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Why Hawaiian Holdings, NIO, and Allegiance Bancshares Jumped Today

By Dan Caplinger - Oct 8, 2019 at 4:32PM

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Tuesday wasn't a great day for the stock market, as investors got nervous about the latest news from Washington. The Trump administration fired another salvo in the trade war against China, prohibiting U.S. companies from doing business with more than two dozen named Chinese companies. That move raised concerns that no resolution is likely in the two countries' trade dispute in the immediate future. Yet some stocks managed to overcome negative pressure to post solid gains. Hawaiian Holdings (HA 0.00%), NIO (NIO -1.08%), and Allegiance Bancshares (ABTX -0.62%) were among the top performers. Here's why they did so well.

Hawaiian takes to the skies

Shares of Hawaiian Holdings rose 7% after the airline reported its latest traffic statistics and updated some key financial metrics. Hawaiian said it served 3.07 million passengers in the third quarter, up 1% from the year-ago period, and revenue passenger miles climbed almost 3% year over year. The company's load factor for the quarter was 87.8%, up 2.7 percentage points from the third quarter of 2018. What really made shareholders happy, though, was the boost to guidance for key third-quarter financial measures, including calls for roughly break-even operating revenue per available seat mile. As key competitors face challenges of their own, Hawaiian hopes to take advantage of strong conditions in the industry in order to maximize its success for the foreseeable future.

Airplane with Hawaiian Airlines markings in a hangar.

Image source: Hawaiian Holdings.

NIO makes more deliveries

Chinese electric car specialist NIO watched its shares jump nearly 11% following the release of its delivery numbers for the third quarter. NIO saw a 35% rise in unit deliveries from three months ago to 4,799, which compared quite favorably to its previously projected range of 4,200 to 4,400 vehicles. Nearly 4,200 of the vehicles were ES6 five-seat SUVs, while the remaining 600 were six-seat and seven-seat ES8 SUV models. NIO delivered more than 2,000 vehicles in September alone. Yet despite the stock's rebound, some remain concerned that the company still has an uphill road to drive in order to reach its lofty goals.

Allegiance gets added to an index

Finally, shares of Allegiance Bancorp finished higher by 7%. The Houston-based regional bank got the word from S&P Dow Jones Indices that its stock would become part of the S&P SmallCap 600 index effective as of Friday, Oct. 11. The commercial banking institution will fill a vacancy that's resulting from an acquisition of one of the index's current members. Like many regional banks, Allegiance has had to deal with the impact of recent interest rate moves on its net interest margin and overall profit potential. Yet longtime investors still seem to have confidence that Allegiance will emerge from tough conditions in the industry and be stronger than ever.

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Stocks Mentioned

Hawaiian Holdings, Inc. Stock Quote
Hawaiian Holdings, Inc.
$16.67 (0.00%) $0.00
Nio Inc. Stock Quote
Nio Inc.
$16.45 (-1.08%) $0.18
Allegiance Bancshares, Inc. Stock Quote
Allegiance Bancshares, Inc.
$39.34 (-0.62%) $0.24

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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