Blue chips led the major stock indexes midday Tuesday, but highly rated stocks and small caps also leaned to the upside. In the elite IBD 50, two RV stocks scored the day's biggest percentage gains.
[ibd-display-video id=2969025 width=50 float=left autostart=true] The Dow Jones industrial average popped 0.5%, while the S&P 500 rose 0.4%. The Nasdaq added 0.2%. Among secondary indexes, the small cap Russell 2000 climbed 0.6%.
Volume in the stock market today was running marginally higher vs. the same time Monday on both the NYSE and the Nasdaq.
Towables account for 73% of Thor's revenue. Winnebago once counted on motorized RVs for more than 90% of revenue, but that's no longer the case. In the quarter reported in October, Winnebago reported a 50-50 revenue split between its towable and motorized segments.
Towables are more profitable and reach a broader market.
Also, the RV sector is more sensitive to consumer confidence than to fuel prices, according to industry insiders. On Tuesday, the Conference Board reported that its consumer confidence gauge reached 129.5 in November, a 17-year high. Analysts proved too pessimistic. They expected a decline to 124.
Arby's Bold Move
Meanwhile, privately held Arby's Restaurant Group said Tuesday that it reached an agreement to buy Buffalo Wild Wings ( BWLD ) in a $2.44 billion deal. Buffalo Wild Wings gapped up 6% on the news but is 24% off its all-time high in 2015.
Roark Capital - which was named after a character in Ayn Rand's novel "The Fountainhead" - owns the Arby's chain. Arby's global restaurant count is 3,367, including 1,062 company-owned units.
Cisco Leads The Dow
In the blue-chip Dow Jones industrial average, Cisco Systems ( CSCO ) surged 1.5% in fast turnover. Cisco is trading at the highest level since 2001 but is 54% off its all-time high of 82 reached in March 2000.
Cisco has turned into a single-digit earnings story. The last time it grew annual earnings 25% or more was in 2004, according to William O'Neil + Co. data. Cisco began paying a dividend in 2011. Cisco offers a 3.1% annual dividend yield. The dividend growth rate is 23%.