The Dow Jones Industrial Average (INDEX: ^DJI ) managed to keep its momentum going today after a 200+ point gain on Friday, spending most of the day solidly in the black. Helping push up markets today was the German government’s backing of the bond-buying program promoted by the European Central Bank. Most of the major European exchanges rose on the day, as well.
A slew of mostly positive earnings reports from companies outside the Dow also helped push up markets, in general. Overall, it’s been a solid earnings season; according to S&P Capital IQ, 65% of the 407 S&P500 companies that have reported earnings have beat expectations, with an average of 8.6% earnings per share surprise.
Here’s how all three major U.S. indices fared on the day:
|Dow Jones Industrial Average||21.34 [0.16%]||13,117.51|
|S&P 500 (INDEX: ^GSPC )||3.24 [0.23%]||1,394.23|
As is often the case with the Dow advancing mainly on positive macroeconomic news, Bank of America (NYSE: BAC ) , the Dow’s most volatile stock, was also the biggest gainer, rising 2.8%. B of A has regained its title as the biggest gainer of the year, as well, and has now advanced over 37% in 2012 alone.
Outside the Dow, Best Buy (NYSE: BBY ) was in the news today, as the company’s founder, Richard Schulze, offered to buy the company and take it private. Schulze said he would offer between $24 and $26 per share, a premium of 36% on the low end of the range from Friday’s closing price. The stock rose 13% on the news, though it closed at around $20 a share, well below the price of the offer, and indicating that many investors remain skeptical that Schulze will be successful in taking the company private.
Knight Capital (NYSE: KCG ) continued its roller coaster ride today, this time falling more than 24%. The company was responsible for the trading glitch last Wednesday that flooded the market with incorrect trades. The company announced today that firms will buy 2% of convertible preferred stock in a $400 million deal that was needed to save the company. The deal will heavily dilute current shareholders.
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