Dow This Morning: Goldman, JPMorgan Jump on Jobs While Nike Swooshes Higher

The Dow responded favorably to better than expected employment data. Find out why financials and the athletic-apparel giant fared especially well.

Mar 7, 2014 at 11:00AM
Longview

On the first Friday of every month, investors focus their attention on the monthly employment situation report from the Labor Department. This morning's installment showed creation of 175,000 new nonfarm jobs in February, better than the roughly 150,000 jobs that economists had expected. Although the unemployment rate moved up to 6.7%, the  Dow Jones Industrials (DJINDICES:^DJI) nevertheless reacted favorably, climbing 37 points as of 11 a.m. EST. Nike (NYSE:NKE) led the way higher for the blue-chip index, while financial stocks JPMorgan Chase (NYSE:JPM) and Goldman Sachs (NYSE:GS) continued their positive runs with solid gains on the day.

Goldman and JPMorgan both climbed partially in response to legal victories. Goldman's 0.9% gain came after reports that the company won an arbitration decision against two Marvell Technology (NASDAQ:MRVL) executives, who had alleged that Goldman acted improperly in connection with sales of shares to cover amounts due on a margin loan. The executives had wanted more than $300 mlilion from Goldman, including damages, plus the return of shares they had sold, but the arbitration panel denied their claims.

Meanwhile, JPMorgan won an arguably more important case. Along with Deutsche Bank, UBS, and Depfa Bank, JPMorgan had a conviction reversed in an Italian court. The overturned decision had originally found JPMorgan and its peers guilty of fraudulent conduct in connection with selling derivative securities to the Milanese city government, but an appeals court found that the alleged crimes hadn't actually taken place.

For both JPMorgan and Goldman, these wins might seem small in relation to the billions that they have paid to settle regulatory and legal issues in recent years, but they do prove that the financial companies aren't always losers in legal disputes.

Meanwhile, Nike climbed nearly 2% as excitement builds over the coming World Cup. With its new Magista boot, Nike is trying to get soccer players interested in its offerings, a space in which the company has long fought against archrival Adidas. But with Adidas having beaten Nike to the punch with its own similarly innovative soccer shoe, it's clear that the next three months leading up to the World Cup will be full of competition. Nevertheless, signs of better economic times in the U.S. should bolster key North American sales figures, and that's a big part of why the stock is climbing today.

Are these stocks your best bets?
Opportunities to get wealthy from a single investment don't come around often, but they do exist, and our chief technology officer believes he's found one. In this free report, Jeremy Phillips shares the single company that he believes could transform not only your portfolio, but your entire life. To learn the identity of this stock for free and see why Jeremy is putting more than $100,000 of his own money into it, all you have to do is click here now.

Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Goldman Sachs and Nike. The Motley Fool owns shares of JPMorgan Chase and Nike. 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.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.


Compare Brokers