Please ensure Javascript is enabled for purposes of website accessibility

The S&P Should Beat These Stocks Today

By Karl Loomes – Sep 14, 2012 at 8:34AM

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

Dialysis side effects, product recalls, and profit-taking hit these three stocks.

LONDON -- European equity markets are rallying on all fronts Friday, ending the week on a high note following the announcement by the U.S. Federal Reserve yesterday that it would be undertake a third round of asset purchases -- the famed QE3 -- in order to stimulate the economy. Chairman Ben Bernanke gave an open-ended commitment to inject $40 billion a month into the system -- a strong and decisive move that the markets have taken well. U.S. futures trading is showing a similar pattern to European equities, with the S&P 500 (^GSPC 3.06%) set to open 0.5% higher.

With these gains, U.S. markets are set to outstrip a number of European firms that are seeing a less-than-stellar performance. Here are three American depositary receipts the S&P should beat today.

Fresenius Medical Care (FMS 4.43%)
The German manufacturer of kidney dialysis equipment is down 2.7% today, hit after it emerged that the company failed to warn of the dangers posed by its Naturalyte GranuFlo and Liquid Acid Concentrate products. This follows a recent FDA recall of the two products, saying they may lead to a high level of serum bicarbonate in patients undergoing hymodialysis. The FDA said the U.S. arm of Fresenius first discovered this problem in November 2011 after conducting its own research but failed to warn patients about the possible risks.

GlaxoSmithKline (GSK 1.52%)
The pharmaceutical giant is down 1.7% today after a study in the U.S. found that a whooping-cough vaccine sold by the company becomes less effective over time. The New England Journal of Medicine said that the vaccine, thought to fully inoculate a child, became less effective as subsequent doses were given each year: Children have a 42% increased risk of contracting whooping cough after receiving their fifth dose. Sanofi (SNY 2.37%) also distributes the drug in the U.S., although its shares are up around 0.8%.

BT Group (BT)
The British telecom giant is down 1.2% today, suffering predominantly on the back of short-term profit-taking following a week of steady gains. This came after Credit Suisse said in a report earlier this week that BT, the U.K. largest provider of fixed-line phones, will benefit from accelerating demand for broadband in the country. The report said that as the European Union adopts "a more positive stance" with regard to regulation, BT should reap the benefit, raising its price estimate from 2.50 pounds per share to 3 pounds.

As usual, this morning's European trading saw some stocks lose ground -- and perhaps provide some European buying opportunities. Indeed, legendary investor Warren Buffett has recently spent more than $1 billion buying a European large-cap stock that's currently trading well below its 2012 high.

If you want to know what Buffett has bought within Europe, this special Motley Fool report -- "The One European Share Warren Buffett Loves" -- reveals everything, including the price he paid. You can download the report today for free, but hurry -- the report is available for a limited time only.

The Motley Fool is helping Europe invest. Better. And with the eurozone economy so uncertain, we're urging everyone to read "10 Steps To Making A Million In The Market" -- this report may transform your wealth. Click here now to request your free, no-obligation copy.

Further Motley Fool investment opportunities:

Karl Loomes has no positions in the stocks mentioned above. The Motley Fool owns shares of GlaxoSmithKline. Motley Fool newsletter services recommend GlaxoSmithKline. 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

S&P 500 Index - Price Return (USD) Stock Quote
S&P 500 Index - Price Return (USD)
$3,790.93 (3.06%) $112.50
BT Group Stock Quote
BT Group
Sanofi Stock Quote
$40.12 (2.37%) $0.93
GSK Stock Quote
$30.71 (1.52%) $0.46
Fresenius Medical Care AG & Co. KGaA Stock Quote
Fresenius Medical Care AG & Co. KGaA
$14.85 (4.43%) $0.63

*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 10/04/2022.

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.