Top 5 Blue Chip Companies To Buy Right Now

Sunshine turned to storm clouds today as stocks continued the slide that began last week.

AP

The S&P 500 dropped 0.5% to 1,781.56 as Xerox (XRX) and E*Trade Financial (ETFC) fell. The�Dow Jones Industrial Average outperformed for once: Blue chips fell 0.3% to 15,837.88 as Caterpillar’s (CAT) big gain helped mitigate the big drops in Visa (V) and Goldman Sachs (GS). Still, the Dow fell for a fifth consecutive day, its longest slide since Dec. 5, 2013.

Strategas Research Partners’ Chris Verrone and�Todd Sohn�are waiting for a bounce. They write:

From the January 15th high, the market is now down about -3% and roughly 48% of S&P 500 constituents are trading at a 20-day low (which is certainly getting closer to the 50-60% threshold that can often be an early, but buyable oversold signal). Notably, spot VIX is also trading through the third month contract which is often consistent with a tradable bottom. Our best guess is that stocks are within a % or two of finding support and bouncing, but suspect 1Q is likely to remain choppy (particularly as seasonality starts to fade into February).

Top India Stocks To Watch For 2015: Visa Inc.(V)

Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. The company owns and operates VisaNet, a global processing platform that provides transaction processing services. It also offers a range of payments platforms, which enable credit, charge, deferred debit, debit, and prepaid payments, as well as cash access for consumers, businesses, and government entities. The company provides its payment platforms under the Visa, Visa Electron, PLUS, and Interlink brand names. In addition, it offers value-added services, including risk management, issuer processing, loyalty, dispute management, value-added information, and CyberSource-branded services. The company is headquartered in San Francisco, California.

Advisors' Opinion:

• [By Sam Robson]

  LONDON: Following reports that�Verizon Communications (NYSE: V  ) �has hired advisors on a bid to buy out its stake in Verizon Wireless,�Vodafone (LSE: VOD  ) (NASDAQ: VOD  ) �soared in trading today, pushing 200p -- a height not previously seen since December 2001.

• [By Ben Levisohn]

  No really. Don’t call it a comeback. U.S. stocks tried with all its might to finish the day in positive territory, but in the end it could not overcome big drops in stocks like Visa (V) and JPMorgan Chase�(JPM).

• [By Paul Ausick]

  The stock doing its best to sink the Dow 30 today was Visa Inc. (NYSE: V). The credit and debit card issuer was hit with a $5 billion lawsuit this morning. Wal-Mart Stores Inc. (NYSE: WMT) is the first of the big retailers to file its own case for damages related to card swipe fees charged by Visa and other issuers. Visa�� stock traded down 1.91% today at $211.65 in a 52-week range of $161.27 to $235.50. Trading volume was nearly equal to the daily average of around 3.2 million shares traded.

• [By Dan Newman]

  "Bitcoins" either sound like a futuristic, implantable, laser-guided and rocket-pack equipped form of money, or the latest coin-shaped chocolate snack. In reality, it's probably a bit of both. The bitcoin, a digital currency, started the year worth about $15. Less than four months later, one bitcoin now trades above $70. While this past performance may be enticing and a sign of its legitimacy as a future currency, the bitcoin market is full of risks -- risks that may make bitcoins worth as much as a foil-wrapped piece of sugar. Bitcoin: A Crypto-Currency Bitcoin is based around the idea of a currency created and transacted through cryptography instead of issued and tracked through a central bank. And to add to its mystique, the creator of bitcoin only goes by a pseudonym and has never been positively identified. Instead of any legal authority, bitcoin transactions are verified through peer-to-peer interactions. If a user sends bitcoins to another user's "wallet" file, that transaction is verified through other users, and is written into the collective transaction log. And given the ease of transactions, any fees for transfers are minimal. Instead of a mint, bitcoins are created through a process called "mining," where computers attempt to solve for a certain number, and once found, are rewarded with new bitcoins. The rewards decrease with time, however, and there will only ever be about 21 million bitcoins created, three-quarters of which by 2016, and all by 2140. Even if you don't understand any of the above, the recent jump in valuation probably still has your interest. But there are plenty of reasons to continue to educate yourself before attempting to trade in bitcoins.

