Why Mattel, TransEnterix, and Dynegy Jumped Today
The stock market moved lower on Monday, with major benchmarks indexes falling as much as 0.4% as market participants started to handicap the question of whether lawmakers on Capitol Hill would be able to come to a consensus on tax reform. Concerns that tax cuts would cause the federal deficit to skyrocket led some in Congress to consider a slower, phased-in approach, which would have less of an immediate positive effect on companies. Such a result would also raise the specter of lawmakers being unable to follow through with more comprehensive, business-friendly tax changes in the future.
Yet even against that backdrop of nervousness, some companies saw their stocks rise due to more optimistic views for their specific businesses. Mattel (NASDAQ: MAT), TransEnterix (NYSEMKT: TRXC), and Dynegy (NYSE: DYN) 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.
Mattel jumped 11%, recovering every bit of its 9% drop from Friday. The toymaker's drop last week came after it announced third-quarter results that included a 13% drop in net sales and a huge loss for the period. The bankruptcy of retailer Toys R Us was a contributing factor, but Mattel's sales declined in all of its key categories, including Barbie and American Girl. Mattel even decided to suspend its dividend.
Source: Fool.com