JPMorgan Leads the Dow's Triple-Digit Rise

Nike slumps ahead of its earnings release despite the Dow's big climb.

Mar 20, 2014 at 2:30PM
Daily Fool

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, 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.

Dan Carroll has no position in any stocks mentioned. The Motley Fool recommends Nike and Under Armour. The Motley Fool owns shares of JPMorgan Chase, Nike, and Under Armour. 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.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information