Wyatt Research Week-in-Review: March 29

It was a short trading week, with the markets closed in observance of Good Friday. But the week still had its full share of market news.
Tuesday signaled the end of the first quarter. The Dow Jones Industrial Average marked the occasion by dropping 200.19 points to finish the quarter in the red at 17776.12. The Dow ended the quarter down 2.8% from its peak, set on March 2.
The S&P 500, meanwhile, rose 0.4% for the quarter, ending at 2067.89. It finished the quarter 2.3% off its peak, also set on March 2. In all, at least 17 stock indexes set all-time highs worldwide.
Here at Wyatt Research our team put in a full week’s work in four days analyzing the latest market news, including a tweet from Tesla (NASDAQ: TSLA) CEO Elon Musk which teased a new Tesla product line (not a car) to be unveiled April 30.
Here are some of my favorite articles from the week:
This Fast Food Stock Is a $20 Billion Hedge Fund Target – The biggest standout from a $20 billion hedge fund’s fourth quarter letter to investors is the fund manager’s confidence in this troubled fast food stock.
Should You Pass on the Kraft Heinz Merger? – Shares of Kraft Foods Group (NASDAQ: KRFT) soared 45% in the wake of the announcement that it will merge with H.J. Heinz – a move orchestrated by Berkshire Hathaway (NYSE: BRK-B) and Brazilian private equity firm 3G Capital Partners. But Wyatt Research expert Stephen Mauzy isn’t sold. He explains here why he’s leaving a $16.50 dividend on the table.
Apple Is About to Flex Its Dividend Muscle – With just a 1.5% yield, Apple (NASDAQ: AAPL) is an easy stock for income investors to pass up. But it’s set to update its capital allocation program in April, which could mean a big dividend increase and/or stock repurchase program.
Is Bigger Better with Oil Stocks? – It’s no secret that Exxon Mobil (NYSE: XOM) is the world’s largest public oil and gas company. But is it the best dividend option among oil stocks?
Tesla’s Secret: Elon Musk Teases New Product – A single tweet from Tesla’s billionaire CEO sent Tesla shares higher this week. “Major new Tesla product line — not a car — will be unveiled at our Hawthorne Design Studio on Thurs 8pm, April 30,” Musk wrote on Twitter (NYSE: TWTR). Our Jay Taylor speculates here on what the latest offering from the electric car innovator will be.
Are Stocks Overvalued? – Data from FactSet shows that the forward 12-month P/E ratio for the S&P 500 now sits at 17.0, based on the consensus forward 12-month EPS estimate of $123.03. The market’s average forward P/E over the past five years was 13.7. Over the past 10 years it was 14.1. Top analyst Tyler Laundon digs into the numbers and takes a close look at the relative performance of small- and mid-cap stocks here.
Could Messenger Put Facebook Over the Top? – Facebook (NASDAQ: FB) announced at its F8 conference last week that it’s opening up its Messenger service to third-party apps. What does the move mean for the long-term performance outlook of its stock?
The Best Indicator of a Winning Stock – Dividends are certainly important for income investors. But there is another far more important factor that will contribute to your overall portfolio performance.
Have a great long weekend!