Stocks rallied for a third straight session Thursday as the Bank of England hinted at fresh stimulus measures. Meanwhile, Hershey (HSY), Lockheed Martin (LMT) and NetEase (NTES) made big moves.
The S&P 500 led with a 1.4% gain, while the Nasdaq and Dow Jones industrial average added 1.3% each. Preliminary figures showed volume was slightly higher across the board vs. Wednesday. The Nasdaq retook both its 50-day and 200-day moving averages, one day after the Dow and S&P 500 reclaimed their 50-day lines.
Food stocks were big winners in the stock market today. Hershey soared 17% to a new high in massive volume amid reports on a buyout offer from Mondelez International (MDLZ), which rose 6%. Later in the day, the chocolate maker's board of directors unanimously rejected the 107-per-share cash-and-stock bid.
IBD 50 stock Constellation Brands (STZ) gapped up and rose 4% in busy turnover. It briefly cleared a 165.91 flat-base entry. The maker of Corona beer, Robert Mondavi wine and other alcoholic beverages reported fiscal Q1 earnings and sales that topped views.
Also on the IBD 50, NetEase continued its winning ways, following through on Wednesday's breakout with a 6% jump in high turnover. Shares are now extended past a 179.20 cup-with-handle buy point.
Defense contractor Lockheed Martin soared 2%, clearing the 245.47 buy point of a flat base in fast trade. It's still in buy range from the entry. The F-35 fighter jet maker and rival Boeing (BA) are among those invited to submit a proposal as Japan plans to acquire new fighter jets, according to Reuters.
Boeing lifted more than 2% to finish among the Dow's top gainers. The airplane maker is thinking about adding extra seats to its biggest 777 wide-body jet to compete with Airbus' (EADSY) A380 super jumbo jet, according to Bloomberg.
Gaming software and steel stocks also outperformed. Laggards included ship transporters, energy and medical stocks. Oil stocks dipped as West Texas intermediate crude sank 3% to $48.38 a barrel.
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In economic news, first-time jobless claims rose 3% to 268,000 the week ended June 25, slightly above forecasts for 266,000 claims. The Chicago Purchasing Managers' Index for June rose back above the neutral 50 level to 56.8, from 49.3 in May.
Economic data on tap Friday include the ISM manufacturing index for June, motor vehicle sales, also for June, and May construction spending.
