Stocks Extend Rally In Mid Day, Dow Up 204 pts (FSLR, KO, AMTG, ING, ARNA, GEN)
U.S. stocks are showing solid rally on Tuesday, boosted by a strong demand for Spanish’s bond earlier today, easing concerns after the yield on the bond jumped to record high this year.
The Dow Jones Industrial Average soared 204 points, or 1.5%, to 13,125. The S&P 500 added 21 points, or 1.55%, to 1,391. The Nasdaq Composite rose 55 points, or 1.85%, to 3,044.
Global markets had been under selling pressure recently as Spanish and Italian yield were rising, raising fears among investors of euro zone is still away from the end of the crisis.
First Solar, Inc.(NASDAQ:FSLR) shares are popping up as the company announced its plan to reduced its current work force by as much as 30% or about 2000 people, in order to compensate improve its profitability because of deteriorating European market. Additionally, the company decided to shut down its manufacturing plant in Frankfurt in the fourth quarter and will inactive four production lines in Malaysia on May 1. The company expects to save between $30 million – $60 million this year and between $100 million and 120 million annually in years to come from the above measure.
The Coca-Cola Company(NYSE:KO) shares surged 2.64% as the world’s largest soft drink maker’s first-quarter profit came above analysts’ estimates driven by strong sales of company’s popular beverages. The company earned $2.05 billion, or 89 cents a share on revenue of $11.14 billion, topping analysts’ estimates of 87 cents a share on revenue of $10.82 billion.
Apollo Residential Mortgage Inc(NYSE:AMTG) shares slumped 6.15% to $17.95 as the company intends to offer 13.9 million shares to raise funds to buy more residential mortgage assets.
ING Groep N.V. (ADR)(NYSE:ING) rose 5.32% after analyst at BNP Paribas upgraded the stock to Neutral on valuation earlier today.
NRG Energy Inc(NYSE:NRG) gained 4.67% as analyst at Deutsche Bank upgraded the stock to Buy from Hold, which sees value in the stock even at a $4 long-term gas price.
Arena Pharmaceuticals, Inc.(NASDAQ:ARNA) shares continued to slid and fell 10.05% to $2.46, extending its weekly losses to over 20%. The recent correction is followed by a sharp 100% jump in the stock prices in the month of March.
Genon Energy Inc(NYSE:GEN) gained 2.60% to $1.99 as analyst at Deutsche upgraded the stock to Hold on valuation and removes the stock from its Short List.