7-Day Losing Streak Snapped with 240-Point Rally

Markets were up across the board today as the Dow finally broke a 7-day losing streak. Stocks came surging back in some sectors that had been beaten down over the past week and a half. The Dow rose by 241.79 points and closed out the trading day at 17,615.17. The NASDAQ rose by 58.26 points, closing at 5,101.80. The S&P 500 was up as well, with gains of 26.61 and a closing price of 2,104.18.

Precision Castparts (PCP) to be Bought by Buffett

Manufacturing company Precision Castparts (PCP) announced today that it was being acquired by Berkshire-Hathaway (BRKA).
The company was up nearly 20% on news of the acquisition. The deal was valued at roughly $37 billion. Precision Castparts was up 37.04 points to close the day at $230.92 per share. The company is being bought out by a holding company formed between Buffett's Berkshire and 3Q (QQQ) financial.

Bad Earnings Season Wraps up with Rackspace (RAX), Shake Shack (SHAK)

Both Rackspace (RAX) and Shake Shack (SHAK) released earnings reports today, along with Kraft-Heinz (KHC). Rackspace was the big loser, and missed on revenues and sales by a few cents per share. Shake Shack did much better, beating their earnings target by 6 cents per share. Rackspace fell 1% on the news, which came at the very end of the trading day. Shake Shack ended the day down 1.40%, but was spiking in after hours trading.

Kraft-Heinz (KHC) was a much more complicated issue. The company, which only finished merging in July, released earnings statements for each individual arm. Kraft and Heinz were both steady on earnings, but they won't release a unified statement until the next quarter. Currently, the merger is still in progress, but this move is odd enough that analysts are wondering why Kraft-Heinz didn't just delay their earnings report.

Dow Snaps Losing Streak with a Big Rally

Today's big move in the market snapped a multi-week losing streak. A lot of the companies that surged in trading today, like Freeport-McMoRan (FCX), had been battered over the course of the downturn. The surge also touched on the Energy Minerals sector, which has been depressed for much longer than the past week and a half.

Diamond Offshore Drilling (DO) and ENSCO PLC (ESV), which are very similar companies from the same energy sector, both had excellent days today. Both companies are contract drillers, one operating offshore and the other more traditionally. Diamond Offshore was up 8.64% and ENSCO added 8.50% today.
Published on Aug 10, 2015
By Aaron Phillips
Aaron Phillips is a financial researcher and journalist based out of Michigan. He regularly writes the IG Daily and IG Weekly columns.

Copyrighted 2020. Content published with author's permission.

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