After a tumultuous two days, the markets calmed down today, seeming to come to terms with the Fed's announcement that it's bond-buying program could end within a year. The Dow Jones Industrial Average (DJINDICES: ^DJI ) gained 41 points, the first session in nine that it's had less than a 100-point swing, finishing up 0.3%. The recovery, coming after yesterday's bloodbath, seemed to indicate that there was still bullish sentiment among investors, as there were no economic reports released today to further influence investors. Notably, a Wall Street Journal report said the Fed's taper may not come as soon as expected, which also helped stocks recover. Treasury rates continued to claim as the 10-year T-Note yield rose again, hitting 2.51%. The rising yield could put pressure on the housing market by pushing up mortgage rates.
Leading all Dow stocks today was Procter & Gamble (NYSE: PG ) , gaining 2.9%. There was no major news out on the consumer goods giant today, but on Wednesday, the company announced a new partnership with fashion designer Alexander McQueen, wherein its P&G Prestige division will produce and sell designer fragrances under the Alexander McQueen label. P&G may also be benefiting today form its position as a defensive stock, as any slowdown in the economy from the Fed's taper will affect it less than other blue chips. Coca-Cola, another defensive stock, was the Dow's second-biggest gainer, moving up 1.6%.
Hot Blue Chip Companies To Own For 2014: McDonald's Corporation(MCD)
McDonald?s Corporation, together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonald?s restaurants that offer various food items, soft drinks, coffee, and other beverages. As of December 31, 2009, the company operated 32,478 restaurants in 117 countries, of which 26,216 were operated by franchisees; and 6,262 were operated by the company. McDonald?s Corporation was founded in 1948 and is based in Oak Brook, Illinois.
Advisors' Opinion:- [By Tamara Rutter]
McDonald's (NYSE: MCD ) is already a household name in about 118 countries around the world. However, the stock has been under pressure lately because of dismal sales projections for the restaurant industry at large. In fact, sales at fast-food restaurants such as McDonald's are estimated to grow less than 4% over the next 10 years, according to The New York Times. Yet, despite this tough environment, McDonald's stock could prove the bears wrong, thanks to rising comps and fresh menu innovations.
Hot Blue Chip Companies To Own For 2014: International Business Machines Corporation(IBM)
International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology-based support services. The company?s Global Business Services segment offers consulting and systems integration, and application management services. Its Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management, and predictive analytics; Tivoli software for identity management, data security, storage management, and datacenter automation; Lotus software for collaboration, messaging, and so cial networking; rational software to support software development for IT and embedded systems; business intelligence software, which provides querying and forecasting tools; SPSS predictive analytics software to predict outcomes and act on that insight; and operating systems software. Its Systems and Technology segment provides computing and storage solutions, including servers, disk and tape storage systems and software, point-of-sale retail systems, and microelectronics. The company?s Global Financing segment provides lease and loan financing to end users and internal clients; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services. It serves financial services, public, industrial, distribution, communications, and general business sectors. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. IBM was founded in 1910 and is based in Armonk, New York.
Advisors' Opinion:- [By Dan Caplinger]
Still, IBM (NYSE: IBM ) has shown that such a transformation can be done. The former hardware giant has done a stellar job of moving into higher-margin server and IT services businesses. In particular, by focusing itself on the big-data needs of businesses seeking to mine voluminous amounts of information for business-enhancing knowledge, IBM managed to get an early jump on its similarly sized competitors and remain at the forefront of innovation in tech.
- [By Dan Caplinger]
The Dow suffered greater losses than the overall market largely because of the influence of IBM (NYSE: IBM ) , which fell 2.6%. Rival Accenture (NYSE: ACN ) , which is the major competitor against IBM in the lucrative information-technology consulting business, gave reduced guidance for full-year results when it reported earnings last night. Pointing to weakness in its consulting business, Accenture cut the midpoint of its earnings forecast range by about 2% and pushed down its expected range for revenue growth to just 3% to 4%. Accenture fell 13% on the news, but investors concluded that prospects for the entire industry were weak and therefore bid IBM down in sympathy. Since IBM's share price is by far the largest in the Dow, the loss had a big overall impact on the entire average.
- [By Jim Jubak]
This quarter, big economic bellwether stocks such as IBM (IBM) and Kellogg (K) have shown signs that the days of being able to use stock buybacks and cost cutting to generate growth in earnings per share, even when revenue isn't growing, may be numbered. Or, at least, that the market's enthusiasm might be waning.
5 Best Value Stocks For 2014: Apple Inc.(AAPL)
Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals through its online and retail stores; and digital content and applications through the iTunes Store. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative markets. As of September 25, 2010, it had 317 retail stores, including 233 stores in the United States and 84 stores internationally. The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California.
Advisors' Opinion:- [By Paul Ausick]
On the operating system side of the equation, Android from Google Inc. (NASDAQ: GOOG) and iOS from Apple Inc. (NASDAQ: AAPL) continue to lead by wide margins. The Windows Phone operating system from Microsoft Corp. (NASDAQ: MSFT) and BlackBerry OS from BlackBerry Ltd. (NASDAQ: BBRY) trail well behind.
