Wednesday gave Wall Street the big bounce it was looking for, with major stock indexes climbing between 5% and 6%. After seeing the S&P 500 officially complete a bear-market drop of 20% on Monday from its recent highs, investors seemed ready to take advantage of newfound bargains in the stock market, and the Dow Jones Industrial Average posted its first 1,000-point daily gain. Some particularly good news lifted shares of some companies even further, and Chesapeake Energy (NYSE: CHK), New Age Beverages (NASDAQ: NBEV), and Twilio (NYSE: TWLO) were among the best performers on the day. Here's why they did so well.
Chesapeake gets a big vote of confidence
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Shares of Chesapeake Energy soared nearly 27% on news that one of the energy company's insiders made a substantial stock purchase. According to filings with the U.S. Securities and Exchange Commission, Archie Dunham, who is a member of Chesapeake's board and a former CEO of energy giant Conoco, spent more than $4 million to buy 2.1 million shares of Chesapeake, signaling the executive's confidence in the company's prospects. The fact that crude oil prices soared more than $4 per barrel today certainly didn't hurt the stock, but Chesapeake will need a bigger recovery in order to return to its past glory.
New Age looks to a new year
New Age Beverages saw its stock climb 12%. The organic and natural beverage company said that it had completed its merger on Monday with Utah-based Morinda Holdings, with New Age touting in its press release that the combination "creates one of the largest healthy beverage companies in the world." More broadly, investors in the marijuana space are happy to see New Age exploring the possibilities of cannabis-infused beverage lines, and after large declines in those stocks, some saw New Age shares as a bargain. It's still early in the game for cannabis-based drinks, but New Age is trying to position itself as an early contender to deliver popular products to thirsty consumers.
Finally, Twilio shares finished higher by 13%. Before today's rally, many had seen the software company as a potential growth leader even in the face of a tough stock market, and an article in Barron's repeated that sentiment a couple of days ago. With cloud communications increasingly relevant in today's technology industry, Twilio's platform shows no signs of losing popularity, and continued growth could make the company look even more attractive in an environment in which larger players in the tech space are struggling to keep up their momentum. With growth in customer counts, added spending from existing clients, and smart acquisitions, Twilio is making all the right moves to produce further gains.
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