Stocks notched modest gains Wednesday on the back of more economic data that shows the U.S. economy perking up. The final result: a 0.41% move higher for the S&P 500.
The Federal Reserve’s Beige Book report showed the U.S. economy continues expanding, though at varying paces throughout the Fed’s 12 regions. Beige Book data indicates that wage growth varies by region, with three regions reporting flat growth.
What was not flat Wednesday were the performances of United States Steel Corporation (NYSE:X), GoPro Inc (NASDAQ:GPRO) and Zynga Inc (NASDAQ:ZNGA).
Here’s why the trio were among today’s best stocks:
GoPro Inc (GPRO)
GoPro climbed 9.5% on seemingly no news Wednesday, continuing a rally that has seen shares perk up by 27% over the past month.
The most recent news out of GPRO: Earlier this week, the maker of wearable cameras said it is paying $105 million to acquire mobile video editing apps Replay and Splice. The former allows users to combine video clips and photos into a single video, while Splice is an advanced mobile video editor.
GPRO is spending $105 million in cash and equity on the deal, representing more than a fifth of its total cash hoard. The potential gamble is that by having Replay and Splice helping the software side, CEO Nick Woodman can continue to focus on hardware.
“We believe the accessibility, speed and efficiency of mobile will make it the predominant editing platform of the future,” Woodman said.
Zynga Inc (ZNGA)
Shares of mobile games maker Zynga jumped nearly 4.2% after the company said founder Mark Pincus will step down as chief executive officer.
Electronic Arts Inc. (NASDAQ:EA) veteran Frank Gibeau will replace Pincus as CEO of ZNGA on March 7, according to a statement issued by the company. Pincus will transition to a role as ZNGA’s executive chairman.
The jubilation is understandable — ZNGA shares have floundered of late, with the stock off more than 25% since summer 2015.
United States Steel Corporation (X)
Shares of United States Steel soared 23% on volume that was more than triple the daily average after the U.S. Commerce Department said it will impose import tariffs on countries such as Brazil, China and Japan that export steel to the U.S.
JPMorgan called the news a win for U.S. steel makers, including X. The bank noted that there is a chance duties against China could be high enough that the country could be locked out of the U.S. sheet steel market.
JPMorgan added it believes shares of X and some rival steelmakers could continue outperforming.
As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities.
