The Dow Hits Another Record As United Technologies, General Electric Rise

The Dow reached an all-time high Monday. Find out why the Dow's industrial stocks pushed it higher.

Jun 9, 2014 at 9:02PM
Longview

The Dow Jones Industrials (DJINDICES:^DJI) finished Monday at another record high, rising 19 points and marking the latest in a string of all-time high closes for the venerable average. As the lull between earnings seasons has traders largely on the sidelines, investors are still riding the gentle wave of upward momentum toward new milestone levels for major market benchmarks. Helping to lift the Dow higher today were United Technologies (NYSE:UTX) and General Electric (NYSE:GE), each of which rose in the neighborhood of 1% on Monday.

Ge
Source: General Electric.

One of the things that has helped drive industrial stocks like General Electric and United Technologies is their focus on the highest-potential areas in their vast conglomerate businesses. For instance, General Electric has no shortage of industries it could seek to dominate, but for the most part, it has chosen to concentrate on the opportunities in the energy arena to define its future. Today, for instance, General Electric said that it had invested in a Japanese photovoltaic solar-power project, with 32 megawatts of capacity expected to begin producing power in early 2016. The move represents only a small part of General Electric's billion-dollar annual commitment to renewable energy, complementing its exposure to the oil and gas industry and to initiatives to improve the electrical transmission infrastructure. As power needs around the world rise, General Electric aims to become a key player, and moves like its attempt to buy out French giant Alstom only bolster the argument in favor of GE's broader strategy.

Utx

Source: United Technologies.

For United Technologies, the analogous industry has been aerospace. After United Technologies' acquisition of Goodrich, aerospace now makes up more than half of the conglomerate's overall revenue, when you add up exposure through UTC Aerospace, the Pratt & Whitney aircraft engine and components segment, and the Sikorsky helicopter division. Rising tensions around the world have some national governments taking a second look at planned defense budget cuts, and the boom in commercial airlines has created a lot more demand for new-model aircraft that use United Tech components and systems.

At the same time, though, neither General Electric nor United Technologies has all of their eggs in one basket. General Electric still has wide-ranging exposure to industries including health care, aviation, and its still significant GE Capital division. At the same time, United Technologies' biggest segment by revenue remains its climate, control, and security division, and its Otis elevator business also aims to take full advantage of any improvement in conditions in the commercial construction industry.

The Dow Jones Industrials have plenty of stocks that aren't related directly to the industrial sector. But United Technologies and General Electric are old-school industrials, and they've been doing well enough to satisfy investors hungry for stability and growth in an increasingly uncertain market.

Are you ready for this $14.4 trillion revolution?
Have you ever dreamed of traveling back in time and telling your younger self to invest in the tech giants of today? We haven't mastered time travel, but there is a way to get out ahead of the next big thing. The secret is to find a small-cap "pure play" and then watch as the industry -- and your company -- enjoy those same explosive returns. Our team of equity analysts has identified one stock that's ready for stunning profits with the growth of a $14.4 trillion industry. You can't travel back in time, but you can set up your future. Click here for the whole story in our eye-opening report.

Dan Caplinger and The Motley Fool own shares of General Electric. 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