Sweet Day for Shipping — Monday’s IP Market Recap
by Kyle Woodley | February 6, 2012 5:09 pm
[1]All 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[2]) was up almost 17%, Diana Shipping (NYSE:DSX[3]) gained 8% and Navos Maritime Holdings (NYSE:NM[4]) 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[5]) announced a streaming-video venture[6] with Redbox parent Coinstar (NASDAQ:CSTR[7]), the latest attack on Netflix (NASDAQ:NFLX[8]). 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[9]) shareholders were delighted Monday with news that the restaurant company would be bought out by Fidelity National Financial (NYSE:FNF[10]) 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[11]): Up 16.7% ($2.36) to $16.53.
- Fusion-io (NYSE:FIO[12]): Up 11% ($2.44) to $24.72.
- Abercrombie & Fitch (NYSE:ANF[13]): Up 9.5% ($3.84) to $44.35.
Three Down
- Sohu.com (NASDAQ:SOHU[14]): Down 15.3% ($9.64) to $53.41.
- Medco Health Solutions (NYSE:MHS[15]): Down 8.1% ($5.14) to $58.47.
- Humana (NYSE:HUM[16]): Down 5.4% ($4.87) to $85.25.
Kyle Woodley is the assistant editor of InvestorPlace.com. As of this writing, he did not hold a position in any of the aforementioned securities. Check out recaps from previous trading days here[17].
- [Image]: https://investorplace.com/hot-topics/investorplace-market-recap/
- DRYS: http://studio-5.financialcontent.com/investplace/quote?Symbol=DRYS
- DSX: http://studio-5.financialcontent.com/investplace/quote?Symbol=DSX
- NM: http://studio-5.financialcontent.com/investplace/quote?Symbol=NM
- VZ: http://studio-5.financialcontent.com/investplace/quote?Symbol=VZ
- announced a streaming-video venture: https://investorplace.com/2012/02/verizon-redbox-alliance-faces-fierce-competition-in-streaming-video/
- CSTR: http://studio-5.financialcontent.com/investplace/quote?Symbol=CSTR
- NFLX: http://studio-5.financialcontent.com/investplace/quote?Symbol=NFLX
- CHUX: http://studio-5.financialcontent.com/investplace/quote?Symbol=CHUX
- FNF: http://studio-5.financialcontent.com/investplace/quote?Symbol=FNF
- DNDN: http://studio-5.financialcontent.com/investplace/quote?Symbol=DNDN
- FIO: http://studio-5.financialcontent.com/investplace/quote?Symbol=FIO
- ANF: http://studio-5.financialcontent.com/investplace/quote?Symbol=ANF
- SOHU: http://studio-5.financialcontent.com/investplace/quote?Symbol=SOHU
- MHS: http://studio-5.financialcontent.com/investplace/quote?Symbol=MHS
- HUM: http://studio-5.financialcontent.com/investplace/quote?Symbol=HUM
- here: https://investorplace.com/hot-topics/investorplace-market-recap/
Source URL: https://investorplace.com/2012/02/shipping-stocks-dryships-drys-verizon-coinstar-netflix-chux/