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.
Investors endured an up-and-down session in the stock market Wednesday, as stocks opened to a triple-digit decline before making back nearly all of their lost ground by the close. Despite nervousness about Friday's coming report on employment, company-specific issues took the spotlight with most of today's big movers, and Sprint (NYSE:S), Level 3 Communications (NYSE:LVLT), and Tableau Software (NYSE:DATA) all posted sharp gains today on promising news.
Sprint (S) jumped 8% on reports that the company is trying to get financing for a bid to buy rival T-Mobile US (NYSE:TMUS). Many have speculated that the No. 3 and 4 carriers in the U.S. wireless market would seek to combine, but the big question is whether regulators would allow the combination to take place. Interestingly, T-Mobile shares only rose by 5%, suggesting uncertainty about the structure of an eventual merger and whether investors would get an adequate premium to the stock's current price.
Level 3 Communications (LVLT) rose 10% after posting its fourth-quarter earnings results this morning. Level 3 reversed a year-ago loss, and despite a 1% drop in revenue, the network and telecom-services company managed to cut expenses and take advantage of a one-time tax benefit to boost its profits. Level 3 still has work to do to reach consistent profitability, but its full-year loss in 2013 was about 75% smaller than in the previous year.
Tableau Software (DATA) soared 13% on its own positive earnings results from last night. With sales for the fourth quarter nearly doubling and a solid profit that defied investors' expectations of breakeven results, the data-analysis software company is clearly riding the wave of interest in maximizing the value of data for enterprise use. A positive outlook for 2014 also led analysts to express their optimism for the stock as well, and the results point to the persistence of the cloud-computing and data-analytics trends in technology.
Concentrate on high-growth stocks and profit
Can you find the best growth stocks in the market? David Gardner has done it time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.
Dan Caplinger and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.