U.S. markets got back on track Wednesday following yesterday’s selloff, as the dollar, bond yields and sentiment about negotiations between the ECB and Greece improved. A small rise in the recently weak Dow Jones Transportation Average was also helping to build confidence among traders in the major indices.
The Dow Jones Industrial Average rose 0.7%, while the S&P 500 climbed 0.9%. The Nasdaq Composite was the strongest of the three, finishing up 1.5%.
One data note on an otherwise slow day: The Mortgage Bankers Association (MBA) reported that weekly mortgage applications fell 1.6% from the previous week on a seasonally adjusted basis. New purchase mortgages are holding steady, but rising interest rates are putting a damper on refinancings. Another point of interest: Zero-down VA lowns and other low-down-payment loans are beginning to make up a larger percentage of the total mortgage market — a potential sign of a peak in the real estate market.
However, the day’s movers and shakers had little to do with housing. Among Wednesday’s best stocks were Tiffany & Co. (NYSE:TIF), Broadcom Corporation (NASDAQ:BRCM) and Juniper Networks, Inc. (NYSE:JNPR).
Here’s a closer look at what moved each:
Tiffany & Co. (TIF)
TIF stock blasted more than 10% higher today after the high-end jewelry retailer reported first-quarter earnings of 81 cents per share, well above analysts’ expectations for 69 cents. Sales of some newer products, such as the CT60 watch and T collection jewelry, and increased prices helped prop sales up somewhat. Nonetheless, revenues did decline roughly 5% to $962.4 million, though that was enough to beat Wall Street estimates.
Cantor Fitzgerald raised its price target on TIF stock from $86 to $97, while maintaining a “hold” rating on the company. This and a few other upgrades helped lift Tiffany by double digits.
Broadcom Corporation (BRCM)
BRCM stock surged nearly 22% higher this afternoon following a Wall Street Journal report that Avago Technologies Ltd (NASDAQ:AVGO) is in advanced stages of talks to acquire the wireless chipmaker. BRCM shares reacted quickly to the news, prompting trading to be halted for awhile.
CNBC Now tweeted that Avago’s board of directors will meet tonight to discuss the acquisition. AVGO stock was also up by more than 7%.
For several months prior to today’s action, Broadcom has been mostly rangebound between $44 and $47.
Juniper Networks, Inc. (JNPR)
Shares of JNPR stock were 3% higher today after an analyst at Sanford C. Bernstein said Ericsson (ADR) (NASDAQ:ERIC) could be planning to acquire JNPR in an effort to counter the recent merger of Nokia Corporation (ADR) (NYSE:NOK) and Alcatel Lucent SA (ADR) (NYSE:ALU).
With several mergers and acquisitions driving stocks higher lately, it looks like a mere speculative whisper is enough to propel a stock up the charts.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
