Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.
The stock market was generally strong today, with the Dow Jones Industrials reaching new record highs on optimism that earlier fears about Europe's economic recovery were overblown. Amid the general gains, OpenTable (UNKNOWN:UNKNOWN), Organovo Holdings (NASDAQ:ONVO) and Genomic Health (NASDAQ:GHDX) all climbed by more than 10%. Let's take a closer look to find out what sent those stocks soaring today.
OpenTable's 12% gain came after reporting strong earnings last night. Better-than-expected growth in revenue led to an almost 20% jump in adjusted earnings per share, with the social restaurant-reservation company adding several thousand new restaurants to its client list and boosting the number of diners it served by almost a third. So far, long-anticipated competition has failed to materialize, essentially leaving the field open to OpenTable to grow at will. As long as people want to eat out, OpenTable appears to have clear sailing in the near future.
Organovo Holdings rose 11%. Interest in the bioprinting company has risen in recent weeks as Organovo looks for revolutionary uses for its technology, such as liver-tissue cultures that could help pharmaceutical companies do research on drug prospects far more easily than previous methods allowed. Moreover, earnings releases from traditional 3-D printing companies have led some investors to look for alternatives within the space, and Organovo has an interesting tack toward seeking profits from its bioprinting.
Genomic Health also posted an 11% increase, with favorable earnings explaining the move. The company aims to help medical professionals develop patient-specific solutions to treat cancer based on genetic traits, and products that allow doctors to assess how certain individuals will react to various treatment regimens could prove invaluable in helping improve patient outcomes. A decline in net income shows that Genomic Health has further to go before it delivers on its full potential, but today's gains are a step in the right direction.