Dow Jumps Alongside JPMorgan, but Nike Fades After Hours

The blue chips recovered on strong economic data, as JPMorgan jumped 3%. Nike shares fell after hours on a disappointing outlook.

Mar 20, 2014 at 10:00PM

After stocks dove yesterday on Fed Chairwoman Janet Yellen's indication that the central bank could lift interest rates as soon as a year from now, investors recouped their losses today as strong economic data lifted the market. The Dow Jones Industrial Average (DJINDICES:^DJI) gained 109 points, or 0.7%, and the S&P 500  moved up 0.6%. 

Initial unemployment claims were encouragingly low for the second week in a row, coming in at 320,000, better than estimates at 330,000, and showing that the slow job growth during the winter months may have just been a factor of severe weather. Elsewhere, the Philadelphia Fed's manufacturing index jumped all the way from -6.3 to 9.0, above expectations of 2.0, and indicating robust growth in the sector in the mid-Atlantic region. On the other side of the coin, February existing home sales fell to a 19-month low, in line with estimates at a seasonally adjusted annual rate of 4.6 million.

After the bell, investors got more good news, as 29 of 30 major banks passed the Fed's stress test, proving that they would be able to survive another recession or financial crisis. Only Zions Bancorp failed to meet the criteria. Next week, the Fed will announce which banks will be allowed to increase their dividends and buy back shares. The S&P 500 financial sector was the day's strongest performer, gaining 1.7%. 

Shares of JPMorgan Chase (NYSE:JPM) finished up 3.1%, perhaps on anticipation of the stress-test results, and on news that it sold a physical commodities trading unit for $3.5 billion. The sale of Mercuria Energy Group not only netted the banking giant some quick cash, but also helps keep it on the up-and-up with regulators, a plus at a time when the bank is still recovering from several lawsuits dating back to the financial crisis. As part of the Dodd-Frank Act, banks are partially restricted from trading on their own accounts. JPMorgan had previously announced its intention to sell such units.

After hours, Nike (NYSE:NKE) reported third-quarter earnings. Shares increased off the bat, up 2.5% at one point as the company beat estimates on top and bottom lines; but they were down 3% after the sneaker maker provided a weak outlook during the conference call. Negative foreign currency translation put a dent in earnings last quarter, as the company had just 4% growth in profit despite a 12% increase in sales. Management expects exchange rates to continue to be problematic, saying it could put a dent in its projection of mid-teens earnings growth for the year. The falling value of the Japanese yen and emerging-market currencies have been particularly troublesome for the sportswear giant.  

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Jeremy Bowman owns shares of JPMorgan Chase and Nike. The Motley Fool recommends Nike. The Motley Fool owns shares of JPMorgan Chase and Nike. 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. 

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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." 

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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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