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
Longview

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.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

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.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

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. It's also featured on several dozen 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 ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.


Compare Brokers