects to earn about $3 a share for its full fiscal year. Brown-Forman's stock is unchanged in pre-market trading.

Finally, Navistar this morning booked disappointing results for its fiscal first quarter. The heavy-duty vehicle producer saw sales fall 16% to $2.2 billion -- well below the $2.6 billion that Wall Street expected. Navistar's quarterly loss, at $3.05 a share, was also much bigger than expected. The company was hurt by a drop in military spending, particularly on tactical wheeled vehicles. Still, it saw a healthy 56% boost in order backlog. Navistar's stock is down 2.8% in pre-market trading.

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Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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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