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By Jason Stipp and Jeremy Glaser | 05-10-2013 06:00 AM

The Friday Five

Five stats from the market and the stories behind them. This week: no magic in Dow 15,000, 10% growth for a content king, Windows 8.1, and more.

Jason Stipp: I'm Jason Stipp for Morningstar, and welcome to The Friday Five: five stats from the market and the stories behind them.

Joining me as always with The Friday Five is Morningstar markets editor Jeremy Glaser.

Jeremy, thanks for being here.

Jeremy Glaser: My pleasure.

Stipp: So what do you have for The Friday Five this week?

Glaser: We're going to talk about the numbers 15,000, 3, 10%, $1.6 billion, and 8.1.

Stipp: 15,000 marks a new high for the Dow Jones Industrial Average. What do valuations look like as we've run up so much now?

Glaser: The Dow hit through that 15,000 ceiling for the first time, and I think it's important for investors to realize that it doesn't actually mean anything. These are just arbitrary signposts along the way. Just because it hits 15,000 doesn't mean necessarily that stocks are hugely overvalued or hugely undervalued. In fact, our team of equity analysts thinks that stocks are just ever so slightly overvalued right now. The median price-to-fair value of the shares that they cover is trading about 3% over its fair value. So it certainly doesn't look like they're outrageously priced or in a bubble.

But I think that when you have a fully valued stock market, and when you have somewhat of an uncertain economic environment like we're in right now globally, stock selection becomes just that more important. I think there very well could be a pullback if we see some weaker-than-expected data, if earnings, say, next quarter don't look as strong or there seems to really be a spring pullback. If the market were to fall, it would be important to really get into the shares that are the higher-quality companies. It would be important to find companies that are trading at a discount to their fair value, so you have that margin of safety. I think when we hit a milestone like this, it's just a reminder that stock selection is a lot more important here than it was at, say, Dow 7,000.

Stipp: Starbucks will now be able to sell three times, or triple, the number of K-Cup coffee pods through that channel. What does that mean for the Starbucks business?

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