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.

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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.

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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