JPMorgan Leads the Dow's Triple-Digit Rise

Markets are moving higher after yesterday's Federal Reserve-inflicted falls, with the Dow Jones Industrial Average (DJINDICES: ^DJI  ) hitting its stride first thing in the morning to rise 123 points as of 2:30 p.m. EDT. All but a few blue-chippers are in the green. No Dow stock is having a bigger day than big bank JPMorgan Chase (NYSE: JPM  ) , which has soared 3.6%. On the other side of the Dow, Nike  (NYSE: NKE  )  slipped 0.25% ahead of its earnings report planned for release after the closing bell today. Let's catch up on what you need to know.

JP Morgan makes a big splash
JPMorgan continues to shake up the market after announcing yesterday that it would sell off its physical commodities trading group. The $3.5 billion sale to Mercuria Energy Group, one of the largest private commodity trading organizations in the world, comes as JPMorgan looks to shrug off growing regulatory scrutiny around the financial sector. The bank is also looking to hone in on core businesses such as lending.

The sale removes a sizable business from JPMorgan's portfolio. The bank beefed up its commodities group with acquisitions in 2008, 2009, and 2010, boosting the unit's annual income to roughly $750 million. But for JPMorgan, struck hard by legal costs in recent years, avoiding further regulatory scrutiny is a key play for the future. The company was smacked in its most recent quarter by legal charges that included a $2 billion settlement and weighed on profit. Keying in on core businesses will allow JPMorgan to regroup for the long term and gives investors a clear path for the future.

Nike's stock has been skyrocketing over the past year, but Wall Street today expects the company's per-share profit for its most recent quarter to fall $0.01 year over year to $0.72. Still, analysts expect robust overall revenue growth of 10% from the athletic-apparel giant, This would be line with the company's tremendous gains lately in North America and Europe, where it has managed to beat lingering recessionary blues to post strong sales jumps.

Nike's big target now is China. If it can keep its China growth going and tap into the potential of the world's second-largest economy, Nike will be able to distance itself from hard-charging competitors, such as Under Armour (NYSE: UA  ) , that have risen quickly in recent years. Nike managed to turn growth around in China in its last reported quarter, but it will need to repeat that success today to convince investors it has the world's most promising emerging market figured out.

Can this huge opportunity outperform Nike in 2014?
Nike investors who have been rewarded by this stock's rise know a critical truth in investing: 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.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2883720, ~/Articles/ArticleHandler.aspx, 8/28/2015 8:18:00 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Dan Carroll

Dan began writing for the Motley Fool in 2012. He is a health care specialist who also follows the defense industry along with tracking the broader U.S. and international markets.

Today's Market

updated Moments ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 4:55 PM
^DJI $16643.01 Down -11.76 -0.07%
JPM $64.13 Down -0.35 -0.54%
JPMorgan Chase & C… CAPS Rating: ****
NKE $112.50 Down -0.12 -0.11%
Nike CAPS Rating: *****