Why the Dow Wrote Off Russian Fears and Rose 88 Points Today

Disney, J.C. Penney, and DryShips finish as big movers, newsmakers Tuesday.

Mar 18, 2014 at 6:20PM

Russian President Vladimir Putin formally annexed Crimea from Ukraine on Tuesday, continuing down a path that's drawing major ire from Western leaders. But Putin also strongly implied Russia wouldn't push the envelope further by attempting to seize other parts of Ukraine today. Relieved that Putin might not be as power-hungry as once feared, the Dow Jones Industrial Average (DJINDICES:^DJI) tacked on 88 points, or 0.6%, to finish at 16,336.

Walt Disney (NYSE:DIS) shares added 0.8%, helping the Dow advance for a second straight day. Disney investors have gotten used to some big announcements in the last few years; the company has acquired Lucasfilm and the rights to the Star Wars franchise, partnered with Netflix and DISH Network on streaming deals, and seen the birth of a potential new franchise in Frozen, all in the past two years. Another major announcement came at the annual shareholders meeting today, as sequels to Cars and The Incredibles were both announced. Cha-ching!

J.C. Penney (NYSE:JCP) shares didn't have such a great day, falling 3.5% Tuesday, despite a lack of major news. Increasing same-store sales over the holidays and a lower-than-expected quarterly loss have breathed new life into the stock recently, but the company remains on unsure footing. Shareholders still need to check its pulse every so often, and with J.C. Penney recently scrapping its monthly sales updates, long-term confidence in the business is still somewhat of a test of faith. Indeed, my colleague Natalie O'Reilly thinks modest sales improvements might not be enough to justify an investment.

Finally, shares of Greek bulk shipper DryShips (NASDAQ:DRYS) jumped 5% today. Moody's upgraded the corporate debt of Ocean Rig -- DryShips' offshore drilling segment -- yesterday, showing improved confidence in the business's creditworthiness. This is great news for DryShips, which had $3.9 billion in long-term debt on its books at the beginning of the year. With improved credit, the company can refinance that debt at lower interest rates, freeing up more cash to plow back into the business.

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The Motley Fool recommends and owns shares of Netflix and Walt Disney. Try any of our Foolish newsletter services free for 30 days. 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.

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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