Why J.C. Penney, ICICI Bank, and Autodesk Jumped Today

Stocks were relatively quiet on Friday, but that didn't hold these three stocks back. Find out more about what made them soar.

May 16, 2014 at 8:05PM

Friday was a relatively quiet day for the stock market, as investors remained uncomfortable with some of the negative trends hitting the market, but not feeling so pessimistic as to justify sending shares into another steep downturn to close out the week. Even though most of the major-market benchmarks finished close to the unchanged level going into the weekend, J.C. Penney (NYSE:JCP), ICICI Bank (NYSE:IBN), and Autodesk (NASDAQ:ADSK) managed to post impressive gains today.

J.C. Penney soared 16% after reporting earnings last night that came in ahead of relatively low expectations for the long-struggling retail giant. Same-store sales rose 6.2% from the year-ago period, with store traffic rising in April for the first time in two-and-a-half years. What investors simply must remember, though, is that J.C. Penney's prior-year results were terrible, and so favorable comparisons to 2013 figures hide the much-larger declines when you look back to healthier years in the more distant past. With a loss of more than $350 million for the quarter, J.C. Penney still faces the danger of running out of capital if it can't quickly turn things around and start getting profitable again.

Source: J.C. Penney.


Prime Minister-elect Narendra Modi. Source: Wikipedia, courtesy Narendra Modi.

ICICI Bank jumped 10% after the Indian bank joined many of its compatriots by celebrating the election of Prime Minister Narendra Modi to lead India. Investors in India see Modi as being a pro-business candidate, with a history in his leadership of the Indian state of Gujarat of emphasizing the need for supporting infrastructure construction, and eliminating unnecessary regulation and bureaucracy in order to facilitate action. As a result, stock markets in India have soared ever since it became clear that Modi was likely to win. Yet, some are concerned that the leader might become a polarizing figure, given Modi's headstrong assertiveness. In any event, investors in ICICI Bank and other Indian companies are giving Modi the benefit of the doubt during his honeymoon period, even though, eventually, he'll have to prove himself.

Autodesk gained 8%, with its first-quarter report satisfying investors both on revenue and earnings. Autodesk has been making a transition to a subscription-based model, and the company saw earnings fall dramatically compared to year-ago figures. But revenue jumped 4%, and an increase of 89,000 in total subscriptions showed that the transition appears to be going well for Autodesk. As a result of its success, Autodesk also raised its guidance for the remainder of the fiscal year. Even though adverse currency impacts could continue to produce headwinds for the creativity-software maker, Autodesk appears ready to face its future successfully.

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!

Dan Caplinger has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information