by Marc Bastow | August 7, 2012 5:03 pm
Whether it’s still the afterglow of last Friday’s jobs report, a continuation of momentum from Monday’s rally or a belief that no news is good news in Europe, markets moved ahead for a third straight day with another rally that saw all three indexes move to their highest levels since May.
Investors cling to hope that European officials will follow through with action in support of a bond buyback program for Spain and Italy strongly hinted at last week by ECB President Mario Draghi. Today, Boston Fed President Eric Rosengren, who isn’t a voting member of the Fed’s policy committee, suggested a continuation of the U.S. Fed’s quantitative easing measures to help stimulate the economy.
The end result was to push the Dow up 0.39% to 13,168, while the S&P gained 0.51% to finish at 1,401. The Nasdaq pulled ahead 0.87% to 3,015.
On the earnings front, shares of consumer fashion accessories maker Fossil (NASDAQ:FOSL) soared over 30% on the day after announcing second-quarter profit jumped 12% and topped forecasts. FOSL managed to break from prior disappointing results from luxury retailers Coach (NYSE:COH) and Tiffany (NYSE:TIF). Fossil’s surge carried watchmaker Movado (NYSE:MOV) up 13% as well.
Oil and gas producer Chesapeake Energy (NYSE:CHK) saw its stock climb nearly 10% on news that its profit jumped an astounding 89% for the second quarter, thanks primarily to a one-time gain of $584 million on a sale in its stake in Access Midstream Partners (NYSE:ACMP).
Sirius (NASDAQ:SIRI) gained nearly 5% after the company raised its annual profit forecast and showed increased revenue and earnings lines for its most recent quarter.
Corporate news also moved the markets, as shares of Best Buy (NYSE:BBY) drifted slightly lower one day after the company’s founder and major shareholder, Richard Schulze, offered to take the electronics retailer private at $24 to $26 a share. Initial investor enthusiasm waned as the shares slipped below $20 per share on the uncertainty of the deal.
Shares of Leap Wireless (NASDAQ:LEAP) touched a new 52-week low before rallying just a bit to fall nearly 19% after the pre-paid cell-phone company said it lost 289,000 customers in the second quarter, and that it’s thinking of selling off assets to raise cash.
Finally, after-hours trading saw Walt Disney (NYSE:DIS) down just under 1% on profits that beat Street estimates even as revenue came in ever-so lower than expected. Priceline (NASDAQ:PCLN) tumbled over 15% on higher-second quarter revenue and earnings news offset by setting third-quarter expectations lower due in part to a stronger dollar.
Earnings announcements on Wednesday include Macy‘s (NYSE:M), Ralph Lauren (NYSE:RL), News Corp (NASDAQ:NWSA), and SodaStream (NASDAQ:SODA).
Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing he does not hold a position in any of the aforementioned securities.
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