A day following the Dow Jones Industrial Average's (DJINDICES: ^DJI ) worst loss of the year, blue chips rallied from their lows on strong earnings from two of America's most recognizable brands. A report showing that inflation hasn't yet taken a strong hold also helped today's rally, as investors believe this may indicate a continuation of more stimulus efforts from the Federal Reserve. The Dow ended with a 157 point, or 1.1%, gain, closing at 14,756.
Coca-Cola (NYSE: KO ) was the star of the day, adding a remarkable 5.7% after earnings that beat expectations by a long shot. Although earnings per share actually declined 13% in the first quarter, but that was good enough to beat analyst projections for the quarter. And Coke's sales actually rose 4% in the period, with international growth coming in higher than domestic growth.
Walt Disney (NYSE: DIS ) , a company that has come to represent much more than just Mickey Mouse's iconic large ears, tacked on 3.2% Tuesday. Sports broadcasting giant ESPN, a subsidiary of Disney's, delayed a joint news conference with the Southeastern Conference scheduled for Tuesday after the tragic events at the Boston Marathon yesterday. Though nothing's certain about the topic of the press conference, investors are hoping it will usher in the SEC's very own network.
10 Best Dividend Stocks For 2015: Visa Inc.(V)
Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. The company owns and operates VisaNet, a global processing platform that provides transaction processing services. It also offers a range of payments platforms, which enable credit, charge, deferred debit, debit, and prepaid payments, as well as cash access for consumers, businesses, and government entities. The company provides its payment platforms under the Visa, Visa Electron, PLUS, and Interlink brand names. In addition, it offers value-added services, including risk management, issuer processing, loyalty, dispute management, value-added information, and CyberSource-branded services. The company is headquartered in San Francisco, California.
Advisors' Opinion:- [By Jon C. Ogg]
International Business Machines Corp. (NYSE: IBM) is proving that it has very limited growth opportunities in new revenues. The only saving grace for the rest of us these days is that IBM is now no longer the largest DJIA stock since Visa Inc. (NYSE: V) is a DJIA stock.
- [By Lennox Yieke]
In light of this, payments bigwigs Visa (NYSE: V ) and MasterCard (NYSE: MA ) have increased their presence in the continent. Not only have Visa and MasterCard increased issuance of plastic money, but they have also made bold mobile money initiatives. Could this spur the next round of prolonged growth for the two bigwigs?
- [By Mark Morelli]
How will the potential disruption impact business and affect investors? Should the executives at ATM manufacturers such as Diebold (NYSE: DBD ) �be worried? Credit�and debit card processors like MasterCard (NYSE: MA ) and Visa (NYSE: V ) �are already benefiting from the trend to a cashless society. Could things get even better?
Best Blue Chip 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 Sean Williams]
Barnes & Noble found a temporary solution to this problem with its digital e-readers, but even they haven't sold as well as the company would have anticipated. The problem is that a slew of new competitors -- including Apple (NASDAQ: AAPL ) with its Internet-capable iPad, Google� (NASDAQ: GOOG ) �with its Nexus tablet, and Amazon with the Kindle Fire -- have hit the e-reader market and are significantly more hip than B&N and have a lot more cash to throw at marketing, as well as research and development. Seriously, what did you think was going to happen with Apple, Google, and Amazon boasting $137 billion, $50 billion, and $8 billion in cash compared to B&N with its paltry $160 million in cash as of last quarter? Not to mention that Apple, Google, and Amazon are predominantly digital companies while B&N is almost entirely brick-and-mortar-based.
- [By Evan Niu, CFA]
Last night's earnings release for Apple (NASDAQ: AAPL ) was jam-packed with new information for investors to digest, both good and bad. Under the "good" column, we can file the generous new capital return program and solid results for the March quarter.
- [By Evan Niu, CFA]
Apple (NASDAQ: AAPL ) investors have been slowly coming to terms with the reality that the iPhone maker is hitting a ceiling with smartphone growth in the high-end segment, while Samsung is gallivanting in all market segments and has massive unit volumes to show for it.
Best Blue Chip Stocks 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 Jake L'Ecuyer]
McDonald's (NYSE: MCD) reported a drop in its first-quarter profit. McDonald's posted its quarterly profit of $1.20 billion, or $1.21 per share, down from $1.27 billion, or $1.26 per share, in the year-ago period. Its total revenue rose to $6.70 billion versus $6.61 billion, while operating income slipped to $1.94 billion versus $1.95 billion.
- [By Paul Ausick]
McDonald�� Corp. (NYSE: MCD) traded up 1.02% today at $97.14. The company said it would offer free coffee at breakfast time for a two-week period beginning next Monday. Investors apparently like the idea that the company is responding to new competitive breakfast offerings. The 52-week range for the stock is $92.22 to $103.70. Trading volume for the shares was about 25% below the daily average of around 5.3 million shares traded.
- [By Rich Bieglmeier]
McDonald's Corp. (MCD) plans to release third quarter results before the market opens on October 21, 2013 and will host an investor webcast afterwards.
- [By Dividend Growth Investor]
McDonald�� Corporation (MCD) franchises and operates McDonald's restaurants in the United States, Europe, the Asia/Pacific, the Middle East, Africa, Canada, and Latin America. The golden arches is another stock, which is priced attractively here today, and which can deliver plenty of value over the next 20 years. It is a globally recognized brand, has pricing power, and has continually managed to reinvent itself. With its ��lan to Win��strategy, the company targets 3-5% growth in annual sales and 6-7% growth in operating earnings. Add in a 3% yield, and a 2% reduction in stock through share repurchases, and you can easily expect very good results over time. The company has increased dividends for 36 years in a row, and has managed to boost them by 28.40%/year over the past decade. Currently, the stock trades at 18.20 times earnings and yields 3.10%. Check my analysis of McDonald��.
Best Blue Chip Stocks For 2014: Philip Morris International Inc(PM)
Philip Morris International Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. Its international product brand line comprises Marlboro, Merit, Parliament, Virginia Slims, L&M, Chesterfield, Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White. The company also offers its products under the A Mild, Dji Sam Soe, and A Hijau in Indonesia; Diana in Italy; Optima and Apollo-Soyuz in the Russian Federation; Morven Gold in Pakistan; Boston in Colombia; Belmont, Canadian Classics, and Number 7 in Canada; Best and Classic in Serbia; f6 in Germany; Delicados in Mexico; Assos in Greece; and Petra in the Czech Republic and Slovakia. It operates primarily in the European Union, Eastern Europe, the Middle East, Africa, Asia, Canada, and Latin America. The company is based in New York, New York.
Advisors' Opinion:- [By Tim Melvin]
Some of the traditionally defensive stocks like Phillip Morris International (PM) and Merck (MRK) also fail our test for operating conditions and financial changes. Yield chasers have also pushed the value of their shares to unsustainable levels, and are unlikely to see much more than mid- to low-single-digit profit growth for several years.
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