Market Recap: The Homies N' Bear Help the Rally
Bear news and existing home sales boosted the market.
The Dow Industrials closed +187 points, or +1.52% to $12,548. The S&P 500 finished +20 points, or +1.53%, and the Nasdaq Composite surged +3% to 2,326.
Topping headlines this morning was a report by The NYT that J.P.Morgan Chase (JPM) was willing to up its offer for Bear Stearns (BSC) to $10 per share. The parties were reported to be in negotiations over the weekend to sweeten the deal to over five times above last week's price of $2 per share. BSC shares were halted prior to confirmation, but the stock soon surged as high as $13.85 after an announcement was made. Financial stocks rallied on the news and were higher for much of the session, but late-day weakness caused some stocks to finish in the red. BSC finished the day +88% to $11.25. Merrill Lynch (MER) closed +3.2% to $48.38. JPM closed +1.26% to $46.55. Among the losers, Morgan Stanley (MS) fell -1.8% to $48.75. Goldman Sachs (GS) declined -0.42% to $178.88, and Lehman Brothers (LEH), which was in the red all day, settled -4% to $46.64. Read Professor John Mauldin's What If Bear Wasn't Bailed Out?
Housing stocks surged after a positive report by the National Association of Realtors. Existing home sales for February gained 2.9% to 5.03 million, the first gain in seven months according to Bloomberg, while economists had called for another decline of -0.8% to 4.85 mln. Leaders in the sector were KB Homes (KBH) +8.67% to $27.45. Hovnanian (HOV) added +7% to $12.23, and D.R. Horton (DHI) gained +6.5% to $16.70. Check out Professor Kevin Depew's Five Things You Need To Know.
In earnings, Walgreen (WAG) shares jumped after beating Wall Street's expectations. Profits for the second quarter came in at $0.69 per share vs. estimates of $0.67 with revenues rising over 10% year-over-year to $15.39 billion. The company also said it would be the exclusive prescription drug provider for Prime Therapeutics and its 20 million customers.
Tiffany (TIF) surprised analysts after stating profits rose the most in 2.5 years. Further, the company gave a pleasant forecast with its low end of guidance $0.26 above consensus estimates. The Street rewarded the company and its shareholders, given the difficult retail environment, bidding the stock higher +11% to $42.63.
In commodities gold fell -5.80 to 914.20. Although gold stocks opened the day strongly, those share gradually faded by the closing bell. Decliners included Gold Fields (GFI) which fell -4% to $14.29. Other losses were more mild with Newmont Mining (NEM) losing -1% to $45.46 and Barrick Gold (ABX) falling -0.14% to $41.94. The broader Gold Miners ETF (GDX) lost -1.7% to $46.97 marking its fourth decline in five sessions.
Crude oil dropped -1.25 to 100.57. Silver added +0.262 to 17.067, and copper finished +4.05 to 365.15.
The dollar index gained +0.157 to 72.869. Read Toddo's Random Thoughts.
For more Buzz insight, check out Minyanville's Buzz Bits.
Below is a recap of some of the idea flow on today's Buzz & Banter. Please note that stocks may appear in both bullish and bearish categories, due to long and short term trades by our many Minyanville professors.
Some bullish trade or investment ideas: SPX, MA, AVB, GOOG, IBM, FSLR, JASO, MSFT, BIDU, ADCT, DDUP, EMC, VMW, JAVA, CY, SLAB, SPWR, TSL, ESLR, SMH, ADI, INTC, AMAT, NSM, AAPL, RIMM, CRM
Some bearish trade or investment ideas: GS, LEH, FNM, GE
Have a great night from Minyanville!
GET THESE INSIGHTS AND MORE IN REAL-TIME. CALL 212-991-9357 FOR A 14-DAY FREE TRIAL TO THE BUZZ & BANTER OR CLICK BELOW.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter