Why Alcoa, Vipshop Holdings, and Nike All Rose

The broad market moved higher as Alcoa, Vipshop, and Nike made gains on earnings and upgrades news.

Apr 8, 2014 at 10:00PM

After a sharp sell-off over the past two days, stocks rebounded today as investors bought the momentum names that had fallen off in recent weeks. As a result, the Dow Jones Industrial Average (DJINDICES:^DJI) finished the day up just 10 points or 0.1%, while the S&P 500 gained 0.4% and the tech-heavy Nasdaq jumped 0.8%.

Investors were encouraged by the Job Openings and Labor Turnover Survey from the Labor Department, which showed job openings at a six-year high. The figure hit 4.17 million in February, above January's total of 3.87 million and at its highest level since January 2008. In 2007, before the recession, the number of job openings were close to 5 million a month. Considering the report is on a one-month lag, it is not as closely watched as the monthly jobs report, but the numbers nonetheless show the jobs market continuing to improve, especially promising coming at a time when bad weather was thought to be weighing on businesses.

After hours today, Alcoa (NYSE:AA) unofficially kicked off earnings season, moving up 2.6% after beating estimates and showing progress in its turnaround. The aluminum-maker posted an adjusted per-share profit of $0.09, ahead of estimates of $0.05. After years of slow growth and low prices in the industry, Alcoa said it expected global demand for aluminum to increase 7% in 2014 because of demand for commercial aircraft. For the quarter past, Alcoa saw revenue fall 6.5% to $5.45 billion, below estimates of $5.55 billion. Still, the bottom line was strong. CEO Klaus Kleinfeld noted "record downstream profitability" as well as improved results in its midstream and upstream business.

Also moving higher today was Vipshop Holdings (NYSE:VIPS), which finished 11% higher after getting an upgrade from Credit Suisse. The Swiss bank lifted its rating on the Chinese online retailer to outperform, saying that cosmetics and baby products should drive growth in 2014. Vipshop shares have been flying over the past year, gaining more than 400% on the strength of flash sales models. The stock is dearly priced, but the company is putting up triple-digit sales growth and has beaten earnings estimates in its last four quarterly reports. With a track record like that, it's easy to see how shares could continue to move higher.


Source: Nike.com.

Finally, Nike (NYSE:NKE) shares got a boost today, finishing up 3% on an upgrade from Stifel, which lifted its rating to buy. The upgrade was largely valuation-based as the stock had fallen more than 10% since reporting earnings three weeks. The analyst firm said the sneaker king's fundamentals remain solid, despite disappointing guidance in the report, and said its long-term prospects look strong.  

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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.

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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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