Intel is Today's Top Stock on a Down Day for the Dow

The Dow Jones today fell as China coughed up ugly numbers, but Intel was one of the day's winners.

Mar 10, 2014 at 4:30PM

The Dow Jones Industrial Average (DJINDICES:^DJI) finished down 34 points today, at 16,418, after multiple reports showed that the Chinese economy looks to be slowing. Intel (NASDAQ:INTC) was one of eight Dow stocks up for the day. The S&P 500 (SNPINDEX:^GSPC) ended down one point to 1,877.

There were no U.S. economic releases today, but China had a few that have investors concerned.





Chinese Exports Year-over-Year Growth




Chinese Imports Year-over-Year Growth




Money Supply Year-over-Year Growth




Outstanding Loan Growth




The big surprise was that Chinese exports tumbled 18.1% in February from the year before. Economists had expected 5% growth in Chinese exports, so a miss this big is cause for concern. Energy and commodity stocks around the world were down on the news. The other worry is what while the Chinese economy looks to be slowing, its debt load continues to expand relatively unabated. Investors and economists have been arguing over whether China is in a credit bubble.

The Chinese Communist Party at least recognizes the problem at a high level and is starting to take some actions to have the market determine prices and slow the growth of credit. Still, China has had just a single default of a corporate bond sold to domestic investors, indicating investors there continue to believe that they cannot lose money in structured products. There are many zombie companies in China that should be bankrupt, but it remains to be seen if the government will allow that to happen or instead bail out investors.

Today's top Dow stock
Intel finished up 0.81% to $24.84, to become the leading Dow stock of the day. The chipmaker's rise didn't have much of an effect on the Dow as the stock is the second smallest contributor to the blue-chip index's average. The Dow is a price-weighted index, meaning companies with larger stock prices have proportionally larger weights. This antiquated system leads to oddities such as Visa, with its stock price of $225, carrying nine times more weight than Intel, even though they are similarly sized companies. For this reason and others I suggest investors familiarize themselves with the S&P 500.

There was no real news affecting the shares. Intel has been one of the most shorted Dow stocks of the past few years, as the PC market that the company dominates slowly declines and the company must play catch-up in the mobile market. Intel is starting to make some inroads to challenge ARM's dominance in mobile, but the company has yet to score any major wins. Some investors, most notably George Soros, believe the market is too pessimistic on Intel and have taken a position in the company to benefit from the current pessimism.

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Dan Dzombak can be found on Twitter @DanDzombak or on his Facebook page, DanDzombak. He has no position in any stocks mentioned. The Motley Fool recommends Intel. The Motley Fool owns shares of Intel. 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.

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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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