On the day after some big announcements, it's not unusual for the Dow Jones Industrials and other major market indexes to drift aimlessly, searching for direction as investors try to incorporate the new paradigm into their investing strategies. That's what's happening today, with the Dow down about 12 points just before 10:45 a.m. EST. The rest of the market was largely mixed, but the ongoing overhang of fiscal-cliff uncertainty seems to be holding Wall Street back from taking decisive positions one way or the other.
But that didn't hold back some substantial moves among individual stocks. Sam Adams brewer Boston Beer soared 14% to hit an all-time high after announcing late yesterday afternoon that it was increasing its earnings guidance for the full 2012 year from a range of $3.80-$4.20 to a higher range of $4.30-$4.60. It also markedly increased its depletions projections for 2013.
Best Buy also exploded higher, climbing 14.4% on reports that company founder Richard Schulze expects to make a bid for the company worth at least $5 billion to $6 billion. That's significantly down from Schulze's initial bid for the company of $24 to $26 per share, which would have totaled between $8 billion and $9 billion overall. With the company's business floundering, a buyout seems like the best exit strategy going forward.
Finally, Hewlett-Packard is again the best performer among the 30 Dow components, rising 1% as the momentum that has lifted the company more than 25% from its recent lows in less than a month continues. HP didn't release any earth-shattering news today, but with computer-making rival Dell also having seen a substantial recovery from its November lows, it appears investors are giving the PC industry a second chance after essentially writing it off throughout much of 2012.
Can Sam Adams take Boston Beer higher still?
Yesterday's announcement from Boston Beer is obviously good news, but in the long run, the company faces plenty of competition in a crowded craft-beer field. Find out whether Boston Beer can rise above the rest in our in-depth research report on the stock, in which we bring you the details on Boston Beer's risks and opportunities. Just click here now to find out whether Boston Beer is a buy today.
The article Boston Beer Pops as the Dow Suffers a Fed Hangover originally appeared on Fool.com.Fool contributor Dan Caplinger has no positions in the stocks mentioned above. The Motley Fool owns shares of Best Buy and Boston Beer. Motley Fool newsletter services recommend Boston Beer. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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