  bitcoincharts.com Glitches Not having any legal regulation, bitcoin has attracted plenty of thieves through the websites that create trading markets: In 2011, the third-largest trading site, Bitomat, lost its wallet file, which held 17,000 bitcoins worth more than $200,000 at th

Top 5 Blue Chip Companies To Buy Right Now: International Business Machines Corporation(IBM)

International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology-based support services. The company?s Global Business Services segment offers consulting and systems integration, and application management services. Its Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management, and predictive analytics; Tivoli software for identity management, data security, storage management, and datacenter automation; Lotus software for collaboration, messaging, and so cial networking; rational software to support software development for IT and embedded systems; business intelligence software, which provides querying and forecasting tools; SPSS predictive analytics software to predict outcomes and act on that insight; and operating systems software. Its Systems and Technology segment provides computing and storage solutions, including servers, disk and tape storage systems and software, point-of-sale retail systems, and microelectronics. The company?s Global Financing segment provides lease and loan financing to end users and internal clients; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services. It serves financial services, public, industrial, distribution, communications, and general business sectors. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. IBM was founded in 1910 and is based in Armonk, New York.

Advisors' Opinion:

• [By tyokunbo]

  Hewlett Packard�� market rivals include Accenture (ACN), International Business Machines (IBM), and the privately held Dell. To gain advantage over the competition, Hewlett Packard is building a lean organization with a focus on its strong performance management.

• [By Ben Levisohn]

  With International Business Machines (IBM), Cisco Systems (CSCO), and Exxon Mobil (XOM) streaking, the major benchmarks didn’t just extend their winning streak to two days, they did it with style.

  David Clifford for the Wall Street Journal

  The Dow Jones Industrial Average gained 129.21 points, or 0.8%, to 15,884.57 today thanks to big gains in International Business Machines, which gained 2.9% to $177.85, Cisco Systems, which rose 2.2% to $20.68 after S&P raised its credit rating, and Exxon Mobil, which was upgraded by Goldman Sachs. The S&P 500 rose 0.6% to 1,786.54, as Allergan (AGN) gained 3.8% after last week’s Credit Suisse upgrade, and Tesoro (TSO) advanced 3.7% to $58.37.

  The major averages got a boost from solid economic data that showed the U.S. economy, you know, improving. Of course, it remains to be seen whether this pickup in economic growth proves sustainable or just another head fake as in previous years. Really though, it doesn’t matter what you or I think, it’s up to the Fed, who will meet tomorrow and Wednesday and decide whether or not it will start the taper.

  Mizuho Securities USA’s Steven Ricchiuto says that it would be a mistake to begin tapering now. He writes:

  There is a growing perception that the economy is headed towards a self-sustaining growth trajectory in 2014 and therefore higher long�term rates are justified. This pro-cyclical story rests largely on the view that a reduced fiscal drag in 2014 will allow the underlying improvement in the economy to show through. Now that it looks as if a budget compromise has been achieved, this is seen as further reducing the uncertainty that depressed 2013 growth. Our more cautious view on the economy stresses the ongoing household sector balance sheet restructuring and its negative effect on banks as the reason why 2014 will be another disappointing year despite the last two jobs reports. Moreover, we see the reduced fiscal

• [By WALLSTCHEATSHEET]

  IBM provides essential information technology products and services to growing companies and consumers around the world. The stock has been on a strong bull run in recent years but is now consolidating slightly below all-time high prices. Earnings have been steadily increasing while revenue figures have decreased over the last four quarters, which has confused investors a bit. Relative to its strong peers and sector, IBM has trailed in year-to-date performance. WAIT AND SEE what IBM does this coming quarter.

Top 5 Blue Chip Companies To Buy Right Now: McDonald's Corporation(MCD)

McDonald?s Corporation, together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonald?s restaurants that offer various food items, soft drinks, coffee, and other beverages. As of December 31, 2009, the company operated 32,478 restaurants in 117 countries, of which 26,216 were operated by franchisees; and 6,262 were operated by the company. McDonald?s Corporation was founded in 1948 and is based in Oak Brook, Illinois.

