No Oil Gushing Sends BP's Stock Climbing

At around 3:35pm this afternoon, the market learned that BP's new cap had stopped oil from gushing into the Gulf of Mexico for the first time since April. I immediately g-chatted a friend of mine with the news, half-jokingly telling him to quickly buy BP stock. Apparently, I wasn't the only one with the bright idea. Here's what happened via Yahoo! Finance:

bp 2010-07-15.PNG

It dipped a little at the end there, but that's a pretty steep spike. The stock closed 4% higher than it was at 3:34, thanks to the last 25 minutes of trading. At that point it was at $38.94. As I type this, it was rising further in after-hours trading, back up to $39.38 at 4:10pm, which is an increase of 9% on the day. If you bought the stock on June 25th, when it was trading for $27.02, the you're feeling pretty smug right about now, having made 46% in a couple of weeks.

If this cap is really doing the trick, this is incredibly good news for the firm. Obviously, a whole lot of damage has been done, and the total price tag isn't known. But the market's worst-case fears must have imagined that it would take even longer than this to stop the leak. If the oil gushing has truly ended, then the liability owed from the accident will find a finite ceiling. And as bad as it will be for BP, it undoubtedly could have been even worse.

Presented by

Daniel Indiviglio was an associate editor at The Atlantic from 2009 through 2011. He is now the Washington, D.C.-based columnist for Reuters Breakingviews. He is also a 2011 Robert Novak Journalism Fellow through the Phillips Foundation. More

Indiviglio has also written for Forbes. Prior to becoming a journalist, he spent several years working as an investment banker and a consultant.

What Happened to the Milky Way?

Light pollution has taken away our ability to see the stars. Can we still save the night sky?

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register with Disqus.

Please note that The Atlantic's account system is separate from our commenting system. To log in or register with The Atlantic, use the Sign In button at the top of every page.

blog comments powered by Disqus

Video

What Happened to the Milky Way?

Light pollution has taken away our ability to see the stars. Can we still save the night sky?

Video

The Faces of #BlackLivesMatter

Scenes from a recent protest in New York City

Video

Desegregated, Yet Unequal

A short documentary about the legacy of Boston busing

Video

Ruth Bader Ginsburg on Life

The Supreme Court justice talks gender equality and marriage.

Video

Social Media: The Video Game

What if the validation of your peers could "level up" your life?

Video

The Pentagon's $1.5 Trillion Mistake

The F-35 fighter jet was supposed to do everything. Instead, it can barely do anything.

More in Business

Just In