U.S. markets rallied again today, on the back of firmer energy prices and positive earnings reports from several large-cap firms.
Oil prices were strong again as the U.S. Energy Information Administration (EIA) said crude oil stockpiles as of April 10 increased 1.3 million barrels to 483.7 million. Although the stockpiles were the most in nearly 80 years, the increase was less than the 3.6 million barrels that analysts had expected, so oil prices moved higher.
Solid earnings reports from Delta Air Lines, Inc. (NYSE:DAL), Bank of America Corp (NYSE:BAC), and some other financials were another catalyst for stocks continuing their ascension today.
The Dow Jones Industrial Average stormed ahead 0.4%, the S&P 500 was up 0.5% and the Nasdaq Composite was 0.7% higher. Sectors across the board rallied today, with energy and basic materials continuing to act like market leaders.
Strong energy and commodity prices lifted stocks like Freeport-McMoRan Inc (NYSE:FCX) and Transocean LTD (NYSE:RIG), which along with Smith & Wesson Holding Corp (NASDAQ:SWHC) were three of today’s best stocks.
Freeport McMoRan Inc (FCX)
It hasn’t been the case recently, but owning FCX stock was golden today, as FCX blasted more than 9% higher as both energy and gold prices rallied. Gold closed above $1,200 an ounce.
This has been an eventful week for FCX stock, which saw an upgrade from Citigroup to “buy” from “neutral” as well as a target price increase from $19 to $23. But Bank of America downgraded FCX from “underperform” to “neutral.”
FCX investors are counting on Citigroup being more astute than BAC.
Transocean LTD (RIG)
It was another big day for energy stocks, as crude oil rallied 5% to near $56, the highest price in 2015. RIG stock jumped up more than 10% on stronger-than-normal volume exceeding 22 million shares.
After a long down trend, RIG stock bottomed below $14 a share in March, but has since roared back, closing at nearly $19 today.
Smith & Wesson Holding Corp (SWHC)
SWHC stock shot up like a bullet after reporting that recent demand for guns was stronger than even it expected. The gun manufacturer also said its fiscal Q4 earnings will be 34-36 cents per share, higher than its previous forecast of 24-26 cents. Analysts had been looking for 30 cents a share.
SWHC also raised its revenue targets by approximately 8% to between $175 million and $179 million, which was also above analysts’ views.
SWHC stock was up 15% today, and is up nearly 60% since late December.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
