How 3M Co (MMM) Rescued the Dow Today: Shutterfly, Inc. (SFLY), Bank of America Corp (BAC)

It’s often an encouraging sign of a bull market when stocks are able to recover from early losses to finish higher. That’s what happened today, as investors dismissed early concerns about Europe to focus instead on the growing prospects for economic growth domestically. By the end of the day, the Dow Jones Industrials had managed to eke out a 7-point advance, and while the average continues to flirt with the 14,000 level, many analysts increasingly believe that the market is setting up to make a run at record highs in the near future.

3M Co (NYSE:MMM)Good news from 3M Co (NYSE:MMM) definitely helped set a more positive tone for stocks, as the company set an all-time high after announcing an 8% increase in its dividend and a new $7.5 billion share-buyback program. Given that the company’s market capitalization is just over $70 billion, the repurchase program could lead to more than a 10% drop in outstanding shares, setting the stage for even further share-price appreciation.

Beyond the Dow, Shutterfly, Inc. (NASDAQ:SFLY) soared more than 20% on news that the online-photo company saw profits jump 50%. Orders rose by a third during the holiday quarter, but what investors really focused on was the company’s full-year guidance for 2013, as it’s looking for 16% growth in sales and earnings between $0.38 and $0.51 per share. Shutterfly has come a long way since picking up the online photo business of bankrupt Eastman Kodak, and now, it looks like it’s reaping the rewards.

Finally, mortgage insurer Assured Guaranty Ltd. (NYSE:AGO) jumped 10% after a court found that Flagstar Bancorp Inc (NYSE:FBC) will have to reimburse $90 million that Assured Guaranty paid to mortgage-backed securities holders. Investors are looking closely at the case because of the potential impact it could have in much larger lawsuit between MBIA Inc. (NYSE:MBI) and Bank of America Corp (NYSE:BAC). Flagstar was found to have failed to meet the loan standards that it agreed to with Assured Guaranty, and if B of A is found to have done the same thing, then it could end up losing its dispute with MBIA.

The article How 3M Rescued the Dow Today originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter: @DanCaplinger. The Motley Fool recommends 3M and owns shares of Bank of America.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Top Reasons For Getting Fired

The 3 Best States to Start an LLC

10 Jobs That Allow You to Travel

7 High-Paying Jobs You Can Do From Home

12 Best Cities to Shop in USA

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!