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Sweet Day for Shipping — Monday’s IP Market Recap

A tiny rise in the Baltic Dry Index spurs big stock gains


InvestorPlace Market RecapAll it took was a nudge, but a small move of the Baltic Dry Index needle turned into big results for hurting shipping companies Monday.

The index tracking international shipping prices has been sitting on 25-year lows around 648 since mid-December, making its 1-point gain Monday a reason for celebration. DryShips (NASDAQ:DRYS) was up almost 17%, Diana Shipping (NYSE:DSX) gained 8% and Navos Maritime Holdings (NYSE:NM) climbed about 7%.

Even three years ago, the index was around 12,000, with charter rates running in six figures. Now, carriers are cramped by rates around $6,000 per day. The move in the Baltic Dry Index, however, spurs hopes those rates might be on the rise.

Also Monday, Verizon (NYSE:VZ) announced a streaming-video venture with Redbox parent Coinstar (NASDAQ:CSTR), the latest attack on Netflix (NASDAQ:NFLX). Coinstar, which had talked about adding streaming video business up to a year ago, gained about 2% on the news, and Verizon shares were up 0.8% on the day. NFLX shares initially were hammered on the news, but reversed course by midday and finished Monday up more than 2%.

O’Charley’s (NASDAQ:CHUX) shareholders were delighted Monday with news that the restaurant company would be bought out by Fidelity National Financial (NYSE:FNF) for $221 million, or about $9.85 per share. CHUX stock was trading at $6.92 on Friday, so the offer comes at a 42% premium.

Three Up

  • Dendreon (NASDAQ:DNDN): Up 16.7% ($2.36) to $16.53.
  • Fusion-io (NYSE:FIO): Up 11% ($2.44) to $24.72.
  • Abercrombie & Fitch (NYSE:ANF): Up 9.5% ($3.84) to $44.35.

Three Down

  • (NASDAQ:SOHU): Down 15.3% ($9.64) to $53.41.
  • Medco Health Solutions (NYSE:MHS): Down 8.1% ($5.14) to $58.47.
  • Humana (NYSE:HUM): Down 5.4% ($4.87) to $85.25.

Kyle Woodley is the assistant editor of As of this writing, he did not hold a position in any of the aforementioned securities. Check out recaps from previous trading days here.

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