Wal-Mart Sends Dow Lower, Melco Crown Keeps Rallying

Jumei International Holding Limited also shoots higher on news of a rapidly growing market.

Jun 26, 2014 at 7:02PM

The stock market posted modest losses today as consumer spending in May rose slightly less than expected, ticking up 0.2% against forecasts for a 0.4% increase. Wal-Mart (NYSE:WMT) stock certainly wasn't helping the Dow Jones Industrial Average (DJINDICES:^DJI) either on Thursday, finishing as the worst-performing member of the index, and helping to send the Dow down 21 points, or 0.1%, to end at 16,846.

Wal-Mart shares lost 0.9% today, as the retailer deals with another PR nightmare related to employee compensation. This time, however, the headache is coming from China. That's right, Wal-Mart's being sued for undercompensating employees at one of its stores in China, a country where some factories have had to put up fences on their roofs to prevent worker suicides. The impending lawsuit is being brought by employees at an underperforming store in Changde, which was closed in March. The workers say they weren't given adequate notice of the closure, or adequate compensation upon the store's closing.


Altira Macau. Source: Melco Crown.

Melco Crown Entertainment (NASDAQ:MPEL) advanced for a third-straight day today, jumping 4.1%. The casino industry gained a huge boost on Tuesday, as Japanese Prime Minister Shinzo Abe said he'd try to push legislation through that would legalize gambling in the country. Abe has been trying to reignite growth in Japan through what's been dubbed "Abenomics," instituting stimulus measures, and trying to attract tourism. The casino initiative should provide opportunities for Melco Crown and its peers to cash in on the island country in the coming years.

Online beauty products retailer Jumei International Holding Limited (NYSE:JMEI) also represents an opportunity for investors to benefit from Asian economies. Shares of Jumei surged 8.7% today, as iResearch reported China's mobile retail market expanded at a whopping 140% in the first quarter. While Jumei is part of a huge, expanding market, that alone doesn't make it a great company. The stock just went public in May, and it may be wise to watch its financial situation for a few quarters before diving in.

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

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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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