Tuesday saw another strong session for the stock market, with the Dow Jones Industrial Average posting triple-digit gains and other major benchmarks rising roughly 0.3%. In the absence of overwhelmingly negative news on the geopolitical or macroeconomic fronts, investors seem content to watch stocks head higher toward record levels, reflecting the perceived strength of the U.S. economy. Indeed, some individual issues saw much larger gains for a variety of encouraging reasons. Tesla (NASDAQ: TSLA), Hertz Global Holdings (NYSE: HTZ), and Office Depot (NASDAQ: ODP) were among the best performers on the day. Here's why they did so well.
Elon Musk tweets a potential buyout bid
Shares of Tesla climbed 7% before its shares were halted in the middle of the afternoon following a tweet from CEO Elon Musk saying that he was thinking about making an offer to buy out the electric-car manufacturer. Specifically, Musk's comments said, "Am considering taking Tesla private at $420. Funding secured." The tweet got a critical reception from some who argued that the move could be an impermissible attempt to manipulate the share price. Given the difficult relationship between Musk and his detractors, however, it's easy to understand why the Tesla CEO might prefer to have control of Tesla as a privately held company once again. Trading resumed shortly before the market closed, and shares finished the day up 11%.
Image source: Tesla.
Hertz hits the gas
Hertz Global Holdings stock soared nearly 25% after the company reported its second-quarter financial results. The rental car giant said that total revenue rose by 7%, helping Hertz significantly narrow its net loss compared to the year-earlier period. Particularly encouraging was a boost in the company's U.S. rental car segment, which saw both higher revenue and reduced costs. After having seen a lot of pressure both from a struggling used-car market and from potential competition from ride-sharing services, Hertz's news today suggests that the rental car giant might finally have identified a viable path forward toward renewed growth.
Office Depot makes progress
Finally, shares of Office Depot finished higher by 14%. The office supply retailer continued to struggle in its traditional retail division, seeing comparable sales fall 2%, but positive trends in Office Depot's business solutions division contributed considerably to the company's overall 11% rise in revenue. Office Depot has been shifting its emphasis toward providing a greater range of services, and acquisitions have helped the company bolster its ability to offer business solutions to more clients as well. It's too early to tell whether Office Depot will eventually be successful in its transformative efforts, but investors are excited that the office supply specialist has taken the necessary steps to try to become sustainable.
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