Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why the Dow Hit a New Record and Twitter and DirecTV Soared

Stocks roared to record highs today, climbing steadily over the course of the day as both the Dow Jones Industrial Average  (DJINDICES: ^DJI  ) and the S&P 500 finished at all-time highs, closing up 0.7% and 1%, respectively. Meanwhile, the tech-heavy Nasdaq was the biggest gainer of the three, climbing 1.8% on a rebound in momentum stocks after last week's decline. Today's gains came without any noteworthy news item driving the buying, as there were no major economic reports or earnings releases out today. There was one merger of note: Hillshire Brands, the parent of Jimmy Dean and Sara Lee, said it will acquire Pinnacle Foods for $4.3 billion. Pinnacle owns household names such as Hungry Man and Aunt Jemima. Its shares rose 13%. 

In international affairs, investors shrugged off a vote in Eastern Ukraine by separatists in favor of autonomy as Western governments called the referendum illegal and even Russia shied away from fully endorsing it. Tensions in Ukraine have weighed on the markets in the past, and the situation merits continued attention. No violence seems to have followed yesterday's vote, however, as armed conflict seems to be the market's greatest concern.

Turning to individual stocks, Twitter  (NYSE: TWTR  ) finished up 6% today after scoring an analyst upgrade. The beaten-down social-media stock has fallen sharply over the past couple of weeks after a disappointing earnings report and a sell-off following the expiration of its lockup period. Today, Twitter got a lift from SunTrust analyst Robert Peck, who bumped up his rating from "neutral" to "buy," saying that the assumption in the market that Twitter has to match Facebook's size is misguided and that the stock has room to advance even with user growth decelerating. I would tend to agree with Peck as the fixation on Twitter's user growth seems exaggerated. With about 250 million users, Twitter certainly doesn't lack eyeballs. The challenge for it now is to monetize those users, a process it has only just begun. Considering revenue more than doubled in its most recent report, the company seems to be on the right track.

After hours, shares of DirecTV (NASDAQ: DTV  ) were up 6% on reports that it was in advanced talks to be purchased by AT&T  (NYSE: T  ) . Rumors of a possible deal last week caused shares to spike 4%, and sources have now slapped a $50 billion price tag on the deal, more than a 10% premium on DirecTV after-hours trading price. The source said a deal could be announced within two weeks, and is just the latest example of consolidation in the cable market following Comcast and Time Warner Cable's proposed tie-up. The deal is also likely to promote more consolidation in the industry, meaning a buyer could come knocking for DISH Network or a smaller cable provider.

Are you ready to profit from this $14.4 trillion revolution?
Every investor wants to get in on revolutionary ideas before they hit it big -- like buying PC maker Dell in the late 1980s, before the consumer computing boom, or purchasing stock in e-commerce pioneer in the late 1990s, when it was nothing more than an upstart online bookstore. The problem is, most investors don't understand the key to investing in hypergrowth markets. The real trick is to find a small-cap "pure play" and then watch as it grows in explosive fashion within its industry. Our expert team of equity analysts has identified one stock that's poised to produce rocket-ship returns with the next $14.4 trillion industry. Click here to get the full story in this eye-opening report.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2954506, ~/Articles/ArticleHandler.aspx, 9/3/2015 11:50:24 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Jeremy Bowman

Fool since 2011. I write about consumer goods, the big picture, and whatever else piques my interest. Follow me on Twitter to see my latest articles, and for commentary on hot topics in retail and the broad market.

Today's Market

updated 2 hours ago Sponsored by:
DOW 16,374.76 23.38 0.14%
S&P 500 1,951.13 2.27 0.12%
NASD 4,733.50 -16.48 -0.35%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/3/2015 4:35 PM
^DJI $16374.76 Up +23.38 +0.14%
DTV $0.00 Down +0.00 +0.00%
DirecTV CAPS Rating: ***
T $33.04 Up +0.22 +0.67%
AT&T CAPS Rating: ****
TWTR $28.30 Up +0.48 +1.73%
Twitter CAPS Rating: ***