After a positive start to the day, U.S. markets turned lower after the Fed decided to hold rates interest rates steady but sounded a hawkish tone about a possible raise at their December meeting. Continued economic weakness and low inflation were some of the reasons given for the Fed to continue holding the line.
But by the closing bell, the major indices had rallied into a strong finish. After a three day selloff, crude oil turned higher and was up about 6%, after the Government reported that gasoline inventories were lower.
Markets had also been supported earlier by a better-than-expected earnings report from Apple Inc (NASDAQ:AAPL), which reported EPS that beat the Street’s estimates by 8 cents and came in slightly above estimates on revenue. AAPL stock was up nearly 4% on the day.
The Dow Jones Industrial Average was up 1.1%, while the S&P 500 climbed 1.2%. Rounding out the indices, the Nasdaq finished up 1.3%. Sectors were higher across the market and, not surprisingly, energy stocks were strong today.
Earnings and M&A activity continue to push individual issues higher. Boston Scientific Corporation (NYSE:BSX), Starwood Hotels and Resorts Worldwide Inc (NYSE:HOT) and Chicago Bridge & Iron Company N.V. (NYSE:CBI) are three of today’s best stocks.
Boston Scientific Corporation (BSX)
BSX stock was surging today, up more than 9% after announcing third-quarter earnings of 24 cents per share — four cents higher than a year ago, and beating the street’s estimate by a penny.
In addition, revenue of $1.89 billion was better than the analysts’ forecast for $1.86 billion.
Volume was triple normal levels for BSX stock. New CEO Mike Mahoney has turned the company’s fortunes around recently, to the delight of investors.
Starwood Hotels and Resorts Worldwide Inc (HOT)
Starwood Hotels was a HOT stock today amid talk of a takeover of the hotel chain by rival chain Hyatt Hotels Corporation (NYSE:H).
In April of this year, Starwood brought in Lazard Ltd (NYSE:LAZ) to explore strategic and financial alternatives for the company. Earlier this week, Starwood rose 9% on speculation that several Chinese companies were also interested in acquiring the Starwood chain.
In an earnings call today, Interim CEO Adam Aron said the company is actively exploring a sale or merger with another company before the end of the year. Starwood reported third-quarter EPS of 74 cents per share, beating the Zacks Consensus Estimate by two cents.
Starwood stock rose more than 6% today between the earnings beat and the acquisition talk.
Chicago Bridge & Iron Company N.V. (CBI)
CBI stock was also a big winner today after Credit Suisse Group AG (ADR) (NYSE:CS) raised its rating of the steel and iron firm from “neutral” to “outperform.” In addition, Credit Suisse raised its target price on CBI stock from $45 to $51. CBI stock bolted 15% higher on the news.
Also boosting the stock was the announcement on Tuesday that private entity Westinghouse Electric Company LLC will be purchasing outstanding equity interest in CBI’s nuclear construction business.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
