Jobs Send Dow Record-Bound Again, But Visa Falls on Wal-Mart Card Move

Positive economic data sent the Dow to what would be an all-time record high this morning.

Apr 4, 2014 at 11:00AM

The Dow Jones Industrials (DJINDICES:^DJI) reacted positively to the March employment report from the Bureau of Labor Statistics, rising 38 points as of 11 a.m. EDT. Nonfarm payrolls jumped by 192,000 jobs, with health care, professional and business services, and mining and logging posting the strongest gains. Moreover, the official unemployment rate held at 6.7% even as the labor force expanded by more than 500,000 workers, and that bolstered confidence in the strength of the economy. Yet holding back the Dow was Visa (NYSE:V), the index's most influential component, on negative credit card news from Wal-Mart (NYSE:WMT).

For the Dow on the whole, this week has involved a couple different attempts to reach a new record high. Even though the S&P 500 (SNPINDEX:^GSPC) has set several new new records during 2014, today would mark the first time the Dow has exceeded its closing mark on Dec. 31, 2013. After sustaining losses during the first three months of the year, gaining positive momentum in the opening days of the second quarter is exactly what investors want to see from the Dow in its efforts to extend the bull market into a sixth year.


But Visa fell 2%, providing about 25 points of downward pressure on the Dow, after Wal-Mart chose rival MasterCard (NYSE:MA) to handle its store-branded credit card processing. Wal-Mart had been working with Discover Financial, so the move doesn't involve a direct loss of business for Visa. Yet the decision is just the latest development in the choppy relationship between Visa and the big-box retailer, with Wal-Mart suing Visa last week for $5 billion in damages related to swipe-fee practices. The battle between the two companies has been brewing since Wal-Mart chose not to participate in a class action lawsuit against Visa and MasterCard to resolve swipe-fee allegations. With litigation just starting, it could be years before Wal-Mart and Visa resolve their differences and find a way to improve their relationship.

Going into the weekend, the key for the Dow Jones Industrials will be holding on to the morning gains. On numerous occasions lately, the stock market has climbed to impressive heights early in the day, only to give up those gains by the end of the trading session. If the Dow can finally get the positive psychological momentum of a new record close, it could provide exactly the impetus for further gains as earnings season starts in earnest next week.

Your credit card may soon be completely worthless
The plastic in your wallet is about to go the way of the typewriter, the VCR, and the 8-track tape player. When it does, a handful of investors could stand to get very rich. You can join them -- but you must act now. An eye-opening new presentation reveals the full story on why your credit card is about to be worthless -- and highlights one little-known company sitting at the epicenter of an earth-shaking movement that could hand early investors the kind of profits we haven't seen since the dot-com days. Click here to watch this stunning video.

Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends MasterCard and Visa. The Motley Fool owns shares of MasterCard and Visa. 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