I said that Tuesday was the “Ben and Barney and Rally.” So I guess today is the “Bernie Rally.” As CNBC spent much of the day focused on Bernie Madoff’s guilty plea, the Dow added 239.66 points to close at 7,170.06. This is the first time this year that the Dow has rallied for three straight days. This is also the first time this month that the Dow has closed above 7,000.
Perhaps the catalyst was Mr. Madoff who pleaded guilty on every count against him. Guess what they were doing right around the corner from the courthouse? Filming the latest episode of “Law and Order.” How’s that for irony? Sentencing will happen on June 16, and Bernie faces a maximum of 150 years in prison.
Today was a strong day across the board and we had several big winners. Axsys Technologies (AXYS), our superstar from yesterday, continues to pour it on. The shares were up another 12% today following yesterday’s 32.5% surge. EZchip Semiconductor (EZCH) also continued its winning streak. The stock was up over 10% today. Since Monday, the stock is up 27%.
Fluor (FLR) added nearly 9%. The shares are up by more than 27% for the week. Bristol-Myers Squibb (BMY) also had a very good day. The stock was up close to 7%. I’ve mentioned BMY recently as a possible acquisition candidate. By the way, the shares pay a nice dividend yield of 6%.
Yesterday, I called Buckle (BKE), “the strongest retail stock.” The company had a very good earnings report yesterday, and the stock added 11.5% today. I’m also seeing strength in some of my favorite foreign stocks. For example, China Sky One Medical (CSKI) was up 14.4% today.
Let’s hope we end the week on a strong note. Tomorrow we’ll get reports on import prices, consumer confidence and international trade.