Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Dow Recovers, WWE Advances, and Tile Shop's Sell-Off Worsens

Stocks headed into the weekend on a peaceful note today, ending in mostly positive territory. A struggling Portuguese bank, believe it or not, spooked investors yesterday, as a flight to safer investments knocked a good 70 points off the Dow Jones Industrial Average (DJINDICES: ^DJI  ) . With little breaking economic news to go on, and all eyes to a flurry of quarterly reports next week, the Dow added 28 points, or 0.2%, to end at 16,943 today.

Home Depot (NYSE: HD  ) was the hardest-hit stock in the blue chip index yesterday. Today's modest 0.3% gain shows that investors forgave some of yesterday's losses -- losses that were hardly rational to begin with. Yesterday, Wall Street nearly had a conniption when flooring retailer Lumber Liquidators sharply cut its second-quarter earnings outlook. The lousy quarter at the $1.5 billion Lumber Liquidators in turn erased more than $1.5 billion from Home Depot's market value alone, as shareholders worried the flooring retailer's struggles were indicative of the home-improvement industry, as a whole.

Tile Shop Holdings (NASDAQ: TTS  ) was also a victim of yesterday's collective home-improvement industry freakout. Shares continued falling today, shedding an additional 6.9% on Friday. While Lumber Liquidators' poor performance is more relevant and worrisome for Tile Shop Holdings -- which is also a small-cap flooring retailer -- the sell-off in this stock also seems a little on the harsh side. Motley Fool real-money manager Jim Royal noted yesterday that he was excited to snap up shares at discount prices on the decline.

Can John Cena's popularity bring more eyeballs to the WWE Network? Image Source: WWE.

Shares of World Wrestling Entertainment (NYSE: WWE  ) are steeply discounted from where they began the year, off nearly 30% from their New Year's levels. All of those losses and then some, however, were accrued on a single day in May, when the stock took a 43% smackdown. World Wrestling Entertainment shareholders were livid about the broadcasting deal struck with Comcast's NBCUniversal, which will be worth around $200 million annually -- a few hundred million less than what investors expected. But the company isn't completely down-and-out: Shares advanced 2.3% Friday, and the catalyst most WWE believers are hoping for is the company's live-streaming subscription service, which needs 1.4 million users to break even. The WWE Network aims to have 1 million subscribers by the end of the year.

Your cable company is scared, but you can get rich
WWE knows that cable's eventually going away. 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. Hint: They're not Netflix, Google, and Apple.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3026512, ~/Articles/ArticleHandler.aspx, 8/31/2015 7:10:49 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

John Divine

Fool since 2012, unique fingerprints since birth. Age 7: Put lifetime savings ($18.37!) in the bank, became disillusioned with low interest, and a fascination with the stock market was born.

Today's Market

updated 2 days ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 4:55 PM
^DJI $16643.01 Down -11.76 -0.07%
HD $117.52 Down -0.14 -0.12%
Home Depot CAPS Rating: ****
TTS $11.99 Down -0.01 -0.08%
Tile Shop Holdings CAPS Rating: ****
WWE $19.49 Down -0.51 -2.55%
World Wrestling En… CAPS Rating: **