Why Chipotle Mexican Grill, Southwest Airlines, and Target Jumped Today
On Wednesday, the stock market showed a pattern that investors haven't seen very frequently lately, with various parts performing very differently. The Dow Jones Industrials pressed on to record highs, but the Nasdaq Composite fell more than 1% on weakness in technology stocks. Broader benchmarks largely split the difference, finishing close to unchanged but hiding the internal turmoil within the market. Earnings results, hopes and fears about government policy, and a new milestone for bitcoin's stratospheric rise all made today's action quite complicated, and some companies had positive news that lifted their shares substantially. Chipotle Mexican Grill (NYSE: CMG), Southwest Airlines (NYSE: LUV), and Target (NYSE: TGT) 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 Chipotle Mexican Grill rose almost 6% after founder Steve Ells said that he would step down from the chief executive role to make way for new leadership. Chipotle has formed a search committee, which will include Ells as one of its members, to find a replacement with what the company called "demonstrated turnaround expertise to help address the challenges facing the company, improve execution, build customer trust, and drive sales." Some investors seemed excited by that prospect after years of miscues, but many remain doubtful that Chipotle will be able to regain a competitive edge and return to its glory days as a high-growth stock.
Image source: Chipotle Mexican Grill.
Source: Fool.com