The stock market continued its post-election advance on Tuesday, with the Nasdaq Composite climbing more than 1% and the S&P 500 and Dow following suit with smaller gains. A recovery in oil prices and a pause in the upward surge in long-term interest rates were contributing factors in boosting investor confidence. Yet some stocks posted much larger increases than the overall market, and Chesapeake Energy (OTC:CHKA.Q), Pan American Silver (NASDAQ:PAAS), and Pier 1 Imports (OTC:PIRRQ) were among the best performers in the market. Below, we'll look more closely at these stocks to tell you why they did so well.
Chesapeake climbs on strong energy
Chesapeake Energy finished up 11% in the wake of strength in the energy market. Oil prices rose by around $2.50 per barrel to climb above the $45 level, and that helped bolster prospects for a number of companies in the sector. What's particularly notable about Chesapeake is that investors haven't been quite sure what to make of the company since billionaire investor Carl Icahn announced that he had sold off a substantial portion of his stake in the energy company back in September. However, given the efforts that Chesapeake has made to shore up its balance sheet and find ways to cut down on its debt, any strength in the energy market will translate to better long-term chances for Chesapeake to survive and thrive in the future.
Pan American Silver wins two ways
Pan American Silver soared 16%, benefiting from two favorable news items. First, silver prices finally picked up some ground Tuesday, climbing 1% after having posted substantial declines in the wake of the presidential election last week. Of more note was the silver miner's third-quarter financial report, in which the company reported earnings of $0.28 per share, reversing a year-ago loss and taking full advantage of low cash costs of less than $5 per ounce of silver. Production in the third quarter amounted to 6.36 million ounces, which was down from year-ago levels, but the company nevertheless boosted its full-year 2016 production estimates by 700,000 ounces to 25.7 million ounces. If the silver market keeps pressing higher, then Pan American Silver appears to be in prime position to capitalize going forward.
Pier 1 looks forward to the holidays
Finally, Pier 1 Imports gained 7%. The home furnishings retailer said late yesterday that it had updated its financial guidance for its fiscal third quarter in light of trends it's seeing in its business. Specifically, the company said that comparable sales were up at a low single-digit percentage rate, and that the company therefore expects its results to be at the high end of its previous ranges for comps, revenue, and earnings. Although the holidays still loom large, CEO Alex Smith said that Pier 1 is focusing on executing as strongly as it can, and the company is optimistic that it can capitalize on a hoped-for rebound in the retail industry during the remainder of 2016.