After a few days of sideways action, and after it seemed as if a pullback might even occur, the stock market reversed course and sprinted ahead today, with the Dow Jones Industrial Average and the S&P 500 both setting new records. The Dow finished up by 0.23% and the S&P 500 was up by 0.51%. The Nasdaq was even stronger, up 0.61% on the day.
Looking at sectors, healthcare and industrial stocks led the way, and precious metal stocks were also up sharply tfor the third consecutive day.
Also, despite a slowing of both housing sales and prices, the National Association of Home Builders (NAHB) confidence index rose four points this month to 58, almost touching its highest level in nine years.
Among the best stocks from Tuesday’s action were Barrick Gold Corporation (USA) (ABX), Potash Corp./Saskatchewan (POT), and Sony Corp (SNE). Here’s why each headed higher.
Barrick Gold (ABX)
Sharply rising gold prices sent shares of ABX stock and most other miners higher today. The price of gold crossed over the $1,200 threshold for the first time in two weeks, as the U.S. dollar weakened. ABX stock was up more than 6% on strong volume of more than 23 million shares.
Barrick Gold is up more than 15% within the past two weeks, but faces some possible resistance at its declining 50-day moving average at $13.85.
Potash (POT)
POT stock blistered up over 4% today after rival Russian company Uralkali had to cease work at one of its potash mines and evacuate its workers. Uralkali said there was an increased flow of brine, which could dissolve potassium-bearing salts and weaken the structure of the mine. This could lead to a diminishing of global supplies of potassium and ultimately higher prices for potassium producers.
POT stock gapped up, easily sliding through the 200-day moving average at $34.41, and finishing the day at $35.40.
Sony (SNE)
SNE stock rose almost 5% after company executives said they will increase motion picture revenues by 36% over the next three years. Projected revenue is expected to fall between $10 billion and $11 billion by early 2018. (Revenue for the current year is only $8.1 billion.)
Sony President and CEO Kazuo Hirai reiterated to a gathering of investors in Japan that Sony’s entertainment unit remains a vital part of the total company’s strength. SNE stock has been on a tear over the last month, climbing almost 29% during that time frame. The stock closed at $21.25 today.
As of this writing, Ethan Roberts did not hold a position in any of the aforementioned securities.
