SPX Shares Popped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of industrial components and systems manufacturer SPX (NYS: SPW) delivered a heavy-duty jump this morning, rising as much as 14.4% on above-average trading volume.
So what: SPX just reported third-quarter earnings that were stronger than expected despite slow sales, and the company then tightened next-quarter earnings guidance around the upper half of the existing forecast. Keep in mind that investors approached this report with low expectations, given a 6% price drop on Tuesday amid macroeconomic concerns.
Now what: Rivals FlowServe (NYS: FLS) and Dover (NYS: DOV) also fell on Tuesday only to piggyback on SPX's success today. The industrial manufacturing sector seems to be in better shape than anyone thought. SPX CEO Chris Kearney reported high demand in several market segments, tempered only by the pricing pressures that come with high-quality competition on an even playing field.
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At the time this article was published Fool contributor Anders Bylund holds no position in any of the companies mentioned. We Fools may not all hold the same opinion, but we all believe that considering a diverse range of insights makes us better investors. Check out Anders' holdings and bio, or follow him on Twitter and Google+. We have a disclosure policy.