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



Why Industrial Production and Herbalife Both Had Great Days

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

Christmas come early? After four straight down days, stocks popped Monday like Santa was handing out these $10,000 24K gold Xboxes all along Wall Street. Impressive econ data powered the Dow (DJINDICES: ^DJI  ) up 129 points Monday -- now all eyes are on the big two-day Federal Reserve policy-setting meeting that begins Tuesday.

1. Industrial Production surges
The November Industrial Production report should have been in that most recent Victoria's Secret Fashion Show. Its numbers just looked that good. After rising just 0.1% in October, manufacturing activity popped 1.1% last month -- that beat economists' expectations of only 0.6% growth and represents the largest industrial production monthly increase in a year.

What led the way? Two big changes. First, mining activity rebounded strong after the reopening of oil and gas rigs that were temporarily closed because of Tropical Storm Karen in the Gulf of Mexico (we thought those oil rig guys were tough). Second, motor vehicle sales jumped 3.4% after a sluggish October.

The takeaway is that good econ data like this means the economic recovery is doing everything the New York Giants aren't -- picking things up in the home stretch. For Wall Street, the big question is how continued positive econ reports like this one will make the Fed slow down its economy-boosting stimulus measures ahead of time. All the more reason to get pumped for Tuesday's Fed meeting.

2. Herbalife jumps on dramatic reaudit
Good news for people who like creepy energy supplements. Shares of nutrition/skincare/witchcraft manufacturer Herbalife (NYSE: HLF  ) jumped 9.4% Monday on news its financial statements had finished being reaudited and there were no substantial changes to the numbers.

Who cares so much about accounting? Big hedge fund manager Bill Ackman. For more than a year, he has been accusing Herbalife of being a criminal ponzi scheme, because the company's sales model requires customers to buy its products and then sell them to other customers -- making its customers its salespeople (that mess with your brain?). Since other legendary investors Carl Icahn and George Soros own big positions in Herbalife stock, things got dramatic.

The takeaway is that earlier this year, another accounting firm was supposed to check out 3 years of Herbalife's financial statements, but had to withdraw because it was illegally insider trading with the information. Ackman warned that the problem would prevent the reaudit from finishing before the end of the year -- but it looks like Herbalife downed some of its own vitamins and completed the examination with a passing grade. Take that, Ack.


  • The two-day Federal Reserve policy meeting begins

  • Monthly retail sales

  • NAHB Housing Market Index

MarketSnacks Fact of the Day:  More than 40% of Millennials stalk their dates on Facebook before meeting up.

As originally published on

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: 2767262, ~/Articles/ArticleHandler.aspx, 9/26/2016 10:28:34 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 Moments ago Sponsored by:
DOW 18,141.22 -120.23 -0.66%
S&P 500 2,154.96 -9.73 -0.45%
NASD 5,273.92 -31.82 -0.60%

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

9/26/2016 10:13 AM
^DJI $18141.94 Down -119.51 -0.65%
HLF $61.16 Down -0.07 -0.11%
Herbalife CAPS Rating: *