Late last Friday, after a week of losses, US equities started to tick up on optimism that the White House and Congress would be able to reach a budget agreement. The bullish momentum carried over to the start of the Thanksgiving week, with all major US indexes up sharply in mid-Monday trading.
“I think the surprise is going to be a more cooperative environment from our leaders going forward. And, maybe that is what the stock market sniffed out last Friday with its intraday upside reversal on heavy volume,” Jeffrey Saut, chief investment strategist at Raymond James, told MarketWatch
The Nasdaq Composite
(INDEXNASDAQ:.IXIC) was up 1.80% to 2,904.39 points on average trading volume of 799.07 million as of 12:12 p.m. EST.
(NASDAQ:BMTI) was the largest gainer on the day, soaring 74.22% to $7.23. It was announced earlier that the company would be acquired by Wright Medical Group
(NASDAQ:WMGI) (-1.20%) for some $190 million in cash and stock, or about $6.47 per share, which represented a 56% premium to BioMimetic’s Friday close.
Green Mountain Coffee Roasters
(NASDAQ:GMCR) was up a robust, if more modest, 9.02% to $26.76. Citing strong demand and weakening competition, Dougherty upgraded Green Mountain to Buy from Neutral on Friday with a price target of $35.
(NASDAQ:SINA) also surged 8.14% to $48.74 on news that China’s e-commerce giant Alibaba is planning to purchase a 15% to 20% stake in the Web portal.
(NASDAQ:AAPL) was another strong gainer in a bullish day. Shares were up 5.67% to $557.62. Bank of America’s Scott Craig earlier reiterated a Buy rating on Apple, though he cut this price target to $780 from $840. Apple is on its way to make its largest single-day gain since May 21, when the stock gained 5.8% to close at $561.30.
(NASDAQ:GRPN) advanced 5.70% to $3.15. Deutsche Bank said that after talking to the daily deals site’s management, it believed Groupon’s business trends will stabilize in the next two to three quarters. The bank reiterated its Hold rating on Groupon, though it added that it was “warming up” to the stock.
Shares of Research In Motion
(NASDAQ:RIMM) also moved up 2.39% to $9.42. The company had improved 8% last week after confirming January 30, 2013 as the BlackBerry 10 introduction date.
(NASDAQ:DMND) was one of the rare decliners on the day, sliding 11.27% to $13.42. Last week, Diamond Foods restated fiscal results for 2010 and 2011, removing $56.5 million in profit. As a result, Jefferies downgraded the stock to Underperfrom from Hold, and slashed the price target to $10 from $27, saying in a client note, “While management seems to have a viable strategy, we believe that it will take some time to show positive results and until then we prefer not to own the stock.”
No positions in stocks mentioned.
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