The 2 Dow Stocks You Need to Know About Today

Here's the lowdown on today's news from Nike and DuPont.

Jun 27, 2014 at 1:00PM
Take The Long View

The Dow Jones Industrial Average (DJINDICES:^DJI) was down 35 points at 1 p.m. EDT Friday amid the backdrop of increased economic tensions in Europe. Ukraine today signed a trade pact with the European Union, ratcheting up tensions (again) with Russia. Ukrainian President Petro Poroshenko called this the "most important day for [the] country" since independence.

DuPont lowers guidance
The morning was not as upbeat for chemical and agricultural giant DuPont (NYSE:DD), which saw its stock drop by 4.7%. 

This sudden move lower is a reversal from what has been a rewarding year for investors in the company.

DD Chart

DD data by YCharts.

Management announced today that operating earnings for the second quarter and remainder of 2014 would be "moderately below" previous expectations. Last year, DuPont earned $1.28 per share in the second quarter, but management said this year's result will fall well short of that mark.

The company lowered full-year earnings expectations to between $4 and $4.10 per share. Prior to this announcement, most analysts had expected 2014 earnings of approximately $4.25 per share. 

Over the past five quarters, DuPont's earnings yield -- the ratio of its earnings to its enterprise value -- has fallen 8.32% to 5.81% as of March 31, 2014. By this measure, the stock may have been overly valued in the markets, compounding the effect of today's lower guidance. 

For investors, this ratio correlates to expected returns over the long term -- it shows how well the company will produce profits relative to your investment.

Nike bolts higher
In more positive news for investors, Nike (NYSE:NKE) jumped up over 1.6% by early afternoon Friday. Nike has been in the global spotlight over the past two weeks as billions worldwide tune into the World Cup in Brazil. 

Nike Soccer Fool Flickr

After the market closed on Thursday, announced a strong earnings beat for the company's fourth quarter, which ended on May 31. 

Sales increased by 11% to $7.43 billion, beating expectations by nearly $100 million. Net income jumped 5.4% per share to $0.78. 

The better than expected revenue and earnings were in part driven by increased running and basketball-related sales in North America. This corresponds to the busy spring basketball season featuring the NCAA tournament in March and April and the beginning of the NBA playoffs. Runners also hit the pavement again after this year's particularly harsh winter.

Nike stock has risen 26% over the past 12 months, even though the ride higher has been noticeably more rocky than DuPont's.

NKE Chart

NKE data by YCharts.

Nike trades at 27 times trailing 12-month earnings, according to data from Yahoo! Finance, a hefty price for a $68 billion clothing and sporting goods company. This value premium is likely to persist over the next few quarters as Nike stays on center stage during and after the World Cup.

You can't afford to miss this
"Made in China" -- an all too familiar phrase. But not for much longer: There's a radical new technology out there, one that's already being employed by the U.S. Air Force, BMW and even Nike. Respected publications like The Economist have compared this disruptive invention to the steam engine and the printing press; Business Insider calls it "the next trillion dollar industry." Watch The Motley Fool's shocking video presentation to learn about the next great wave of technological innovation, one that will bring an end to "Made In China" for good. Click here!

Jay Jenkins 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.

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

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, 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