Blue chip stocks suffered their fifth loss in a row Thursday, after upbeat economic data continued to fuel worries that the Fed will soon start to withdraw it stimulus efforts.
The Dow Jones Industrial Average fell more than 68 points, or 0.4% to close at 15,821.5, while the S&P 500 retreated 7.78 points, or 0.4% to end at 1,785.03.
And the Nasdaq Composite dropped 4.8 points, or 0.12% to close the day at 4,033.16.
Stocks lost their footing after initial claims for unemployment benefits fell more than expected and the Commerce Department said the U.S. economy expanded faster than initially thought in the third quarter.
Data reports issued so far this week have included better-than-expected readings from the labor market and manufacturers, reigniting�concerns that the Federal Reserve could start reducing its $85-billion-a-month bond-purchase program as early as this month.
The Fed�� easy money policies have been credited with fueling the 2013 stock market rally. Investors worry the gains may not prove sustainable if the Fed eases back its bond buying prematurely.
Top Consumer Stocks To Own Right Now: 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 DailyFinance Staff]
Stocks rallied again on Friday, completing one of the market's best weeks of the year. This rally is tied to growing signs that the pace of U.S. economic growth is finally picking up. The government reported a 4.1 percent jump in GDP over the summer. That was much stronger than expected, and substantially higher than the previous estimate. That came on top of strong reports this month on jobs, manufacturing and housing. At a news conference, President Obama said 2014 could be "a breakthrough year" for the U-S economy. On Wall Street, the Dow Jones industrial average (^DJI) rose 42 points, and the Standard & Poor's 500 index (^GPSC) gained 9 -- both ending at record highs yet again. The Nasdaq composite index (^IXIC) rallied 46 points. For the week, the Dow was up about 3 percent. Some retail stocks bounced higher as stores brace for the final weekend before Christmas. J.C. Penney (JCP) rose 4.5 percent, Urban Outfitters (URBN) gained 2 percent and American Eagle (AEO) gained 1.5 percent. And Target (TGT) edged higher, one day after acknowledging a massive security breach that exposed the personal information of millions of customers to hackers. It was also a good day for online retailers. Amazon (AMZN) and eBay (EBAY) both rose by about 2 percent and Overstock.com (OSTK) gained 3 percent. And how do we pay for all of those last minute gifts? Credit cards, of course. MasterCard (MA) and American Express (AXP) each gained 1.5 percent, and Visa (V) edged higher. One of the day's best gainers was Blackberry (BBRY). It shares soared 15 percent even though the smartphone maker posted a bigger loss than expected. But the company's new CEO forecast a profit by 2016 and announced a partnership with the Taiwanese phone maker Foxconn. A big green arrow for software maker Red Hat (RHT). It rallied 14 percent as earnings jumped, easily beating expectations. Textron (TXT) gained 10 percent. The Financial Times reports the company is on the verge of buying the a
- [By Jonas Elmerraji]
You don't have to be an expert technical analyst to figure out what's going on in shares of Visa (V) right now. The preeminent payment network is currently bouncing higher in a well-defined uptrend that's propelled shares since the start of 2013. This week, with shares testing that trendline support level for an eighth time, we're coming up on an ideal time to be a buyer.
But don't buy shares of Visa anticipating a move higher. Instead, wait for the bounce. Buying off a support bounce makes sense for two big reasons: it's the spot where shares have the furthest to move up before they hit resistance, and it's the spot where the risk is the least (because shares have the least room to move lower before you know you're wrong). And by actually waiting for the bounce to happen first, you're ensuring the Visa can actually still catch a bid along that line.
Remember, trendlines do eventually fail, and when this one does, you don't want to be holding the bag. We could very well get our bounce today in Visa. If you decide to buy, keep a tight stop in place.
- [By Charles Carlson]
The only three Dow stocks that do not are actually, interestingly, two of the newest members, Goldman Sachs (GS) and Visa (V), and the third stock is UnitedHealth Group (UNH), which is also a fairly new member to the Dow.
