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Why Amazon.com, Sony, and Johnson Outdoors Jumped Today

By Dan Caplinger - Feb 2, 2018 at 4:35PM

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On a terrible day for the market, these stocks gained ground. Find out why.

The stock market finished its worst week in a couple of years on Friday, with the Dow falling more than 600 points during the session. Market participants were spooked by a dramatic rise in interest rates, with the 10-year Treasury yield having risen from 2.45% in early January to as much as 2.85% today. That doesn't seem like a big increase, but it sparked concerns that the bond market could be starting to reverse a decades-long trend that could lure income-seeking investors away from stocks. Even amid the downdraft in major indexes, some stocks managed to make gains. Amazon.com (AMZN 2.23%), Sony (SONY -0.06%), and Johnson Outdoors (JOUT -0.19%) 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.

Amazon sees profits explode higher

Shares of Amazon.com climbed 3% after having been up more than twice that earlier in the day. The e-commerce giant reported fourth-quarter financial results that included a 38% rise in revenue and a 42% boost to adjusted earnings. Amazon also got a nearly $800 million benefit from the new tax reform laws, but long-term investors focused instead on a mix of good strategic news that included impressive progress in integrating the Whole Foods grocery business, continued success for Amazon Web Services, and good prospects for the core marketplace division. Even when the rest of the market was collapsing, Amazon was able to serve as a safe haven today.

Amazon logo with upward curving arrow below the word amazon.

Image source: Amazon.com.

Sony makes room at the top

Sony stock rose 6% in the wake of the company's fiscal third-quarter earnings report and news of change in its executive management. The entertainment giant reported a significant gain in revenue that helped lift net income dramatically compared to sluggish performance in the year-earlier period. Home entertainment and music helped lead the way higher for Sony's sales, and despite a small pullback in video game console sales, holiday-season performance was encouraging. Sony also said that CEO Kazuo Hirai would step down effective April 1, with CFO Kenichiro Yoshida moving into the chief executive role. Things are going well at Sony, and Yoshida should keep things aimed in the right direction.

Johnson Outdoors goes back to the great outdoors

Finally, shares of Johnson Outdoors soared 22%. The maker of outdoor recreational equipment said that net sales rose 24% in the fiscal first quarter, with particularly good performance in the fishing and diving segments. Most investors had expected relatively flat sales and a big drop in earnings, but Johnson Outdoors' bottom line was higher by more than 50% after accounting for the one-time $6.4 million charge related to revaluation of deferred tax assets and taxation of foreign earnings. Some see Johnson Outdoors' business as being calm and quiet, but the stock's performance today shows how exciting it can be when things go right.

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Stocks Mentioned

Amazon.com, Inc. Stock Quote
Amazon.com, Inc.
AMZN
$109.79 (2.23%) $2.39
Sony Corporation Stock Quote
Sony Corporation
SONY
$83.14 (-0.06%) $0.05
Johnson Outdoors Inc. Stock Quote
Johnson Outdoors Inc.
JOUT
$61.98 (-0.19%) $0.12

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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