Jobless Claims Increase Causing Major Indexes to Drop From Highs

Pandora and Yelp move lower for irrational reasons, while Rite Aid gets a boost from same-store sales figures.

Apr 3, 2014 at 1:00PM
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There were an unexpectedly high number of initial unemployment benefit claims last week -- 326,000, against economists' expectation of 317,000. The prior week's count was revised slightly lower from 311,000 to 310,000, while the four-week moving average rose from 317,750 to 319,500. Following the miss, the major indexes were all lower as of 12:45 p.m. EDT today. The Dow Jones Industrial Average (DJINDICES:^DJI) was off by 18 points, or 0.11%, the S&P 500 down 0.27%, and the Nasdaq lost 0.98%.


After jumping higher by more than 7% this morning, shares of Pandora Media (NYSE:P) were down 3%. The move higher followed good news on active listeners to the Internet radio service in March. Pandora reported 75.3 million active listeners last month, up from 69.5 million a year earlier. The company also claimed 9.1% of the total U.S. radio listening audience, the first time Pandora was over 9%. Furthermore, listening hours rose from 1.49 billion in March 2013 to 1.71 billion last month. With these kinds of figures it's easy to see why the stock would jump higher, but hard to understand the decline.  

Meanwhile, Yelp (NYSE:YELP) shares tumbled 6%. Today's move is a follow-up from yesterday's 6% decline, which came after the Federal Trade Commission disclosed it had received over 2,000 complaints about the company in the last five years. A Yelp representative also stated the company receives about six subpoenas a month. The complaints and subpoenas typically come from business owners trying to identify a reviewer on the business review website. Investors shouldn't take as a big deal; The count of complaints or subpoenas is nothing in comparison to the number of reviews posted on Yelp.  

Finally, one winner today is Rite Aid (NYSE:RAD), as shares are up 2.4% after the pharmacy chain reported sales results for March. Rite Aid announced that while front-end same-store sales declined by 5%, 4.1% of that could be attributed to Easter falling in April this year, and not March like it did in 2013. The company also noted a 3.5% increase to same-store sales from the pharmacy side of the business as prescription count increased 1.1% on a year-over-year basis. The healthy growth in prescription sales helped investors move past the week front-end sales, but that is an area shareholders should watch in the future.  

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Matt Thalman has no position in any stocks mentioned. The Motley Fool recommends Pandora Media and Yelp. The Motley Fool owns shares of Pandora Media. 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.

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