It looks like the Dow Jones Industrial Average (DJINDICES: ^DJI ) is set to break its run of triple-digit movements -- and take away investors' streak of gains for the week, as well. The blue chip index has turned down by around 25 points as of 2:15 p.m. EDT, with most stocks in the red -- although few Dow members have made big movements on this Friday. It's a nice breather for investors after the volatility of the past few weeks, but expect more of that to come as questions surrounding quantitative easing's inevitable tapering heat up.
The future of stimulus isn't something long-term investors need to worry about, but keeping an eye on stocks is key to maintaining the best portfolio you can. Who's making waves today? Let's catch up on the stories -- and movers -- you need to know about.
Signs of strength from consumers
Housing, and rising consumer sentiment, have dominated talk around the economic recovery this year, and the University of Michigan/Thomson Reuters consumer confidence�report for May showed a better-than-expected reading of 84.1 for the month, down only slightly from April's score. That combination of economic strength has done wonders for Home Depot (NYSE: HD ) , today's Dow leader with shares up 1.8%. Home Depot's pulled ahead�of rival Lowe's (NYSE: LOW ) , particularly after last quarter's earnings report, where the former�raised its guidance, but the latter missed projections. That separation for leadership in the industry has Home Depot poised to continue soaring as the economy's rebound picks up.
Top 10 Undervalued Stocks To Buy Right Now: 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 Evan Niu, CFA]
Smartphones and tablets are easily driving all of that growth, as traditional PC form factors are expected to continue a downward trend. As one of the youngest form factors, tablets should put up the impressive growth and soar to 276 million next year. That's a subset of the market that effectively didn't exist at the beginning of 2010 until Apple (NASDAQ: AAPL ) jump-started the tablet renaissance with the iPad. Mobile computing has become incredibly important in both mature and emerging markets, according to Gartner's Carolina Milanesi.
- [By Jonas Elmerraji]
I've been a big fan of Apple (AAPL) for while now -- I own shares too. I'm happy to report that, from a technical standpoint, Apple couldn't look much better than it does now. And you don't have to be some kind of expert technical analyst to see why.
Apple is currently forming an uptrending channel, a setup formed by a pair of parallel trendlines. When it comes to price channels, up is good and down is bad; it's as simple as that. Shares have bounced higher on each of the last four tests of trendline support, and so, with the most recent bounce just a couple sessions ago, now's a pretty good time to be a buyer once again.
Relative strength (not to be confused with RSI, the momentum gauge we looked at earlier) continues to look exemplary for Apple right now. With a market that's teetering on new highs as I write, relative strength remains the single most important technical indicator to add to your toolbox right now. It speaks volumes that Apple's RS line is still in bull mode.
The 50-day moving average has been a pretty good proxy for support for the last few months, so short-term traders may want to consider putting a protective stop just below it.
Top Blue Chip Stocks To Buy 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 Benjamin Pimentel]
On the downside, Twitter (TWTR) ,�Microsoft (MSFT) , IBM Corp. (IBM) �and eBay Inc. (EBAY) �all closed in the red.
Top Blue Chip Stocks To Buy For 2014: 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 Jane Edmondson]
Green Dot (GDOT), a Pasadena, CA-based company, is a leading provider of prepaid MasterCard (MA) and Visa (V) debit cards. Green Dot products are sold in more than 60,000 retail locations including drug stores, grocery stores, convenience stores, and discount department stores. The company also has a discounted offering available exclusively through Wal-Mart (WMT).
- [By Ben Levisohn]
Yesterday, the bulls nearly erased a big early-day loss. Today, they’ve returned in force, as better economic data and earnings results helped boost the likes of General Electric (GE), American Express (AXP), Visa (V), Berkshire Hathaway (BRK.B) and Walt Disney (DIS).
- [By Ben Levisohn]
Shares of Alcoa have jumped 4.3% to $8.28 today at 1:26 p.m, which would have made it the Dow’s best performer today instead of AT&T (T) and its 2.8% gain. Still it’s hard to complain too much today as the Dow’s three new members are having solid, if not extraordinary, days. Nike (NKE) has jumped 1.3% after its CEO told analysts that his company could have $30 billion of sales in 2015 and $36 billion by 2017. Goldman Sachs (GS), meanwhile, has gained 1.3% to $155.04 and Visa (V) has advanced 0.8% to $183.98.
- [By Sean Williams, Travis Hoium, and Alex Planes]
In that spirit, we three Fools have banded together to find the market's best and worst stocks, which we'll rate on�The Motley Fool's CAPS�system as outperformers or underperformers. We'll be accountable for every pick based on the sum of our knowledge and the balance of our decisions. Today, we'll be discussing Visa (NYSE: V ) , the world's largest electronic payment processing network.
Top Blue Chip Stocks To Buy 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 Isaac Pino, CPA]
Since acquiring Texaco in 2001, Chevron (NYSE: CVX ) has been embroiled in a legal battle related to Texaco's operations in Ecuador in the 1960s. The Fool discussed the background of the case, which revolves around environmental contamination due to an oil spill, in the article, "Exclusive Fool Interview: A Look at Both Sides of Chevron's Nightmare Legal Battle." To learn firsthand how this case has evolved and where it stands today, we conducted interviews with�both parties to the case --�plaintiffs and defendants. The following interview took place on Feb. 12, 2013 with defendants from Chevron.�
- [By Matt Thalman]
Two other big winners today were Chevron (NYSE: CVX ) , which rose 1.67%, and ExxonMobil (NYSE: XOM ) , which increased by 1.18%, on the back of strong increases in oil (0.38%) and unleaded gasoline (1.47%). Also helping the two oil behemoths was the announcement that competitor Royal Dutch Shell has decided to name Ben van Beurden as the company's new CEO. Although van Beurden has been in the business for a long time, the surprise pick may be causing investors to believe that Chevron and ExxonMobil will outperform Shell in the future. Van Beurden has been a very low-profile guy who ran Shell's refining and marketing divisions and has been credited with turning around Shell's chemical division, but he hadn't been on very many people's radars as a candidate to replace CEO Peter Voser, who announced in May his plans to step down. �
- [By Casey Hoerth]
Shareholders who have been long Conoco since the 2012 spinoff and before have benefited the most. Conoco shares are no doubt up a lot recently. But I don't think it's over. Conoco's 4.13% dividend still leads its peers by a good bit. Conoco is a buy until the yield hits 3.6% or thereabouts. Even then the dividend would be higher than Exxon (XOM) or Chevron (CVX), but we probably need some yield premium to compensate for lower return on equity and capital versus those other two. My price target, then, is about $76.67. The stock is currently at $66.83. This means an upside of another 14.7%.
Top Blue Chip Stocks To Buy 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 Efficient Alpha]
Philip Morris International (PM) is a favorite of mine, not only for its 4% dividend but also for its protection against global inflationary pressures. The company can pass through higher commodity prices and smokers will keep coming back for more. The company has 16% of the international market and is making strong progress in China. Asia accounts for 36% of sales, followed by the EMEA region (27%), the EU (26%) and Latin America/Canada (11%). Shares have posted an annual return of 15% since its spinoff in 2008.
Top Blue Chip Stocks To Buy 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 Dan Caplinger]
McDonald's (NYSE: MCD ) has fallen more than 1% on a downgrade from Janney Capital, which cut earnings expectations by half a percent and reduced same-store sales estimates for June and July. The fast-food giant has struggled to keep growth up despite headwinds in some international markets and increased competition within the U.S. market.
- [By Jim Jubak, Senior Markets Editor, MoneyShow.com]
It looks like McDonald's (MCD) is facing a big price/cost squeeze. The latest evidence is the chain's test of a new Dollar Menu that would include items selling for as much as $5.00 and simmering discontent among franchisees who say that that company is increasing the fees that it charges them, in an effort to bolster the parent company's bottom line.
- [By Patrick M. Sheridan]
The fight for higher wages has been a recent theme across the retail and fast-food industries. McDonald's (MCD) workers and union organizers have staged strikes, even taking protests to the annual shareholder meeting last month.
- [By Chris Hill]
In this segment, Mike talks about�LKQ (NASDAQ: LKQ ) , and why the largest operator of junkyards has turned its scale into an incredibly well-run business, and Matt takes a look into�McDonald's (NYSE: MCD ) , which reports earnings tomorrow. After a rough period for McDonald's as the competitive landscape shifts toward fast-casual dining options such as Panera and Chipotle, Matt will be looking for signs in the earnings report that the strategy at McDonald's to adapt and shift its business focuses is coming to fruition.
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