Stock Market Today: Why Wells Fargo and Fastenal are on the Move

What you need to know about today's stock market.

Jul 11, 2014 at 9:25AM

The Dow Jones Industrial Average (DJINDICES:^DJI) has lost two points in pre-market trading, suggesting a flat start to the stock market today. World indexes rose slightly in overnight trading. European shares have recovered a bit from yesterday's rout and were headed for their first daily gain in a week. The Stoxx index was up 0.4% as of 8:30 a.m EDT. 

Meanwhile, Wells Fargo (NYSE:WFC) and Fastenal (NASDAQ:FAST) stocks are both on the move after the companies delivered earnings numbers this morning.


Wells Fargo kicked off earnings season for banks by posting solid second-quarter results. Revenue was $21.1 billion, down slightly from the prior year and even with Wall Street's projections. As expected, earnings ticked higher by 3% year over year to reach $1.01 a share. The bank saw growth across its business lines: interest income and noninterest income both contributed revenue gains. CEO John Stumpf sounded an optimistic tone about the economic recovery, saying in a press release that second-quarter results were boosted by "strong credit quality driven by an improved economy, particularly the housing market." In fact, credit losses plunged to $717 million, or 40% below the prior-year period, as the bank's loan quality continued to improve. The stock was down 1.1% in pre-market trading.

Fastenal announced today that sales for its fiscal second quarter rose 12% to reach $950 million. However, consistent with recent trends, earnings improved at a slower pace, up just over 7% to $0.44 a share. Both those top and bottom-line figures matched Wall Street's estimates exactly. The industrial and construction materials company also provided an extensive business update that detailed its growth strategy. While the update delved into all the financial metrics that management sees as key drivers for the business, the section that will interest investors most involved gross profit. That figure was 50.8% in the quarter, down almost 2 percentage points from the year-ago period and below management's stated goal of between 51% and 53%. Management expects to keep profitability just below target for the time being in the interest of maximizing sales growth. The stock was down 4% in pre-market trading.  

Warren Buffett: This new technology is a "real threat"
At the recent Berkshire Hathaway annual meeting, Warren Buffett admitted this emerging technology is threatening his biggest cash-cow. While Buffett shakes in his billionaire-boots, only a few investors are embracing this new market which experts say will be worth over $2 trillion. Find out how you can cash in on this technology before the crowd catches on, by jumping onto one company that could get you the biggest piece of the action. Click here to access a FREE investor alert on the company we're calling the "brains behind" the technology.

Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool recommends Wells Fargo. The Motley Fool owns shares of Wells Fargo. 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