Why Apple and Kandi Technologies Shares Jumped Today

The blue chips edged down after last week's big win, but Apple and Kandi Technologies both moved higher.

Jul 7, 2014 at 10:00PM

Following last week's record finish on a blowout jobs report, stocks eased lower today as investors awaited the start of earnings season later this week. By the end of the day, the Dow Jones Industrial Average (DJINDICES:^DJI) had given back 44 points, or 0.3%, while the S&P 500 lost 0.4% and the Nasdaq fell 0.8%. Cyclicals and small caps led the fall, indicating that investors may believe that stocks have grown a little too richly valued as the S&P has gained 14% since the start of February. 

There were no major economic reports out today, but earnings season will pick up later this week as Wells Fargo reports its quarterly results on Friday and a slew of Dow companies will deliver their earnings next week. Last week's strong jobs report may have also prompted some selling as investors fear that the Federal Reserve will raise interest rates sooner than expected. The unemployment rate fell from 6.3% to 6.1%, basically reaching the Fed's goal of 6%, and Goldman Sachs said it now expects the rate increase to come in the third quarter of next year instead of Q1 2016. Analysts are expecting an increase in profits of 6.2% for the second quarter, but considering the strong economic data that's come in, earnings growth could easily top that.


Apple (NASDAQ:AAPL) shares finished up 2% today, hitting their highest level in nearly two years, and made small gains after hours amid reports that the company had hired an executive from Tag Heuer, pointing to an upcoming launch of the so-called iWatch. The iPhone-maker nabbed Patrick Pruniaux, the VP of sales and retail at Tag Heuer, just the latest addition to its executive team as it had earlier brought in a marketing exec from Yves Saint Laurent. Shares of Apple have risen lately on anticipation for the iWatch as well as the upcoming iPhone 6 and because of its recent acquisition of Beats Electronics. According to 9to5Mac, the watch has been tested by select professional athletes, has 10 sensors for functions such as heart rate, hydration, and blood pressure, and is expected to be released in October. With wearables seen as the next big frontier in technology, the success of the iWatch's release may determine the future of the company. 

Elsewhere, Kandi Technologies (NASDAQ:KNDI) shares finished 6% higher after the Chinese electric-vehicle maker reported $31.8 million in new subsidies from the Chinese government for a joint venture it has a 50% stake in. The windfall is based on sales of over 3,000 EVs between June and December 2013, and over 1,000 for the first quarter of 2014, and is the first subsidy the joint venture has received. CEO Hu Xiaoming said the payments will enable the company to accelerate its EV sales and its EV-sharing program. The announcement was a bone for investors to chew on, as the stock has fallen sharply from its peak amid an ongoing SEC investigation and some accounting concerns. Kandi will continue to be a momentum stock, but its EV-sharing program could be huge if the company wins more subsidies like today's.

Warren Buffett's worst auto-nightmare (Hint: It's not Tesla)
A major technological shift is happening in the automotive industry. Most people are skeptical about its impact. Warren Buffett isn't one of them. He recently called it a "real threat" to one of his favorite businesses. An executive at Ford called the technology "fantastic." The beauty for investors is that there is an easy way to invest in this megatrend. Click here to access our exclusive report on this stock.


Jeremy Bowman owns shares of Apple. The Motley Fool recommends Apple, Goldman Sachs, Tesla Motors, and Wells Fargo and owns shares of Apple, Tesla Motors, and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. 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.

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.

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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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