Dow Ends Win Streak; J.C. Penney Slumps on New Financing

Home Depot rises on existing home sales; surges despite uncertain regulatory environment.

Jun 23, 2014 at 6:28PM

The Dow Jones Industrial Average (DJINDICES:^DJI) broke its six-day win streak on Monday, though today's losses were hardly emphatic. Even the six-day rally somehow lacked excitement, as most of the intraday advances were small and came on light volume. Wall Street's seen subdued trading activity since early spring, when hedge fund managers abandoned their posts en masse, suddenly realizing there were things in the world far more beautiful than dollars and cents.

Just kidding. One can always dream.

The Dow lost 9 points, or less than 0.1%, to end at 16,937 today.

Home Depot (NYSE:HD) finished as one of the day's top blue-chip performers, adding 0.6%. Home Depot shareholders had every right to be excited today, as existing home sales in May charged higher for a second straight month, easily topping Econoday consensus estimates. Existing home sales rose nearly 5% from April to an annualized rate of 4.89 million. The April and May months marked the first back-to-back gains since April and May of 2013, highlighting the housing market's seasonal nature. 'Tis the season for the housing market, that's for sure!

Shares of J.C. Penney (NYSE:JCP) lost ground on Monday, shedding 3.4% after the company announced a new, $2.35 billion credit facility, $1.85 billion of which will be a revolving line of credit; the other $500 million will consist of a term loan. The new financing deal replaces a $1.85 billion credit facility at a higher interest rate that would've matured in April 2016. Personally, I don't see why investors reacted so harshly to the news, which should bring down J.C. Penney's cost of capital and increase its liquidity as it uses a newer, more favorable loan to pay back higher-interest debt it accrued under the old agreement.


Despite its rapid rise today, investing in is a risky proposition. Image source:

Finally, shares of Limited (NYSE:WBAI) soared 7.7% today. is a China-based online lottery service provider that essentially allows customers to buy lottery tickets and wager on sports events. If this sounds like a risky business, it is: the company freely admitted in its annual 20-K report that "the rules and regulations on online lottery sales service market in China are relatively new and subject to interpretation, and their implementation involves uncertainty." In other words, caveat emptor. Investing in is a bit like buying a lottery ticket itself: there are chance forces (the Chinese government) at work that an investor cannot see until the numbers have been drawn.

Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend-paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

John Divine is long January 2015 $10 calls on J.C. Penney. You can follow him on Twitter, @divinebizkid, and on Motley Fool CAPS, @TMFDivine. The Motley Fool recommends Home Depot. 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.

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