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



The Dow Soars on Strength in Financials, but Apple's the Stock to Watch

After a sluggish performance last week, the Dow Jones Industrials (DJINDICES: ^DJI  ) got off on the right foot Monday, as favorable earnings from the financial sector helped lift spirits and encourage investors that the second-quarter earnings season would go smoothly enough to keep the stock market at all-time highs. The Dow jumped to triple-digit advances early on and was up 135 points as of 10:45 a.m. EDT, with gains from all but a couple of Dow component stocks. Yet much of the attention in the stock market focused on Apple (NASDAQ: AAPL  ) , which climbed more than 1% after positive comments from analysts outweighed some concerns about possible production issues for the iPhone maker.

Source: Apple.

As you'd expect, financial stocks within the Dow did particularly well today, as big-bank peer Citigroup (NYSE: C  ) announced better-than-expected results in its quarterly report. Facing many of the same concerns about falling revenue and its impact on net income, Citigroup defied expectations of a big pullback, managing to beat earnings estimates by nearly 20% and limit its year-over-year revenue decline to just 6%. Citigroup's relative weakness in its capital position had prompted the Federal Reserve to reject its capital-allocation plan, but today's report showed that the company's capitalization ratios had improved to a great extent. If the Dow's financial stocks can follow suit and turn in stronger results that prove investors' dire predictions wrong, then the Dow could see further gains tomorrow.

And even though it's not a Dow stock (yet), Apple drew a lot of attention from stock market investors. Analysts at Barclays gave the stock an upgrade to overweight this morning, with general comments affirming CEO Tim Cook's strategy to try to define the iPhone maker's long-term future. New enthusiasm over wearable technology and the seemingly imminent announcement of an iWatch have Apple shareholders hopeful that the company is poised for a new phase of growth. Given the concerns that many have had since the death of Steve Jobs, Apple's progress has been particularly important not only for the stock but for the tech sector generally.

Still, Apple has some hurdles to overcome. Reports this morning suggested that the larger-screen iPhone 6 might not be available as soon as expected, with some anticipating delays that could push the release as far back as 2015. At best, smaller supplies of the supersized iPhone could reawaken worries about Apple's ability to capitalize on demand as effectively as possible. Nevertheless, even those reports weren't enough to dampen interest in the stock, as long-term investors appear to believe that the success of the iPhone 6 is assured even if it takes an extra quarter or two to realize its full potential.

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!

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: 3027838, ~/Articles/ArticleHandler.aspx, 9/1/2015 6:18:55 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...

Dan Caplinger

Dan Caplinger has been a contract writer for the Motley Fool since 2006. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world.

Today's Market

updated 9 hours ago Sponsored by:
DOW 16,528.03 -114.98 -0.69%
S&P 500 1,972.18 -16.69 -0.84%
NASD 4,776.51 -51.82 -1.07%

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

8/31/2015 4:57 PM
^DJI $16528.03 Down -114.98 -0.69%
AAPL $112.76 Down -0.53 -0.47%
Apple CAPS Rating: ****
C $53.48 Up +0.20 +0.38%
Citigroup Inc CAPS Rating: ***