Why These 3 Dow Stocks Surged This Week
The Dow Jones Industrial Average (INDEX: ^DJI) fell 0.1% this week, though that has a lot to do with declines in some of its more heavily weighted stocks. TheS&P 500 (INDEX: ^GSPC) was actually up 0.3%.
A few stocks were up big. These were the three biggest winners:
Weekly Price Change
|JPMorgan Chase (NYS: JPM)||6.1%|
|Bank of America (NYS: BAC)||3.2%|
|Disney (NYS: DIS)||2.5%|
A string of upbeat economic reports pushed bank stocks higher. On Monday, we found out that pending home sales -- signed contracts for home resales -- rose 2% to a two-year high in January, completely smashing expectations. Later in the week we found also found out that unemployment claims fell and the median personal income rose.
Obviously, with their massive residential mortgage and consumer loan portfolios, banks are especially sensitive to the housing market, personal income, and unemployment rates. JPMorgan Chase and Bank of America fit that description, with some $400 billion (19% of total assets) and $600 billion (28% of total assets), respectively, tied up in combined residential and consumer loans.
Besides the upbeat economic news, Disney launched its first social-media game based on Marvel characters, Marvel: Avengers Alliance, on Facebook. It's also going to make a Muppets sequel to Kermit the Frog, Miss Piggy and quietly shuttered a Disney World exhibit on childhood obesity. Disney was in the news after investor-advisory service ISI recommended shareholders give four board members the boot after it said Disney was going back on an earlier commitment it made to an independent board by giving CEO Bob Iger the added chairman title without asking shareholders.
JPMorgan Chase, Bank of America, and Disney beat the market this week, but it's important to remember that what happens to the market on a day-to-day or even week-to-week basis doesn't matter nearly as much as how our stocks perform over the long-run. If you're interested in one stock that our chief investment officer picked to crush the market, check out our brand-new report, "The Motley Fool's Top Stock for 2012." It highlights a company that is revolutionizing commerce in Latin America. For a limited time, you can get instant access to the name of this company for free.
At the time this article was published Ilan Moscovitzowns shares of Disney. The Motley Fool owns shares of Bank of America and JPMorgan Chase.Motley Fool newsletter serviceshave recommended buying shares of Disney. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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