Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Rite Aid, Best Buy Rally on Debt Deal

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

Today, October 17, was the date Wall Street, Washington, and the world had anxiously awaited for weeks. Treasury Secretary Jack Lew had stated publicly that the country's borrowing limit would be met by today, forcing the U.S. to fund itself on sparse reserves and incoming tax revenue. Thankfully, a deal to raise our borrowing limit and reopen the government was reached at the eleventh hour. While most stocks ended in the black on Thursday, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) was little changed, falling 2 points, or less than 0.1%, to end at 15,371.

Dow component Home Depot (NYSE: HD  ) added 1.1% after a $250 million lawsuit against the home-improvement store and two other retailers was dropped yesterday. The suit alleged that the trio of retailers had been using the privately owned Alexsam's patented techniques for activating stored value cards like gift cards and phone cards. But when Alexsam sought a change in legal representation and asked a federal judge to delay a scheduled October 22 trial, the judge denied the request and the charges were dropped.

Rite Aid (NYSE: RAD  ) rallied 4%, posting big gains that long-term investors are starting to get used to. Having nearly quadrupled in price this year alone, Rite Aid stock is undeniably hot, as cost-cutting strategies are starting to pay off in a big way. As colleague Dan Moskowitz noted, the drugstore has both trimmed its store count and improved same-store sales over the past year, helping the company swing to a profit.

Lastly, big-box electronics retailer Best Buy (NYSE: BBY  ) was a big gainer today, jumping 2.9% and hitting a multiyear high on an analyst upgrade. Oppenheimer's Brian Nagel touted the company's gusto as it shuts down underperforming stores and implements its price-matching policy. Though analysts don't always have salient points, I tend to agree that price matching is critical to Best Buy's success in the long term, as brick-and-mortar stores try to fight back against the giants of e-commerce. 

3 companies ready to rule retail
The retail space is in the midst of the biggest paradigm shift since mail order took off at the turn of the last century. Only those most forward-looking and capable companies will survive, and they'll handsomely reward those investors who understand the landscape. You can read about the 3 Companies Ready to Rule Retail in The Motley Fool's special report. Uncovering these top picks is free today; just click here to read more.

Read/Post Comments (0) | Recommend This Article (1)

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: 2688670, ~/Articles/ArticleHandler.aspx, 10/1/2016 11:50:56 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 14 hours ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

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

9/30/2016 5:01 PM
^DJI $18308.15 Up +164.70 +0.91%
BBY $38.18 Up +0.77 +2.06%
Best Buy CAPS Rating: *
HD $128.68 Up +0.75 +0.59%
Home Depot CAPS Rating: ****
RAD $7.69 Up +0.12 +1.59%
Rite Aid CAPS Rating: ****