MDR - Why McDermott International Scholastic and California Resources Jumped Today
Friday saw modest losses for the stock market, largely in response to some troubling news on the trade front between the U.S. and China. Chinese trade officials canceled a planned visit to Montana, leading some to fear that what seemed to be thawing relations with the U.S. might be starting to get colder again. Even with that dragging down the major benchmarks, some stocks saw sizable gains. McDermott International (NYSE: MDR), Scholastic (NASDAQ: SCHL), and California Resources (NYSE: CRC) were among the top performers. Here's why they did so well.
Shares of McDermott soared nearly 27% as investors weighed news that the energy engineering specialist was looking at potentially selling one of its business units in order to raise cash. McDermott had seen steep declines in its stock price recently because some were nervous about the company's decision to consult with outside advisors, reportedly contemplating a turnaround strategy. Today, reports surfaced that the company might sell its petrochemical technology division, Lummus Technology, to raise cash. With some seeing a potential payday of $2.5 billion in a sale, that would go a long way toward allaying any fears shareholders might have about outright insolvency at McDermott.
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