- [By Matt Brownell]
Justin Sullivan, Getty Images If you're planning to buy one of Apple's (AAPL) new iPhones, you may want to consider getting it at Walmart (WMT). In a rare move, the retailer says it plans to sell both the iPhone 5S and the iPhone 5C at below-market prices. The company announced this morning that the iPhone 5S, which will start at $199 at the Apple Store and all other outlets, will instead sell for $189 at Walmart. The 5C, which has a retail price of $99, will be available for just $79 at Walmart.
Hot Blue Chip Companies To Own For 2014: Colgate-Palmolive Company(CL)
Colgate-Palmolive Company, together with its subsidiaries, manufactures and markets consumer products worldwide. It offers oral care products, including toothpaste, toothbrushes, and mouth rinses, as well as dental floss and pharmaceutical products for dentists and other oral health professionals; personal care products, such as liquid hand soap, shower gels, bar soaps, deodorants, antiperspirants, shampoos, and conditioners; and home care products comprising laundry and dishwashing detergents, fabric conditioners, household cleaners, bleaches, dishwashing liquids, and oil soaps. The company offers its oral, personal, and home care products under the Colgate Total, Colgate Max Fresh, Colgate 360 Advisors' Opinion:
- [By Dan Burrows]
Rival Colgate-Palmolive (CL) has different concerns, namely sluggishness in emerging markets where it enjoys commanding market share and derives more than half its revenue.
- [By Dividend Growth Investor]
In a previous article, I outlined that it is getting more difficult to find quality dividend paying stocks to buy. Most of the usual suspects like Kimberly-Clark (KMB) or Colgate-Palmolive (CL) are very overvalued today, which prevents me from adding to my positions there. Other companies like Chevron (CVX) are attractively valued today, but unfortunately my portfolio is overweight in them. Currently I find the oil sector to be cheap and have some of the lowest P/E ratios in the market. However, I would hate to be concentrated in one sector which is exposed to the fluctuating prices in its commodity products.
- [By Jon C. Ogg]
Colgate-Palmolive Co. (NYSE: CL) was raised to Overweight from Equal Weight and the price target is now $68 (versus a $59.93 close) at Morgan Stanley.
- [By Monica Gerson]
Colgate-Palmolive Co (NYSE: CL) is expected to report its Q3 earnings at $0.73 per share on revenue of $4.46 billion.
Precision Castparts (NYSE: PCP) is projected to report its Q2 earnings at $2.83 per share on revenue of $2.36 billion.
Hot Blue Chip Companies To Own For 2014: Chevron Corporation(CVX)
Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment involves in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as holds interest in a gas-to-liquids project. The Downstream segment engages in the refining of crude oil into petroleum products; marketing of crude oil and refined products primarily under the Chevron, Texaco, and Caltex brand names; transportation of crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacture and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It a lso produces and markets coal and molybdenum; and holds interests in 13 power assets with a total operating capacity of approximately 3,100 megawatts, as well as involves in cash management and debt financing activities, insurance operations, real estate activities, energy services, and alternative fuels and technology business. Chevron Corporation has a joint venture agreement with China National Petroleum Corporation. The company was formerly known as ChevronTexaco Corp. and changed its name to Chevron Corporation in May 2005. Chevron Corporation was founded in 1879 and is based in San Ramon, California.
Advisors' Opinion:- [By Jonas Elmerraji]
Surprisingly, one of the names that's correlating the highest with the S&P 500 right now is oil and gas supermajor Chevron (CVX). Just like the S&P, Chevron is trading in a very well-defined trend channel. The key difference is that the Chevron trade is further along; this stock is bouncing off of trendline support this week. That means it's time to be a buyer.
Commodities and materials stocks are seeing some buoyancy this week, but Chevron's price action is different -- it's been more sustained over the course of 2013. This stock's proximity to trendline support right now makes it the best-in-breed oil name in my view. As geopolitical risks propel oil prices, the real story at CVX is the fact that support is just a few points away. That makes Chevron a great setup from a risk management perspective.
Speaking of risk management, if you decide to jump into shares here, I'd recommend keeping a protective stopprotective stop just above the 200-day moving average.
- [By Matt Thalman]
Dow movers
Oil has been on quite the run over the past two days. Yesterday, light crude rose 3.25% and today it was up 1.72%. Not surprising, the Dow's big oil companies also moved higher. Shares of Chevron (NYSE: CVX ) closed the day higher by 1.19%, while ExxonMobil (NYSE: XOM ) moved higher by 1.57%. Today's moves followed yesterday's performance when Chevron increased by 1.47% and Exxon by 1.28%. While the two have recently been moving in line with each other, year to date Chevron is up more than 14% while Exxon has only increased by a little more than 4%. A number of analysts have stated that they believe Chevron will outperform Exxon over the next five years, and so far their predictions look good.�
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