These Three Tech Stock are Surging

Shares of Microsoft, Hewlett-Packard, and Apple were leading the Dow Jones higher on Tuesday.

Mar 18, 2014 at 11:20AM

The Dow Jones Industrial Average (DJINDICES:^DJI) had added 103 points as of 11:30 a.m. EDT. Dow Jones component Microsoft (NASDAQ:MSFT) was the index's biggest gainer, as hope for a new version of the popular Office software sent shares surging. At the same time, shares of Microsoft partner and former Dow stock Hewlett-Packard (NYSE:HPQ) posted a solid 3.7% rally following some positive analyst comments. Apple (NASDAQ:AAPL) shares rose modestly as the company made a few minor adjustments to its product lineup.

Inflation data comes in below expectations
Perhaps helping to fuel the Dow Jones rise, U.S. inflation numbers came in below expectations on Tuesday, suggesting that the Federal Reserve may be justified in continuing to provide monetary support to the nation's economy.  The Consumer Price Index, a measure of inflation, rose only 1.1% on a year-over-year basis, less than the 1.2% that economists had anticipated. Core CPI, a preferred measure that doesn't include volatile goods such as food and fuel, rose 1.6%; that was in line with economists' expectations.

With inflation stable, or even weaker than expected, the Fed need not be in any rush to tighten monetary policy too hastily. As long as inflation remains subdued, the central bank may continue to slowly reduce its monthly bond purchases, rather than cutting them aggressively.

Microsoft will roll out a new version of Office later this month
Microsoft shares gained more than 4% in morning trading -- a significant move for a company valued at more than $300 billion. The Verge reported that Microsoft will roll out Office for Apple's iPad later this month, opening up the software to a market that has been forced to accept second-rate Office alternatives. Analysts have been calling for Microsoft to release Office for the iPad for months, arguing that it was missing out in billions of dollars' worth of revenue. If Microsoft does take this step, it could see subscriptions to its Office 365 program increase significantly almost overnight.

Hewlett-Packard boosted by analyst upgrade
Hewlett-Packard is one of Microsoft's largest customers, buying millions of Windows licenses for sale on its PCs. HP shares rose after Barclays upgrade the company to overweight from neutral. Barclays believes that Hewlett-Packard's server division will benefit from IBM's sale of its competing low-end server business to Lenovo.

Apple makes slight changes to lineup
Apple's stock rose 0.5%, less than the broader Dow Jones index. On Tuesday, Apple replaced the iPad 2 with the iPad 4 in its lineup, while rolling out an 8 GB version of the iPhone 5c in Europe.

The iPad 4 has largely the same design as the iPad 2, but it packs a sharper screen and more powerful internals. At $399, Apple is offering it for the same price as the iPad 2, which has now been discontinued. The 8 GB iPhone 5c isn't replacing another phone, but does start at a lower price than the versions of the phone packing more internal storage, and could entice some consumers on a budget.

A better investment than Apple?
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

Sam Mattera has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple and Microsoft. 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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