Boston Beer Pops as the Dow Suffers a Fed Hangover

On the day after some big announcements, it's not unusual for the Dow Jones Industrials (DJINDICES: ^DJI  ) and other major market indexes to drift aimlessly, searching for direction as investors try to incorporate the new paradigm into their investing strategies. That's what's happening today, with the Dow down about 12 points just before 10:45 a.m. EST. The rest of the market was largely mixed, but the ongoing overhang of fiscal-cliff uncertainty seems to be holding Wall Street back from taking decisive positions one way or the other.

But that didn't hold back some substantial moves among individual stocks. Sam Adams brewer Boston Beer (NYSE: SAM  ) soared 14% to hit an all-time high after announcing late yesterday afternoon that it was increasing its earnings guidance for the full 2012 year from a range of $3.80-$4.20 to a higher range of $4.30-$4.60. It also markedly increased its depletions projections for 2013.

Best Buy (NYSE: BBY  ) also exploded higher, climbing 14.4% on reports that company founder Richard Schulze expects to make a bid for the company worth at least $5 billion to $6 billion. That's significantly down from Schulze's initial bid for the company of $24 to $26 per share, which would have totaled between $8 billion and $9 billion overall. With the company's business floundering, a buyout seems like the best exit strategy going forward.

Finally, Hewlett-Packard (NYSE: HPQ  ) is again the best performer among the 30 Dow components, rising 1% as the momentum that has lifted the company more than 25% from its recent lows in less than a month continues. HP didn't release any earth-shattering news today, but with computer-making rival Dell (UNKNOWN: DELL.DL  ) also having seen a substantial recovery from its November lows, it appears investors are giving the PC industry a second chance after essentially writing it off throughout much of 2012.

Can Sam Adams take Boston Beer higher still?
Yesterday's announcement from Boston Beer is obviously good news, but in the long run, the company faces plenty of competition in a crowded craft-beer field. Find out whether Boston Beer can rise above the rest in our in-depth research report on the stock, in which we bring you the details on Boston Beer's risks and opportunities. Just click here now to find out whether Boston Beer is a buy today.

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

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: 2152501, ~/Articles/ArticleHandler.aspx, 10/25/2016 8:51:26 PM

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 Moments ago Sponsored by:
DOW 18,169.27 -53.76 -0.30%
S&P 500 2,143.16 -8.17 -0.38%
NASD 5,283.40 -26.43 -0.50%

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

10/25/2016 4:00 PM
BBY $39.26 Down -0.20 -0.51%
Best Buy CAPS Rating: *
DELL.DL $0.00 Down +0.00 +0.00%
Dell CAPS Rating: *
HPQ $13.90 Down -0.07 -0.50%
HP CAPS Rating: ***
SAM $163.20 Down -2.00 -1.21%
Boston Beer CAPS Rating: ****