The stock markets in the United States gained driven by the surge in the stock price of energy companies amid speculations that the government will carry out a military strike against Syria.
Yesterday, the stock markets suffered significant declines as investors wait for the next move of the U.S. government after Secretary of State, John Kerry that the international community needs to respond to Syria’s undeniable use of chemical weapons.
Walter Todd, chief investment officer of Greenwood Capital Associates told Bloomberg that markets are experiencing slight rebound from the bad sell off yesterday. He speculated that the investors are probably taking advantage of some of the opportunities available in certain segments of the market.
“We’re simply just seeing a little bit of bounce back from what was very bad action yesterday. There are probably starting to be opportunities that are being created in certain segments of the market as a result of this sell-off, and investors are wisely looking to see if they can take advantage of some of those,” said Todd.
Today, U.K. Prime Minister David Cameron will submit to the United Nations a draft resolution authorizing actions to protect civilians in Syria. President Barack Obama is expected to release an intelligence assessment regarding the situation. The Obama administration is conducting consultations with NATO allies and Arab nations to identify which countries will participate in the military strike.
Lawrence Creatura, fund manager of Federated Investors Inc commented that people are focus on the ongoing situation in Syria. According to him, “The reflex is to sell during times of sudden unexpected conflict. Weakness derived from temporary events can often times be a great buying opportunity.”
U.S. Markets
- Dow Jones Industrial Average (DJIA)- 14, 832 (+0.38%)
- S&P 500- 1,635 (+0.44%)
- NASDAQ- 3,593 (+0.32%)
- Russell 2000- 1,018 (+0.49%)
European Markets
- EURO STOXX 50 Price EUR- 2,742 (-0.24%)
- FTSE 100 Index- 6,430 (-0.17%)
- Deutsche Borse AG German Stock Index DAX- 8,157 (-1.03%)
Asia Pacific Markets
- Nikkei 225- 13, 338 (-1.51%)
- Hong Kong Hang Seng Index- 21, 524 (-1.60%)
- Shanghai Shenzhen CSI 300 Index- 2, 328 (-0.55%)
Stocks In Focus
The stock price of Analysts International Corporation (NASDAQ:ANLY) surged by more nearly 60% to as much as $6.43 a share after the company agreed to be acquired by American
CyberSystems for $6.45 a share or $35 million, a premium of 62% over its average closing price over that past 30 days.
Express, Inc. (NYSE:EXPR)’s stock value reached as high as $22.08 per share, an increase of more than 9.3% after the company posted second quarter earnings results that meet the expectations of Wall Street and raised its profit outlook for the full year 2013. The apparel retailer reported $16.9 million profit or $0.20 earnings per share, higher than its $15.8 million profits or $0.18 earnings per share in the same period a year earlier. The company projected that it would be able to deliver earnings in the range of $1.52 to $1.60 per share for the entire year.
The stock value of TiVo Inc. (NASDAQ:TIVO) surged by more than 5% to $11.65 per share after the company’s second quarter financial results beat the consensus estimate of Wall Street analysts. The maker of digital video recorders posted a net income of $268.9 million or $1.96 earnings per share compared with the consensus estimate of $0.84 earnings per share. The company achieved $70.89 million revenue, excluding the impact of legal settlements. According to TiVO CEO Tom Rogers, the company is expected to deliver profits over the next quarters until next year.
Jewelry retailer, Zale Corporation (NYSE:ZLC) surged by almost 30% to as much as $11.69 per share after reporting fourth quarter financial performance that exceeded the expectations of the Street. The company reported a profit of $10 million or $0.24 earnings per share. Its same store sales went up by 5.6% to $417 million during the quarter.
