Best stocks to buy for the week ending Jan. 10, 2014: We're barely two weeks into 2014 and the U.S. Federal Reserve is already dominating headlines - and sending ripples through the markets.
Janet Yellen was confirmed last week as the central bank's new chairwoman, followed by release of the highly anticipated minutes from the Fed's last meeting. And the Fed was again in focus Friday as the disconcerting December jobs report left the central bank's decision to taper its bond-buying program in question.
Markets had a mixed response to this uncertainty. The Dow Jones Industrial Average dipped 33 points, or 0.2%, to close out the week at 16,437.05. The S&P 500 Index eked out a modest 0.6% gain, or 11 points, to 1,842.37.
Meanwhile, the tech-heavy Nasdaq added 1%, or 43 points, to reach 4,174.66, as the Las Vegas Consumer Electronics Show buoyed tech sector optimism.
Stocks may be off to a slow start this year after last year's record gains, but there are still plenty of ways to profit. Money Morning alerts readers to the savviest investing strategies and best stocks to buy now. Following is a recap from last week.
- The S&P 500 Index gained 32.9% last year, but many Money Morning picks logged even better gains. Defense & Technology Specialist Michael A. Robinson identified last year a stock that hadn't yet caught Wall Street's eye and predicted it would double in less than three years. And double it did - but in only five months. The stock has now garnered widespread attention, and Wall Street pros say it's set to double or even triple from here. Robinson agrees - so check it out and get on board now, while there's still plenty of upside.
- The auto industry has been stepping on the gas - in November, the industry sold a record-setting $1 billion worth of vehicles a day. But it's not the cars and trucks that have Robinson so enthusiastic - it's all the pioneering technology that comes standard with today's new vehicles. "This flood tide of new vehicles will have more cutting-edge technology than ever before, creating a perfect storm of two exploding industries," wrote Robinson. He says now is the most exciting time for the auto industry in the 34 years he's been tracking it, and he's especially excited about a "pure play" that could fuel plenty of profits for investors. Find out what small tech stock could be the auto boom's biggest winner.
- Money Morning is a big proponent of tech stocks, which were in focus at last week's 2014 Consumer Electronics Show. Money Morning featured the five coolest things to see at CES 2014 and underscored the hottest trend to emerge from the event: wearable devices. The tech-wearable movement started last year with the launch of smartwatches and grew with the debut of Google Glass. Sitting in the sweet spot amid the wearable tech drift is Intel Corp. (Nasdaq: INTC). Read here how the company plans to secure a big slice of the wearable device market in 2014.
- Amazon.com Inc. (Nasdaq: AMZN) stock nearly doubled in 2013 despite the company forgoing short-term profits in favor of long-term growth. Amazon has been busy building new warehouses and pouring money into research and development for future enhancements like drone deliveries. Now Amazon has morphed into the world's largest web retailer. AMZN stock recently received an upgrade that suggests a near 25% additional upside. Find out what's driving Amazon.com shares higher and why it remains a favorite stock to buy now.
- The production of natural gas from shale formations is driving today's natural gas industry. The Energy Information Association expects natural gas marketed production to grow at a modest average rate of 2.1% in 2014 and 1.3% in 2015. But Money Morning highlighted five big trends last week that are likely to propel natural gas much higher this year. Check it out and see why you'll want to rebalance your portfolio to include natural gas stocks. In addition, the outlook for LNG stocks is brighter than ever. And, get some promising LNG stock picks in LNG Stock News: This Global Revolution Is Gaining Speed.
- Money Morning may be the best place to start your search for the best oil stocks to buy, but the next best place is deep in the heart of Texas. The Lone Star State has two of the largest shale formations in America: the Eagle Ford Shale and the Permian Basin. It is fresh discoveries in the Permian Basin - the Wolfcamp Shale, to be exact - that stand to make a big score for investors this year. In fact, some analysts estimate that the Wolfcamp may be the second largest oil formation in the world. We found two stocks to buy to profit from the Wolfcamp Shale - get them here for some of the best oil investments of 2014.
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