Since the start of the crisis, the ECB has consistently done the minimum to prevent a full-fledged financial crash. Ultimately, rescuing the Euro is going to require a bold plan that probably includes the ECB or IMF buying up lots of government bonds to help lower borrowing costs for troubled countries like Spain, Italy, and Portugal. Of course, it’s still unclear how far they’re willing to go if push comes to shove.
These three stocks did the best:
Weekly Price Change
Cisco extended its run after gaining 2.2% yesterday, when analysts at Deutsche Bank and Oppenheimer predicted that Cisco would have a strong earnings report due to solid demand for switching. The tech giant, which recently announced a series of job cuts, had been seeing depressed demand for its products due to the economic downturn and increased competition from players like Juniper. The analyst prediction has the feel of a short-term play; over the medium-term, results could have a lot more to do with how the European economy performs than with anything else. That said, any sign of better sales is a good thing, and the stock remains reasonably priced.
Boeing announced that it will increase prices on its commercial airplanes by 5.5%. Although the company said the increase was due to higher costs, the move could also be another way, besides planned production increases, to take advantage of Boeing’s serious backlog. United recently unveiled its first 787 Dreamliner jet, and Boeing is about to deliver the first of 27 Dreamliners that Air India ordered after negotiation delays pushed the date back. A single jet costs over $200 million. I had a chance to fly on a Lufthansa Dreamliner about a month ago, and it was awesome.
Yesterday, Bank of America
Cisco, Boeing, and JPMorgan beat the market today but, as investors, it’s important for us to remember to keep our eyes on long-term performance. If you’re looking for some ideas, the Fool recently highlighted “The 3 Dow Stocks Dividend Investors Need.” You can get the full scoop on these three Dow dividend dynamos by clicking here.
Ilan Moscovitz doesn’t own shares of any company mentioned. You can follow him on Twitter @TMFDada. The Motley Fool owns shares of Bank of America, Cisco Systems, and JPMorgan Chase. Motley Fool newsletter services formerly recommended JPMorgan Chase. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.