Market Wrap-Up for May 6 (CF, EOG, WTW, WPO, FLR, DIS, more)

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This morning's monthly jobs report came out better-than-expected, as more new jobs were created than analysts anticipated (not sure if the impact of McDonald's hiring 60,000 plus in April was the main reason for the surprise).

We made some more changes to our Best Dividend Stocks List yesterday, downgrading several energy-related plays. When you see a commodity move to the downside like we've noticed this week, it is often a sign of a trend change. We think this is a great time for investors to rebalance their portfolios if they have substantial exposure in the commodity/energy space. As I have been mentioning, rising commodity prices have put a cap on the ongoing economic recovery, and the law of supply and demand becomes a factor sooner or later, as consumers simply begin to refuse to pay exorbitant prices for items like gasoline and certain foods.

Following some afternoon trepidation about Greece leaving the EU, the markets stabilized and closed higher, finishing well off the earlier highs. Earnings results helped stocks like CF Industries ( CF ), Fluor Corp ( FLR ), and EOG Resources ( EOG ). On the flipside, sellers moved out of names like Weight Watchers ( WTW ), Cimarex Energy ( XEC ), and Washington Post ( WPO ). Oil prices dropped once again, finishing the week with a drop of around 15%. Silver prices were down nearly 30% on the week.

I was watching a local newscast this morning before heading into the office, and they were talking about how gas prices could drop 20-30 cents just in time for Memorial Day. What a great deal for consumers! They fail to mention we are paying over $1 more per gallon than last Memorial Day - if we get the price drop that experts predict. The media certainly loves to spin things positively, don't they?

Enough of the negative commodity talk. Let's continue our ongoing series on success as a positive way to close out the week:

1. "Successful people remain flexible and open to changing their direction for the better, while others will simply stop in their tracks when trouble arises."

The hot word for this in business today is "pivoting." Lots of innovative companies are more nimble than some of the conglomerates from years past. That said, they can maneuver through product cycles much more quickly, and are able to stay current with consumer desires. This same concept applies to an individual's ability to find success, regardless of age. If you are keeping up with the latest trends, chances are, you will be able to get in position to prosper. At Dividend.com, we are always looking ahead when it comes to where our dividend ratings should be. If we see signs a company could be slowing down, chances are their dividend payout level will follow suit. Remember to stay on top of things in your financial life, rather than ignoring any warnings signs. You could be sitting on an investment or be in a career that is on the decline!

2. "Successful people do not let any pre-determined thoughts on money stop them from realizing what is real, while others accept wrongful financial concepts as religion."

We often see individuals influenced by the wrong information, or even worse, listening to unqualified people for business, investing, or financial advice. If you are going to be successful yourself, you will need to arm yourself with the best sources for information in the area you want to specialize in. Sometimes even parents will get it wrong, so always do as much due diligence as possible. The easiest way to learn is to ask questions - which many people will tell you I'm a master at!

3. "Successful people can build fortunes from nothing, while others believe luck is the real reason for advancement."

Many successful businesses began with little money in their coffers. I often hear of new entrepreneurs that want to start a business, but are looking for friends and family to fund the entire operation from the start. Let me give you a quick tip on this: if you don't put your own "skin in the game" when it comes investing your own money into the project, you will not have the same sense of urgency as if you did. You could be looking at not only a failed venture, but many damaged relationships in the process. In the end, it's not about luck. It's about doing the proper homework necessary to determine if the business idea you have is actually a real business, or just a hobby that will never generate real revenue.

Looking ahead, the deluge of earnings reports will begin to slow down a bit next week. Look for quarterly results from heavy hitters like Walt Disney ( DIS ), Macy's ( M ) and Nordstrom ( JWN ), just to name a few.

Be sure to catch up with our latest watchlist updates this weekend on Dividend.com Premium , including reports on earnings/story stocks, analyst upgrades/downgrades, dividend ETFs, and much more. And as always, you can view our current recommendations on our industry-leading Best Dividend Stocks List . Quick note: be sure to check out the "What's New on Dividend.com Premium" post we published today, as well. We've added a ton of new features to our service over the past few weeks!

Thanks for your support everybody and thanks for reading my newsletter too! Please pass this on to anyone you think we can get inspired and educated about building wealth and using common sense to do so.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: CF , DIS , EOG , FLR , JWN

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