Stocks rebounded sharply today in the wake of a favorable report from the Energy Department and some "technicals-based" buying among institutional investors. The weekly inventory report showed strong reserves in gasoline, heating oil and other distillates, which helped traders ignore rising oil prices and mediocre economic data, while focusing instead on the current "oversold" conditions in the major equity averages. At the close, the Dow industrial average was up 75 points at 10,748, the NASDAQ was 20 points higher at 2,051, and the broader S&P 500 was up 9 points at 1,200.
The OW Portfolio benefited from the upside activity with three of the four issues moving higher during the session. Of course, our attention was focused on Marvell Technology Group (NASDAQ:MRVL) which was due to report earnings after the bell. As expected, the company posted fourth-quarter results that handily beat consensus expectations on sales that more than doubled. Quarterly income was $54.9 million, or 18 cents per share, up from $19.8 million, or 7 cents, a year earlier. In addition, sales hit $1.22 billion, up 49 percent from last year's $819.8 million.
Of course, many companies have released favorable reports, only to see their shares plunge after the announcement. Fortunately, this was not the case with MRVL, which added $1.56 to $37.70 in after-hours trading. Life is good...for now.