On Another Record Day for the Dow, Keurig Jumps As Fossil Falls

The blue chips inched up a few more points to claim another all-time high, while Keurig jumped on new news with Coke and Fossil fell after earnings.

May 13, 2014 at 10:00PM

Stocks inched further into record territory today despite an underwhelming retail sales report, as the S&P 500 momentarily cracked the 1,900 barrier for the first time but finished up just 0.04% at 1897.45. Elsewhere, the Dow Jones Industrial Average (DJINDICES:^DJI) gained 20 points, or 0.2%, while the Nasdaq dropped 0.3% after yesterday's big rally. 

In the closely watched retail sales report, the Department of Commerce showed consumer-level purchases increasing just 0.1% in April, below estimates of 0.3%, but March's growth rate was revised upward from 1.2% to 1.5%. Core retail sales, which remove the volatile auto market, remained flat. While April's figure on its own could be discouraging, the jump in retail sales over the past two months still indicates solid economic growth, as has much of the data that's come out in the past few weeks.


Source: Fool Flickr.

Among today's big winners was Keurig Green Mountain (NASDAQ:GMCR), whose shares jumped 7.6% after Coca-Cola (NYSE:KO) said it will up its stake in the single-cup coffee brewer from 10% to 16%. Back in February, Coke said it would share its beverage portfolio with Keurig for the upcoming Keurig Cold countertop soda machine and take a 10% stake in the Vermont-based coffee roaster. Coke said, "These incremental purchases demonstrate our continued belief that Keurig Green Mountain has substantial growth potential," and, unlike its initial investment, these shares will be purchased on the open market, which will likely drive Keurig's share price even higher. Soda consumption has been declining domestically and Coke is looking for new ways to juice its growth. The Keurig Cold machine won't be out until 2015, so its popularity remains a question mark, but Coke's willingness to invest another $1 billion into its new beverage partner is certainly a sign of confidence in its future success.  

Falling back after hours today was watchmaker Fossil (NASDAQ:FOSL), which dropped 5% after posting underwhelming guidance in its quarterly report. First-quarter results were better than expected for the fashion-accessory brand, as earnings came in at $1.22 per share, above estimates at $1.17, and revenue grew 14.1%, in part because of an extra week in the calendar, to $777 million, beating the consensus at $770.69 million. Sales grew across the board in the company's wholesale segment, and were particularly strong in the Asia-Pacific region and in jewelry sales. CEO Kosta Kartsotis noted progress in the company's international expansion, with "significant increases in both Europe and Asia." Shares dipped, however, as management saw current-quarter EPS of just $0.90-$0.97 against estimates of $1.16. The sell-off seems overdone, however, as the company's full-year earnings guidance of $6.90-$7.30 was in range of estimates of $7.20. With multiple growth channels and a consistent record of beating earnings estimates, Fossil still looks like a solid long-term bet going forward.

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 Amazon.com 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.

Jeremy Bowman has no position in any stocks mentioned. The Motley Fool recommends Amazon.com, Coca-Cola, Fossil, and Keurig Green Mountain; owns shares of Amazon.com; and has options on Coca-Cola. 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.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.


Compare Brokers