Microsoft Corporation (MSFT): Ballmer’s Retirement Keeps Dow Jones Industrial Average (.DJI) Moving Higher

Although we don’t believe in timing the market or panicking over market movements, we do like to keep an eye on big changes — just in case they’re material to our investing thesis.

The Federal Reserve’s “taper” plans are starting to have an impact on data from the housing market. U.S. new home sales fell 13.4% in July to a seasonally adjusted rate of 394,000 as every region posted declines. But that’s to be expected as rates rise and investors shrugged off the news, pushing the Dow Jones Industrial Average (DJINDICES:^DJI) 0.20% higher and the S&P 500 (SNPINDEX:^GSPC) up 0.30%.

Microsoft Corporation (NASDAQ:MSFT) is the big winner on the Dow Jones Industrial Average (DJINDICES:^DJI), jumping 7.2% today. CEO Steve Ballmer announced that he’ll retire in the next year, something many in the market have been pushing for some time. Ballmer’s tenure may not look great judged by the stock’s 39% drop since he took over in 2000, but he has tripled revenue and returned $200 billion to shareholders. Remember that he took over just as the tech bubble was popping and Microsoft Corporation (NASDAQ:MSFT) had a lofty P/E ratio, something it’s grown into over the past 13 years to arguably become a value stock. I think this is a positive move for Microsoft Corporation (NASDAQ:MSFT), but Ballmer isn’t as bad as the excitement on the market indicates today.
Dow Jones Industrial Average (DJINDICES:^DJI)
Verizon Communications Inc. (NYSE:VZ) is up 1.1% today after announcing a deal to show CBS’s television programs on its FiOS TV service. CBS is in a bitter battle with Time Warner that has left its programming off the cable company’s roster in New York, Los Angeles, and Dallas, so this is a small win for Verizon Communications Inc. (NYSE:VZ). FiOS TV is in direct competition in the all-important New York market, and with football season coming up, antsy sports fans may be willing to switch services to guarantee programming on Sundays.

Competitor AT&T Inc. (NYSE:T) is also up 0.9% today after MacRumors said the company will offer refurbished iPhone 3GS devices for its prepaid GoPhone plans. Refurbished iPhone 4s are already available for $325 so the generation older device is projected to cost much less than $300. Engaged in a surprising battle against T-Mobile’s new plans this could be a quiet win for AT&T Inc. (NYSE:T) in mobile.

The article Ballmer’s Retirement Keeps Dow Moving Higher originally appeared on Fool.com is written by Travis Hoium.

Fool contributor Travis Hoium manages an account that owns shares of Apple and Microsoft. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple and Microsoft.

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

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!