IBM Leads the Dow Toward 17,000 as Disney Sets New All-Time Highs

The Dow Jones Industrials climbed toward a potential new record Tuesday. Find out why.

Jul 1, 2014 at 12:30PM

After a week or two of consolidating gains since its last record close, the Dow Jones Industrial Average (DJINDICES:^DJI) made another push toward new heights Tuesday, climbing 133 points as of 12:30 p.m. EDT. With the rise, the Dow is coming ever closer to the much-hyped 17,000 milestone, which would mark the third time in just over a year that the index reached a new thousand-point level for the first time. Helping to send the average higher today, IBM (NYSE:IBM) delivered the biggest gain of any Dow component and Disney (NYSE:DIS)moved to a record high of its own.

Ibm Logo

Source: Alfred Lui via Flickr.

IBM jumped 2.6% as the tech giant continued moving forward with efforts to make cloud computing and data analysis easier for its customers. IBM announced this morning that its new Big Data service would be available on IBM's cloud marketplace, giving customers the ability to handle their data seamlessly from remote locations via desktop computers or mobile devices. By enabling employees to sift through electronic files, add new content and coordinate it with existing materials, and make revisions without tripping over each other's work, IBM hopes to demonstrate the advantages of using its cloud-computing services over those of its rivals. Given the immense competition to grab cloud-based business from large enterprise customers, IBM needs to keep coming up with innovations like this to entice new customers and hang on to its existing clients. IBM stock has lagged the Dow for a while now, but success in the cloud could send shares back toward higher ground.

Dis Star Wars
Source: Disney.

Disney, meanwhile, added 1.1% to hit the stock's best levels ever. The Dow's entertainment giant faces a crucial test today as the U.S. men's national soccer team enters the World Cup knockout rounds in an elimination game against favored Belgium, with a loss potentially meaning that today's likely high ratings for ESPN coverage could drop off substantially for the remainder of the tournament. Still, Disney has plenty of other irons in the fire, with summer movie season adding the latest installment of the Planes animated franchise within the next couple weeks. Despite growing valuations, the immense possibilities for future growth keep Disney shareholders pleased with the company's overall progress and could keep the stock climbing as well.

Hitting records requires that the Dow Jones Industrials receive support both from high-flying momentum stocks and from component companies that have lagged behind the market's overall strength. Today the Dow is getting help on both of those fronts, and that could point to ongoing gains for the average well into the future.

Your cable company is scared, but you can get rich
You know cable's going away. But do you know how to profit? There's $2.2 trillion out there to be had. Currently, cable grabs a big piece of it. That won't last. And when cable falters, three companies are poised to benefit. Click here for their names.


Dan Caplinger owns shares of Walt Disney. The Motley Fool recommends Walt Disney. The Motley Fool owns shares of International Business Machines and Walt Disney. 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.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information