Stock Market Today: Dow Aims at 17,000 as Alcatel-Lucent Jumps, CalAmp Falls

After big gains yesterday, the market looked to top a key milestone Wednesday.

Jul 2, 2014 at 9:00AM
Longview

After a 129-point gain and new all-time closing high yesterday, the Dow Jones Industrials (DJINDICES:^DJI)were up 14 points in pre-market trading Wednesday and seemingly set for the push toward the 17,000 mark. In Asia, market gains varied in size, with Hong Kong and India climbing more than 1% while Japan and China saw small spikes. European stocks rose modestly, with markets in Germany, France, and the U.K. posting gains of as much as a third of a percent. In early U.S. trading, shares of Alcatel-Lucent (NYSE:ALU) were up sharply, while CalAmp (NASDAQ:CAMP) saw large declines.

Alu
Source: Alcatel-Lucent.

Alcatel-Lucent rose 5% in pre-market trading after the telecommunications and networking equipment company got an upgrade from J.P. Morgan. Despite general strength in the stock market, Alcatel-Lucent stock dropped more than 10% in June, largely because a major purchaser of telecom equipment said it expects no growth in wireless-network revenue in the second quarter and could therefore reduce its expenditures on capital equipment substantially. But the drop has made Alcatel more attractive to value investors, especially those who believe that its strong position in the small-cell LTE market has it positioned to profit from a hot new trend to boost network quality in high-traffic areas. If Alcatel-Lucent can successfully execute its planned strategic shift from telephone-related equipment to networking, today's prices will still look cheap in the long run.

Camp

Source: CalAmp.

CalAmp fell 13.3% as investors responded negatively to its quarterly financial report. Despite the steady erosion of revenue from the satellite side of its business, CalAmp rode growth in its wireless datacom division to an overall sales gain of 10% in its fiscal first quarter, while earnings per share topped investors' expectation by a penny. But the company's guidance for the current quarter fell short of shareholders' hopes, and positive comments from CEO Michael Burdiek about the prospects for wireless datacom business for the rest of the year could not prevent the stock from dropping. The existence of the satellite side of CalAmp's business makes interpreting overall results somewhat more confusing for some investors, but as CalAmp focuses on wireless, it could see greater opportunities for growth long into the future.

Investors in the Dow Jones Industrials might be hopeful for a rise above 17,000. But in the long run, milestones aren't as important as the fundamentals of the companies that make up the Dow. So as earnings season begins next week, keep an eye on whether individual stocks make the grade in terms of revenue and earnings growth.

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!

Dan Caplinger owns shares of Apple. The Motley Fool recommends Apple and CalAmp and owns shares of Apple. 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