Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Why Intel, Joy Global, and Alpha Natural Resources Soared Today

By Dan Caplinger - Jul 16, 2014 at 6:48PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Dow closed at a new record high as earnings season kept delivering solid results. Find out more about what made these three stocks soar.

The stock market pushed broadly higher on Wednesday, with investors largely focusing on positive news from corporate earnings season, and signs of consistent growth throughout the U.S. economy in the Fed's latest Beige Book report. Merger and acquisition activity also led to higher prices for many stocks. Among the best performers on the day were Intel ( INTC -0.51% ), Joy Global ( JOY ), and Alpha Natural Resources (NYSE: ANR).

Source: Intel.

Intel climbed 9% after the semiconductor chip giant reported earnings that were even better than investors had expected. Intel had already let shareholders know that its results would exceed past guidance due to unexpectedly sharp demand for PCs, but some had feared that the positive impact on Intel's overall revenue from PC demand wouldn't last very long. Yet, Intel boosted its revenue estimates for the third quarter, as well, and the company now expects about 5% growth in full-year sales. Specifically, CEO Brian Krzanich said that the PC replacement cycle would last until the end of 2014 at the earliest, and combined with solid results from its data-center group, Intel looks like it's in great shape for further growth.

Source: Joy Global.

Joy Global gained 8%. Some explained the upward move for the maker of mining equipment by citing takeover rumors, while others pointed to the potential improvement in conditions in the mining industry. For more than a year now, Joy Global has struggled through rock-bottom commodity prices and weakness among the mining companies that are its primary customers. Yet, signs from elsewhere in the mining industry suggest that Joy Global's customers might finally be in a stronger position to consider capital expenditures, and if they follow through with equipment purchases, then Joy Global's business could finally start improving at a better pace going forward.


Photo credit: Flickr/Alison Christine.

Alpha Natural Resources rose 6% in a broad-based advance for coal stocks generally. News of expanding economic growth in China helped stoke interest in beaten-down coal stocks, with China potentially being a huge customer for coal worldwide. So far, prices for metallurgical coal remain extremely low, but prospects appear to be improving in the sector. With thermal coal prices having behaved better in the recent past, some investors are more optimistic about Alpha Natural Resources and its peers finally emerging from the worst of the coal slowdown. Moreover, with inventories among U.S. utilities at extremely low levels after a cold winter, Alpha Natural Resources shareholders hope that the company can meet demand to restock those inventories, especially if natural-gas prices keep rising, and drive more demand toward coal-fired power generation.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Intel Corporation Stock Quote
Intel Corporation
INTC
$49.25 (-0.51%) $0.25
Joy Global Inc. Stock Quote
Joy Global Inc.
JOY

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
624%
 
S&P 500 Returns
141%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/04/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.