Alcoa Rises on Alcan Bid; Black and Decker Jumps on Buyout Rumors

Stocks surged on Thursday morning on retail sales data as well as Rio Tinto's $38.1 billion bid for Alcan. The Dow Industrials reached new record territory as investors cheered positive consumer spending trends and retailers' June sales reports. 

Thursday had its share of winners, and the following leaders have high PowerRatings (for Investors). A rating of 10 is highest, and our data from 1995 through 2006 show that on days sthat stocks had a PowerRating of 10 they returned 20.2% over the next year.

• Alcoa Inc. (AA@AA | Quote | Chart | News | PowerRating) jumped 6.9% Thursday morning to $45.35. AA has a high PowerRating of 8. Alcoa is a world leader in aluminum production and this morning Rio Tinto's $38.1 billion bid for Alcan is bringing up shares in all metal related stocks. Alcoa is a Dow Jones Composite member and S&P 100 member with a market capitalization of $39 billion. AA shares have gained 51% year-to-date.

• Black & Decker Corp. (BDK@BDK | Quote | Chart | News | PowerRating) gained 6.3% Thursday to $95.45. S&P 100 member Black and Decker is up on unconfirmed reports that conglomerate General Electric (GE@GE | Quote | Chart | News | PowerRating) may be looking to buy BDK. Black and Decker is the leading domestic producer of power tools, hardware, and home improvement products with a market cap of $6.2 billion. BDK has a high PowerRating of 8 and its shares are up 18% year-to-date.

• The Men's Wearhouse,  Inc. (MW@MW | Quote | Chart | News | PowerRating) moved higher by 5.9% on Thursday to $54.10. Men's Wearhouse announced that it expects earnings per share for the second quarter to meet or exceed the higher end of its initial guidance. Previously, the company said it anticipates EPS in range of $0.88 - $0.92. Analysts expect EPS of $0.88. MW has a high PowerRating of 8 and its shares are up 42% year-to-date.