Here's What Continues Driving DryShips Inc.'s Stock Higher

Here's What Continues Driving DryShips Inc.'s Stock Higher

Shares of DryShips (NASDAQ: DRYS) jumped again today, rising more than 13% by 10:45 a.m. EDT. The stock is up more than 60% over the past month. One of the factors driving the buying spree is the continued rise in the Baltic Dry Index (BDI).

The BDI assesses nearly two dozen major shipping routes each day, gauging the rates vessel owners charge to ship dry bulk goods like coal, iron ore, and grain. A rise in the BDI suggests strong demand for commodities, which often leads to higher spot market rates for ships. That enables companies like DryShips to make more money when chartering vessels.

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Source: Fool.com