On Tuesday, the stock market took a pause from the strong performance it has had all month, with major market benchmarks losing between 0.1% and 0.2% on the day. But several companies reported positive news that sent their shares soaring, and Tesla Motors (NASDAQ:TSLA), Bloomin' Brands (NASDAQ:BLMN), and Frontier Communications (NASDAQ:FTR) were among the stocks with the biggest gains today.
Tesla soared 14% on a couple of different pieces of good news for the carmaker. Consumer Reports chose Tesla's Model S sedan as its top pick in its automotive rankings for the year. In addition, Morgan Stanley raised its price target on the carmaker to $320, citing opportunities not just in vehicle production but also battery storage as potentially providing game-changing technology in other areas. With its plans for a battery "gigafactory" that could provide storage for fellow Elon Musk-led SolarCity (NASDAQ: SCTY) as well as a host of other applications, Tesla could end up being much more than just a car company in the long run.
Restaurant operator Bloomin' Brands also posted a 14% advance, as it released fourth-quarter net income that more than tripled from year-ago levels. Revenue rose 5.2% on a 1.4% rise in comparable-store sales, and even adjusting for certain one-time items, pro forma earnings per share rose 35%. With the company aggressively expanding with 15 new Bonefish Grill, Carrabba's Italian Grill, and Outback Steakhouse locations, Bloomin' Brands is making the most of what it sees as a growth opportunity. Moreover, having obtained majority control of a joint venture in Brazil, the company figures to be an international player in the restaurant industry as well.
Frontier Communications gained almost 11% after reporting good earnings news last night. Revenue was roughly flat, defying expectations for a decline, and adjusted net income was stronger than expected. Although broadband-customer growth exceeded wireline-phone-customer declines, the interesting question for the high-yielding dividend stock is whether its buyout of AT&T's (NYSE:T) Connecticut wireline and fiber business will create more cash flow for Frontier. CEO Maggie Wilderotter said she expects the deal to close in the second half of 2014.