The stock market continued moving up on Tuesday, with the S&P 500 hitting a new high at points during the session before pulling back slightly. Even though the Dow Jones Industrial Average is still well short of its record levels, market participants were pleased to see extremely strong sentiment from investors, especially among stocks of smaller companies. With the current bull market being well into its 10th year, many skeptics have looked for signs of eroding confidence, but those that have appeared recently haven't had any lasting downward impact on stocks. Good news from several companies helped contribute to the positive mood on Wall Street. Cronos Group (CRON 3.15%), Medtronic (MDT 0.39%), and Regis (RGS 0.08%) were among the best performers on the day. Here's why they did so well.
Cronos prepares for Canadian recreational pot sales
Shares of Cronos Group jumped 13% after the cannabis-focused company announced initial supply agreements for retail distribution across the Canadian market. Canada recently legalized recreational use of marijuana, and legal sales are expected to begin in mid-October. Cronos is ramping up quickly, working with provincial government authorities in British Columbia, Ontario, Nova Scotia, and Prince Edward Island to make sure supplies get to customers. In addition, Cronos expects to offer its dried flower, pre-rolls, and oil products through online platforms. There's a lot of excitement about marijuana in Canada, and the Toronto-based Cronos expects to put production facilities in British Columbia and Ontario to good use in the months and years to come.
Image source: Getty Images.
Medtronic looks healthy
Medtronic stock picked up 6% in the wake of the release of the company's fiscal first-quarter financial results. The medical device giant saw its stock hit an all-time high on the strength of its cardiac and diabetes products, which helped fuel organic revenue growth rates of nearly 7% compared to the prior-year period. Medtronic's coronary and structural heart division showed double-digit percentage sales gains due largely to the success of its CoreValve Evolut PRO, and its diabetes group saw a 27% jump in sales, driven by the popularity of its latest MiniMed insulin pump system. Medtronic also boosted its guidance for the full fiscal year, and investors see more potential than ever for the healthcare company.
Regis pretties itself up
Finally, shares of Regis finished higher by 14%. The haircare salon company's fiscal fourth-quarter financial report showed continued progress in its ongoing strategic transformation, as net income jumped by more than half even as revenue plunged from year-ago levels. Regis has gone through a lot of changes, including the closure of more than 700 salons and the conversion of nearly 450 others to franchised locations. However, investors were pleased to see same-store sales growth, and a recent authorization for another $200 million in potential stock buybacks has them convinced that Regis shares could be an attractive value at current levels.
