The stock market got off to a slow start on Tuesday, coming out of the holiday weekend with modest losses. The Dow Jones Industrials finished the day with a drop of about 50 points, and other major benchmarks were down by similarly small percentages. With earnings season drawing to a close, investors are turning their attention to economic data. The latest reading on the employment picture due out on Friday should shine a light on a key metric that the Federal Reserve will consider later in June in its decision on whether to raise short-term interest rates again.
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Yet despite the quiet trading overall, some individual companies had good news, and TiVo (NASDAQ: TIVO), Xactly (NYSE: XTLY), and Crocs (NASDAQ: CROX) 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.
TiVo gets a win
Shares of TiVo jumped 14% in the wake of good news on the legal front. The video-recording technology provider won a favorable ruling from the International Trade Commission in connection with its set-top box patents, as an administrative law judge found that Comcast (NASDAQ: CMCSA) had violated TiVo's intellectual property rights. Although a final ruling likely won't be made until September, those following the case believe that Comcast is likely to settle with TiVo, and that could bring a bunch of cash into TiVo's coffers in short order. Given that TiVo had already started to see some signs of life earlier in 2017 in part because of its merger with Rovi, the ruling could generate even more positive momentum for TiVo going forward.
Image source: TiVo.
Xactly gets a buyout bid
Xactly stock climbed 16% after the company received an acquisition bid from private equity investor Vista Equity Partners. Vista offered Xactly $564 million for the company, translating to shareholders receiving $15.65 per share in cash for their stock. The day's jump sent Xactly shares to within pennies of the buyout price, suggesting that at least some investors believe that a rival bid might be in the offing. The move higher follows a period of relative stagnation for the enterprise cloud-based incentive compensation specialist, which late last year suggested that its future results might slow down despite an overall positive environment in cloud computing. Now, it appears likely that Vista will reap the rewards of future success from Xactly.
If the Crocs fit, wear them
Finally, shares of Crocs gained nearly 5%. The footwear maker received positive comments from Barron's overthe weekend, which argued that even as many investors in retail companies worry about the potential impact of e-commerce specialists on brick-and-mortar retailers, Crocs has already demonstrated its ability to restructure itself to adapt to changing conditions. The shoemaker faced difficult challenges in 2016, including falling gross margin, legal issues, and overall uncertainty about future demand. Yet with Crocs stock bouncing earlier this month on a potential uptick on the earnings front, bulls believe that if there's a company that can survive the attack of online retail specialists, it's the once-iconic shoe manufacturer.
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