Advisors' Opinion:

• [By Tim McAleenan Jr.]

  Mankiw mentions that investors should get European exposure. Why not just buy McDonald's (MCD) stock? That accounts for 40% of McDonald's sales and operating profit, and gives investors exposure to Europe. McDonald's has 1,400 restaurants in Germany and over 1,200 chains in France. In fact, part of McDonald's explanation for weak earnings numbers lately has been the strength of the dollar against the euro. If you want to bet on a strengthening euro, you could do it on the backs of Big Macs and McNuggets by purchasing shares of a company that would allow a strengthening euro to translate into growing quarterly dividend checks in your pocket.

• [By Jeremy Bowman]

  The Dow Jones Industrial Average (DJINDICES: ^DJI  ) closed out essentially where it started today as McDonald's (NYSE: MCD  ) earnings this morning cooled off what was an otherwise bullish day for Wall Street. While the Dow closed up just 2 points, or 0.01%, the S&P 500 gained 0.2%, ending at a record high for the third session in a row as a solid start to earnings season has lifted the market. About 64% of the S&P 500 companies that have reported so far have beaten earnings estimates. Only one economic report was released today, which showed June existing home sales coming at 5.08 million, slightly below May's mark of 5.14 million and below expectations at 5.28 million. Investors continue to be concerned that the housing recovery could cool off as mortgage rates have come up.

• [By Brian Stoffel]

  By combining the food qualities from La Boulange and the drive-through in more car-centric locations, its easy to see how even McDonald's (NYSE: MCD  ) might be in for a fight with the fast-food crowd.

• [By Kyle Spencer]

  McDonald's (MCD) is slashing its 20 piece box from 36 to 20 RMB "���涓��. Given the 4% higher comp rate that McDonald's is already being punished with as it tries to adjust to Asian palates, how badly do you think McDonald's Asian sales are going to suffer if they can't sell chicken?

Top 5 Blue Chip Companies To Buy Right Now: Chevron Corporation(CVX)

Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment involves in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as holds interest in a gas-to-liquids project. The Downstream segment engages in the refining of crude oil into petroleum products; marketing of crude oil and refined products primarily under the Chevron, Texaco, and Caltex brand names; transportation of crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacture and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It a lso produces and markets coal and molybdenum; and holds interests in 13 power assets with a total operating capacity of approximately 3,100 megawatts, as well as involves in cash management and debt financing activities, insurance operations, real estate activities, energy services, and alternative fuels and technology business. Chevron Corporation has a joint venture agreement with China National Petroleum Corporation. The company was formerly known as ChevronTexaco Corp. and changed its name to Chevron Corporation in May 2005. Chevron Corporation was founded in 1879 and is based in San Ramon, California.

Advisors' Opinion:

• [By Claudia Assis]

  Shares of Exxon Mobil Corp. (XOM) �rose 1.6%, while Chevron Corp. (CVX) �shares advanced 1%. Shares of ConocoPhillips (COP) , however, declined 0.1%.

• [By Matt Thalman]

  Shares of Chevron (NYSE: CVX  ) are down 1% today as the price of crude sinks. Just yesterday the stock was up 1.1% for the session, and I commented on how even at their current price, shares look rather cheap. The company is trading at less than 10 times earnings and pays a healthy 3.2% dividend yield. When we look at the company from a growth perspective, it doesn't look like a big winner with a market cap of $245 billion, so it's unlikely the stock will more than double in the coming years. But the strong dividend, combined with increasing worldwide demand for oil and energy, will make Chevron a stable winner for the years to come.

• [By David Smith]

  A Foolish takeaway
  On Friday, also in part due to lower crude prices, Chevron (NYSE: CVX  ) , which has been considered more compelling than Exxon in many quarters, saw its net income for the quarter dip by 4.5%. Nevertheless, given the continuously expanding world in which they operate, I'm inclined to watch the big integrated companies carefully. ExxonMobil should hardly be shunted aside.