The major benchmarks jumped markedly higher Tuesday, as investors appeared to shake off the uncertainty related to geopolitical concerns. The stock market gained more than three-quarters of a percent or more, led higher by the technology-heavy NASDAQ Composite, which gained more than 1%. Sentiment on Wall Street took on a bullish tone, with some companies doing even better. Macy's, Inc. (NYSE:M), Farmer Bros. Co. (NASDAQ:FARM), and Snap Inc. (NYSE:SNAP) were among the best performers of the day. Below, we'll look more closely at these stocks to tell you why they did so well.
Shopping for talent
Shares of department store owner Macy's were up more than 4% after the company made several announcements that gave investors hope for the beleaguered retailer. Macy's has hired Hal Lawton as its president, which will take effect Sept. 8. Lawton has a strong retail and e-commerce background, most recently as the senior vice president of eBay North America. Macy's also announced a major restructuring that will consolidate its merchandising, planning, and private brands into the same department. The company will put increased focus on customer insight and data analytics in order to be more nimble in a challenging retail environment. These moves seek to expand its online performance and improve its besieged same-store sales, which showed their 10th straight quarter of declines in its most recent financial report.
A strong cup o' joe
Farmer Brothers, one of the largest coffee roasters in the U.S., gained 14% on news that it would acquire privately held Boyd Coffee Company in a deal valued at $59 million. Boyd has made its fortunes providing coffee, tea, and other beverages to restaurants, convenience stores, and hotels. Farmer Brothers believes that Boyd's strong presence on the West Coast, strong national accounts, and meaningful retail business will provide stronger penetration and a broader distribution footprint. The deal is also expected to contribute $13 million to $16 million in higher operating profits while reducing costs compared to Boyd's current operations. Farmer Brothers also thinks that the addition of a premium brand will strengthen its already robust portfolio of coffees, teas, and other products.
Snapping up users
Shares of social media company Snap jumped nearly 7% on a report suggesting that larger rival Facebook (NASDAQ:FB) may face waning popularity with younger users. The photo-centric Snapchat app could potentially gain from the trend, with 12-to-17-year-olds migrating to it and Facebook-owned Instagram. The forecast by eMarketer sees Snapchat "overtaking both Instagram and Facebook in terms of total users ages 12 to 17 and 18 to 24 for the first time in 2017." This would be good news for Snap investors, who have seen the stock fall by 40% since its initial public offering in March. The company has yet to translate its strong user base into profitability, but this latest development gives investors a ray of hope that it may yet be a winning investment.