Winners & Losers: Dry Bulk Stocks Up Big

Dry bulk shipping stocks appeared to bounce in tandem with a key economic indicator on Wednesday, as better-than-expected durable-goods data raised investor optimism for an economic turnaround.

The Commerce Department released numbers Wednesday indicating that orders for expensive manufactured products -- the kinds of products made out of the raw materials that are hauled across the oceans by dry bulk shipping companies -- rose 1.8% in May, the second-straight month of gains. Data-watching economists were expecting a decline.

Along with the broader market and industrial stocks in general, the notoriously volatile dry-bulk sector saw share prices move sharply higher across the board, even while hundreds of shipping executives gathered in New York City for an annual three-day confab with the banking industry -- and even as the Baltic Dry Index, a gauge of shipping prices (and therefore shipping demand), dropped another 3.8% Wednesday, adding to recent declines.

In midday trading Wednesday, shares of DryShips(DRYS Quote) jumped 7% to $5.84; Diana Shipping(DSX Quote) was up 5% to $14.11; Genco Shipping(GNK Quote) added 6% to $21.80; Navios Maritime Holdings(NM Quote) rose 6% to $4.38; Safe Bulkers(SB Quote) gained more than 10% to $6.65; and Eagle Bulk(EGLE Quote) added 8% to $4.86. Volumes were somewhat light, however.