IBM Helps Drive the Dow Jones' Jump Today

The Dow Jones today is up more than 160 points with help from IBM.

Mar 17, 2014 at 1:30PM

The Dow Jones Industrial Average (DJINDICES:^DJI) was up 163 points, to 16,229, as of 1:30 p.m. EDT after multiple positive reports on economy.The S&P 500 (SNPINDEX:^GSPC) was up 16 points to 1,857.

All but two of the 30 Dow stocks are up following positive U.S. economic data and continued calm after Crimeans voted overwhelmingly to secede from Ukraine in favor of joining Russia.





Industrial Production




Capacity Utilization




NAR Home Builders Index




The one to pay attention is the Federal Reserve's Industrial Production and Capacity Utilization report. Industrial production increased 0.6% in February. That was up from January's 0.2% drop, which was revised upward from a 0.3% drop. It was also better than analyst expectations of a 0.2% increase. The jump in industrial production suggests that the U.S. slow economic recovery is still on track and that the slowdown over the winter was the result of the terrible weather and not an overall slowing of the economy.

The other half of the report is capacity utilization, which rose to 78.8% in February from 78.5% in January. The U.S. economy still has significant unused industrial capacity, which works to keep prices growing slowly. Prices generally increase as the nation's capacity utilization increases, as businesses must pay up for production or build new factories.

The Fed has been challenged by low inflation, well below its target of 2% to 2.5%. At the two-day meeting5that begins Tuesday, the Federal Open Market Committee is expected to taper its asset purchases by another $10 billion a month, to $55 billion.

IBM on the rise
IBM (NYSE:IBM), which was up 1.87% to $185.65, to take the No. 2 Dow spot behind Boeing. Other stocks have risen nearly as high, but IBM's stock large price means it has a proportionally larger effect on the Dow, second only to Visa. IBM has trailed the Dow over the past year by nearly 20%; it is one of the Dow's five most shorted stocks, as investors fear the company has no real competitive advantage. Warren Buffett has been one investor taking advantage of IBM's weakness and continues to add to his holdings of Big Blue.

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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 owns shares of International Business Machines. 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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