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.
10 Best Japanese Stocks To Buy For 2015: 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 Stoyan Bojinov]
Fast food bellwether McDonald’s (MCD) announced on Tuesday that it had rolled out a new payment method that it is testing in select cities across the Southwest.Lisa McComb, spokesperson for McDonald’s, commented in an email to Bloomberg that the company has released an application that allows for customers to pay at the register directly from their smartphone. McComb went on to mention that the payment app is currently being tested in restaurant locations across Salt Lake City, Utah and Austin, Texas. McDonald’s also released global monthly sales data on the day; sales in the U.S. improved by 0.2% for the month while Europe saw a 3.3% jump.
McDonald’s shares traded higher on Tuesday, gaining 0.46% on the day. The stock is up nearly 10% YTD.
- [By Suravi Thacker]
Fast food chains are much in vogue these days since they offer food at comparatively cheap prices as compared to restaurants. Hence, cost-conscious people prefer to walk up to retailers such as Burger King Worldwide (BKW) and McDonald�� Corporation (MCD) who offer value meals which are pocket friendly. However, there are various other factors, such as weather and consumer confidence, which affect sales at such stores. Burger King Worldwide reported its first quarter numbers last week, which were mixed.
- [By Andr茅s Cardenal]
The war for breakfast is getting hotter than ever, with big fast-food companies such as Yum! Brands (NYSE: YUM ) , McDonald's (NYSE: MCD ) , and Burger King (NYSE: BKW ) intensifying their competitive pressure in that lucrative niche. On the other hand, at the higher end of the pricing spectrum, Starbucks (NASDAQ: SBUX ) could be a clear winner in that competition thanks to its differentiated quality and successful menu innovations.
- [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��.
Hot Blue Chip Companies To Buy Right Now: 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 Dan Caplinger]
IBM (NYSE: IBM ) , down 2%
IBM's woes have come from concerns about the tech giant's ability to sustain its revenue levels. The company reported sales declines in both of its first two quarterly reports for 2013, and despite raising its guidance for the remainder of the year in its June-quarter results, IBM remains troubled by extremely tough competition in the increasingly popular big data arena. Even though IBM still has one of the most valuable brands in the world, it nevertheless needs to turn its sales slump around in order for its stock to follow suit.
Hot Blue Chip Companies To Buy 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 Jon C. Ogg]
Philip Morris International Inc. (NYSE: PM) has experienced more than impressive growth in both its share price and its profits in the past four years. Lately its gains have petered out. The problem is that much of that growth has come from a few countries in Asia, and if one analyst report is accurate, there will be little to no growth from those areas ahead. Nomura Securities is downgrading Philip Morris to a Reduce rating from Neutral, but for all practical purposes it is a Sell rating. The firm’s $76 price target suggests downside of more than $10 ahead.
- [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 Companies 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 Stoyan Bojinov]
Consumer electronics juggernaut Apple Inc. (AAPL) fell off Wall Street’s “favorite” list near the end of 2012 and selling pressures plagued the stock for almost all of 2013. The stock did manage to find its footing mid-year, although its 2013 performance was still lackluster as it rallied a paltry 3%.�Let’s examine the company’s current dividend policy and what lies in store for the stock in 2014 from a dividend perspective.
Apple Inc.’s Current Dividend PolicyApple pays its dividend quarterly and currently offers a yield around 2.2%. The stock reinstated its dividend in the second-half of 2012 and its first payout was $2.65 per share. Apple raised its dividend in 2013 by 15%, marking the first annual increase for the stock, with its new distribution coming in at $3.05 per share. Based on analyst estimates, its payout ratio sits around 28% in 2013, and is expected to come in at 26% in 2014. Looking at these numbers coupled with Apple’s sizable cash flow, the company should have no issues raising its dividend again next year.
Dividend.com DARS Ratings for Apple Inc. Overall Rating:Neutral (3.4/5) Metric Rating Explanation Relative Strength Stock is performing in-line with the market or better. Overall Yield Attractiveness Stock’s dividend yield is above average. Dividend Reliability This rating is related to the length and consistency of a company’s dividend payouts, as well as our opinion on how likely the company is to continue payouts in the future. Dividend Uptrend Dividend payouts are consistent, but increases small. Earnings Growth Earnings estimates are uptrending. - [By David Dittman]
China was the focus of upside surprise for UF Growth Portfolio Aggressive Holding Apple Inc (NSDQ: AAPL) and its fiscal 2014 third-quarter report, as the innovative device-maker reported 26 percent year-over-year revenue growth in the Middle Kingdom.
- [By Austin Smith]
There are lots of reasons to love Apple� (NASDAQ: AAPL ) , but why should you sell? In this video, Fool analyst Austin Smith gives three reasons to consider selling Apple. First, Apple is so big and has grown so fast, that future growth rates will likely not match its past. Second, Tim Cook is a great guy, but does he have the vision that Steve Jobs had? So far, Apple hasn't rolled out a truly revolutionary product, just variations of old stuff. Will Cook lead Apple into innovative products and devices, or just coast on Jobs' products? Lastly, Apple iPhones have largely saturated the Western markets, meaning future growth will have to come from emerging markets. Problem is, the iPhone is too expensive for many emerging markets. So Apple could roll out a cheaper iPhone but this would likely mean lower profit margins. Lower profit margins mean lower earnings growth.
- [By Douglas A. McIntyre]
China, with more than 600 million people who have wireless connections and 750 million people online, has been the Holy Grail for consumer electronics and enterprise telecom companies for years. Hammering that home, IDC has forecast that there will be 450 million smartphones sold in China next year. The People’s Republic rapidly has�turned from a market for dumb handsets to one in which smartphones obviously have�begun to replace PCs at an accelerated�rate, following a pattern already in place in developed nations. The stakes for smartphone companies have risen. Because the market is so new, global leaders Samsung and Apple Inc. (NASDAQ: AAPL) do not necessarily have the advantages they do elsewhere.
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