Why These 3 Dow Stocks Surged Today

The Dow Jones Industrial Average (INDEX: ^DJI  ) ended its five-day losing streak today, finishing up 89 points, or 0.70%, to rebound from its biggest loss of the year yesterday. The index was helped up by decreasing Spanish and Italian bond yields and hope that the European Central bank could possibly intervene and purchase bonds to ease stress in Spain.

Here are the Dow's top three gainers today:


Percent Change Today

Alcoa (NYSE: AA  ) 6.22
Bank of America (NYSE: BAC  ) 3.75
JPMorgan Chase (NYSE: JPM  ) 2.44

Perhaps the main reason for the Dow's solid day was earnings from Alcoa. The aluminum giant reported after the closing bell yesterday and posted earnings of $0.09 per share, significantly higher than the $0.04 loss that analysts had expected. Alcoa also posted increased revenue of $6 billion, above the $5.77 billion that analysts were expecting. The company is considered a bellwether of the overall economy, because its aluminum is used in products that span all industries, everything from cars to planes to soda cans. Alcoa also reported solid growth in China and reaffirmed its forecast of 7% global growth in 2012.

Bank of America and JPMorgan Chase round out the top gainers on the day. As large banks, these companies are particularly sensitive to the overall economy. Bank of America in particular illustrated the point, as the company has dropped more than 10% just in the past five days before today, and more than 4% yesterday alone. But today's positive news helped drive the stock up 3.75%, and the company's share price has now appreciated almost 60% in 2012 alone.

Outside the Dow, Internet media company Travelzoo (Nasdaq: TZOO  ) surged a whopping 28% on the day after news broke that it has sought an advisor for a possible sale of the company. The company boasts 24 million subscribers and could be attractive for companies looking for a presence in the high-end Internet-deals segment. Names already being thrown around as potential buyers are tech giants Google and, both of which are trying to increase their presence in the space.

The big picture
While it's important to pay close attention to the market, it's also important to not to get too worked up about what happens in the short term. The most successful stock picks are usually great business that can grow and continue to succeed over many years. Our analysts have uncovered one such company in our new report, "The Motley Fool's Top Stock for 2012." It highlights a company that is revolutionizing commerce in Latin America. You can get instant access to the name of this company -- it's absolutely free.

Brendan Byrnes owns no shares of any company mentioned above. Motley Fool newsletter services have recommended buying shares of Travelzoo. The Motley Fool has a disclosure policy. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (0) | Recommend This Article (6)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1860061, ~/Articles/ArticleHandler.aspx, 10/25/2016 3:09:33 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 5 hours ago Sponsored by:
DOW 18,223.03 77.32 0.43%
S&P 500 2,151.33 10.17 0.47%
NASD 5,309.83 52.43 1.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/24/2016 4:56 PM
^DJI $18223.03 Up +77.32 +0.43%
AA $26.86 Down -0.02 -0.07%
Alcoa CAPS Rating: ***
BAC $16.77 Up +0.10 +0.60%
Bank of America CAPS Rating: ****
JPM $68.87 Up +0.38 +0.55%
JPMorgan Chase CAPS Rating: ****
TZOO $12.10 Up +0.10 +0.83%
Travelzoo CAPS Rating: **