These Stocks Kept Markets Afloat on a Dull Day For the Dow

A six-day streak of gains is broken, but the market merely took a breather today.

Jun 23, 2014 at 4:37PM

A slow day for the markets has snapped a week-plus run for the Dow Jones Industrial Average (DJINDICES:^DJI), which lost ground for the first time since June 12. A six-day streak of gains is nothing to sneeze at, but even this advance has typified the market of 2014 -- from June 13 to 20, the Dow gained a total of 1.3%, with only one day producing a gain in excess of half a percent. Slow, steady, and unmemorable have been the bywords in American markets this year, and even today's streak-snapping decline of 0.06% was barely worth a second glance.

Ducreuxyawn

Even Joseph Ducreux is bored with today's results. Source: Wikimedia Commons. 

Of course, eagle-eyed investors can always spot a few patches of volatility within ponderous index moves. JPMorgan Chase (NYSE:JPM) went up 1.1% to top the Dow and stand among the financial sector's best stocks of the day, The megabank is leading the underwriting for three of this week's notable IPOs, which will keep it in the spotlight until its second-quarter earnings report drops on July 15.

More volatile still were S&P 500 components PetSmart (NASDAQ:PETM) and Integrys Energy (NYSE:TEG), which paced all gainers on the broad-based inex today with respective pops of 5.2% and 12.1%. The S&P's biggest megacap pop was also from a megabank -- Citibank outdid JPMorgan with a 1.5% gain after it agreed to sell its Spanish retail and credit card business to Spain's own Banco Popular. Terms of the deal were unknown, but it does help Citi extricate itself from one of the eurozone's weakest economies.

PetSmart appears to be simply recovering from Wedbush's coverage initiation with a hold rating and a $60 price target on Friday -- a target that PetSmart has effectively reached a mere trading day after it was instituted. PetSmart's growth has moderated recently, but it is still a high performer, with EPS up 160% since late 2009 despite revenue growing only 32% in the same time frame. PetSmart's P/E ratio is 13.8, down from its 18.8 average over the past five years.

Integrys popped today on news that it would be acquired by Wisconsin Energy (NYSE:WEC) in a deal worth $9.1 billion. Surprisingly, Integrys' current share price of $68.35 is below the agreed-upon $71.47-per-share acquisition price, which indicates a bit of skepticism that the deal will conclude. Savvy investors could still capitalize on the 4.6% discrepancy between Integrys' closing price and its acquisition price. The deal includes 1.128 shares of Wisconsin Energy shares for each Integrys share plus $18.58 in cash per share, ensuring that committed income investors can continue to receive solid dividends if they so choose.

Editor's note: The article misstated terms of the deal. The Fool regrets the error. 

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.

Alex Planes has no position in any stocks mentioned. The Motley Fool recommends PetSmart and Wisconsin Energy. The Motley Fool owns shares of Citigroup and JPMorgan Chase. 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 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