World Wrestling Entertainment Tumbles, Melco Crown Soars on Macau Growth

Disney shares finished the week on a strong note as the Dow pulled back on April jobs numbers.

May 2, 2014 at 6:19PM

The highly anticipated monthly jobs report hit the wires today, blowing expectations out of the water -- in some respects. The surface-level numbers were spectacular: total nonfarm payroll employment expanded by 288,000 jobs in April, far above the 215,000 figure economists were expecting, while the unemployment rate dropped from 6.7% to 6.3%. But the labor force eroded by more than 800,000 people last month, as the labor force participation rate reached an all-time low. Investors didn't like the subtext to the report, and the Dow Jones Industrial Average (DJINDICES:^DJI) lost 45 points, or 0.3%, to end at 16,512. 

While the Dow faltered on Friday, shares of blue chip component Walt Disney (NYSE:DIS) finished the week on a strong note, adding 0.9%. On Tuesday, Disney announced it had resigned the major original players (Harrison Ford, Carrie Fisher, and Mark Hamill) from the original trilogy for 2015's Star Wars: Episode VII film. The next day, the soundtrack for last year's animated hit film Frozen finished at the top of the billboard charts for a 12th time, as the megahit continues to pay dividends for Disney. This coming Tuesday, the company will report quarterly results, so stay tuned to see whether the stock can follow up its 2.7% gain this week with more gains. 

Elsewhere in the market, shares of Melco Crown Entertainment Limited (NASDAQ:MPEL) finished as major movers, surging 6.1%. As goes Macau, so goes Melco -- and according to new data, business in Macau was hot in April. Total gaming revenue rose 10.6% from April 2013, easily surpassing the 7% growth Wall Street was looking for. On top of that, Melco Crown competitor Wynn Resorts topped expectations in its most recent quarter, painting an optimistic view of the current state of the casino industry.

Alas, investors in World Wrestling Entertainment (NYSE:WWE) didn't enjoy the kind of day Disney and Melco Crown shareholders experienced. The stock plunged 7.4% Friday, even after tacking on 4.3% yesterday as the company beat quarterly revenue expectations. Initially the market received WWE's quarter with jubilance, but the company's $8 million loss isn't sitting well, despite the fact that losses were projected to be between $12 million and $15 million. Though sales have steadily increased each year since 2009, net margins have compressed since then, and earnings have fallen from more than $50 million in 2009 to less than $3 million last year.

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John Divine has no position in any stocks mentioned. You can follow him on Twitter @divinebizkid and on Motley Fool CAPS @TMFDivine.

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