Dow Hits a New Record As Yelp and Garmin Gain

The blue chips headed higher after the Fed's report, and Yelp and Garmin jumped on earnings.

Apr 30, 2014 at 10:00PM

The Dow Jones Industrial Average (DJINDICES:^DJI) overcame a weak GDP report to close at a new record high today of 16,580 after a gain of 45 points, or 0.3%. The Federal Reserve's decision to continue its stimulus taper gave markets an added boost of confidence, lifting stocks late in the afternoon. Some analysts had suspected that the central bank would hold off on the latest round of cuts to the bond-buying program after the Commerce Department reported GDP growth of just 0.1% in the first quarter.

In its Open Market Committee report, the Fed said it saw indicators that "growth in economic activity has picked up," and the central bank noted that household spending was improving. Though first-quarter GDP growth was worse than the 1% expected, the Fed, like many investors, attributed that mostly to poor winter weather, and recent economic indicators have shown strength returning after a slow winter.

Those reports continued today as ADP, the nation's largest payroll processor, reported that 220,000 jobs were added to the economy in April, slightly ahead of forecasts of 215,000. The survey bodes well for the official jobs report due out Friday, for which expectations are set 200,000 new jobs. Also this morning, the Chicago Purchasers Managing Index jumped to 63 from 55.9 in March, beating estimates at 56.5. The strong increase indicates a robust expansion in manufacturing in the Midwest, yet another sign that the economy is returning to health following poor reports this winter.


After hours today, Yelp (NYSE:YELP) shares were speeding higher, gaining 5% after delivering better-than-expected results in its quarterly earnings report. The business-review site posted a loss of $0.04 per share against estimates of a $0.06-loss, while revenue jumped 65.7% to $76.4 million, ahead of the consensus at $75.05 million. Also promising was the company's average monthly visitors increasing 30% to 132 million. International growth was especially bright as reviews outside the U.S. grew 210% and international visitors were up 95%. Yelp also raised full-year guidance to $363-367 million, above estimates at $358.9 million. It was a solid quarter for the reviews specialist, but the company's valuation seems like the biggest question mark for investors as it's still putting up losses and carries a whopping P/S ratio of 18.  

Earlier in the day, Garmin (NASDAQ:GRMN) shares finishied up 3.7% on its own strong quarterly report. The gadget-maker posted a per-share profit of $0.55 on estimates of $0.44 as it found continuing success in its outdoor, fitness, and aviation segments. Sales grew much faster than expected, improving 9.6% to $583.2 million against the consensus of $541.2 million. The electronics-maker continues to surprise the market as it finds new angles for growth amid the decline of stand-alone GPS that was once its trademark product. The company did not provide forward guidance, but nonetheless said it experienced a strong start to the year, saying that the quarter "exceeded expectations."

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Jeremy Bowman owns shares of Apple. The Motley Fool recommends Apple, ADP, and Yelp and owns shares of Apple. 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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