Dow Waits on Crimea Vote as AT&T Takes Leap; United Tech, Boeing Climb

Geopolitical events are center-stage Friday, as a key vote this weekend in the Crimean region of Ukraine could ease or heighten tensions with Russia. Find out more about the Dow's waiting game.

Mar 14, 2014 at 11:00AM

The Dow Jones Industrials (DJINDICES:^DJI) has suffered four straight days of losses, and given the magnitude of yesterday's 231-point drop, this morning's 18-point drop as of 11 a.m. EDT won't instill confidence among shell-shocked investors. With a referendum Sunday in Crimea giving residents a voice regarding the territorial conflict between Ukraine and Russia, investors worry that no matter the outcome, tensions will likely rise as Western nations consider economic sanctions against Russia and threats of military action grow. Those tensions likely contributed to the rise in defense-oriented Dow stocks Boeing (NYSE:BA) and United Technologies (NYSE:UTX), but for AT&T (NYSE:T), positive news came from the corporate front.

United Technologies gained 0.6% Friday morning, recovering some of the ground it lost yesterday. On Thursday, the conglomerate gave investors its outlook for 2014, reaffirming the guidance it had previously given on earnings and revenue. Investors yesterday focused largely on United Tech's short-term forecast, which fell short of what they had hoped to see from the manufacturer of aircraft components, elevator equipment, and HVAC systems. Yet United Tech said that by 2020, it could see revenue closer to $100 billion, more than 50% above current levels, and that bodes well for long-term prospects.

Boeing rose more sharply, gaining 1.2%. With no resolution to the disappearance of a Malaysia Airlines 777 aircraft, Boeing will likely see another round of investigations from the Federal Aviation Administration and other regulators. Yet between the possible need for a heightened state of military awareness and continuing strong commercial order flow, Boeing's long-term prospects still ook favorable for the long run, and investors seem to be focusing on that fact today.

Finally, the Federal Communications Commission approved AT&T's acquisition of Leap Wireless. As a result, AT&T closed on the purchase today, giving it access to customers of Leap's Cricket brand and boosting AT&T's pay-as-you-go exposure. Another valuable asset from Leap is the spectrum its network uses, which AT&T hopes to employ to boost its own network-expansion efforts. AT&T shares dropped a bit, but the long-term impact of the deal could help the No. 2 U.S. wireless carrier in its ongoing competitive battle with Verizon and the other players in the industry.

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Dan Caplinger 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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