Please ensure Javascript is enabled for purposes of website accessibility

Japan, Major Announcements Drive Dow Thursday

By John Divine - Apr 4, 2013 at 6:00PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

One new partnership, in particular, helps boost blue chips

Providing yet another reminder of how interconnected global markets are, U.S. stocks advanced today on news of a proposed $1.4 trillion injection into Japan's economy by the country's central bank. This is notable because the move nearly doubles Japan's monetary base by the end of next year. As a result, Wall Street is optimistic that the stimulus can help Japan emerge from 20 years of minimal growth. The Dow Jones Industrial Average (^DJI 0.00%) which added 55 points, or 0.4%, also saw a few big-time announcements from its components, and ended the day at 14,606.

Rebounding from a steep decline in the prior three trading days, Hewlett-Packard (HPQ 1.18%) shares rose 1.8% today to lead the index. HP had fallen in recent days on analyst sentiment that the stock was overvalued after a huge run-up in 2013 -- its meteoric 56% rise this year still tops the index by far. The biggest news from HP actually came after the markets closed: the chairman of HP's board, Raymond Lane, is giving up his leadership position. Two other board members are resigning, making for an uncertain future at the top of the company. 

International Business Machines (IBM 2.09%) slipped 0.6%, to end as one of the weakest blue chips today. Its decline, though hardly extreme and not substantiated by any major revelations, comes as Big Blue defends itself against claims from rival server manufacturer Oracle (NASDAQ: ORCL). IBM rushed to combat various assertions from Oracle that IBM's server offerings are slower than Oracle's, claiming that the comparisons used outdated IBM products.

But, by far, the biggest news out of the Dow today came from AT&T (T 1.67%). Taking the stage with Facebook's (FB 1.39%) Mark Zuckerberg, AT&T Mobility CEO Ralph de la Vega excitedly announced that AT&T would be the exclusive service provider on the new HTC First smartphone. The First will indeed be the first smartphone that's built with Facebook's new Home interface to hit the markets, and could be a big win for the service provider. For Facebook, today marked a new era in the company's quest to integrate social media with mobile devices.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Dow Jones Industrial Average (Price Return) Stock Quote
Dow Jones Industrial Average (Price Return)
^DJI
$31,261.90 (0.00%) $0.00
International Business Machines Corporation Stock Quote
International Business Machines Corporation
IBM
$131.17 (2.09%) $2.69
HP Inc. Stock Quote
HP Inc.
HPQ
$35.06 (1.18%) $0.41
AT&T Inc. Stock Quote
AT&T Inc.
T
$20.74 (1.67%) $0.34
Meta Platforms, Inc. Stock Quote
Meta Platforms, Inc.
FB
$196.23 (1.39%) $2.69

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
330%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.