Why Embraer, Voya Financial, and Hovnanian Enterprises Jumped Today
Thursday was a good day for the stock market, with Wall Streets major benchmark indexes climbing by as much as half a percent. Government reports showed that the U.S. economy grew at its fastest rate in more than two years last quarter, and investors took that as a vote of confidence even as they anticipated further gains from the passage of the Republican tax bill into law on Wednesday. Despite rich share price valuations, many analysts see no reason for the bull market to lose its momentum heading into 2018.
Good news from several companies helped to lighten the mood on Wall Street as well. Embraer (NYSE: ERJ), Voya Financial (NYSE: VOYA), and Hovnanian Enterprises (NYSE: HOV) were among the best performers on the day. Below, we'll look more closely at these companies to tell you why their stocks did so well.
Embraer shares jumped 22% after news broke that the aircraft manufacturer was in talks with Boeing (NYSE: BA) about a possible combination. The two companies issued a press release confirming earlier rumors, with terse language simply stating that they were discussing strategic possibilities, but that it wasn't yet known what a prospective combination might look like. Neither aircraft manufacturer is likely to comment further, but those following the industry see huge possibilities for synergies and production optimization from a Boeing/Embraer merger. For Embraer, which has delivered mixed performance recently, a buyout could give investors a chance to score a quick profit, as well as the possibility of participating in Boeing's continued upward run.
Source: Fool.com