Investor Beat, Jan. 27, 2014
In this video from Monday's Investor Beat, host Alison Southwick and Motley Fool analysts Taylor Muckerman and Morgan Housel look at the biggest stories facing investors from the market today.
Though the day started off positively for the Dow, things turned downward after home sales data came in lower than expected. This continues the pain of last week, where the Dow fell 3.5%, the worst weekly tumble since 2011. In the lead story on today's Investor Beat, Taylor and Morgan look at the market bloodbath over the past week and discuss whether this is just a blip, the beginning of a major downturn, or even worth worrying about. They also discuss how investors should react when things start heading south.
Then the guys look at four stocks making moves on the market today. Shares of Caterpillar were up today after beating analyst expectations for the fourth quarter, with construction sales buoying plunging sales for mining equipment. Shares of Facebook fell today despite analyst predictions of a 50% increase in revenue year over year when it reports earnings on Wednesday. Morgan attributes the fall to last week's Princeton study, which claimed that Facebook will lose 80% of its users in three years' time. Facebook's news also dragged down other social-media stocks today, including Twitter. And Sprint saw a nice little bump today, after announcing it has expanded its 4G LTE network to 40 more markets in the United States.
And finally, Taylor tells investors what he'll be watching with the chemicals and agriculture conglomerate DuPont when it reports earnings tomorrow, and Morgan discusses why even with the incredible run the market saw in 2013, there is still a lot of value to be found in the financial sector with big banks such as Bank of America.
Why long-term investors don't care what the market is doing
It's no secret that investors tend to be impatient with the market, but the best investment strategy is to buy shares in solid businesses and keep them for the long term. In the special free report "3 Stocks That Will Help You Retire Rich," The Motley Fool shares investment ideas and strategies that could help you build wealth for years to come. Click here to grab your free copy today.
The article Investor Beat, Jan. 27, 2014 originally appeared on Fool.com.Alison Southwick, Morgan Housel, and Taylor Muckerman have no position in any stocks mentioned. The Motley Fool recommends Bank of America, Facebook, and Twitter and owns shares of Bank of America and Facebook. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.