Top 10 Blue Chip Stocks 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 DAILYFINANCE]
Paul Sakuma/AP NEW YORK -- What has two all-beef patties, special sauce, lettuce, cheese, pickles and onions on a sesame bun? Burger King's latest sandwich. The Miami-based chain says it's bringing back its "Big King" sandwich, which looks a lot like the popular Big Mac made by its bigger rival McDonald's. Burger King says it's an addition to the permanent menu rolling out this week. Burger King says it previously offered the Big King as a limited-time offer. But back then, it didn't have the middle bun -- a Big Mac hallmark -- like it does now. It's just the latest move by Burger King that seems to pay more than a little homage to the Golden Arches. Last spring, Burger King also unveiled a revamped menu that looked a lot like the food McDonald's (MCD) had added in recent years, such as fruit shakes, chicken snack wraps and specialty coffee drinks. Since then, Burger King has also rolled out a rib sandwich to compete with the popular McRib, as well as chicken nuggets (Burger King is better known for its chicken tenders). As the New York Post wrote at the time, "They look like McNuggets. They're as nutritious as McNuggets. Just don't call them McNuggets." What does McDonald's think of all this? "We're focused on our business and our customers," spokeswoman Lisa McComb said in an email. Scott Hume, editor of BurgerBusiness.com, notes that imitation is common in the fast-food industry. "McDonald's clones make sense if they're popular in the marketplace," Hume said. He noted that Burger King has also rolled out more differentiated products, such as a pulled pork sandwich. AP
- [By WALLSTCHEATSHEET]
McDonald�� is one of the strongest brands in the world. For that reason alone, it would be unwise to bet against McDonald��. This doesn�� mean a long position should be initiated. It simply means that shoring the stock would be extremely risky.
- [By The Science of Hitting]
2) The Street�� Misguided Guidance ��As Howard notes in the first paragraph, the company sacrificed on the experience in order to achieve the growth, development, and scale necessary to go from less than 1,000 stores to 13,000 stores in just 10 years (that�� an average of more than three new stores each and every day for a decade). A lot of this was in hopes of satisfying the street, which led to decisions focused on short-term growth rather than long-term sustainability. Unfortunately, the commoditization of the cookie cutter model destroys brand equity, and leads to price competition; considering that a cup of black coffee at Starbuck�� is more than twice the cost of a black coffee at McDonald�� (MCD), it appears that management made the right decision in rethinking the brand experience and moving back towards the core: differentiation.
- [By Dividend Growth Investor]
After all, a company like McDonald�� (MCD) would keep being in the restaurant business for as long as possible. Its business model of delivering a consistent customer experience on a global scale should not change much. Its expansion might come not just by opening new stores internationally however, but by renovating existing locations, innovations in its menu and attracting new customers from a young age. These megatrends do not happen overnight, and would likely take years to develop. Another example includes Wal-Mart (WMT), which is the world�� largest retailer. While the company has largely saturated US market, it could grow substantially abroad. In addition, it could also grow organically by making stores more appealing to consumers. At the same time, if investors use the company�� product or service in their everyday lives, they might gain an insider�� look at things, even before the annual reports are out.
Top 10 Blue Chip Stocks To Own 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 GuruFocus]
Philip Morris International Inc. (PM) Reached the 52-Week Low of $83.79
The prices of Philip Morris International Inc. (PM) shares have declined to close to the 52-week low of $83.79, which is 15.1% off the 52-week high of $96.73. Philip Morris International Inc. is owned by 31 Gurus we are tracking. Among them, 14 have added to their positions during the past quarter. Nine reduced their positions. - [By Dan Caplinger]
The name change reflected the company's wish to have consumers and investors see beyond its tobacco business, which at the time was plagued by more substantial legal battles with billions in potential liability hanging in the balance. Shareholders approved the name change in 2002. The irony, of course, is that Altria has since spun off both Kraft and its Philip Morris International (NYSE: PM ) global tobacco divisions, leaving Altria holding the old core Philip Morris USA division.
- [By WALLSTCHEATSHEET]
Philip Morris provides cigarette and tobacco products through established brands to an increasing consumer base around the world. The stock has done very well over the last few years and is now trading at all-time high prices. Earnings and revenue figures have been increasing and decreasing, in recent quarters, which has confused investors a bit. Relative to its strong peers and sector, Philip Morris has been an average year-to-date performer. Look for Philip Morris to OUTPERFORM.
- [By Victor Selva]
Philip Morris International Inc. (PM) manufactures and markets cigarettes outside the U.S. in 180 countries. The company麓s plan is to introduce new packaging, new blends and other line extensions. A key driver of the company is the strong market share and the economies of scale. Also, the company has combated unfavorable tax regulations with price increases, showing a good price-elasticity.
Top 10 Blue Chip Stocks 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 David Kerr]
Oracle is the third largest software maker by revenue, behind only Microsoft (MSFT) and IBM (IBM). Oracle also has a higher Gross Margin percentage (81.35%) than IBM and MSFT, and a higher Operating Margin (39.28%). The company also has a higher Price to Sales ratio (4.11x) than its two largest competitors.
Top 10 Blue Chip Stocks To Own 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 Benjamin Pimentel]
On the downside, shares of Apple Inc. (AAPL) �fell a fraction to close at $524.99.
Top 10 Blue Chip Stocks 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 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.
Top 10 Blue Chip Stocks 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 Johanna Bennett]
Major oil companies declined with Exxon Mobil (XOM) down 0.6% to $93.68 and Chevron (CVX), off 0.6% to $122.02. �ConocoPhillips (COP) shares fell 0.37% to $72.66.
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