The major U.S. stock indices closed higher Tuesday. Investors continue to bid up the stocks they believe will perform well under Trump's proposed policies and sell those that could be affected negatively by what he said during the campaign. But regardless of what the market does the next few days or months there are select stocks you can own and still make money.
Now let's look at three components of the Dow Jones Industrial Average
Shares of The Home Depot (HD) closed $3.27, or 2.6%, lower at $127.67 after the company reported quarterly results that beat Wall Street's expectations for revenue and earnings per share.
Revenue came in at $23.2 billion, above the $23.05 billion expected and up 6.1% compared with the same quarter last year. Adjusted earnings per share came in at $1.60, two cents higher than Wall Street anticipated and well above the $1.36 reported a year earlier.
Same-store-sales in the U.S. rose 5.9% from last year, but the company is facing a tough comparison in the fourth quarter after same-store-sales rose 8.9% in the fourth quarter of 2015. Management also increased its full-year earnings forecast by two cents to $6.33, matching analysts' estimates. So why is the stock down? Mainly because investors fear rising interest rates will hurt the housing and remodeling market. But don't expect that to happen. Home Depot remains a solid growth investment for the long haul.
Flipping through the channels on your television at any time of the day, you will see a handful of remodeling shows, indicating that Americans like fixing up their homes. Furthermore, if housing costs go higher, people will be more likely to remodel a home instead of purchasing a new one. On the flip side, if prices fall, fixing up your house before you sell it can help set it apart from others. Regardless of what happens with housing, Home Depot is an appealing value play.
One winner on the Dow Tuesday afternoon was Chevron (CVX) as shares rose 2.2%. The move came as crude oil jumped to $45.46 per barrel, up $2.14, or 5.01%, for the day. Crude oil's move higher comes as reports emerge that the Organization of Petroleum Exporting Countries tries to save a deal to cut output at its scheduled Nov. 30 meeting.
OPEC reported record higher oil output in October, which indicates oil's demand is currently high enough that just a slight reduction could cause a big price increase. That would in turn help big oil companies such as Chevron and Exxon Mobil. Right now investors should be weary of jumping into Chevron, Exxon or other large oil stocks because we have heard reduction rhetoric from OPEC in the past and not seen output reductions take place.
Boeing (BA) stock fell Tuesday, following news that United Continental announced it would be postponing receipt of 61 Boeing 737-700 planes it had on order. The airline now plans to switch them to newer 737 MAX planes at a later date. The news means Boeing probably will still get United's business but will recognize the revenue for the planes later.
United Continental's move is part of its efforts to cut costs. Oil prices may be factoring into its decision, too. The 737 MAX is more fuel efficient than the 737-700. United's investors should be happy with this move, but clearly Boeing's aren't. In the long run, Boeing is a great stock to own, and if you want to buy shares now, you're not making a bad move, but know that the stock is volatile in the short term.
Maybe Home Depot, Boeing and Chevron just aren't your style. That doesn't mean you can't buy any stocks today! Here is a list of seven companies that you will profit from, regardless of what the markets do. But with many calling for a coming crisis, now is the perfect time to make sure you and your portfolio are protected. Each one of these powerful, yet overlooked companies barely notices when the market tumbles. And they'll skyrocket when it rebounds. Get their names here before it's too late.