Stock Market Today: The Beginning of a Tech Rebound?

What you need to know about the stock market today.

Apr 24, 2014 at 9:00AM

Investors can expect a higher start to the stock market today, as the Dow Jones Industrial Average (DJINDICES:^DJI) has gained 42 points in pre-market trading. Meanwhile, the tech-heavy Nasdaq Composite (NASDAQINDEX:^IXIC) looks poised to recover some of the ground it has lost to the Dow and other indexes recently, and it can thank Apple (NASDAQ: AAPL) and Facebook (NASDAQ: FB) for that boost. Both companies easily beat earnings estimates last night. The stocks, which together account for over $600 billion in market capitalization, are each up by more than 5% as of 7:30 a.m EDT.

Meanwhile, dozens of companies reported quarterly earnings results this morning, including Verizon (NYSE:VZ) and Under Armour (NYSE:UA), which are on the move in pre-market trading.


Verizon today booked a 23% rise in adjusted earnings. Profit came in at $0.84 a share, a nice rise from the $0.68 it logged a year ago. Sales improved by 5% to hit $30.8 billion, which was slightly above analysts' expectations. The big milestone for Verizon in the quarter was closing its $130 billion deal to gain full control over its wireless business. In an earnings press release, CEO Lowell McAdam said that, although the quarter only included five weeks of fully integrated Verizon Wireless results, management is already energized by the "full access we now have to the significant cash flows" of that business. Indeed, wireless revenue grew by 6.9% as average monthly revenue per customer hit $160. That figure still has room to grow as smartphone penetration continues: those devices accounted for just 72% of Verizon's phone base, up from 70% a year ago. The stock was up 0.4% in pre-market trading.

Under Armour cleared some lofty earnings expectations this morning. Wall Street had been looking for a massive 27% quarterly sales boost to just under $600 million. But the performance clothing maker instead booked a 36% jump to $642 million. Earnings improved by $0.02 a share to reach $0.06 on a split-adjusted basis, also ahead of expectations, as profitability expanded by a full percentage point to 46.9% of sales. Under Armour's huge beat was powered by its apparel, footwear, and international businesses, which respectively grew by 33%, 41%, and 79%. After posting numbers like that, it's no wonder management sounds so confident: CEO Kevin Plank said there is "unlimited potential" ahead for the brand. Under Armour's stock was up 2.8% in pre-market trading.

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Demitrios Kalogeropoulos owns shares of Apple and Facebook. The Motley Fool recommends Apple, Facebook, and Under Armour. The Motley Fool owns shares of Apple, Facebook, and Under Armour. 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.

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