Blue chip stocks edged lower for the second consecutive session amid mixed results from the Black Friday holiday shopping weekend and investors looked ahead cautiously at Friday�� jobs report.
The Dow Jones Industrial Average fell 77.6 points, or 0.5%, to end at 16,008.7. On Friday, the Dow fell 11 points, snapping a five-session streak of record-high closes.
The S&P 500 index lost nearly five points, or 0.27% to close at 1,800.9. The Nasdaq Composite Index discarded 14.6 points, or 0.36%, to close at 4,045.26.
Stocks suffered despite a series of reports showing a pickup in manufacturing. In fact, the Institute for Supply Management surprised the market when it said manufacturing activity gained momentum in November. Economists had expected a decline.
On the surface, that�� the kind of news that bolsters investor confidence. Instead, it stoked worries that the Federal Reserve will soon begin scaling back its $85 billion-a-month bond-buying program credited with driving the 2013 stock market rally.
Top 10 International Companies To Watch In Right Now: 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 Robert Stephens]
Philip Morris
The 4.4% yield offered by Philip Morris� (NYSE: PM ) �is well-covered at 1.5x, which seems to be very sensible and shows that the company is not over-extending itself when it comes to payments to shareholders. This makes the income from the stock even more sustainable and highlights its potential as a sound defensive play. - [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 Selena Maranjian]
Other large-cap stocks didn't do quite so well over the last year but could see their fortunes change in years to come. Philip Morris International (NYSE: PM ) , for example, gained 5% and yields 4.1%. With domestic tobacco companies challenged by tightening regulations, rising taxes, and a shrinking smoking base, many have assumed that Philip Morris is the best bet in tobacco. But in the third quarter, it posted the weakest results, with volume taking a sizable drop and a strong dollar reducing its earnings. Bulls like its innovation and share buybacks.
- [By Editor , Dividend Growth Investor]
Philip Morris� (PM), through its subsidiaries, manufactures and sells cigarettes and other tobacco products. This dividend machine has rewarded shareholders with a dividend increase since being spun-offs from Altria Group (MO) in 2008.
Hot Blue Chip Stocks 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 Teresa Rivas]
It�� been a good week for Visa�(V) and�MasterCard�(MA)��wo days in and they��e enjoyed two rounds of upgrades.
Today, the bullishness comes from Janney Montgomery Scott�� Thomas McCrohan and Leonard DeProspo, who boosted their ratings on both names to Buy.
For Visa, the upgrade came with a target price increase from $210 to $240 and they write that the recent selloff in the name provides an attractive entry point ��o own one of the better business models in payments.��They count the company�� powerful network, worldwide brand, and its role in influencing payment standards among its core strengths, and note that the increase of mobile payments has also served to increase the number of places where Visa is accepted.
They write that strong margin expansion in the past year and a half means that mid-to-high teens earnings per share growth is possible even if margins contract this quarter and next, as the company�� guidance suggests.
More thoughts below:
Changes to FANF fees beginning April 1, 2015. Last week, Visa modified its FANF pricing (Fixed Acquirer Network Fee) to include a 15 bps volume-based charge for sub-merchants of payment aggregators. Previously, payment aggregators only paid one lump sum payment of $40,000 per month, which created a cost advantage for aggregators versus traditional acquirers and ISOs that were required to pay a separate FANF fee per merchant location. The new FANF pricing is 15 bps of monthly volume, which translates into $30 million of incremental high-margin fee income for Visa based on $20 billion of aggregator volume.
