Dow Closing In On Two-Year High (BYD, LO, SOHU, CTV, ARTW)
Stocks posted moderate gains, but after flirting with a two-year high, the Dow was unable to get over the hump, as stocks lost steam late in the day. With both the Dow and Dow Transports closing in on two-year highs, it could be a nice bullish signal if both indices are able to break out. We remain bullish on the market in the near term, expecting a solid close to the year for stocks.
Stocks rose on the day, with the Dow up 31 points to 11,164. The S&P added 3 points to 1,186, while the Nasdaq gained 11 points to 2,491. Oil rose 83 cents to $82.52 a barrel, while gold climbed $13.80 to $1,338.90 an ounce.
On the economic front, the National Association of Realtors said existing home sales spiked by 10% in September to an annual rate of 4.53 million from a revised 4.12 million in August. Economists had forecast a September rate of 4.25 million, and the gain was the largest in nearly 28 years.
In earnings news, casino operator Boyd Gaming (BYD) gained 4.9% after posting its third-quarter results. The company recorded net income of $5.6 million, or 6 cents per share, compared to $6.3 million, or 7 cents per share, in the same period last year. Excluding one-time items, Boyd posted 2 cents in adjusted EPS, -3 cents below analyst expectations. Revenue rose by 50% year over year to $540.9 million, which also missed the Street’s $589 million consensus. Two asset managers counted Boyd shares among their top-15 U.S.-listed equity holdings heading into the second half, and 205 tickerspy members hold the stock in their portfolios.
Cigarette maker Lorillard (LO) gained 1.3% after posting better-than-expected third-quarter earnings and revenue. The firm earned $274 million, or $1.81 per share, compared to $235 million, or $1.44 per share, in the year-ago period. Analysts were looking for $1.64 in EPS. Excluding excise taxes, sales totaled $1.07 billion, which was also ahead of the $1.01 billion consesus. At the end of the second quarter, 15 Pros held Lorillard in their top-15 U.S.-listed equity positions, and 127 tickerspy members currently hold the stock in their portfolios.
Sohu.com (SOHU) shares added 13.9% after online games helped the firm beat Wall Street’s Q3 estimates. The company’s net income rose 12% year over year to $38.7 million, or $1.01 per share, while adjusted net income rose 21% to $45.2 million, or $1.16 per share. Revenue was up by 20% to $164.1 million. Analysts were looking for 90 cents in EPS on $156.7 million in revenue.
CommScope (CTV) jumped by 30.5% after the company said the Carlyle Group might take it private for about $3 billion. The deal would be worth $31.50 per share in cash, a 36% premium to the stock’s closing value on Friday. No deal has been reached, and CommScope said it would refrain from commenting further until it is deemed appropriate.
More on this topic (What's this?)
Lorillard, Inc. Reports Third Quarter 2010 Results; EPS up 26% to $1.81 (Benzinga, 10/25/10)
Smoking Is Healthy (LO) (Benzinga, 10/25/10)
(LO) Lorillard Shares Rated at Neutral (Stock Blog Hub, 4/23/13)
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