Optimism About Jobs Leads the Dow Higher: The Procter & Gamble Company (PG), International Business Machines Corp. (IBM), 3M Co (MMM)

Page 1 of 2

Stocks are on the rise again, with the Dow Jones Industrial Average seemingly immune to losses during this record-setting rally. As of 2:15 EDT, the Dow has surged once again to new highs, gaining 54 points, or 0.37%. Positive jobless data is fueling today’s run, and with most stocks in the green, investors are feeling pretty good. Let’s dive into the details.

INTERNATIONAL BUSINESS MACHS COR (NYSE:IBM)

A bright new day for jobs
The Department of Labor reported that new applications for unemployment benefits fell another 10,000 last week, a surprise to economists who had predicted a rise of about 8,000. The average over the past month has now fallen to its lowest level in about five years, which is another indicator of the economy’s progress and recovery from the recession. While the unemployment rate still hangs at a troubling 7.7%, the fall in benefit applications — indicative of less firing — means more workers are hanging onto their jobs and have paychecks to spend.

That’s good news for consumer-oriented companies such as The Procter & Gamble Company (NYSE:PG) . Shares of the conglomerate have advanced 0.7% today, contributing to the stock’s 10.7% gain since the start of 2013. However, P&G still faces plenty of problems of its own: Falling gross margins and limited revenue growth have stalled the company’s progress, and while the stock’s tempting 2.9% dividend and relative stability appeal to income investors, it’s hard to imagine where significant growth will come from, even in an improving economy.

Fellow conglomerate 3M Co (NYSE:MMM) , which has picked up modest gains of 0.75% today, faces similar questions of growth. Like P&G, this stock has risen sharply in the new year, and it appeals to income investors with its nice 2.4% dividend, modest 37% payout ratio, and history of dividend increases. 3M has always been known for innovation, but the company will have to hope its efforts in areas such as the natural-gas industry — where it has developed fuel tanks for natural-gas-powered vehicles — will help power tomorrow’s growth.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 44 percentage points in 21 months Learn how!

Lists

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

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

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!