Disney Can't Drag the Dow Down; American Airlines Elevates Before Earnings

Potbelly shares also advance on Tuesday, despite a market that finished mostly in the red.

Jul 15, 2014 at 6:23PM

Federal Reserve Chairwoman Janet Yellen spoke before Congress today, and her comments successfully sent hopelessly mixed signals to Wall Street. While stressing that the U.S. economic recovery is far from over and suggesting that interest rates will remain low for some time, she also took a shot at stock market valuations. The report she submitted with her testimony today called valuations of social media and biotechnology stocks "substantially stretched." Satisfied with Ms. Yellen's unwillingness to raise rates any time soon, the Dow Jones Industrial Average (DJINDICES:^DJI) added 5 points, or less than 0.1%, to end at 17,060.

Walt Disney (NYSE:DIS) finished as one of the Dow's most severe decliners on Tuesday, although that only amounted to a 0.7% loss. Investors aren't pleased with the terms the NBA is seeking from Disney to retain future broadcasting rights for the basketball league's nationally televised games. Disney has two more years left on an eight-year agreement that gives its subsidiary channels ESPN and ABC broadcasting rights. The company currently dishes out $485 million annually for those rights, which include ABC's exclusive rights to air the NBA Finals. Negotiations for the next multi-year broadcasting contracts are under way, and not only is Time Warner vying for a part of the NBA Finals coverage, the NBA is seeking twice the annual fees currently paid by Disney.

Shares of sandwich-maker Potbelly (NASDAQ:PBPB) added a healthy 2.1% today. If there's one thing investors have learned about Potbelly stock since it IPO'd last October, it's that these shares are extremely volatile. The stock went public at $14 a share, hit $30 levels before its debut day was over, and closed today at $11.51. A penchant for under-delivering has driven Potbelly below its IPO price, as same-store sales fell in the first quarter and are expected to fall again in the second quarter. While shares have earned a spot as one of The 3 Worst Performing Restaurant Stocks of 2014, investors keep their eyes to the future, not the past, and my colleague Tamara Rutter makes a compelling bullish case for the sandwich-maker in her piece 3 Reasons Not to Worry About Potbelly.


Image Source: American Airlines

Finally, shares of American Airlines (NASDAQ:AAL) also ignored the broader market's negativity, gaining 1.7% as Wall Street analysts made a bullish case of their own for the stock. Cowen Group expects American Airlines to beat consensus earnings estimates when it reveals its quarterly financials in the upcoming days. A bullish article run by Barron's yesterday also helped aid the stock's ascent, as the famed publication cited American and Delta's increasing revenues and margins as best-in-class for investors.

OPEC is absolutely terrified of this game-changer
Airline stocks don't typically rally to new highs if oil prices are skyrocketing. But one business is poised to reap enormous rewards as the demand for energy increases. Imagine a company that rents a very specific and valuable piece of machinery for $41,000 per hour. (That's almost as much as the average American makes in a year!) And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report reveals the company we're calling OPEC's Worst Nightmare. Just click here to uncover the name of this industry-leading stock for free, and join Buffett in his quest for a veritable landslide of profits!

John Divine has no position in any stocks mentioned. You can follow him on Twitter, @divinebizkid, and on Motley Fool CAPS, @TMFDivine.

The Motley Fool recommends and owns shares of Walt Disney. 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.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.


Compare Brokers