Stocks continued their ongoing ascent today, lifted by a better than expected Fed beige book report and a decline in oil inventories, which helped to stabilize oil prices. The 12 Federal Reserve districts reported that national economic activity continued to expand in October and November, which gave analysts another reason to sing the market’s praises. Basic materials and industrials were the two strongest benefactors of the report, and the precious metals and energy sectors were also showing strength.
However, a couple of the day’s best stocks came from outside those areas — namely, JD.com Inc(ADR) (JD), AK Steel Holding Corporation (AKS), and Electronic Arts Inc (EA) each had a solid trading day on a bull market that seems to have no end.
JD.com Inc(ADR) (JD)
The Chinese online direct sales retailer was up better than 3% on heavy trading amid word that their secondary offering of over 26 million American Depositary Shares (ADS) was priced at $23.80 per ADS. Each share represented two Class A ordinary shares of JD stock. Selling shareholders were set to receive approximately $619 million from the offering.
On Tuesday, JD said its new partnership with Tencent Holdings ADR (TCEHY) would help it compete better with leading Chinese e- commerce company, Alibaba Group Holding Ltd (BABA). After falling from $33 to $22 since the end of August, JD stock has risen almost 13% in the last two trading days.
AK Steel Holding Corporation (AKS)
AKS stock rebounded sharply today, up more than 5% after plunging more than 18% over the last four trading days.
On Monday, the World Steel Association reported a 0.7% year-over-year decline for the month of October in U.S. steel production. Declines have been reported in several areas of the world, including China, Japan, and North America, with only Europe seeing higher outputs of steel production.
AKS stock has been cut in half since the end of August, so today’s rise may be nothing more than a technical bounce within a long downtrend.
Electronic Arts Inc. (EA)
EA stock rose more than 5% today, breaking out to a new 52-week high on a Piper Jaffray upgraded price target of $47, and a comment that video game software will continue to be in a multiyear growth period. Piper Jeffray reiterated their “overweight” rating on EA stock. Earnings are expected to rise almost 12% in 2015.
EA stock has been on a tear recently, climbing a solid 43% in only six weeks.
As of this writing, Ethan Roberts did not hold a position in any of the aforementioned securities.
