Intel Sends Dow Flirting With Record High Even as Goldman Sachs, Microsoft Fall

The Dow has gotten left out of the record-high club so far in 2014. Will today be the day for the blue-chip index?

Apr 3, 2014 at 11:00AM
Longview

So far in 2014, the Dow Jones Industrials (DJINDICES:^DJI) haven't been able to improve on the closing record high delivered on the last day of 2013, even as the S&P 500 (SNPINDEX:^GSPC) has already set several new records and stood at an all-time high as of yesterday. But Thursday morning, the Dow kept flirting with its past high-water mark, as Intel (NASDAQ:INTC) helped send the blue-chip index to intraday records even as Goldman Sachs (NYSE:GS) and Microsoft (NASDAQ:MSFT) weighed down the average. As of 11 a.m. EDT, the Dow was down 11 points, having pulled back from a 30-point gain earlier in the session. Economic reports of a bigger jump in jobless claims and a wider trade deficit figure also likely played a role in moderating the average.

Intc

Source: Intel.

Intel jumped about 1.5% after the semiconductor giant got a positive upgrade from an analyst at Piper Jaffray, who expects the stock to rise another 15% or so from current levels. Intel's valuations have been relatively low compared to the rest of the market, stemming largely from the fact that the company has been slow in ramping up its presence in the mobile-chip market. With Intel starting to find entry points into that space, however, investors have become more enthusiastic about the chipmaker's prospects. Moreover, as interest rates remain low, Intel's status as one of the highest-yielding stocks in the Dow Jones Industrials makes it an attractive choice for those who believe the company can overcome its growth woes.

But Goldman Sachs dropped 1.2%, and its much higher share price had a more negative impact on the Dow than Intel's push higher. Some are pointing to yesterday's news of about $50 million in fines from European Union regulators over an alleged subsea cable cartel that ran for nearly a decade starting in 1999 as suggesting that Goldman Sachs still has potential legal liability that could hurt its business. Others are weighing the impact of a reported sale of its market-making division. But of even greater importance to Goldman Sachs is the coming earnings season that begins next week, as banks will be among the first to report their results for the first quarter. Goldman Sachs earnings are seen falling about 17% from the year-ago quarter's figures, and much of its future depends on being able to restore past growth levels.

Finally, Microsoft gave back almost 1%. The company Windows 8.1 operating system is getting a new update, and investors are nervous about how many of the tech giant's users will actually take advantage of the new version of the OS. Responding to user complaints about the changed interface, Microsoft is giving users the ability to make the operating system look more like past versions of Windows. The hope is that by doing so, more users of older Windows operating systems will finally upgrade to Windows 8.1. But after big share-price gains recently, investors aren't taking the chance of a poor rollout next week.

6 stock picks poised for incredible growth
They said it couldn't be done. But David Gardner has proved them wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Goldman Sachs and Intel. The Motley Fool owns shares of Intel and Microsoft. 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.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers