For years, central banks have been the key to success in the stock market, and today's 127-point rise in the Dow Jones Industrials (DJINDICES: ^DJI ) owes much to the European Central Bank's actions today. By reducing a key interest rate by a quarter-percentage point to 0.5%, the ECB joined the Fed, the Bank of Japan, and other central banks around the world in pushing the pedal to the metal to try to stimulate the global economy. Moreover, the U.S. saw good news on the employment front, as jobless claims fell to their lowest levels in five years, and the trade deficit narrowed.
Despite the positive news, a couple of Dow stocks posted declines. Coca-Cola (NYSE: KO ) lost 0.6%, pulling back from its highest levels in more than a decade. Ongoing worries about where the beverage giant will find new growth have lingered for a while, but if strength in emerging markets returns, then Coke stands to be among the biggest beneficiaries. Still, if a stimulus-led bull market resumes in earnest, then stocks that investors traditionally look to as defensive plays, such as Coca-Cola, could lag behind more economically sensitive companies.
Best Defensive Companies To Own In Right Now: Finisar Corporation(FNSR)
Finisar Corporation designs, develops, manufactures, and markets optical subsystems and components that are used to interconnect equipment in short-distance local area networks (LANs), storage area networks (SANs), longer distance metropolitan area networks (MANs), fiber-to-the-home networks, cable television networks, and wide area networks. Its optical subsystems primarily include transmitters, receivers, transceivers, and transponders. The company?s optical subsystems provides the fundamental optical-electrical interface for connecting the equipment used in building networks comprising switches, routers, and file servers in wireline networks, as well as antennas and base stations for wireless networks. It also offers products for switching network traffic from one optical wavelength to another across multiple wavelengths, known as reconfigurable optical add/drop multiplexers. The company?s line of optical components principally comprises packaged lasers and photodetec tors used in transceivers for LAN and SAN applications; and passive optical components used in building MANs. It sells its optical products to manufacturers of storage system, networking equipment, and telecommunication equipment or their contract manufacturers through direct sales force and distribution channels in the United States, Malaysia, the People?s Republic of China, and internationally. The company was founded in 1987 and is headquartered in Sunnyvale, California.
Best Defensive Companies To Own In Right Now: Tuesday Morning Corp.(TUES)
Tuesday Morning Corporation engages in the retail sale of decorative home accessories, housewares, and gifts in the United States. The company?s merchandise primarily consists of lamps, rugs, furniture, kitchen accessories, small electronics, gourmet housewares, linens, luggage, bedroom and bathroom accessories, toys, stationary, and silk plants, as well as crystal, collectibles, and silver serving pieces. It also offers apparel and accessories. In addition, the company provides brand name merchandise, including cookware, appliances, linens, bath towels, luggage, flatware, tabletop, crystal, collectibles, dolls, china and giftware, and rugs. As of September 21, 2011, it operated 861 discount retail stores in 43 states. The company was founded in 1974 and is headquartered in Dallas, Texas.
Hot Electric Utility Companies To Buy For 2014: Cathay Intl(CTI.L)
Cathay International Holdings Limited, an investment holding company, operates primarily in the healthcare sector. It engages in the manufacturing, marketing, and sale of specialty western pharmaceuticals, modern Chinese medicine extracts, and generic pharmaceuticals in the People?s Republic of China; manufacturing, marketing, and sale of plant extracts for use as active ingredients in food, beverages, cosmetics, dietary supplements, and healthcare products; and the development of pharmaceutical products. The company also operates Crowne Plaza Landmark Hotel & Suites Shenzhen, a five star business traveler hotel in the Lowu district of Shenzhen, the People?s Republic of China. Cathay International Holdings Limited is based in Central, Hong Kong.
Best Defensive Companies To Own In Right Now: Mengold Resources Inc. (MNI.V)
MGold Resources Inc. engages in mineral exploration for precious and base metals in Canada. It primarily explores for gold, copper, lead, nickel, zinc, and molybdenum deposits. It holds interests in the Burchell Lake and Goldcreek properties located in the Shebandowan area of northwestern Ontario. The company was formerly known as Mengold Resources Inc. and changed its name to MGold Resources Inc. in September 2010. MGold Resources Inc. was incorporated in 1946 and is based in Montreal, Canada.
Best Defensive Companies To Own In Right Now: St.modwen Props(SMP.L)
St. Modwen Properties PLC, through its subsidiaries, engages in the investment and development of real estate properties in the United Kingdom. It develops communities, mixed use and town centre schemes, district centres, business and employment developments, office accommodation, warehousing, and industrial projects. The company?s property portfolio comprises approximately 5,700 developable acres and 18 town centre schemes. St. Modwen Properties PLC is headquartered in Birmingham, the United Kingdom.