5 in 6 Dow Stocks Advance, Netflix, Inc. and Sears Holdings Corporation Rally

Wall Street still likes Disney shares, as all 10 sectors post gains in the stock market today

May 29, 2014 at 6:30PM

All 10 sectors posted gains in the stock market today, even as U.S. first-quarter GDP numbers showed a contraction in the economy. Wall Street shrugged off the 1% year-over-year GDP slump -- lower than the most pessimistic Econoday consensus estimates of a 0.8% decline -- as a result of poor winter weather, bidding stocks higher across the board. The Dow Jones Industrial Average (DJINDICES:^DJI) posted its fifth day of gains in the last six days, tacking on 65 points, or 0.4%, to end at 16,698.

Walt Disney (NYSE:DIS) finished as one of the 25 stocks in the Dow that gained ground on Thursday, adding 0.5%. Still riding high from the global $1 billion-plus box office blowout success that was Frozen, and with Marvel Studios, Lucasfilm, ESPN, and a slew of other elite media properties to its name, Disney is truly a one-of-a-kind giant of the entertainment world. CEO Bob Iger's 2009 acquisition of Marvel for $4 billion was an extremely shrewd investment, as the popularity of Marvel Universe-related movies has proven that, if being obsessed with comic book characters is nerdy, the world is chock-full of fanatical geeks.


One of the four Marvel-based series on Netflix will focus on Daredevil. Image source: Marvel

Disney isn't the only company betting that Marvel has discovered the magic formula to monetizing the recent comic book craze. Netflix (NASDAQ:NFLX) has worked closely with Disney for a number of years, and enjoys the exclusive rights to stream at least four brand spankin' new series starting next year, 13 episodes each, based on Marvel characters. Netflix shares, which have rewarded long-term investors with explosive returns, rallied 3.5% today as CEO Reed Hastings blasted opponents of net neutrality, arguing for a "free and open Internet," where all traffic is treated equally by Internet service providers.

Elsewhere in the services sector, Sears Holdings (NASDAQ:SHLD) finished as a major gainer in the stock market today, as shares surged 7.6%. Unfortunately, one-day swings don't tell us much about a stock's long-term potential, especially when those swings are virtually unfounded -- like today's rally in Sears. While one can make the case that Sears stock has been unfairly beaten down in recent years, there simply is no end in sight to the company's slumping sales and asset divestitures. Until the department store starts to stem the bleeding, Sears stock will remain a roll of the dice I'd rather not take.

Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

John Divine has no position in any stocks mentioned. You can follow him on Twitter @divinebizkid and on Motley Fool CAPS @TMFDivine.

The Motley Fool recommends Netflix and Walt Disney. The Motley Fool owns shares of Netflix and Walt Disney. 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.

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