Yahoo Finance Why Baidu, Endo International, and Hilton Grand Vacations Jumped Today
Major benchmarks lost ground on Tuesday as investors tried to get comfortable with their outlooks for the U.S. economy over the next several months. Many market participants are looking to the Federal Reserve for guidance on the likelihood of a recession in the near future, especially in light of the recent inversion of the yield curve and calls for economic slowdowns in several industries. Yet some stocks still managed to post strong gains. Baidu (NASDAQ: BIDU), Endo International (NASDAQ: ENDP), and Hilton Grand Vacations (NYSE: HGV) were among the top performers. Here's why they did so well.
Baidu looks to recover
Shares of Baidu rose 4% after the Chinese internet search giant released its second-quarter financial results. Baidu's performance wasn't all that strong, with a minimal increase in revenue and a plunge in adjusted net income of more than 50%. Yet even though prospects for the future look challenging, many believe that the company should see ad revenue bounce back if the U.S. and China can resolve their trade disputes. Moreover, with efforts to expand into areas beyond search, Baidu is aiming to become an all-purpose provider of internet and mobile services. That should bode well for the company's long-term prospects.
Image source: Baidu.
Endo hopes to settle opioid suits
Endo International saw its stock climb for a second day in a row, gaining over 18%. The drug company confirmed Monday's speculation that it might be close to a settlement of two key lawsuits filed in Ohio concerning potential liability for opioid medications. Specifically, Endo said it's agreed in principle to a $10 million payment to the plaintiffs in the case, with additional liability to provide some additional products free of charge. There are thousands more cases out there, and so total liability could still be substantial. Yet the settlement terms look more favorable than investors were expecting, and that bodes well for Endo's likelihood of resolving other claims in a positive manner.
Acquisitions rumors perk up Hilton Grand Vacations
Finally, shares of Hilton Grand Vacations picked up nearly 11%. Reports are swirling that private equity company Apollo Global might be interested in buying the timeshare and vacation property specialist, with some speculating a price tag in the neighborhood of $36 per share. If Apollo were to buy Hilton Grand Vacations, it could combine it with industry peer Diamond Resorts, creating a colossus in the vacation space. Economic uncertainty has had some investors uncomfortable with the prospects for the leisure travel industry in general, but shareholders in Hilton Grand Vacations seem optimistic about the future today.
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Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Baidu. The Motley Fool has a disclosure policy.
This article was originally published on Fool.com
