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Stock Market Today: What's Next After Dow at 15,000

By , Contributing Writer, Money Morning -

After record rallies last week took benchmarks to fresh highs, the stock market today took a breather.

Just before noon, the Dow Jones Industrial Average gave back 18.70, or 0.12%, to 14,955.26. The Standard & Poor's 500 Index inched higher by 1.55, or 0.10%, at 1,615.96. The Nasdaq eked out a 0.28%, or 9 -point gain, at 3,388.14.

Stocks surged Friday after the April jobs report handily beat expectations. The Dow broke 15,000 for the first time, and the S&P surpassed and finished above 1,600. For the week, the Dow added 261 points, or 1.8%, at 14,973.96. The S&P tacked on 32 points, or 2%, at 1,614.42. Helped by tech, the Nasdaq gained 99 points, or 3%, at 3,378.63.

"I think investors got a lift in their step from Friday's jobs report," Mark Luschini, chief investment strategist for Janney Montgomery Scott told CNN Money. "[But] this week, we're absent anything newsworthy."

Indeed, the week's economic calendar is quiet, and earning season is winding down. Notable reports this week include The Walt Disney Co. (NYSE: DIS) on Tuesday; Dish Network Corp. (Nasdaq: DISH) and Groupon Inc. (Nasdaq: GRPN) on Wednesday; and Priceline.com Inc. (Nasdaq: PCLN) on Thursday.

While the number of companies that have reported this season nearly doubled from 855 in 2009 to 1,655, the percentage that have beaten estimates remains at the same 59%. Moreover, just 52% have beaten revenue estimates, compared to the average of 60% since the bull market began in 2009, data from Bespoke Investment Group reveals.

That supports the consensus view that the Fed's market-friendly stimulus measures are driving stocks.

But will the gains stick?

For just the sixth time in 30 years, markets were up in January, February, March and April, according to Schaffer Investment Research. May got off to a robust start, but a cache of analysts are warning of a looming pullback.

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Stocks to Buy: Meet the New Defense Winners

By , Money Morning -

One segment of the stock market that is widely ignored right now is the defense sector - but as contrarians know, that means there are hot stocks to buy now if you know where to look.

The reason defense is shunned is that future defense budgets will be cut to rein in government spending and hopefully reduce the U.S. budget deficit.

Some programs have been hit by the sequester. Other initiatives are winding down as the endless flow of dollars that has been seen since 9-11 is slowing.

The most recent budget proposals call for reducing defense spending by an additional $150 billion over the next 10 years. That's on top of the $487 billion of cuts already in place and the $41 billion spending cuts mandated by the sequester.

All of this has dampened enthusiasm for defense stocks. While some of the larger defense companies have rallied this year most of the sector has been moribund and is lagging the overall stock market. It is very difficult for analysts and investors to determine which stocks will make attractive opportunities when no one yet knows exactly how much may be cut from the overall budget.

But not all stocks will suffer.

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This Dangerous "New" Energy Crisis is Crippling the Middle East

By , Global Energy Strategist, Oil & Energy Investor • @KentMoors_OEI -

Don't look now, but there are some problems developing in the global energy network.
It's hardly reassuring that the epicenter of all this is the Middle East.
The primary problem is hardly new. Actually, calling it an "old" problem is more accurate because the culprit is a collapsing network of delivery and storage that has been deteriorating for decades.
Unfortunately, this is hitting areas already beset by broad, accelerating economic shortfalls the hardest. That they also happen to be areas of significant unrest hardly improves the situation.
The latest crisis is in Pakistan. Here's why the picture there is so grim...

Stocks to Buy Now: How to Find the Next Whole Foods

By , Money Morning -

With conservative, low-beta sectors such as consumer staples driving the market higher in the first quarter, it is not surprising that select food stocks are getting in on the act, being among favorite stocks to buy in Q1.

Prized for their consistent, predictable earnings and in many cases, steadily rising dividends, food stocks usually viewed as boring by investors were first-quarter leaders.

For example, General Mills Inc. (NYSE: GIS) surged 19.3% in the first quarter. The maker of Cheerios, and other highly recognizable brands announced a 15% dividend increase in March. Rivals ConAgra Foods Inc. (NYSE: CAG) and Kraft Foods Group Inc. (Nasdaq: KRFT) are up 19% and 12.6%, respectively.

But investors who want the reliability of food stocks but are in search of more growth should look past these big-name favorites.

There is another group of stocks delivering huge gains in the industry, and that's health food stocks.

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Three Stocks to Buy to Beat Warren Buffett's Gains

By , Money Morning -

While many look to Warren Buffett's holdings to find the best stocks to buy, it turns out his holdings' rivals could be the better picks.

Buffett is known not only for value investing, but also buying shares only of companies that operate in prosaic, easy-to-understand businesses. That's why the holdings of Berkshire Hathaway Inc. (NYSE: BRK.A, BRK.B) are spectacular.

But in this look at how to find more stocks to buy that deliver - and even beat - the gains of Buffett's most popular holdings, some of the best bets could be companies that share a market with Berkshire's big winners.

Take a look.

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Stocks to Buy: This Cheap Metals Play Has 10-Bagger Potential

By , Money Morning -

The recent selloff in metals has made some opportunities for investors to scoop up stocks to buy at record discounts, and it's not just in gold and silver-related plays.

Although it is not as heavily traded as the shinier metals or treated as a safe haven asset, copper has also been slipping.

Copper prices recently fell to a 17-month low as more efficient mining practices has increased supply and demand has slowed. According to the Bureau of Metal Statistics copper supply will top demand by 97,000 tons in 2013.

The rise in the dollar has also pressured prices as copper is priced and traded in dollars.

This has caused a price plunge in copper-related stocks, giving some huge upside potential.

In fact, this tumble may be creating a huge opportunity in a special situation stock that is owned by some of the world's most successful investors. It's a chance to own a company with large reserves of copper that are worth far more than the current stock price.

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