I'm officially declaring today General Electric (GE) Day. I guess when your market cap is over $400 Billion and your the 2nd largest publicly traded company in the world, a lot can happen in one day. GE's stock shot up today by 3.2%, the largest one day gain in more than 3 years (3 year chart pictured). Trading volume on the day was much more than double the normal volume, making the rise more meaningful. So much could be read into what occurred to GE today, and why it occurred, but I'll limit my thoughts to this short post.
The What and Why?
- Investors speculated that profit growth could shine because of several new jet orders announced at the Paris Air Show (GE manufactures jet engines, among other things).
- The yield on a 10 year note slipped 6 basis points (easing concern about borrowing costs)
- GE bought a stake in a natural gas play (Regency Energy (RGNC))
Possible interpretations from the day:
The global economy is strong, and will remain strong in the near future. Those in charge of decisions regarding new jets, probably need to be fairly confident in this.
Natural gas plays may be a good value right now. Going forward they may excel. GE does not just take large stakes in businesses indiscriminately.
No big deal, stocks rise and fall every day.
All and all a pretty eventful day for the company that owns MSNBC....gives them something to report I guess....