The trading week wrapped up early thanks to markets being closed on Good Friday, and the S&P 500 managed a slight 0.16% gain on Thursday ahead of the holiday weekend. Industrial stocks – including the No. 4 and No.1 best performers on the day – were largely responsible for pushing the index above the psychologically significant 2,900 mark, ending with a flat weekly performance.
Investors were unsure whether or not the release of the full Mueller report Thursday would have any effect on stocks. Attorney General William Barr gave a press conference earlier in the day to reiterate the veracity of the report summary he initially released, explaining that no evidence of collusion was found between President Trump’s campaign team and the Russian government. But as the S&P’s flat Thursday performance proves, investors shrugged the news off as just another day.
Here were the S&P’s five biggest gainers Thursday – and a breakdown of the news driving each company’s strong returns…
No. 5: Constellation Brands Inc. (STZ)
Shares of Constellation Brands – the international liquor and spirits producer that’s also the world’s largest beer importer by sales – rose 3.77% on Thursday from $191.58 to $198.80, the stock’s best close since Nov. 28. STZ is now up 23.6% on the year since closing out 2018 at $162.86, beating out competitors like Molson Coors Brewing Co. (TAP) and Diageo Plc. (DEO), which are respectively up 15% and 9.3% in 2019.
Thursday’s gain continues the rally that began in October 2017 when Constellation announced a 9.9% stake in Canopy Growth Corp. (CGC), the world’s biggest cannabis company. The deal marked the first time a major Fortune 500 firm took a stake in a marijuana company, and their partnership strengthened when Constellation increased its Canopy stake to 38%. STZ’s 3.77% rally Thursday came on the heels of Canopy announcing a deal in which it would be able to buy U.S. cannabis firm Acreage Holdings Inc. (ACRGF) once the U.S. government legalizes cannabis on the federal level. However, no date has been set in place for federal legalization, and it remains unclear if it will happen at all in the near future.
No. 4: Honeywell International Inc. (HON)
Honeywell stock climbed from $162.89 to $169.06, ending the day with a strong 3.79% gain. Thursday’s closing price is the industrial and aerospace conglomerate’s highest settlement ever, giving the firm a year-to-date return of nearly 28% from the Dec. 31 close of $132.12.
Investors were galvanized by the firm’s Q1 sales, which surpassed analyst expectations despite declining 15% year-over-year. Revenue clocked in at $8.88 billion, beating Wall Street’s prediction of $8.63 billion by 2.9%, while EPS fell 24.9% from $1.89 in Q1 2018 to $1.42 last quarter. Investors particularly liked the numbers from Honeywell’s aerospace business, which grew 10% thanks to burgeoning demand from both domestic and Chinese firms.
No. 3: Union Pacific Corp. (UNP)
The massive North American railroad operator saw its shares rise from $169.28 to an all-time high of $176.66 on Thursday for a strong 4.36% jump. With that close, UNP is now up 28.2% on the year from its Dec. 31 settlement of $137.79, beating major rival CSX Corp.’s (CSX) more than 27% gain over the same period.
Union Pacific leaped higher after investors caught wind of the company’s first-quarter earnings, which saw a decline in revenue but jump in EPS. The firm raked in $5.01 billion in the January-March period, down 2.1% from $5.12 billion in the year-ago period. But earnings came in at $1.93 per share, a stunning 14.9% increase from $1.68 per share in Q1 2018.
No. 2: Snap-On Inc. (SNA)
Arguably the least recognizable of the S&P’s top Thursday performers, shares of Snap-On – another industrials company specializing in everyday household items like wrenches, saws, and screwdrivers – increased 6.48% from $157.84 on Wednesday to $168.07. SNA stock has now climbed 15.7% on the year.
Solid earnings drove investors into a buying frenzy, as the company earned $3.01 per share on revenue of $921.7 million. The EPS surpassed Wall Street’s estimate of $2.90 by 3.8%, but revenue missed the $933.1 million prediction by 1.2%. Still,
No. 1: United Rentals Inc. (URI)
United Rentals won the day as the best performer on the S&P. Shares of North America’s largest industrial equipment rental company – dominating more than 11% of Canada and U.S. market share – vaulted 8.14% from $125.76 at Wednesday’s close to an even $136 on Thursday. With that, URI has soared nearly 33% this year since settling at $102.53 on Dec. 31.
As with nearly every other company on this list, the industrial behemoth rallied following its Q1 earnings report, which crushed analyst expectations and bolstered the S&P 500 Industrials Sector altogether. The company reported earnings per share (EPS) of $3.31, up 15.3% from $2.87 in the year-ago period and beating Wall Street’s estimate of $3.03 by 9.2%. Revenue growth was even stronger, as the firm’s Q1 sales of $2.1 billion marked a 22% increase from Q1 2018. Revenue also exceeded analysts’ expected $2 billion by a modest 5%.