The stock market bounced back dramatically on Tuesday, sending major benchmarks higher by more than 1% to make up a big chunk of Monday's losses. As we've seen countless times before during this bull market, buying dips has become ingrained in the collective consciousness of investors, and that strategy again seemed to kick in as traders look forward to earnings season. Positive news from several corners of the market also helped improve sentiment. Fiat Chrysler Automobiles (NYSE:FCAU), IMAX (NYSE:IMAX), and United Therapeutics (NASDAQ:UTHR) were among the best performers on the day. Here's why they did so well.
Fiat Chrysler scores a sales win
Shares of Fiat Chrysler Automobiles gained 9% after the automaker released its March sales numbers. The company said that it was its best March in 17 years, with the best total sales month for the Jeep brand ever. Total vehicles sold rose 14% to more than 216,000, led by a 70% jump in Jeep Wrangler and 63% for the Jeep Cherokee. Ram truck sales fell 13%, but the Chrysler make saw gains on strength in the Pacifica minivan and Chrysler 300 model. With Alfa Romeo sales more than quadrupling from year-earlier numbers, Fiat Chrysler seems to have tapped into many of the positive consumer trends domestically.
IMAX makes a deal
IMAX stock climbed 8% in the wake of a major deal with a Chinese theater company. Under the terms of the agreement, IMAX will work with Guangzhou JinYi Media to build 30 new IMAX theaters within both new and existing theater complexes across China. The new theaters will open starting later this year, with about half installed by 2019 and the remainder coming online by 2023. With the deal, IMAX will bring its exposure in China to 885 theaters, with almost 550 already open. JinYi will become IMAX's third-largest partner in the emerging-market country, and China is already well on its way toward eclipsing the U.S. to become IMAX's largest market in the world.
United Therapeutics earns a good review
Finally, shares of United Therapeutics rose 8%. The rare-disease specialist got positive comments from analysts at Credit Suisse, who raised their rating on the stock from underperform to neutral. Investors haven't been optimistic about the stock's prospects, but Credit Suisse argues that there's limited risk below current share-price levels. That didn't stop the analyst company from dropping its price target to $108 per share, but investors seemed pleased with the more positive comments in the write-up in pushing United Therapeutics shares well above that level.