Why L Brands, Enbridge, and Tilly's Jumped Today
Thursday was one of the strongest days the stock market has seen in months, with the Dow Jones Industrials having been up almost 400 points at one point during the day before giving back a small portion of those gains. The rally was also broad-based, with other major benchmarks seeing gains of nearly 1%. Optimism that tax reform will make it through Washington helped spur large gains, and market participants shrugged off concerns expressed by some influential investors that stocks are starting to look expensive. Some companies' shares had even better gains than the overall market, and L Brands (NYSE: LB), Enbridge (NYSE: ENB), and Tilly's (NYSE: TLYS) 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.
Shares of L Brands climbed 7% after the company reported its sales results for the four-week period that ended on Black Friday. The parent of Victoria's Secret and Bath & Body Works said that net sales climbed 2%, and although comparable sales were down 1% for the period, the retailer's strategic decision to exit the swimwear and apparel categories was largely responsible for that decline. The market had initially reacted negatively to the news, but shares quickly picked up steam during the morning as investors focused on reduced promotional activity and solid Thanksgiving weekend results. If L Brands can deliver on promises to boost margin and stay in touch with fashion trends, then today's stock gains will look justified.
Image source: L Brands.
Source: Fool.com
