Andrew Harrer/Bloomberg via Getty ImagesThe Dow Jones news ticker in Times Square, New York City. NEW YORK -- Investment bank Goldman Sachs Group (GS), credit-card company Visa (V), and footwear Nike (NKE) will join the blue chip Dow Jones industrial average (^DJI) Dow Jones industrial average, the index managers said Tuesday, in the biggest shake-up for the 30-stock average in nearly a decade. The three companies will replace Bank of America (BAC), Hewlett-Packard (HPQ) and Alcoa (AA), all lower-priced stocks that exert a lesser pull on the price-weighted index. The changes will be effective on Sept. 23, S&P Dow Jones Indices said in a statement. The average, first established in 1896, includes 30 stocks, but very little money is indexed to its performance, unlike the broader Standard & Poor's 500 (^GSPC) or other indexes. In addition, because it is weighted by price, companies that are smaller in value with higher prices have more influence on the average. "Wow, those are big changes," said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, N.Y. "The Dow is really an antiquated index. It is price-weighted, which makes no sense. But there are still are some people that pay attention to it, and some technicians, so it has an influence on some people." Google (GOOG) and other names were considered for inclusion but passed over because of high stock prices, David Blitzer, managing director and chairman of the S&P Index Committee, told CNBC. The index manager said the changes were prompted by the low stock price of the three companies slated for removal and a desire to diversify the make-up of the index. Alcoa, in particular, has been seen as a candidate for elimination for some time, as the stock's market value of $8.5 billion is easily the lowest in the average. It is the first three-for-three change to the index since April 8, 2004, when American International Group (AIG), Pfizer (PFE) and Verizon (VZ) replaced AT&T (T), Eastman Kodak and International Paper (IP).
Best Blue Chip Companies To Watch In 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 Doug Ehrman]
Earlier this week, Facebook (NASDAQ: FB ) unveiled an entirely new way to interact with your phone that the company has dubbed "Home." As CEO Mark Zuckerberg pointed out after taking the stage to release the new platform, Facebook Home is neither a new OS, nor is it simply an app. It's what he referred to as a new way to experience your smartphone. While Zuckerberg openly admitted that Facebook loves Apple� (NASDAQ: AAPL ) in a separate interview, he extolled the openness of Google's (NASDAQ: GOOG ) Android as the reason that Facebook was able to bring the new product to market so seamlessly. The specific financial ramifications are difficult to predict thus far, but this is a big win for Facebook, and should serve as a catalyst for the stock.
- [By George Kesarios]
According to a post by ex. WSJ reporter Jessica Lessin, Apple (AAPL) recently purchased for an undisclosed amount Passif Semiconductor, a small Silicon Valley company specializing in low energy chip design. Passif develops communication chips that use very little power. Its technology, which includes a radio that works with a low-energy version of Bluetooth called Bluetooth LE, is promising for health-monitoring and fitness devices that need extra-long battery life.
- [By Geoff Gannon]
It�� very hard to quantify something like 35% revenue growth. I always bring this point up when people want to know my view of Apple (AAPL). My view of Apple is that I can see a lot of its qualities for what they are ��but I have a really hard time putting what I know about Apple into numbers. I don�� want to say Apple�� value is incalculable. A lot of people obviously do calculate the company�� value. I just find it very hard to value because I know what matters at Apple ��I just don�� feel comfortable quantifying the things that matter and plugging them into some formula.
Best Blue Chip 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 Jacob Roche]
A recent report from research group KPMG, and commissioned by Philip Morris (NYSE: PM ) , revealed that while total consumption of cigarettes in Europe has fallen in recent years, the illegal contraband and counterfeit trade has grown from 8.3% of total consumption to 11.1%. The report suggests that the high profitability and low risk of penalties attracts organized crime, which can use the trade as a cash cow to fund far more objectionable activities. An ad from British American Tobacco (NYSEMKT: BTI ) goes as far as to suggest that the trade could even be indirectly funding terrorism.
