DJIA Index Falls 200 Points to End Q1 in the Red

MoneyMorning.com Report

– The
DJIA Index

plunged 200 points Tuesday. The cause? Energy stocks drove the
market downward as Iranian nuclear deal talks weigh down
oil
prices

.

The markets pared gains from
Monday’s massive rally

. Basic materials stocks were the biggest decliners Tuesday.
Dow Chemical Co.

(
DOW

),
Freeport-McMoRan Inc.

(
FCX

), and
Air Products Chemicals Inc.

(
APD

) all lost more than 1.4% on the day.

Today’s Scorecard:

Dow: 17,776.12, -200.19,

-1.11%

SP 500: 2,067.89, -18.35,

-0.88%

Nasdaq: 4,900.88, -46.56,

-0.94%

The SP 500 Volatility Index (VIX), the market’s fear gauge,
gained 5.3% on the day.

What Moved the DJIA Index Today:

Talk of a potential nuclear deal between the United States and Iran
pushed oil prices downward. Western nations and Iranian
leaders have extended negotiations through Wednesday, although the
deadline could be pushed back until June. Brent oil, priced in
London, fell roughly 2.4% to $54.90 per barrel. WTI crude,
priced in New York City, slipped nearly 2.6% to fall below $47.42
per barrel. But to assume that a deal would fuel lower oil prices
immediately

is a mistake, according to

Money Morning

Global Energy Strategist Dr. Kent Moors. “The ‘Iranian card’ will
have no short- or medium-term impact on oil prices,”
Moors said

earlier in March.

Richmond Fed President Jeffrey Lacker stated his case today for
the U.S. Federal Reserve to raise interest rates in June. The noted
hawk on monetary policy dismissed recent economic data and blamed
wintry weather for muted growth in the economy. Lacker noted the
labor market, consumer spending, and several other key data sets
have shown strong improvement over the last year.

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

• Eurozone Worries:

  This afternoon, Warren Buffett, chairman and CEO of
  Berkshire Hathaway Inc.

  (NYSE: BRK.A), said Greece’s departure from the Eurozone “may not
  be a bad thing for the euro.” During an interview with
  
  CNBC
  

  , Buffett said a “Grexit” could create a better framework for
  future fiscal policy in the region. Buffett made headlines last
  week after he worked with private equity giant 3G Capital to
  drive a merger between
  Kraft Foods Group Inc.

  (Nasdaq: KRFT) and H.J. Heinz Co. Here’s a breakdown of 10 Warren
  Buffett stocks to watch in 2015…

• Retailer Rally:

  Shares of
  JCPenney Company Inc.

  (
  JCP

  ) jumped 7.4% after the retail giant received a price upgrade
  from Piper Jaffray. The investment bank raised its target level
  from $13 to $14 and reaffirmed its “Buy” rating. Analysts said
  the company was facing positive momentum in revenue and that
  spring weather and marketing efforts are in the company’s
  favor.

• Daily Deals:

  It was a second consecutive day of big deals in the markets.
  Commercial real estate investment company
  CBRE Group Inc.

   (NYSE: CBG) announced it will purchase Global
  Workplace Solutions, a real estate services business of
  Johnson Controls Inc.

   (NYSE: JCI), for roughly $1.5 billion. JCI shares rose
  1.2% on the day.
  Endurance Specialty Holdings Ltd.

  (NYSE: ENH) said it will purchase reinsurance firm
  Montpelier Re

  Holdings Ltd.

  (NYSE: MRH) for $1.83 billion in cash and stock. Montpelier
  shares were up nearly 1% on the day. ENH shares slipped nearly 5%
  on news of the deal.

• An Apple a Day:

  Shares of
  Apple Inc.

  (Nasdaq: AAPL) slipped 1.5% this afternoon despite receiving a
  price target upgrade from RBC Capital. Analyst Amit Daryanani
  raised their target to $142 per share, which is a 13% increase
  over today’s closing price. The analyst predicted the company
  would see strong iPhone sales over the second quarter and would
  be able to solve currency concerns and supply chain issues that
  have battered the company this year. Go here for all the latest
  news and analysis on
  Apple stock

  …

Money Morning Tip of the Day:

Not every special situation or “turnaround” play will
be profitable. But these three catalysts all point to a
company’s successful turnaround.

Today’s tip comes from
Money Morning

Tech Expert Michael A. Robinson:

Investing in companies that are in the midst of a turnaround
can be risky. You have to be willing to put your hard-earned
money into companies with steep losses. And not all can succeed
and produce big gains for investors.

Here are three tell-tale catalysts that can help you find
these big-profit stocks.

No. 1. A Solid Recovery Starts at the Top.

I like to see fresh blood at the top for a simple reason: When
companies get into trouble, it often follows from a series of bad
decisions by senior management. So, if the company needs to go in
a new direction, that requires execs who will bring in new ideas
and approaches with them. If a board of directors isn’t willing
to change leaders, it isn’t serious about righting a sinking
ship.

No. 2. The Company Must Find New Growth.

To convince key customers, lenders, and investors that it has
embarked on a new direction, a once-troubled firm has to offer
more than just lip service. It must have something new to
deliver. This can include new products, markets, or ways of doing
business.

No. 3. The Company Must Improve Its Financials.

In all the years that I’ve analyzed turnaround firms and their
stocks, I’ve yet to see one that didn’t need at least some
improvement in its balance sheet. Of course, we like to see lots
of new sales. But if the firm can’t improve its cost structure,
sooner or later it’s going to end up in financial trouble.

Robinson shared a company that meets all three of these
criteria, and its stock could soar 50% in less than three
years. Get it here:

How to Find Tech Stocks Ready for a Turnaround