U.S. stocks rose for a second day, as commodities and financial services shares sparked another rally. The S&P 500 gained 1% while the Dow Jones Industrial Average added 1.06%. The Nasdaq Composite led the way with a gain of 1.55%.
Stocks got a lift from some decent Chinese economic data, indicating that a slowdown in the world’s second-largest economy is not as bad as previously thought. Here in the U.S., the Federal Reserve’s Beige Book report showed what the central bank called “modest to moderate” economic growth across the Fed’s various districts.
GoPro Inc (GPRO)
Shares of GoPro surged 19.1% on heavy volume following reports that the maker of wearable cameras landed an executive from Apple Inc. (NASDAQ:AAPL). Daniel Coster will join GPRO as vice president of design at the end of this month.
In a statement, GPRO highlighted Coster’s contributions to popular Apple products, such as the iPhone 4 and the iPad wireless keyboard. GPRO said Coster “holds more than 500 design patents and several utility patents, and has been recognized by several international design organizations for his work.”
Apple is seen as a prime rival to GPRO in the wearable cameras market.
Shares of GPRO are off 22.7% year-to-date.
Joy Global Inc. (JOY)
Construction and mining equipment maker Joy Global saw its shares climb 16.6% on above-average volume as commodities prices, including natural gas, rose once again. JOY’s Wednesday surge can be seen as all the more impressive when considering major coal producer Peabody Energy Corporation (NYSE:BTU) filed for bankruptcy.
Additionally, a JPMorgan analyst was out with comments today advising investors to take profits in machinery stocks, including JOY, ahead of that group’s first-quarter earnings reports.
“We suggest taking profits ahead of earnings as valuations are stretched and investors will likely have little tolerance for weaker than expected performance (weak margins, especially). Caterpillar and Manitowoc have preannounced already (Manitowoc without details) and Joy Global has noted improvement in the tone of certain customers of late though no change in the trajectory of orders; so expectations have at least been reset for the group,” according to part of the JPMorgan note posted by Barron’s.
JPMorgan Chase & Co. (JPM)
JPMorgan Chase, one of the largest U.S. banks, rose more than 4% on volume that was nearly double the daily average after the New York-based bank reported first-quarter results that beat Wall Street estimates. JPM posted first-quarter net income of $5.52 billion on revenue of $24.1 billion.
JPM, a member of the Dow Jones Industrial Average, said trading revenue fell less than expected and that its slump on that front eased a bit last month.
While JPM helped spark a rally in financial services stocks, regulators revealed that the company is one of five major financial institutions that have not shown how they can go bankrupt without posing systemic risk to the broader U.S. financial system.
As of this writing, Todd Shriber did not own any of the aforementioned securities.
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