The stock market moved higher on Tuesday, rebounding from a sluggish start to the week. Investors saw encouraging signs in the technology sector that pushed shares in that industry higher, and despite a bumpy beginning to earnings season, hopes for favorable resolutions to key geopolitical concerns helped support stocks broadly. Also, good news from some select companies boosted sentiment, and Netflix (NASDAQ:NFLX), First Republic Bank (NYSE:FRC), and Edwards Lifesciences (NYSE:EW) were among the top performers. Here's why they did so well.
Netflix boosts subscription prices
Shares of Netflix jumped 6.5% after the streaming-video company imposed a price increase on U.S. subscribers. Under the new plan, subscribers will pay $8.99 per month for basic coverage, up $1 from its former price, while standard and premium subscribers will pay $12.99 and $15.99 per month, respectively, which represents a $2 increase. Investors were pleased to see Netflix use its pricing power, even as competing streaming services start to appear. With the company set to announce earnings later this week, shareholders will need to watch to see how Netflix plans to integrate the price increases into its overall corporate strategy.
Bank on First Republic
First Republic Bank saw its stock climb 12% in the wake of its fourth-quarter financial report. The high-end bank finished 2018 strong, with healthy gains in net income coming in large part from particularly good performance in the wealth management business. Loan originations reached record heights, and although capital ratios showed some signs of deterioration, nonperforming assets and charge-offs remain at low levels. First Republic's emphasis on wealthy clients seems to be paying off, and the company has high hopes for 2019 as well.
Edwards keeps moving forward
Finally, shares of Edwards Lifesciences finished more than 8% higher. The company decided to settle patent litigation with Boston Scientific, with the provisions of the settlement agreement calling for Edwards to pay $180 million in cash as a one-time payment. Going forward, Edwards will owe no further royalties for the transcatheter aortic valves, mitral valve repair devices, and left atrial appendage closer devices that were the subject of the litigation. The move lets Edwards put a source of uncertainty behind it, and despite the cost, the company is in position to keep performing well.