Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

How Much Can Microsoft Corporation (MSFT) Move the Dow Jones Industrial Average (.DJI)?

Microsoft Corporation (MSFT)When economic news is mixed, quarterly results often make the difference for the stock market during earnings season. For those following the broad economy, today’s data didn’t give a clear signal. Pending home sales rose 1.5%, but the National Association of Realtors emphasized a sudden lack of inventory as holding back sales activity. This has mixed implications, including the potential for a faster rise in home prices but also an accompanying decline in home turnover and related business that results from sales.

Meanwhile, consumer income and spending both come in below expectations, with gains of just 0.2% suggesting that consumers aren’t entirely convinced that the recovery can continue even at its current pace. Still, the Dow Jones Industrial Average (Dow Jones Indices:.DJI) barely paused in its advance, rising 68 points by 11 a.m. EDT and pulling the S&P 500 up to within a couple points of a new all-time record.

Once again, Microsoft Corporation (NASDAQ:MSFT) was the big winner in the Dow Jones Industrial Average (Dow Jones Indices:.DJI), rising more than 2% and extending its recent gains to 13% in just the past week and a half. Despite ongoing skepticism about the prospects for its Windows 8 operating system, Microsoft Corporation (NASDAQ:MSFT) is benefiting from investors who see the stock as a value proposition. Hype about the coming new Xbox release could also refocus attention on the more successful gaming console business and raise awareness of the Microsoft Corporation (NASDAQ:MSFT) ecosystem, which has huge growth potential if the company can get more people to embrace it.

Beyond the Dow, SINA Corp (NASDAQ:SINA) has jumped 13.3% after announcing that Alibaba had bought an 18% stake in SINA Corp (NASDAQ:SINA)’s Weibo microblogging business. China’s answer to Twitter, Weibo has attracted a lot of attention from tech investors in the emerging market, and with Alibaba also getting options to potentially boost its Weibo stake in the future, Sina is clearly going to be a player in the rapidly evolving Chinese Internet industry.

On the downside, Nam Tai Electronics, Inc. (NYSE:NTE) has plunged 36% despite reporting sales that doubled from year-ago levels. Even though the company beat expectations, its guidance raised concerns that narrow margins might force Nam Tai Electronics, Inc. (NYSE:NTE) to shut down production of LCD modules. The news comes as a reminder that it’s important to look forward, rather than backward, in evaluating businesses releasing earnings.

The article How High Can Microsoft Take the Dow? originally appeared on 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 SINA. The Motley Fool owns shares of Microsoft.

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

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.