DuPont's Gains Push the Dow's Week-Ending Climb

Pfizer falls to the bottom of the Dow as investors move on from the company's failed attempts to lure AstraZeneca.

May 23, 2014 at 6:00PM
Daily Fool

Investors welcomed a strong close-out to the week today, as the Dow Jones Industrial Average (DJINDICES:^DJI) finished the day up 63 points, or nearly 0.4%. Most blue-chip members of the index ended up in the green, with DuPont (NYSE:DD) among today's better gainers as the stock jumped 0.9%. Meanwhile, Pfizer (NYSE:PFE) fell to the bottom of the Dow today, with the big pharma stock dropping 0.6% in the wake of its failed attempt to acquire AstraZeneca. Let's catch up on what you need to know.

Will Pfizer follow up its AstraZeneca failure with a new buyout push?
Pfizer's attempts at luring AstraZeneca into a merger seem all but dead now, but don't expect this pharmaceutical giant to stand pat going forward. The company's pipeline boasts 27 phase 3 or later programs as of its most recent update in late February. Pfizer, however, is facing a lack of many high-potential blockbusters in that pipeline, with the exception of highly touted breast cancer therapy palbociclib, which analysts have estimated at peak sales of up to $4 billion or more.

Given that Pfizer has tens of billions of dollars in overseas untaxed profits, however, it wouldn't be surprising to see Pfizer make a move to beef up its product portfolio and pipeline with a major acquisition in the near future -- even if it isn't on the same scale as a merger with AstraZeneca. Given this company's struggles to reverse recent sales declines, investors should expect more action to come on Pfizer's front.

DuPont made the most of the Dow's day, unlike Pfizer, and investors are looking forward to the company's final decision regarding its lackluster performance chemicals division. While DuPont's committed to spinning off this unit -- a move that company leadership indicated currently is on track -- this firm's also looking at other options, including a potential sale of the business. The performance chemicals unit hasn't exactly been a growth segment for DuPont: It saw sales decline by 3% year over year in the company's most-recent quarter. With industrial chemical demand and pricing volatile, DuPont is angling to divest the business in order to reinforce stability in its future earnings. While investors might miss a unit that was DuPont's third-largest by sales in its most-recent quarter, the company's long-term growth prospects in its agricultural group -- by far its largest by revenue -- should keep this firm and stock headed in the right direction for years to come.


Source: Wikimedia Commons

Outside of the Dow today, GameStop (NYSE:GME) stock jumped 4.2% after the company reported earnings. The video game retailer missed analyst expecations on its top line, but a 7% overall rise in revenue, boosted by the ongoing success of Microsoft's and Sony's new Xbox One and PlayStation 4 consoles, delighted investors today, and powered up a stock that's slipped by more than 25% since the start of 2014. While new game software sales fell sharply by more than 20% for the quarter, title releases for the newest generation of consoles have been limited since the Xbox One and PS4 launched late last year. With a lineup of highly touted game titles set to release in the near future -- including Ubisoft's Watch Dogs next week, a game GameStop said had broken records as the most pre-ordered video game in the young life of the newest consoles -- this retailer will have a chance to keep up its momentum.

In the long run, however, it's wise to exercise caution with GameStop. With digital sales gaining acceptance around the video game industry, this company will need to keep adapting to complement its brick-and-mortar physical sales in order to satisfy investors.

Will this stock be your next multi-bagger?
Give me five minutes, and I'll show how you could own the best stock for 2014. Every year, The Motley Fool's chief investment officer handpicks one stock with outstanding potential. But it's not just any run-of-the-mill company; it’s a stock perfectly positioned to cash in on one of the upcoming year's most lucrative trends. Last year, his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252%, and 1,303% during the subsequent years! Believe me, you don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.

Dan Carroll has no position in any stocks mentioned. The Motley Fool owns shares of GameStop and Microsoft. 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.

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

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, 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