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Stocks Gain Again as Takeover Targets, Energy Shares Lead Rally

  • October 5, 2011
  • David Penn

Buyers continued to send stocks higher, as takeover talk in both Research in Motion and ^YHOO^ – as well as optimism toward private sector job growth – encouraged traders to look beyond the on-going concerns in Europe. Among the biggest gainers ahead of trading on Thursday were oil stocks like ^MPC^ and ^VLO^, both of which rallied by more than 9% in Wednesday’s trading.

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Special to 7 Stocks You Need to Know for Thursday

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Here are 7 Stocks You Need to Know for Thursday 

The biggest gainer in the Nasdaq 100 was the rally of more than 12% in shares of ^RIMM^. The stock has closed higher for three days in a row, finishing in overbought territory ahead of trading on Thursday. 
Also moving higher below the 200-day moving average are shares of ^HPQ^. The stock has finished higher for a second day in a row, gaining well over 3%. Any significant follow-through to the upside on Thursday will likely put the stock in overbought territory below the 200-day moving average before the end of the week. 
What’s down on an up day? Missing earnings estimates sent shares of ^COST^ lower by more than 1% ahead of trading on Thursday. The pullback returns the stock to oversold territory above the 200-day moving average.

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A number of utility companies are pulling back into oversold territory ahead of trading on Thursday. Among them are stocks like ^PPL^, which has closed lower for three days in a row, down more than 1% on Wednesday before rallying to trim losses heading into the close.

Making our Daily Double 7s spot yesterday, shares of ^NEM^ rallied by well over 2% on Wednesday. More about our Daily Double 7s stocks below.

Shares of ^LULU^ added more than 5% on Wednesday, gaining for a second straight session to close above its 5-day moving average. Read our commentary on Lululemon from earlier in the week in this column: LULU’s Back in Town: Sell-Off Puts Oversold Lululemon on Sale.

The Daily Double 7 for Thursday is ^ED^. Shares of ED have pulled back for four days in a row to finish at new, 7-day closing lows. The stock’s pullback of more 2% pushed ED into technically oversold territory for the second time in a week.

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David Penn is Editor in Chief of TradingMarkets.com