The Boeing Company Lines up $3.8B Deal and Ford Motor Company Surges in Europe

Two industrial giants are making headlines in the market today for positive reasons.

May 14, 2014 at 3:00PM

The Dow Jones Industrial Average (DJINDICES:^DJI) was trading 81 points lower, or 0.48%, in midafternoon, after closing yesterday at another record high. While the Dow overall continues to do well, weakness has remained in small-cap and momentum stocks.

"From a market perspective, some of the assumptions we had coming into the year, like strengthening growth and improved revenue, haven't come through at the pace we expected, which is why you're seeing a rotation from small growth names into value and defensive ones," said Oliver Pursche, president of Gary Goldberg Financial Services, according to Reuters.

With that in mind, here are two industrial companies making headlines today.

Inside the Dow, Boeing (NYSE:BA) will sell 50 737 commercial aircraft to a subsidiary of China's Juneyao Airlines. The deal is estimated to be worth at least $3.8 billion and could reach as much as $5.5 billion, depending on discounts.

"We are honored to welcome 9 Air as Boeing's newest customer," said Ihssane Mounir, vice president of sales and marketing for Northeast Asia, Boeing Commercial Airplanes, in a press release. "The success of Boeing's market-leading 737 family of airplanes has proven to be a winning formula for low-cost carriers around the world. I am confident that this success will be replicated with 9 Air's low-cost business model."

9 Air is China's newest low-cost airliner and looks to become another all-Boeing company in the nation. That's a good position for Boeing to be in as the low-cost carrier market is becoming increasingly stronger and friendlier to additional start-ups.

Outside the Dow, Ford (NYSE:F) said its sales in Europe rose in April, the 11th consecutive month of year-over-year sales gains. If you're counting, it's also the fifth successive month of market-share gains on the continent, according to Ford.

Starting from the top, Ford last month sold 99,700 vehicles in the company's 20 European main markets, which was a 6.6% improvement over last year's April and ahead of the industry's 4.2% growth. That increase brought Ford's market share up 20 basis points to 7.9%.

Ford's Fiesta remained the company's best-selling car in April with 29,000 registrations, its best sales performance since 2010. Sales in Europe's largest market by sales volume, the U.K., rose 11.6% last month. Ford posted equal sales results to last year in its second-largest European market, Germany, even while the overall industry was down for the month.

Despite Europe being a continued drag on Ford's earnings, the situation is definitely improving; if everything goes according to plan the automaker will break even, or post a small profit, sometime in 2015. That will be a huge deal to Ford investors who have witnessed billions of dollars being burned off its bottom line from operations in Europe. 

Warren Buffett just bought nearly 9 million shares of this company
Imagine a company that rents a very specific and valuable piece of machinery for $41,000... per hour (that's almost as much as the average American makes in a year!). And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report details this company that already has over 50% market share. Just click HERE to discover more about this industry-leading stock... and join Buffett in his quest for a veritable landslide of profits!

Daniel Miller owns shares of Ford. The Motley Fool recommends Ford. The Motley Fool owns shares of Ford. 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.

A Financial Plan on an Index Card

Keeping it simple.

Aug 7, 2015 at 11:26AM

Two years ago, University of Chicago professor Harold Pollack wrote his entire financial plan on an index card.

It blew up. People loved the idea. Financial advice is often intentionally complicated. Obscurity lets advisors charge higher fees. But the most important parts are painfully simple. Here's how Pollack put it:

The card came out of chat I had regarding what I view as the financial industry's basic dilemma: The best investment advice fits on an index card. A commenter asked for the actual index card. Although I was originally speaking in metaphor, I grabbed a pen and one of my daughter's note cards, scribbled this out in maybe three minutes, snapped a picture with my iPhone, and the rest was history.

More advisors and investors caught onto the idea and started writing their own financial plans on a single index card.

I love the exercise, because it makes you think about what's important and forces you to be succinct.

So, here's my index-card financial plan:


Everything else is details. 

Something big just happened

I don't know about you, but I always pay attention when one of the best growth investors in the world gives me a stock tip. Motley Fool co-founder David Gardner (whose growth-stock newsletter was rated #1 in the world by The Wall Street Journal)* and his brother, Motley Fool CEO Tom Gardner, just revealed two brand new stock recommendations moments ago. Together, they've tripled the stock market's return over 12+ years. And while timing isn't everything, the history of Tom and David's stock picks shows that it pays to get in early on their ideas.

Click here to be among the first people to hear about David and Tom's newest stock recommendations.

*"Look Who's on Top Now" appeared in The Wall Street Journal which references Hulbert's rankings of the best performing stock picking newsletters over a 5-year period from 2008-2013.

Compare Brokers