Best Warren Buffett Companies To Own In Right Now: 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 Travis Hoium]
Big oil companies and refiners ExxonMobil (NYSE: XOM ) and Chevron (NYSE: CVX ) will both report earnings in the next two days, and they'll likely face the same challenges as Phillips 66. The difference is that they have much more exposure to oil exploration, which is doing quite well on rising oil prices. This is one of the advantages of investing in big oil companies: They have exposure to both the good and the bad in the market.
- [By Dan Caplinger]
Among the positive contributors to the Dow was Chevron (NYSE: CVX ) , which climbed more than 1% after releasing earnings that beat expectations. Despite both revenue and income coming in with mid-single-digit percentage declines, the oil giant managed to increase its production volumes slightly, although not enough to offset falling prices for oil and gas. Unlike some of its peers, Chevron's refining division also suffered due to repairs and maintenance work; but, in the long run, the company appears better poised to deliver the growth it will need in order to sustain its massive energy portfolio.
- [By Teresa Rivas]
Chevron (CVX) lost ground on its second-quarter report, as did Alpha Natural Resources (ANR).
J.C. Penney (JCP) ended lower despite reports that CIT had lifted its credit restrictions, while Weight Watchers (WTW) sank on its disappointing guidance and the departure of its CEO.
Best Blue Chip Companies To Watch In Right Now: 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 Ong Kang Wei]
Another example of such a product is Colgate-Palmolive (CL)'s Colgate toothpaste. I do not think I have to elaborate much here. Toothpaste is needed in our everyday life, and we will definitely have to buy more toothpaste after we have finished using a packet of it, ensuring that Colgate gets more and more sales over the years.
- [By Jon C. Ogg]
Colgate-Palmolive Co. (NYSE: CL) was raised to Overweight from Equal Weight and the price target is now $68 (versus a $59.93 close) at Morgan Stanley.
- [By Dan Burrows]
Rival Colgate-Palmolive (CL) has different concerns, namely sluggishness in emerging markets where it enjoys commanding market share and derives more than half its revenue.
- [By Dan Caplinger]
Lately, Johnson & Johnson has presented two different faces to investors. On one hand, the company has faced the challenge of dealing with a weak consumer-products business, as multiple recalls and close regulatory oversight of its production facilities have exacerbated J&J's problems. With its more focused consumer-goods business, Colgate-Palmolive (NYSE: CL ) has worked harder at taking advantage of international growth opportunities than many of its rivals, and Colgate's strong overseas sales, in comparison to J&J's international weakness, show the effectiveness of that strategy. In particular, Asia has been a focus point for Colgate, with revenue from the region having risen 9% year over year compared with less than 3% growth overall. Moreover, Latin America represents Colgate's biggest region for sales, with more than half again the revenue its U.S. segment produces.
Best Blue Chip Companies To Watch In Right Now: 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 Nicole Seghetti]
3. McDonald's (NYSE: MCD ) McDonald's can be crowned not only a Dividend Aristocrat, but also the king of fast food. This server of Big Macs has boosted its dividend for 36 straight years. The stock currently boasts a dividend yield of 3%.�
- [By Dividend Growth Investor]
McDonald�� Corporation (MCD), together with its subsidiaries, franchises and operates McDonald�� restaurants primarily in the United States, Europe, the Asia Pacific, the Middle East, and Africa. This[/color]dividend champion has paid dividends since 1976 and increased distributions on its common stock for 36 years in a row.
- [By Matt Thalman]
Despite announcing a $0.77 per-share quarterly dividend yesterday, McDonald's (NYSE: MCD ) is down 1% today. However, shares could be moving lower because of news from yesterday: During the company's annual shareholder meeting, CEO Don Thompson had to defend his company against comments that McDonald's food is contributing to the obesity problem in America. Some critics have even pointed out that the company's marketing strategy -- including its mascot, Ronald McDonald -- has contributed to childhood obesity.�
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