Monday was a generally positive day on Wall Street, with most major market benchmarks posting gains on the day. Only the Dow Jones Industrials found itself in the red, but broader indexes reacted favorably to economic news showing a strong willingness among consumers to borrow in order to support their spending. Also helping to lift the market's mood was good news from several individual companies in different sectors of the economy. Tesla (NASDAQ: TSLA), Carvana (NYSE: CVNA), and Tilray (NASDAQ: TLRY) were among the best performers on the day. Below, we'll look more closely at these stocks to tell you why they did so well.
Tesla bounces back
Tesla rose 8%, climbing back from some of its losses last week as investors reevaluated the fundamental prospects for the electric vehicle manufacturer. Despite some of the eyebrow-raising things that CEO Elon Musk has done recently, one undeniable thing Tesla has done so far is to get a big head-start in the electric vehicle business with its popular high-end models. Production volume for its mass-market Model 3 remains an important metric that Tesla will have to maximize in order to reach its full potential, and despite Musk's assurances that things are going well, some naysayers remain skeptical about Tesla's ability to ramp up its output. With bulls and bears fighting hard over the stock, investors should expect continued volatility in both directions for the foreseeable future.
Image source: Tesla.
Carvana drives higher
Carvana jumped 11% after announcing plans to raise capital to fund its expansion efforts. The innovative e-commerce-oriented used car retailer said that it expects to offer $300 million in five-year notes, with the intent of using the proceeds of the sale for general corporate purposes. Carvana has worked hard to expand its network of locations, and sales more than doubled in its most recent quarter compared to year-earlier results. Yet with just 65 traditional locations and 12 of its popular vending machines, Carvana has plenty more room to grow, and this debt offering will give it the cash to do so without diluting current shareholders.
Tilray is smoking
Finally, Tilray picked up 8%. The Canadian marijuana stock regained some positive momentum as investors prepare for the beginning of legal retail distribution of recreational cannabis products in Canada next month. Today's move for the shares also represented a bounce from a minor setback late last week, after stock analysts questioned whether the bullish case for Tilray was realistic. With continuing speculation about major players in areas like spirits and tobacco coming in to buy up small marijuana players like Tilray, investors should expect to see pot stocks stay popular until hard financial numbers start coming in from the Canadian market.
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