Fiscal 2014 EPS guidance achievable. First quarter margins of 65.8% were a record, and were 230 bps above the previous record (FQ1-2012). FY 2014 EPS guidance calls for mid-to-high teen growth but assumes higher operating expense in 2Q and 3Q and ongoing F/X headwinds from current turmoil in emerging markets. Mid-to-high teen EPS growth appears reasonable gi
Hot Blue Chip Stocks 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 Dan Caplinger]
Earnings season isn't close to over, but we've already seen a huge number of stocks in the Dow Jones Industrials (DJINDICES: ^DJI ) report their first-quarter results. So far, we've seen more companies do better than expected than do worse, but given the extent to which analysts lowered the earnings bar in the run-up to the beginning of earnings season, investors aren't entirely confident about whether the overall performance of corporate America is strong enough to keep the bull market in stocks roaring for a sixth straight year. This week, Dow components Merck (NYSE: MRK ) , ExxonMobil (NYSE: XOM ) , and Chevron (NYSE: CVX ) will add their results to the mix, and what they say about some of the most challenging sectors of the U.S. economy right now could help determine which direction the Dow moves in the weeks and months to come.
Hot 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 Tim Beyers]
While it's not always easy to get sales data for mobile games, there's no denying their influence. Some extremely popular titles are played on Apple's (NASDAQ: AAPL ) iPad. Consider:
- [By Chris Neiger]
Apple (NASDAQ: AAPL ) has long been known for its product innovation and ability to create new market segments, but over the past few years the company's ingenuity has been questioned. Now it seems Apple may be taking some cues from rival Samsung (NASDAQOTH: SSNLF ) , which isn't�necessarily�a good thing.
- [By MONEYMORNING.COM]
Indeed, we're talking about Apple Inc. (Nasdaq: AAPL), Microsoft Corp. (Nasdaq: MSFT), and chip giant Intel Corp. (Nasdaq: INTC). It also includes biotech leader Gilead Sciences Inc. (Nasdaq: GILD), e-commerce king Amazon.com Inc (Nasdaq: AMZN), and social networking giant Facebook Inc. (Nasdaq: FB).
Hot Blue Chip Stocks 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 Jayson Derrick]
Stanley Druckenmiller has labeled IBM (NYSE: IBM) as one of the ��ore high probability shorts��he has seen in years. Shares of "Big Blue" lost 1.54 percent for the day, closing at $181.29.
- [By Eric Parnell]
After taking these risks into consideration, maintaining an allocation to stocks remains worthwhile in such an environment. Given the volatility that often accompanies the turbulent May to October period, it may offer some particularly good trading opportunities as either broader markets or specific securities experience steep corrections followed by swift rallies. But risks must be monitored closely and holdings should be viewed with a potentially shorter time horizon depending on how events unfold in the coming months. Emphasizing stocks that exhibit quality, low volatility, value and current income that are also not technically overbought provides an additional way to control risk in the current environment. This includes allocations such as the Vanguard Dividend Appreciation ETF (VIG) and high quality individual names such as Exxon Mobil (XOM), International Business Machines (IBM), McDonald's (MCD), General Electric (GE) and Oracle (ORCL). It should be noted that IBM, General Electric and Oracle were all positions that were scooped up following recent sharp pullbacks.
- [By Trey Thoelcke]
International Business Machines Corp. (NYSE: IBM) has�said in a statement that it will vigorously fight the lawsuit filed in the U.S. District Court in Manhattan by�shareholder Louisiana Sheriffs’ Pension and Relief Fund�over its alleged failure to disclose its involvement in the U.S. National Security Agency’s (NSA) spy program and the subsequent loss of business in China.
Hot Blue Chip Stocks 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 Motley Fool Staff]
Andres Cardenal:�Colgate-Palmolive (NYSE: CL ) , generates most of its sales and cash flows from its leadership position in the oral care industry. Management estimates that the company owns a global market share of 44.4% in toothpastes, 33.2% in toothbrushes, and 38.9% in mouthwashes.
- [By Eric Volkman]
It's one of the steadiest dividend payers on the market, and it's continuing to fly level. Colgate-Palmolive (NYSE: CL ) has declared a fresh quarterly common stock dividend, which is to be $0.34 per share, paid on August 15 to shareholders of record as of July 23. That amount matches the firm's previous distribution; this was paid in May. Prior to that, Colgate-Palmolive handed out $0.31 per share.
