What Happened in the Stock Market Today

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Stocks soared on Monday as the U.S. presidential campaign wound to a close. The Dow Jones Industrial Average (^DJI 0.40%) and the S&P 500 (^GSPC 1.02%) indexes each gained over 2% as the final rounds of polling seemed to point to a win for Hillary Clinton on Tuesday over Donald Trump (whose election could produce more uncertainty for investors).

Today's stock market

Data source: Yahoo! Finance.

The Emerging Market Index Fund (EEM 1.16%) jumped by 3.6% as markets across Europe and Asia joined in the global rally. Banks were some of the biggest winners, and that momentum helped produce a 2.5% jump in the Financial Sector Select SPDR Fund (XLF -0.15%).

A few individual stocks managed to stand out even on a day when nearly all index participants traded higher. LendingClub (LC 1.00%) and Blue Nile (NILE) each gained over 10% following their third-quarter earnings announcements.

LendingClub wins back bank capital

LendingClub shares spiked higher by 15% after a third-quarter earnings report revealed several pieces of good news for shareholders. To be sure, the headline numbers weren't pretty. The online lender saw its origination volume fall 12% as it generated a net loss of $37 million compared to a $1 million profit last year. 

Yet it diversified its investor base and made a big stride toward winning back crucial bank funding by securing a $1.3 billion loan purchase from the National Bank of Canada. LendingClub has recently lost support from that important customer segment, with banks falling to 13% of its base from 25% in fiscal 2015. But now the new management team believes they have turned the corner. "We actively re-engaged with investors of all types," CEO Scott Sanborn said. "Today's results, along with our new executive team, and the return of banks to our platform, give me confidence as we begin our planning for 2017."

LendingClub is hoping a return to its historic level of bank support will lift results over time. Sanborn and his team also have aggressive plans to push into the auto refinancing market, which could add significantly to its growth potential. As for profits, LendingClub is projecting losses of as much as $50 million next quarter, but also near breakeven adjusted earnings, as operating trends appear healthy enough to support the end of its loan incentives program.

Blue Nile goes private

Online jewelry retailer Blue Nile spiked higher after it announced plans to go private. The company, which has posted sales declines in three of the last four quarters, accepted an offer from Bain Capital Private Equity and Bow Street LLC for all of its outstanding shares at a purchase price of $40.75 per share in cash. That represents a 34% premium over the most recent closing price and the highest value for the stock since early 2014.

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"The terms of the all-cash deal provide substantial value to Blue Nile's stockholders," executives said in a press release. The private equity team buyer is happy to be purchasing a leading online retailer. "This is an opportunity to acquire a true disruptor in a fundamentally attractive and growing segment of the diamond industry," Bain Capital's Ryan Cotton said.

There might still be another twist in Blue Nile's story, though, given that management has a 30-day window during which they can solicit competing buyout offers. Wall Street appears to see that as a slight possibility given that shares are trading at close to 100% of the proposed acquisition price with months to go until the projected closing date.