Stocks Gain A Little; Hertz Falls Late, Limited Up

By Victor Reklaitis, Investor’s Business Daily

Stocks closed up modestly Monday, but finished off their session highs as earlier gains faded.

The Nasdaq rose 0.3%, while the Dow Jones industrial average edged up 0.1%. The S&P 500 moved up a fraction. The Dow and S&P 500 have both advanced for four straight sessions. Volume decreased from Friday’s levels across the board, according to early data.

After the market’s close, Hertz Global (HTZ) slumped on news of a stock offering. The car rental company said certain investment funds are selling 50 million shares, but the funds will continue to hold about 110 million shares. Hertz was No. 16 in Monday’s IBD 50 lineup. It had been extended after clearing a 15.27 double-bottom buy point.

Also after hours, Limited Brands (LTD) jumped as it announced a $3 per share special dividend. It’s joining a long parade of companies that are making special payouts or moving up their dividend dates amid expectations of higher taxes on dividends in 2013.

Limited Brands tried to clear a cup-shaped pattern in late November but ended up reversing lower, resulting in a cup-with-handle structure with a buy point at 52.60. The operator of Victoria’s Secret and Bath & Body Works sports a respectable IBD Composite Rating of 84.

Texas Instruments (TXN) gained ground in late trading as well, after the chip giant provided an updated fourth-quarter outlook. It sees EPS of 26 cents to 30 cents, excluding a 21-cent charge tied to a restructuring. Analysts were expecting 33 cents, and the company previously was targeting 23 cents to 31 cents. TI expects Q4 revenue of $2.89 billion to $3.01 billion vs. views for $2.96 billion and its prior guidance of $2.83 billion to $3.07 billion.

On Tuesday, Dollar General (DG) is among the companies slated to report quarterly earnings. The economic news will include Federal Reserve policymakers starting a two-day meeting, as well as fresh data on international trade.


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