Tuesday was a dreary day for the stock market, with the Dow, S&P 500, and other major benchmarks finishing modestly lower on the day. Declines amounted to around a quarter-percent as investors wanted to wait for direction from the ongoing investigation of alleged Russian manipulation of the U.S. election process. Results from the U.K. election later this week could also move markets.
Some good news from individual companies made a few stocks gain ground even on a cautious day overall. IAMGOLD (NYSE:IAG), G-III Apparel (NASDAQ:GIII), and Oclaro (NASDAQ:OCLR) were among the best performers on the day. Below, we'll look more closely at these stocks to tell you why they did so well.
IAMGOLD shines after finding a mining partner
Shares of IAMGOLD gained 12% in the wake of the company's announcement of a strategic agreement that will provide for the development of a new mine. The company said that it will work with Japan's Sumitomo Metal Mining to develop the Cote Gold Project in the Canadian province of Ontario. Under the deal, Sumitomo will pay IAMGOLD $195 million in exchange for a 30% undivided interest in the property, with $100 million due immediately and the other $95 million payable in 18 months or when a feasibility study for the mine is filed publicly, whichever comes first. IAMGOLD CEO Steve Letwin was pleased with the partnership, saying that it "validates the intrinsic value of the Cote Gold Project" and provides the endeavor with Sumitomo's technical expertise. IAMGOLD has done well lately, and investors hope that Sumitomo and IAMGOLD will work together on future projects, potentially giving both opportunities that either one alone wouldn't be able to get.
G-III bucks the retail slump
G-III Apparel stock climbed 15% after the company reported first-quarter financial results. The company behind well-known brands like DKNY apparel and G.H. Bass footwear posted a loss for the quarter, but after adjusting for one-time costs related to the acquisition of Donna Karan, G-III's adjusted profit would have been nearly double what it was in the previous year's first quarter. G-III acknowledged that the environment for the retail industry has been harsh lately, but CEO Morris Goldfarb believes that G-III is "in a renewed position to drive higher levels of growth, investment returns, and value to customers, consumers, and shareholders." Investors agreed with that assessment, helped by G-III's more optimistic outlook on earnings that added as much as 30% to its previous guidance.
Oclaro sees more clearly
Finally, shares of Oclaro rose nearly 9%. The fiber-optics specialist jumped in tandem with several of its peers in the space as a major Chinese supply customer got a potentially massive contract to build a fiber-optic network in a highly prosperous area of the emerging-market nation. Investors are generally optimistic about the need for telecommunications network upgrades across the globe, and projects like this have helped push shares of Oclaro up dramatically over the past year. As long as China continues to see value in building a better way of connecting its industrial and technological centers, then suppliers like Oclaro will be able to leverage their relationships with Chinese tech providers, and that should be good news for shareholders in the space.