Thursday was a poor day on Wall Street, with major benchmarks giving up about 0.5%-1% across the board. Trade concerns remain the focal point for market participants, with the latest controversy over U.S. immigration policy posing a potential threat to relations with traditional American allies abroad as well. Even with worries on a big-picture level, some individual companies had good news that sent their shares higher. Stitch Fix (NASDAQ:SFIX), Barnes & Noble Education (NYSE:BNED), and Heron Therapeutics (NASDAQ:HRTX) were among the best performers on the day. Here's why they did so well.
Rumors take Stitch Fix higher despite denials
Shares of Stitch Fix jumped almost 7%, adding to Wednesday's gains following rumors that the fashion delivery specialist might be the target of a high-profile celebrity investor. The stock had climbed as much as 14% Wednesday as some of those following the stock suggested that Oprah Winfrey might take a stake in Stitch Fix, and investors were excited that her participation might bring the same dramatic gains that her role at Weight Watchers has brought there. Winfrey denied the rumors, but even with a potential deal seemingly off the table, Stitch Fix is still attracting attention from those looking to cash in on favorable trends in the fashion industry.
Barnes & Noble Education graduates
Barnes & Noble Education stock gained 13% after the company reported fiscal fourth-quarter financial results. The operator of college bookstores had encouraging performance during the period, including substantial gains in sales and adjusted earnings. B&N Education has had a flurry of strategic activity, including stronger partnerships with publishers and some major acquisitions to broaden its ability to serve its student customers with the latest digital solutions. The company still has work to do, as it believes that comparable-store sales declines will persist through fiscal 2019. Nevertheless, B&N Education has made a lot of progress, and investors recognize the effort that the bookseller has made to execute a full turnaround.
Heron gets a boost from the FDA
Finally, shares of Heron Therapeutics soared 30%. The small biotech company announced today that the U.S. Food and Drug Administration had granted its breakthrough therapy designation to HTX-011, a candidate treatment for pain management following operations. Helping to support the decision was the fact that HTX-011 has been able both to reduce pain and cut the need for opioid-based drugs immediately following surgical procedures. With several trials already having been conducted, Heron hopes to file a complete application with the FDA by the end of the calendar year, and eventual success could have a huge impact on Heron's prospects for years to come.