Markets Move Higher With Fed Support

The major indexes came on strong today as the Dow Jones Industrial Average (DJINDICES: ^DJI  ) rose 134 points, or 0.82%, while the S&P 500 jumped 0.79% and the Nasdaq increased by 1.04%. The rally was spurred by Federal Reserve Chairwoman Janet Yellen's comments that the economy still needs extraordinary support and will need it for some time. That gave investors confidence that the Fed wouldn't stop stimulating the economy before it was strong enough to support itself.

Within the Dow, shares of Johnson & Johnson (NYSE: JNJ  ) rose 0.81% after the announcement was made that the company had accepted a $4 billion offer from The Carlyle Group, a Washington, D.C., private equity firm, for Johnson & Johnson's Ortho-Clinical business. The unit works with hospitals, blood banks, and labs supplying equipment and chemicals used to test blood for different diseases. J&J's CEO said the unit was sold because it didn't fit within the company's long-term strategy, which is to focus on businesses that are first or second in their respected markets.

 The Dow's biggest loser today was Coca-Cola (NYSE: KO  ) , which lost 0.74%. The decline came after a report from Beverage Digest indicated that soda volumes fell 3% in 2013. The 8.9 billion cases sold was the lowest amount since 1995 and marks the ninth straight yearly decline. In 2012, volumes fell only 1.2% after dropping 1% in 2011, so the move away from sodas seems to be picking up steam as more consumers look for healthier options. Coke has a diverse product range, with things like bottled water, sports drinks, and fruit drinks, so I don't think investors need to flee just now. But in the long term, I would like to see the company continue to lessen its reliance on sodas and other unhealthy beverages.  

Outside the Dow, shares of BlackBerry (NASDAQ: BBRY  ) slid 3.92% after more analysts jumped on the downgrade bandwagon today. This morning it was Evercore and Credit Suisse that lowered BlackBerry's rating, dropping to "underweight" and "underperform," over concerns that the smartphone maker may not be able to continue creating meaningful business or slowing the contraction of its subscriber base. BlackBerry investors need to consider whether the risks of owning the stock outweigh the rewards. Can the company can turn things around? I'm not so sure.  

The greatest thing Warren Buffett ever said
Warren Buffett has made billions through his investing and he wants you to be able to invest like him. Through the years, Buffett has offered up investing tips to shareholders of Berkshire Hathaway. Now you can tap into the best of Warren Buffett's wisdom in a new special report from The Motley Fool. Click here now for a free copy of this invaluable report.

Read/Post Comments (0) | Recommend This Article (3)

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: 2897767, ~/Articles/ArticleHandler.aspx, 8/31/2015 4:52:56 AM

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...

Matt Thalman

Matt primarily covers the Dow Components, the Major Indexes daily moves, Consumer Goods stocks, and General Investing Topics.

Today's Market

updated 2 days 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%
BBRY $7.37 Up +0.18 +2.50%
BlackBerry CAPS Rating: *
JNJ $95.17 Down -1.05 -1.09%
Johnson & Johnson CAPS Rating: ****
KO $39.45 Up +0.18 +0.46%
Coca-Cola CAPS Rating: ****