Why the DJIA Rose Today - 139-Point Gain

why the DJIA rose todayThe Dow Jones added 139 points Tuesday. The cause? Investor optimism about a pending deal to address Greece's debt crisis.

Also fueling upward momentum for the DJIA were better than expected earnings from companies such as The Coca-Cola Co. (NYSE: KO).

Today's Scorecard:

Dow: 17,868.76, +139.55, +0.79%

S&P 500: 2,068.59, +21.85, +1.07%

Nasdaq: 4,787.65, +61.63, +1.30%

The S&P 500 Volatility Index (VIX), the market's fear gauge, slipped 7.3% on the day.

What Moved the Markets Today: The European Commission plans to introduce a compromise proposal to address Greece's debts. The deal would give Greece another six months to work with lenders on pending issues and a post-bailout plan.

Now, check out the other top market stories - plus get our new profit tip for investors:

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  • All About Oil: Crude oil prices slumped after a new forecast released by the International Energy Agency. The global energy watchdog said the price of oil will recover "relatively swiftly" but will not come close to returning to the highs of the last few years. WTI fell 5.4% to hit roughly $50.02 per barrel. Brent fell 3.3% on the day.
  • Activists Attack: A group of activist investors is taking aim at General Motors Co. (NYSE: GM). The group, which includes David Tepper of Appaloosa Management and Kyle Bass of Hayman Capital Management, are pushing the automaker to buy back no less than $8 billion worth of shares within the next 12 months. GM stock was up more than 4% on the day.
  • A Caffeine Shot: As The Coca-Cola Co. (NYSE: KO) continues to look toward its largest market to boost sales, the company reported better than expected profits this morning. Sales in North America, its largest market, increased for the first time in four earnings periods. The company said U.S. sales helped offset concerns about a stronger dollar in the international markets. In the United States, analysts said customers are consuming fewer Coke products, but are willing to pay more. This is a sign of improving household economics, fueled by falling gas prices and higher discretionary income.
  • Big Breach: The world's second-largest bank could face criminal prosecution over its alleged role in helping ultra-wealthy customers hide money in Swiss bank accounts. U.S. authorities are currently investigating HSBC Holdings Plc. (NYSE ADR: HSBC) to determine whether it engaged in tax evasion on behalf of clients. The company is already under the microscope for possibly manipulating currency rates. The new investigation could push the Department of Justice to revisit a deferred prosecution agreement that the bank settled in 2012. For a breakdown of HSBC's huge leak, be sure to read our full report right here.
  • Energy Fallout: Shares of Halliburton Co. (NYSE: HAL) slipped as much as 3% on news the global oilfield services plans to slash its workforce by as much as 8%. Falling oil prices continue to affect capital expenditures of some of the world's largest oil producers.
  • An Apple a Day: Shares of Apple Inc. (Nasdaq: AAPL) were up more than 1.9%. Apple stock hit a new 52-week high and boosted the Nasdaq and the S&P 500 after it priced Swiss franc bonds. The new bond strategy will allow the tech giant to access a new set of fixed-income investors. The company also announced plans this afternoon to partner with First Solar Inc. (Nasdaq: FSLR) to build an $850 million solar farm in California.
Money Morning Tip of the Day: "Transformational companies" held for many years can be the best investments of your lifetime.

Money Morning Executive Editor Bill Patalon recently discussed "transformational companies" in his Private Briefing research service. He defined them as firms so revolutionary, they change the way business in their sector is done. They even change buyer behavior.

When investors get a piece of one of these companies and have the patience to hold it for many years, the profit potential can be greater than any other investment they've made before...

Consider Wal-Mart Stores Inc. (NYSE: WMT).

Wal-Mart changed the way America shops. It shifted the power base in retailing from product suppliers to the retailer itself.

Timing - when these firms emerge - is a crucial factor. And Wal-Mart reached its own "critical mass" just as the U.S. middle class emerged.

Let's look at what would have happened if you'd invested in Wal-Mart in its early days.

Wal-Mart went public in 1970, offering 300,000 shares at $16.50 each. The company has had 11 two-for-one stock splits since that time. That means its "split-adjusted" IPO price is actually $0.008057 per share.

If you had bought 100 WMT shares at the IPO - an outlay of $1,650 - and held them until today, you'd now have 204,800 Wal-Mart shares. The stock was trading at $87.00 a share last Friday afternoon. That means your original $1,650 outlay would now be worth just a bit more than $17.817 million.

So you see, spotting and investing in one of these revolutionary firms early on can lead to massive long-term returns. And we're here to help you spot those next Wal-Marts.

Patalon revealed another "transformational company" that investors can get in on today, and at a discount - go here to find out what it is...

About the Author

Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.

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