- [By Lee Jackson]
Colgate-Palmolive Co. (NYSE: CL) is a top consumer staples name to make the UBS. Colgate sells its products in more than 200 countries and makes more than 75% of its revenue outside the United States, which provides geographic diversification and growth opportunities in emerging markets for the company. This diversity, matched with a huge list of consumer products, keeps revenues and dividends growing. Investors are paid a 2.3% dividend. The consensus target is $67.14. Colgate closed Tuesday at $64.34.
- [By Teresa Rivas]
We think KMB will be perceived as the safest of the multinationals. Its sales outside the US are about 55% of total; this compares to 65%-70% for Procter & Gamble (PG) and Coty (COTY) and 80%-90% for Colgate (CL), Avon and Tupperware (TUP). In general, its risk to the most volatile currencies is below average (its exposure to Eastern Europe is less than 2% of sales), though it is still translating results in Venezuela (about 3% of sales and profit) at the official rate of 6.3 VEF/$ (the parallel rate just hit 175 VEF/$) and Argentina (also 3% of sales) may devalue again. The cost of important raw materials has started to weaken; as they follow oil�� decline they could boost gross margins in 2H15. Of note, polypropylene and natural gas are off 17% 4Q-to-date; pulp prices, while not declining much, seem manageable.
Hot 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 Douglas A. McIntyre]
The most recognizable league sponsors for 2013 are led�by McDonald’s Corp. (NYSE: MCD) and PepsiCo Inc. (NYSE: PEP).�Each�has�the financial�capacity to sponsor the league, as well as to�spend tens of millions of dollars outside its sports sponsorships. That�should come as no surprise.�Both rely on a large portion of the American consumer population for revenue. For the two companies, there is no such thing as overexposure. Consequently, neither of them needs to market to the relatively small audience reached by the NFL’s online site.
- [By Rick Munarriz]
Grimace may be one of the endearing McDonaldland characters, but too many grimacing employees at McDonald's (NYSE: MCD ) may also be the undoing of the world's largest restaurant operator.
- [By Jonas Elmerraji]
Switching gears outside of the energy sector brings us to fast food chain McDonald's (MCD), another name on hedge funds' hate list. McDonald's has had a pretty tepid year in 2014, down 2.6% over a stretch when the S&P is within grabbing distance of double-digit upside. So it's not hugely surprising that fund managers don't have the patience to stick it out with MCD this fall. Funds sold 2.29 million shares of McDonald's over the course of the third quarter...
McDonald's is the biggest fast food restaurant chain in the world, with approximately 35,900 restaurant locations in 125 countries. Of those, nearly 7,000 are company-owned units. The other 80% of stores are franchised. That model has been a cash cow for MCD shareholders in the past, giving the firm claim to sticky recurring revenues supplying franchise stores with food ingredients, marketing, and employee training. Importantly, McDonald's owns the land beneath the majority of its franchisee restaurants; that huge land portfolio gives McDonald's more in common with a REIT than with the diner down the street.
The competitive nature of the fast food business means that MCD has gotten the squeeze in recent quarters as it tries to play catch up with a consumer that's moving up the "food chain" (so to speak) -- an ongoing initiative to improve food quality and make MCD more nimble should pay dividends down the road. In the meantime, McDonald's continues to execute well, especially given the discount currently on shares versus six months ago. The firm's 3.6% dividend yield should add some extra attractiveness given the prolonged low-interest rate environment that's expected to stretch well into 2015.
It looks like funds are making a mistake by selling MCD early here...
- [By GuruFocus]
These are the top 5 holdings of Bill Gates
Berkshire Hathaway Inc (BRK.B) - 82,039,804 shares, 48.5% of the total portfolio. Shares reduced by 5.74% Coca-Cola Co (KO) - 34,002,000 shares, 7.0% of the total portfolio. McDonald's Corporation (MCD) - 10,872,500 shares, 5.3% of the total portfolio. Shares added by 10.13% Caterpillar Inc (CAT) - 11,260,857 shares, 5.1% of the total portfolio. Shares added by 4.65% Canadian National Railway Co (CNI) - 17,126,874 shares, 4.9% of the total portfolio.
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�Added: McDonald's Corporation (MCD)
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