GDP, Housing Data, Bad-Tasting General Mills, Hot Nike, and the Week in Review

Good morning, good lookin'... The four things you need to know on June 30th are:

Jun 27, 2014 at 11:00PM

While you're stocking up on charcoal and prepping your secret dry rub recipe ahead of some serious 4th of July grilling festivities, check out what sent stocks down on a tough summer week.

1. Stock market winner...
Goooooooooal!! That earnings report from Nike scored like it came off the boot of some random Latin American soccer player whose name you know now because of the World Cup. On Thursday, Nike (NYSE:NKE) announced to investors that its quarterly revenue jumped 13% from last year, to $7.43 billion, which was above the $7.34 billion originally projected.

Take one wild guess what's behind the solid figures. (Hint: it's probably on ESPN right now.) For the World Cup, Nike was notably able to sign on 10 of the planet's biggest name soccer players. Adidas only snagged three, and Puma was left with just one.

That's great for marketing, and those sales numbers are solid for the quarter; but why were investors happy? Because Nike is gaining momentum to upset the current lead in soccer sportswear worldwide: Adidas. Wall Streeters know that this could become the most-watched World Cup ever, and with that kind of viewership, building the Nike soccer brand outside the US could be big for market share.

2. ...and stock market loser
If you don't want to spit up your breakfast, then don't continue to read what we're writing about cereal-crushing giant General Mills (NYSE:GIS). General Mills may own a variety of notable brands, from Betty Crocker to Green Giant, but its latest quarterly earnings were straight up sour: Compared to the same period last year, revenue dipped 2.9%. to $4.28 billion.

But those poor numbers aren't the main reason why General Mills was spat out by investors last week. Sales have surprisingly slowed so much that the company also used the earnings report as an opportunity to announced its $40 million cost-cutting plan. The objective is to reconfigure the company's manufacturing and distribution setup to optimize its profits.

General Mills is not the only sizable food and beverage company struggling with cost-related issues. Campbell's Soup, Kellogg's, and even Heinz have found themselves served up with a similar dish. Investors, though, are worried about General Mills' plan, because it doesn't yet involve the intense measures -- factory closings and worker layoffs -- that the other companies were inevitably forced to undergo.

3. America's GDP wasn't hot...
After two preliminary readings during the last couple months, the Commerce Department announced that U.S. GDP, the broad measure of the economy, officially shrank by 2.9% in the first quarter of 2014. That's the worst performance since the 2009 recession began with 5.9% shrinkage. Wall Street's hoping for the economy's recovery to get back on track this summer, because those multiple polar vortexes were mostly to blame for this past winter's slump.

4. ...but America's housing data was
Although that GDP news probably made you want to run home to cry to mom, at least home-related econ data was good. Sales of existing homes surged 4.9% in May to its fastest pace in 18 months, while sales of new homes rose more than 18% for its biggest monthly gain since 2011. After the brutal winter weather crushed consumers, investors had been hoping for the housing market to start its spring rebound like this.

As originally published on

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!

Jack Kramer has no position in any stocks mentioned. Nick Martell has no position in any stocks mentioned. The Motley Fool recommends Nike. The Motley Fool owns shares of Nike. 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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