The Dow Jones Industrial Average (INDEX: ^DJI) finished up 0.12% today on news of the Greek bailout; however, some stocks did much better than the Dow as a whole.
Source: Google Finance.
Today's Top 3
1. Today's leader was Alcoa (NYSE: AA), which finished up 2.56% [$0.26] to end the day at $10.41. Aluminum started off 2011 strong, but by the end of the year it was down nearly 12% as excess capacity weighed on prices, crushing Alcoa's stock in the process.
Source: Index Mundi.
Alcoa's stock has so far made a strong comeback in 2012, rising a stunning 20.35%. The positive performance got even better today, as a bailout package for Greece was finally agreed upon. Investors had been worried that if conditions in Greece and the rest of Europe continued to worsen, the U.S. would also experience a slowdown. With its cyclical results highly dependent on GDP growth, Alcoa would be significantly hurt, as 20% of its business is in Europe and more than 50% is in the United States. Fears of a slowdown were lessened today, as were fears over Alcoa's business.
2. Chevron (NYSE: CVX) was second behind Alcoa today, finishing up 1.64% [$1.75] to end the day at $108.41. Oil stocks rallied today along with oil prices as investors continue to worry about rising tensions with Iran. Brent crude, the international measure of oil prices, rose 1.6% to $121.66. Fool oil analyst David Lee Smith and I have been warning for months about a possible oil price spike in 2012 as Iran and Saudi Arabia vie for influence with the U.S. finally out of Iraq. We expect oil stocks will continue to rise with the price of oil.
3. Kraft (NYSE: KFT) took third for the day, up 1.47% [$0.56] to end at $38.57. The company was one of four Dow components to report earnings today. Kraft met analyst expectations, with earnings per share excluding one-time items of $0.57. Revenue rose 6.6% to $14.7 billion, slightly below analyst expectations of $14.8 billion. Investors are excited by Kraft's plan to split the company in two, which should allow the market to fully appreciate the value of its faster-growing snacks business.
The best approach
Watching the broad market each day is exciting, gut-wrenching, and stressful, but investing doesn't have to be. If you're in the mood to pick up a great company to buy for the long term, The Motley Fool has created a brand-new free report: "The Motley Fool's Top Stock for 2012." It features a company hand-selected by the Fool's chief investment officer that has a strong future ahead of it. Get access to the report and find out the name of this legendary company. The report is free, but it won't be here forever, so check it out today.
