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Dow Soars Over 300 Points on Signs of Progress in DC

Dan Berman
Hot Stock Minute

Stocks enjoyed one of their best days of 2013 on hopes of progress in Washington. The Dow shot up 323 points, again topping the 15,000 mark. The move higher came as President Obama prepared to meet with 18 House Republicans on the debt ceiling and the budget shutdown. There was also word that House Speaker John Boehner and Republicans will offer a short-term increase in the debt ceiling while negotiations continue.

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Vonage (VG) skyrocketed 15% on word of an acquisition. The internet phone company says it's buying privately-held Vocalocity to bolster its position in the small-to-medium size business sector. The deal is valued at $130-million. Vonage had a market capitalization of about $640-million prior to the gains it made today.

Best Buy (BBY) soared nearly 8% to a multi-year high. The climb came on a report from analysts at Stifel Nicolaus. They say the number of people who plan to shop at Best Buy is up 9% year-over-year. There was an even larger rise in figures for September.

Citrix (CTXS) fell 12% in the wake of its lowered guidance which was issued yesterday afternoon. The company says it expects to report quarterly adjusted earnings of 68 or 69-cents a share versus the consensus which had been for 73-cents. Revenue is expected to between $710 and $712-million versus $737-million. Citrix CEO Mark Templeton refused to say what's behind the revisions. The company will release its quarterly report in two weeks.

Ruby Tuesday (RT) tanked 17% after the company badly missed estimates when it reported earnings after yesterday's closing bell. The restaurant chain had losses of 36-cents a share when expectations had been for losses of 5-cents. Revenues were also a miss, but closer to expectations at $290-million versus $298-million. Moving forward, the company anticipates same-store sales for the current quarter to be down in the high single digits, with a slow pick-up after that.

Netflix (NFLX) broke its three-day losing streak with a climb of more than 5%. The rise, however, reversed just about a third of the 12% loss sustained since Monday. It came came after research firm Needham initiated coverage of Netflix with a price target of $425 and a buy rating. A number of this week's other biggest tech losers also mounted turnarounds today including Facebook (FB) and Pandora (P).

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