Jim Cramer Blog

The stock market rallied across the board today, with the Dow Jones surging almost 284 points, the Nasdaq gaining nearly 50, and the S&P 500 up about 29 points. The Dow and S&P hit all-time closing highs. Stocks were buoyed by retail sales numbers as well as strong deal flow. Upbeat economic data also sparked a rally for the bulls.

In economic news, economists raised U.S. growth estimates following a report that showed exports rose to a record in May. Economists predict that the export data will add at least 1% to second quarter GDP. U.S. foreclosures, meanwhile, jumped to a record amid rising rates and falling home prices. RealtyTrac reported that foreclosures reached 926,000 in the first half of the year.
Shares of the nation's second-largest discount retailer Target (NYSE: TGT - News) notched an all-time high after it reported a 3.3% rise in June same-store sales. Also helping the shares gain steam was the news that activist shareholder William Ackman of Pershing Square Capital has accumulated a 5% stake in the retailer. Target finished the day higher by 6.8%.
In other retailing news, Wal-Mart (NYSE: WMT - News) said June sales rose 2.4%, which easily beat consensus estimates of 0.9%. The world's largest retailer noted that the environment remained "challenging." Macy's (NYSE: M - News), meanwhile, sank -2.9% after the company said June same-store sales declined -2.7%, more than analysts had expected. The company previously forecasted a range of flat to negative -2% for same-store sales. Macy's also cut its earnings for the upcoming quarter to 20-30 cents a share from a previous forecast of 35-45 cents a share.
In merger news, Rio Tinto agreed to purchase rival Alcan (NYSE: AL - News) for $38.1 billion, smashing a hostile bid by Alcoa (NYSE: AA - News). The offer is 33% higher than Alcoa's recent bid. Rio Tinto's output in aluminum will expand fourfold once the merger is completed. In earnings news, Marriott International (NYSE: MAR - News) said earnings rose 11% to $207 million. Excluding certain items, EPS was 57 cents a share. The company said it benefited from its strong timeshare business. However, shares fell on reports that its REVPAR (revenue per average room) outlook will fall for the upcoming quarter. The company expects REVPAR growth of 5.6% in the Americas, below estimates of 6.4%. Shares fell -2.8%.

By the BullMarket.com Staff

Labels: AA, AL, M, MAR, TGT, WMT