Investors kept regaining their confidence in the economy's ability to bounce back from adversity, and that kept stock market benchmarks moving higher. As of just after noon ET, the Dow Jones Industrial Average (DJINDICES:^DJI) was up 530 points to 35,757. The S&P 500 (SNPINDEX:^GSPC) gained 97 points to 4,688, and the Nasdaq Composite (NASDAQINDEX:^IXIC) was up 461 points to 15,686.

The thrashing that stock markets have suffered has opened the door to some bargain opportunities, and companies that are successfully navigating choppy waters are getting rewarded. For Trupanion (NASDAQ:TRUP), a massive strategic deal with a key partner could mean a huge upsurge in business for the pet insurance provider. Meanwhile, Designer Brands (NYSE:DBI) reported its latest financial results and gave investors much of what they had hoped to see in a turbulent retail environment. Below, we'll look more closely at both stocks.

Insuring big growth from Fido and Fifi

Shares of Trupanion were up almost 35% at midday on Tuesday. The pet insurance specialist got a huge vote of confidence from an industry leader.

A row of dogs and cats.

Image source: Getty Images.

Chewy (NYSE:CHWY) said that it would expand its leading online pet products platform to offer pet insurance. However, rather than building its own insurance business from scratch, it instead announced a partnership with Trupanion to offer an exclusive suite of insurance and wellness products. Chewy wants to offer preventative care and wellness plans as well as coverage for accidents, illness, and chronic health conditions.

Many Trupanion investors had worried that Chewy might end up being a competitor. Instead, Trupanion will have access to Chewy's stable of more than 20 million customers. In addition, with Chewy looking to offer many of the wellness services that Trupanion would seek to cover, there are ample opportunities for what essentially ends up looking like cross-selling. Chewy shareholders were also happy about the deal, sending its share price up a more modest 3%.

The deal removes a competitive threat and also opens the door to speculation about future actions, such as a full takeover of Trupanion by Chewy. For now, though, pet stock investors are more than content to think about the flood of new business that the pet health insurer could see as a result of its deal with the leading pet e-commerce play.

A good day for Designer Brands

Shares of Designer Brands got a nice boost, rising 17% on Tuesday afternoon. The footwear and accessories retailer got some great results in its third-quarter financial report.

The numbers from Designer Brands were little short of amazing. Comparable sales jumped almost 41% from year-ago levels, helping to lift overall revenue by 31% year over year. Gross margin figures soared by more than 11 percentage points to 36.7%, and adjusted earnings of $0.86 per share reversed a year-ago loss for the company.

Designer Brands was also guardedly optimistic about how the holiday quarter will go. New guidance calls for sales to be flat to up low single-digit percentages even when compared to pre-pandemic levels two years ago. That should help Designer Brands turn a profit for the quarter, with the company providing a range of $0.10 to $0.15 per share for adjusted earnings.

The company highlighted key areas, including athletic apparel, children's and men's clothing, and its ability to overcome supply chain challenges to keep its customers happy. At this point, Designer Brands' playbook looks flawless, and investors would love to see more of the same in the quarters to come.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.