Energy Dominates the Week's Top Stocks on the Dow

ExxonMobil, Cisco, and Chevron popped as investors flooded into safer stocks.

Mar 29, 2014 at 1:00PM

A mix of good and bad economic data couldn't get bears or bulls excited this week, and the Dow Jones Industrial Average (DJINDICES:^DJI) rose a measly 0.12% from a week ago. On the plus side, fourth-quarter GDP growth estimate was raised to 2.6% and consumer confidence rose to the highest level since January 2008. But pending home sales dropped, and there's uncertainty about corporate profits heading into earnings season, so the market doesn't have much direction right now.

While there was a sense of apathy toward the market as a whole, there were some big winners among the Dow's blue chips.

Xom Deepwater Image

Offshore platforms like this one by ExxonMobil are becoming a bigger percentage of energy production. Image: ExxonMobil.

ExxonMobil (NYSE:XOM) was up 3.6% this week as oil prices rose to $101.67 per barrel. There's been fear that if tensions between Russia and the U.S. increase, the company's multibillion-dollar investment in Russia's Arctic could be in danger. But that doesn't seem to be the case and it's in talks with Russia's OAO Rosneft to sell a stake in Iraq's Kurdistan region, increasing the ties between the two companies. For the time being, this oil giant is a hot stock.  

Cisco (NASDAQ:CSCO) gained 3.2% this week after announcing a $1 billion plan to build out cloud services. The company thinks its relationship with businesses and security products give it an advantage over competitors such as, Microsoft, and others. This week's reaction seems more like a pop on mentioning "cloud" but it'll be a year or more before we see any fruit from this investment. Cisco just hopes it isn't too late to get into the game.

Rounding out the Dow's top three stocks was Chevron (NYSE:CVX), which was up 2.5%. This week, the oil giant announced it was granted exploration rights in Block A5 in Myanmar. The block is a 2.6 million-acre shallow water offshore plot, and Chevron owns a 99% interest and will be the operator. Asia is one of the few growth markets for oil right now, and winning a contract there will help drive production higher there.  

3 stock picks to ride America's energy bonanza
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Travis Hoium owns shares of Cisco Systems and is short shares of The Motley Fool recommends, Chevron, and Cisco Systems and owns shares of and Microsoft. 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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