Delta Air Lines Keeps Soaring; the Dow Rallies 162 Points on Fed Remarks

Disney helps lift blue chips higher, while Best Buy loses ground in the stock market today

Apr 16, 2014 at 6:30PM

Federal Reserve Chairwoman Janet Yellen, who assumed leadership at the U.S. central bank in February, has made one thing crystal clear in her early days on the job: Interest rates ain't goin' nowhere -- not anytime soon, at least. Yellen reiterated the Fed's commitment to an accommodative monetary policy on Wednesday. The central bank, she said, wants to see the U.S. reach full employment before hiking rates. I'm willing to wager that most job-seekers are on board with that idea. Wall Street certainly dug her message, as the Dow Jones Industrial Average (DJINDICES:^DJI) advanced for a third straight day, adding 162 points, or 1%, to end at 16,424. 

Walt Disney (NYSE:DIS) shares tacked on a solid 1.7%, finishing as one of the Dow's top gainers. The stock pulled back with the rest of the market during the recent downturn, yet remains less than 6% below its March highs. Personally I love the company, in no small part because of its top-tier management. CEO Bob Iger has a knack for making prescient large acquisitions, picking up Pixar in 2006 and later Marvel in 2009. Marvel's Cinematic Universe is now officially the top-grossing movie franchise of all-time, beating out the Harry Potter series and the Star Wars films. Oh, Iger also spearheaded the acquisition of Lucasfilm in 2012, which puts Disney in the position to make gobs of money when it gives fans yet another Star Wars trilogy in the coming years. 



Delta Air Lines (NYSE:DAL) shares soared today, logging 5.4% gains as the stock got back to its winning ways. Shares have doubled in the last year alone and have surged more than 360% in the last five years, as the company shores up its balance sheet while boosting sales. Revenue has increased every year since 2009, during which time Delta's long-term debt situation has also been improving annually. Less debt means lower interest expenses, and as sales trend higher and costs trend lower, the laws of simple arithmetic sent profits ascending to new heights each year as well. If fuel costs rise significantly, Delta (along with its competition) will suffer, but financially speaking, the business is doing just fine. 

Although the broader stock market got a boost today from Janet Yellen's dovish remarks, Best Buy (NYSE:BBY) shares still tumbled 2.1%. Investors weren't fond of the management shakeup yesterday: The head of Best Buy's U.S. retail operations is stepping down after nearly 30 years at the company. The move comes as Best Buy is trying to firmly entrench itself as an electronics showroom; a place where customers can come to interact with high-dollar gadgets. While it'll be tough to compete with the scale and low overhead of, Best Buy is carving out its own niche in retail, and in doing so it's managed to avoid the fate of former peer Circuit City, which went bust in 2008.

The biggest thing to come out of Silicon Valley in years
If you thought the iPod, the iPhone, and the iPad were amazing, just wait until you see this. Best Buy could be hawking this bad boy in its showrooms in the coming years, and one hundred of Apple's top engineers are busy building one in a secret lab. And an ABI Research report predicts 485 million of them could be sold over the next decade. But you can invest in it right now, for just a fraction of the price of Apple stock. Click here to get the full story in this eye-opening new report.

John Divine owns shares of Apple. You can follow him on Twitter, @divinebizkid, and on Motley Fool CAPS, @TMFDivine.

The Motley Fool recommends and owns shares of Apple and Walt Disney. 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

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, 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

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