Thursday ended in the red for most major benchmarks on Wall Street, with the Dow trading down by triple digits at times before climbing back toward the close. After having bounced back sharply in recent days, stocks seemed to lose upward momentum, and interest rate fears returned to the market. The yield on the 10-year Treasury bond once again moved above the 2.9% mark, and shorter-term Treasurys had yields reach levels they haven't seen in years. Yet even though the overall market was ready to take a break, some companies still enjoyed good news that lifted their shares. Bank of New York Mellon (BK 1.52%), Snap-on (SNA 0.81%), and Rigel Pharmaceuticals (RIGL 6.52%) were among the best performers on the day. Here's why they did so well.
BNY Mellon has a good report
Shares of Bank of New York Mellon rose almost 6% after the company reported its first-quarter financial results. The bank saw earnings per share rise by a third on a 9% jump in revenue, and BNY Mellon pointed to solid gains in fee-based revenue as well as net interest income in helping to drive better performance to start 2018. The company's investment management unit saw assets under management rise to $1.9 trillion, and CEO Charles Scharf pointed to strong markets and higher rates in helping to bring greater success. With its emphasis on custodial services rather than retail banking, BNY Mellon doesn't always behave like other financial institutions, but its latest results likely brought some relief to top executives, who have faced criticism about sluggish past performance.
Snap-on ratchets higher
Snap-on stock climbed 6% in the wake of its own favorable financial report for the first quarter. The toolmaker said that sales were higher by more than 5% compared to year-ago levels, due largely to acquisitions, and earnings grew 15% over the same period. Snap-on has continued to suffer some challenges in its tool group, but its other units, which include products for commercial and industrial customers as well as diagnostic and repair information systems to repair-shop owners and vehicle dealers, did better. Snap-on often goes unnoticed among industrial stocks, but it's been a solid long-term performer for shareholders during the 2010s.
Rigel climbs despite stock offering
Finally, shares of Rigel Pharmaceuticals gained 5%. The surprising thing about the biotech company's move is that it came even though Rigel said it would offer as much as 15 million shares of stock to investors through a secondary stock offering. Typically, stocks fall when companies announce secondary offerings, as current shareholders fear dilution. Yet it's also common for small biotechs to raise cash after good news, and Rigel's recent FDA approval of its Tavalisse treatment for patients suffering from low platelet counts prompted a nice upward move in the shares, setting the stage for Rigel's offering.