Why Chesapeake Energy, Cavium, and Advanced Micro Devices Jumped Today
Monday was a generally positive day for the financial markets, with major benchmarks posting modest gains from last week's record levels. Merger and acquisition activity became the focus of investors' attention today thanks to a major deal in the technology sector, but other contributors to the market's strong performance included a lack of substantial bad news from President Trump's trip to Asia and signs of progress on the federal government's domestic policy agenda. Some stocks benefited strongly from the attitude on Wall Street, and Chesapeake Energy (NYSE: CHK), Cavium (NASDAQ: CAVM), and Advanced Micro Devices (NASDAQ: AMD) were among the best performers on the day. Below, we'll look more closely at these stocks to tell you why they did so well.
Shares of Chesapeake Energy climbed 12%, bouncing back from poor performance in the month of October. Many investors have been nervous about the energy giant, citing unhealthy levels of debt that could hamper the company's ability to react to a rising interest rate environment. Yet news over the weekend of a shake-up in the Saudi royal family sent crude oil prices to their highest levels of the year, and a healthier energy market could be just the ticket to help Chesapeake make the most of its opportunities. The oil and natural gas producer still has plenty of work ahead of it, but higher prices would make it a lot easier for the well-known industry player to make progress.
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Source: Fool.com