On the seventh anniversary of the start of the current bull market in U.S. stocks, the S&P 500 posted a modest gain of half a percent Wednesday. The Dow Jones Industrial Average and the Nasdaq Composite followed suit, rising 0.21% and 0.55%, respectively.
Traders are awaiting commentary from the European Central Bank (ECB), which meets tomorrow. Significant additions to the ECB’s already expansive quantitative easing program could bolster the appetite for riskier assets.
Speaking of riskier assets, oil prices climbed nearly 4.6% today, helping make energy the best-performing sector in the S&P 500.
Oil’s bullishness is an ideal segue into exploring some of today’s best stocks, which include Chevron Corporation (NYSE:CVX), Express, Inc. (NYSE:EXPR) and Valeant Pharmaceuticals Intl Inc (NYSE:VRX).
Chevron Corporation (CVX)
Shares of Chevron, the second-largest U.S. oil company, climbed 4.6% a day after the California-based company said it is slashing its 2017 and 2018 capital spending plans. CVX, a member of the Dow Jones Industrial Average, is forecasting spending plans of $17 billion to $22 billion for 2017 and 2018, down from previous estimates of $20 billion to $24 billion.
The spending reductions are seen by some market observers to defend Chevron’s dividend. CVX let a long dividend increase streak lapse last year when it did not boost the payout. CVX last raised its dividend in early 2014. Shares of CVX currently yield 4.9%, one of the highest levels among Dow stocks.
Credit Suisse raised its price target on CVX to $96 from $84 while keeping a “neutral” rating on the stock.
Express, Inc. (EXPR)
Apparel retailer Express soared 3.3% after the company posted a fourth-quarter profit of 67 cents a share on sales of $765.6 million. Analysts expected earnings of 65 cents per share on sales of $774.3 million.
Ohio-based EXPR forecast fiscal first-quarter EPS of 25 to 28 cents. For the full year, EXPR expects to earn $1.56 to $1.71 per share.
Shares of EXPR are up nearly 14% year-to-date.
Valeant Pharmaceuticals Intl Inc (VRX)
Valeant Pharmaceuticals, the controversial Canadian healthcare company, saw its shares rise 5.9% today on news that Bill Ackman’s Pershing Square Capital was successful in its efforts to procure a seat on the VRX board. VRX announced three new board members, including one from Pershing.
Ackman’s hedge fund is one of the largest shareholders in VRX. Earlier this week, VRX said it plans to report fourth-quarter results and update investors on guidance next week. The company was originally supposed to do that late last month, but scuttled those plans.
Shares of VRX are off more than 34% year-to-date.
At the time of this writing, Todd Shriber did not own any of the aforementioned securities.
