Wall Street rebounded on Tuesday, and the Dow Jones Industrial Average posted a triple-digit gain as major benchmarks recovered much of the ground they had given up over the past few sessions. A substantial bounce in the value of the Turkish lira helped to convince many market participants that worries about a possible spread of financial uncertainties were likely overblown, and continuing optimism about the U.S. economy and the prospects for the biggest players in the corporate world helped spur gains. Some companies had particularly good news, and Abercrombie & Fitch (NYSE:ANF), Tapestry (NYSE:TPR), and Advance Auto Parts (NYSE:AAP) were among the best performers on the day. Here's why they did so well.
Abercrombie moves on without Einhorn
Shares of Abercrombie & Fitch jumped nearly 10% after the latest round of hedge fund disclosures revealed that well-known investor David Einhorn sold off his position in the apparel retailer. Einhorn's Greenlight Capital made numerous sales, ranging from some of the most important tech companies in the world to a number of retailers. Abercrombie's recent results have been solid, but the company hasn't been as reassuring that hard-earned gains will continue. With Einhorn now apparently out of the picture, shareholders can at least have the certainty of knowing that Abercrombie management's strategic moves won't be subject to challenge from activist investors.
Weaving a prettier Tapestry
Tapestry stock climbed 12% in the wake of the release of the company's fiscal fourth-quarter financial report. The luxury-fashion retailer said that revenue soared 31%, led higher by the acquisition of the Kate Spade retail chain. With the merger, Tapestry now comprises handbag specialist Coach, footwear designer Stuart Weitzman, and Kate Spade. CEO Victor Luis pointed to 2019 as "a pivotal year" for the company, especially with Kate Spade, where new collections will test the willingness of the public to embrace the brand after the death of its founder. Even as retail overall has gone through challenges, luxury brands appear to be recovering from the worst of their losses, and that gives Tapestry some tailwinds to help drive its growth in the year to come.
Driving higher at Advance
Finally, shares of Advance Auto Parts picked up 8%. The auto parts store posted comparable-store sales growth of 2.8% in the second quarter, which helped result in a nearly 25% boost to adjusted earnings per share. Advance also announced that it would authorize stock repurchases of as much as $600 million, or more than 5% of its current market capitalization, amid a brighter outlook for the full year that included revenue expectations of between $9.3 billion and $9.5 billion. With better conditions in the industry and improved execution on an internal basis, Advance Auto Parts wants to make the most of its opportunities while the time is right.