8 Dow Stocks Report Earnings This Week, but These 2 Matter Most

Earnings season is taking off for the Dow Jones Industrials. Find out which companies you should watch most closely.

Apr 13, 2014 at 9:02AM
Longview

The Dow Jones Industrials (DJINDICES:^DJI) fell precipitously last week, scaring many investors into thinking a correction could be imminent. But after starting off on Friday, earnings season is coming in full force for the Dow, with eight component companies of the Dow Jones Industrials reporting their results this week. But even with so many companies reporting next week, investors should focus on two of the most important reports for the Dow: Intel (NASDAQ:INTC) and General Electric (NYSE:GE).

Intc

Source: Intel.

Intel will be the first tech stock to report its first-quarter earnings, and with the sector at the forefront of investors' minds right now, Intel's report will get a lot of attention not just for what it says about the company but also for what it reveals about the industry as a whole. Intel is going through a very difficult strategic transformation right now, as the chipmaker attempts to move beyond its long and historic dominance of the PC industry to find its place in the mobile-chip industry. Investors don't have high expectations for Intel, predicting a 7% to 8% drop in earnings for the first quarter and a 1% to 2% drop for 2014 as a whole. Revenue growth is also expected to be sluggish, with some of Intel's moves expected to lead to falling profit margins.

But Intel realizes that even if it has missed the opening stages of the mobile revolution, it can still leapfrog over its rivals by coming up with the next big technology. That's why Intel has spearheaded its "Make It Wearable" challenge, attempting to get new ideas from across the world through competitive grants that could give Intel huge first-mover advantages if any of those ideas pan out. Although not all of Intel's strategies are quite this forward-looking, they nevertheless point to an industry leader seeking to reestablish itself at the top of the tech world, and investors should look closely at Intel's earnings report to see how its efforts are progressing.

Ge

Source: General Electric.

General Electric has also been going through some growing pains, with expectations for a steeper 18% drop in earnings per share on a slight drop in revenue. Yet longer-term, shareholders believe that General Electric will be able to right its ship by the end of 2014 and post modest increases in both net income and sales. Strategically, General Electric has been working hard to divest itself of weaker-performing businesses, with its sale of its stake in NBC Universal and more recently its decision to do an initial public offering of its Synchrony Financial consumer credit card business and the possibility of selling off its GE Money Bank division.

General Electric's future is clearly reliant on its industrial roots, with key divisions like aerospace and energy playing an increasingly important role in the conglomerate's overall success. With efforts to integrate the Internet of Things into its industrial products, General Electric is thinking forward with innovations designed to keep it competitive not just now but years and even decades into the future. Given the challenges that the financial sector is going through and the vast potential of the industrial world, General Electric's earnings report should reveal just how successful the company has been in realizing its long-term strategic vision.

Investors in the Dow Jones Industrials should pay attention to all of its components' earnings reports this week. But if you follow the Dow, you should especially watch for the reports from Intel and General Electric for signs that could push the entire stock market either higher or lower in the near future.

Are you ready to profit from this $14.4 trillion revolution?
Let's face it, every investor wants to get in on revolutionary ideas before they hit it big. The problem is, most investors don't understand the key to investing in hypergrowth markets. The real trick is to find a small-cap "pure play" and then watch as it grows in explosive fashion within its industry. Our expert team of equity analysts has identified one stock that's poised to produce rocket-ship returns with the next $14.4 trillion industry. Click here to get the full story in this eye-opening report.

Dan Caplinger owns shares of General Electric. The Motley Fool recommends Intel and owns shares of Intel and General Electric. Try any of our Foolish newsletter services free for 30 days. 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.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

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.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

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. It's also featured on several dozen 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 ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.


Compare Brokers