The 2 Stocks Behind the Dow’s Gains This Morning: International Business Machines Corp. (IBM), Chevron Corporation (CVX)

The amazing run of record highs for the Dow Jones Industrials appears poised to continue today as the market responds favorably to data showing fewer unemployment claims and a lack of inflationary pressure at the wholesale level. As of 10:55 a.m. EDT, the Dow is up 58 points, or 0.4%, to break through the 14,500 mark. The broader market is up similarly on a percentage basis.

International Business Machines Corp. (NYSE:IBM)Given the way the Dow is calculated, high-priced stocks have the most influence, and that’s where the gains are coming from today. International Business Machines Corp. (NYSE:IBM) rose a seemingly modest 1.4%, but its rise accounted for more than 20 points of the Dow’s gain. Investors appear to be increasingly optimistic about the tech giant’s move into the cloud-computing arena through its Big Data initiative, focusing on bringing more medium-sized businesses into the trend toward cloud-based enterprise software. Given the speed of the trend, International Business Machines Corp. (NYSE:IBM) could use the initiative as a major part of its drive toward boosting earnings per share to $20 within the next two years.

Meanwhile, Chevron Corporation (NYSE:CVX) gained 1.3%, accounting for more than 10 points of the Dow’s rise. As of this morning, a fire that occurred when a tugboat struck a Chevron gas pipeline was continuing to burn. Yet the news hasn’t kept the stock from setting new record highs, with the potential of an expansion of California-based hydraulic fracturing potentially providing a much-needed boost to Chevron Corporation (NYSE:CVX)’s domestic resources.

Outside the Dow, earnings news dominated the gainers. Ebix (NASDAQ:EBIX) soared 8.5% after the insurance support company announced better-than-expected fourth-quarter results this morning. Yet long-term investors should focus more on the huge opportunity that Obamacare offers the company as millions of new customers tax the systems that insurance companies have in place to track them, pushing more of those companies to bring on Ebix as a partner to help support their operations.

Finally, Flotek Industries Inc (NYSE:FTK) has gained 8.5%. Earnings came in better than expected, with net income nearly doubling for the full 2012 year compared to 2011. Given all the activity going on in the energy industry, Flotek is set to continue offering drilling products and production-enhancement technology well into the future.

The article The 2 Stocks Behind the Dow’s Gains This Morning 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 Chevron and Ebix. The Motley Fool owns shares of Ebix and IBM.

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

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

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!