The stock market kept its upward momentum going on Monday, with continued hopes for a favorable resolution to trade disputes between the U.S. and China playing a central role in bolstering overall sentiment. With earnings season generally going well, investors seem just to want to avoid any unexpected surprises. Some good results from key individual companies sent their stocks sharply higher. NIO (NIO 3.49%), Wright Medical Group (WMGI), and Lancaster Colony (LANC 1.04%) were among the top performers. Here's why they did so well.
NIO gets into gear
Shares of NIO rose 13% after the Chinese electric vehicle manufacturer provided an upbeat delivery update. NIO said that it shipped 2,526 vehicles during the month of October, and that number was higher by 25% compared to September's delivery figures even with a seven-day Chinese holiday in October holding back sales gains that month. That brought total 2019 deliveries of the ES6 five-seat SUV and ES8 seven-seat SUV to 14,867, with the month's sales showing a 2,220 to 306 vehicle lead for the ES6 over the ES8. CEO and founder William Li anticipates further growth coming from expansion plans, but investors will have to see a lot more progress in order for NIO shares to regain all the ground they have lost this year.
Image source: NIO.
Finding the (W)right buyer
Wright Medical Group saw its stock soar 32% in the wake of the medical device maker getting a buyout bid from an industry peer. Stryker (SYK 0.58%) offered to acquire Wright Medical for a total of $5.4 billion, with Wright shareholders to receive $30.75 per share in cash as part of the deal. For Stryker, the buyout makes a lot of sense, because the two companies have portfolios of products that complement each other well. Moreover, Wright's specialty areas of devices targeting upper and lower extremities are among the fastest growth areas in orthopedics. Investors seem to like the deal, bidding shares up but not by so much that they're anticipating a rival bid.
Lancaster feeds growth investors
Finally, shares of Lancaster Colony picked up more than 15%. The specialty food producer said that revenue rose 6% in its fiscal first quarter to a new record for the period, with particularly strong results in its food service segment. Net income rose slightly year over year despite Lancaster having to reduce its bottom line to account for various restructuring, impairment, and other one-time charges. CEO David Ciesinski pointed to strong margin gains and gave a rosy outlook for the coming quarter. The food industry is competitive, but Lancaster is trying to hold its own in the space.