Why J.C. Penney, Zynga, and Herbalife Jumped Today

Before you go, we thought you'd like these...
Before you go close icon

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

For a third day in a row, the Dow briefly rose above 16,000, but for the third day in a row, the stock market couldn't hold its gains. Today, the release of minutes from the latest Federal Reserve meeting raised more questions than they answered, leading many to doubt how much longer the Fed will keep pumping more liquidity into the bond market. Despite the downdraft, J.C. Penney , Zynga , and Herbalife all posted solid gains today. Let's take a closer look to see what inspired these stocks to climb Tuesday.

J.C. Penney gained more than 8% after its earnings report showed signs of a potential turnaround taking shape for the beleaguered retailer. The results themselves were ugly, as same-store sales fell 4.8%, leading to an even wider loss than investors had already braced themselves to see. But with positive same-store sales in October and the increasing sense that a bankruptcy filing is not in the company's imminent future, J.C. Penney's stock continued its huge bounce that has send share prices up by half in just a month's time.

Zynga rose 7%, hitting its highest levels in more than a year. Yesterday, the company won a jury verdict in a federal court in Texas, finding that Zynga had not infringed on the patents of Personalized Media Communications in its Farmville, Words With Friends, and other game titles. With $25 million in royalties at stake, the decision is meaningful for Zynga not just in itself but in potentially deterring similar suits from other competitors.

Herbalife climbed more than 6% as another high-profile investor got involved in the ongoing fight between the bullish Carl Icahn and the bearish Bill Ackman. Bill Stiritz, who is the CEO of cereal-maker Post Holdings, raised his stake in Herbalife to 6.4%, putting him among the top five shareholders of the company. Stiritz reportedly wants to talk with Herbalife about strategies that could include financing and stock buybacks, and shareholders took that as yet another positive sign that the company will survive the scrutiny it has received ever since Ackman presented his bearish case.

Like soaring stocks? Here's one to look at
Even with the market having climbed so far in 2013, opportunistic investors can still find huge winners. The Motley Fool's chief investment officer has just hand-picked one such opportunity in our new report: "The Motley Fool's Top Stock for 2014." To find out which stock it is and read our in-depth report, simply click here. It's free!

The article Why J.C. Penney, Zynga, and Herbalife Jumped Today originally appeared on Fool.com.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter: @DanCaplinger. The Motley Fool has long January 2015 $50 calls on Herbalife. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

People are Reading