Rumors Helped Move These Four Stocks On Tuesday
Tuesday’s trading session featured several rumors or chatter which helped boost several specific stocks higher.
Endurance Specialty Soars 30%
Endurance Specialty Holdings, (NYSE: ENH), an underwriter of personal and commercial property and casualty insurance, soared higher by more than 30 percent. The reason for the strong gains can be traced back to a Nikkei Asian Review report which suggested that Sompo Japan, the country’s second-largest property insurance company, is nearing a deal to acquire a major specialty insurer located outside of the country.
Investors concluded from the report that the most likely takeover candidate would be Endurance. Various other media sources suggested that a deal has been finalized and could be announced as soon as Wednesday.
Sears Halted On Volatility Circuit
Shares of troubled retailer Sears Holdings (NASDAQ: SHLD) were briefly halted early Tuesday afternoon after rumors circulated that the company has found a buyer to acquire its private label Craftsman business.
Sears did acknowledge in prior months it is pursuing strategic alternatives for its business units, including Craftsman, to raise capital.
Potential buyers for Sears’ business include Black & Decker (NYSE: SWK) as well as China-based Techtronic Industries. A deal could place a valuation on the unit as high as $2 billion.
Following the report, Sears’ stock traded as high as 12 percent on the day but towards the end of the trading session it was higher by just 5 percent.
Wells Fargo Slumps To New Lows
Wells Fargo’s (NYSE: WFC) stock hit a new 52-week low of $43.55 on Tuesday after a report hinted the bank’s scandal of opening unwanted accounts for retail clients is far from the company’s only wrongdoings.
Reports suggested that thousands of small business owners may have also been victim to Wells Fargo’s illegal practice of opening unwanted business accounts. The number of affected customers could be as high as 10,000.
SeaDrill Soars On Refinancing Chatter
SeaDrill (NYSE: SDRL), an offshore drilling contractor, saw its stock soar higher by more than 20 percent following reports that its largest shareholder, John Fredriksen, is considering loaning the troubled company as much as $1.2 billion to help manage its debt load and counteract the effects of low commodity prices.