Monday Losing Streak Broken! (TSN, RAIL, KCG, BBY, JKS, MGAM)

After seeing every Monday in June and July finish in the red, the Dow finally broke its losing streak of starting the week lower. The strength was broad based, led by material and tech names. The gains helped extend yesterday’s jobs report-fueled rally. August has been the worst month for stocks over the last two years, so it’s good to see the market off to a pretty good start for the month. Nonetheless, we’re still expecting a pretty choppy month ahead.

The Chinese Solar Stocks Index was the top performing tickerspy Index on the day, led by JinkoSolar Holding (JKS) with a 10% gain. The Gaming and Slot-Machine Stocks Index was the day’s worst performing tickerspy Index, with Multimedia Games Holding (MGAM) down -7%.

Stocks rose on the day, with the Dow up 21 points to 13,118. The S&P added 3 points to 1,394, while the Nasdaq jumped 22 points to 2,990. Oil rose 80 cents to $92.20 a barrel, while gold moved $6.90 higher to $1,616.20 an ounce.

In earnings news, shares of Tyson Foods (TSN), the largest U.S. meat company, sank -8.0% after the company said its fiscal third-quarter profit slid to $76 million, or 21 cents per share, from $196 million, or 51 cents per share, a year earlier. On an adjusted basis, the company earned 50 cents a share. Revenue rose to $8.31 billion from $8.25 billion. Analysts had expected a profit of 54 cents a share on sales of $8.72 billion. Tyson lowered its full-year revenue forecast to $33 billion and said it expects fiscal 2013 revenue of $35 billion. Analysts were expecting sales of $34 billion this year and $35.5 billion next year.

FreightCar America (RAIL) shares slid -8.7% after the maker of railcars’ second-quarter results missed Wall Street estimates. The company reported a second-quarter profit of $5.6 million, or 46 cents per share, compared with a year-ago profit of $184,000, or 2 cents per share, a year earlier. Revenue surged to $181.2 million from $97.6 million. Analysts, however, had expected a profit of 57 cents per share on revenue of $187.6 million.

Shares of Knight Capital Group (KCG) plunged -24.2% after the market maker raised $400 million that will help keep the firm in business, but will also substantially dilute existing shareholders in the process. The company issued preferred shares at $1.50 with a 2% dividend that are convertible into 267 million common shares. Seventeen pros held Knight Capital in their portfolios at the end of Q2 and nearly 600 tickerspy members own the stock in their portfolios.

Best Buy (BBY) shares soared 13.3% after co-founder Richard Schulze offered to buy the electronics retailer for $24-$26 a share. The offer values Minnesota-based Best Buy at as much as $8.84 billion. Schulze currently owns more than 20% of the stock and will seek the rest of the money from private equity and debt financing. He is still seeking permission from Best Buy’s board to conduct due diligence and form a bidding group. Eleven pros counted Best Buy among their top holdings at the end of Q2 and nearly 600 tickerspy members own the stock in their portfolios.

Tags: BBY, JKS, KCG, MGAM, RAIL, TSN