111-Point Resurgence for Dow, No Thanks to This Stock

CHC Group Ltd. and King Digital Entertainment both slump, while Wal-Mart stock weighs on the Dow Jones Industrial Average.

Jul 14, 2014 at 6:14PM

Stocks posted widespread gains on Monday, recovering from last week's dismal performance, the worst week in a month for the Dow Jones Industrial Average (DJINDICES:^DJI). All eyes were to corporate earnings today, and Citigroup drove Wall Street's euphoria, as the $147 billion bank beat expectations for both revenue and income. Citigroup also finally reached a settlement with the Department of Justice to put its biggest legal woes from the financial crisis firmly behind it. The Dow hit all-time highs today and finished with a 111-point, or 0.7%, gain, closing at 17,055.

Wal-Mart (NYSE:WMT) ended as one of just five stocks in the Dow to lose ground today, shedding 0.4%. The retail behemoth was already facing an uphill PR battle when, last month, one of its weary tractor-trailer drivers in the fourteenth hour of his shift struck a limo with former "SNL" star Tracy Morgan, seriously injuring him and two others and fatally wounding another passenger. Mr. Morgan is now suing Wal-Mart for negligence in the tragedy. On a lighter note, June U.S. retail sales figures should come out tomorrow, giving investors some insight into how Wal-Mart itself may have fared last month.

Shares of CHC Group Ltd. (NYSE:HELI), a commercial helicopter business with a focus on the offshore oil and gas industry, also fell today, shedding 2%. The stock finished as one of the five biggest losers in the stock market last week, as shares took an 11% haircut on the heels of a weak quarter and subpar forward guidance. Investors continued to trim their positions on Monday, finding CHC Group's declining margins and troubling sales growth a bit too bearish to cope with.


"Candy Crush Saga" was the second-best-selling app in the app store last year. Image Source: King Digital Entertainment

Shares of King Digital Entertainment (NYSE:KING) also lost 2% today, although there's not much rationale behind today's fallout. The app-maker behind the colorful and highly popular Candy Crush Saga game went public in March, so shares are still a bit volatile and prone to sudden fluctuations. While a P/E ratio of just 10 indicates that investors are clearly dubious about whether King Digital can duplicate its success, the app market itself is growing by leaps and bounds. Apple's app store celebrated its sixth birthday last week, and in that time global app sales -- not including subscriptions and services purchased outside of the app store -- have ballooned to $30 billion. 

Leaked: Apple's next smart device (warning -- it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee that 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 even claiming that its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts that 485 million of these devices will be sold per year. But one small company makes this gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and to see Apple's newest smart gizmo, just click here!

John Divine owns shares of Apple. You can follow him on Twitter, @divinebizkid, and on Motley Fool CAPS, @TMFDivine.

The Motley Fool recommends Apple and owns shares of Apple and Citigroup. 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.

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.

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