Please ensure Javascript is enabled for purposes of website accessibility

Dow Jones Jumps 137 Points

By Dan Dzombak - Feb 6, 2014 at 12:32PM

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

The Dow Jones is up by triple-digits today as Disney beat earnings expectations and some economic reports came in better than expected.

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

The Dow Jones Industrial Average (^DJI 0.00%)was up 137 points, to 15,578, at 1:30 p.m. EST after some positive reports on the economy and better than expected earnings from Disney (DIS 0.56%). The S&P 500 (^GSPC 0.19%) was up 16 points to 1,767.

Disney shares jumped 4.5% to $75 in early afternoon trading. The company reported quarterly earnings after market close yesterday that easily beat analyst expectations on the strength of the animated movie Frozen, which has grossed nearly $900 million worldwide. Earnings per share rose 33% to $1.03, better than analyst expectations of $0.92. Revenue was up 8.5% to $12.31 billion, better than analyst expectations of $12.25 billion. Frozen was just released yesterday in China and will be released next month in Japan, which means next quarter should be strong as well.

Disney has been pursuing a strategy of building franchises around movies. As part of this strategy it has acquired Marvel Entertainment and Pixar, which continue to pay off in both organizational talent and a stable of well-liked characters and stories. The other strong point was Disney's cable channels, where net income grew 34% to $1.28 billion, led by ESPN. ABC was a weak point, however, with a 32% drop in net income to $178 million.

While Disney's stock jump is on top for the day, 25 of 30 Dow stocks are in the green on good news from three U.S. economic releases.





Weekly new unemployment claims




Trade deficit


38.7 billion

34.6 billion


Q4 2013



The latter reports indicate together that while fourth-quarter GDP may be revised lower to roughly 3% growth from 3.2%, it does not appear we will see a drastic reduction that some feared.

Many are highlighting the new unemployment claims report, which came in at 331,000, better than expectations of 337,000. The four-week moving average was 334,000, just 250 below last week's level.

US Initial Claims for Unemployment Insurance Chart

US Initial Claims for Unemployment Insurance data by YCharts.

The basic story behind the jobs and unemployment numbers remains the same: the economy continues to add roughly 200,000 jobs a month and new unemployment claims are slowly trending lower. We have to wait till tomorrow for January's nonfarm payrolls report from the government, but I don't expect there to be a meaningful surprise in either direction there.

What's an investor to do?
In any event, your investment strategy shouldn't be dependent on a few economic reports. Constantly educate yourself, find great companies, and invest for the long term.

Dan Dzombak can be found on Twitter @DanDzombak or on his Facebook page, DanDzombak. He has no position in any stocks mentioned. The Motley Fool recommends Walt Disney. The Motley Fool owns shares of Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.

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)
$33,912.44 (0.00%) $0.00
S&P 500 Index - Price Return (USD) Stock Quote
S&P 500 Index - Price Return (USD)
$4,305.20 (0.19%) $8.06
The Walt Disney Company Stock Quote
The Walt Disney Company
$124.96 (0.56%) $0.70

*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 analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/17/2022.

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.