Why Fiat Chrysler Automobiles, Intra-Cellular Therapies, and Express Jumped Today
Stocks closed down Wednesday following a broad rally the day before, and the market turned its attention to President Donald Trump's threat to discontinue U.S. participation in the North American Free Trade Agreement (NAFTA), which cast a shadow on trading. Yet even as the major benchmarks all finished slightly lower, several stocks managed to post solid gains. Fiat Chrysler Automobiles N.V. (NYSE: FCAU), Intra-Cellular Therapies (NASDAQ: ITCI), and Express, Inc. (NYSE: EXPR) were among the best performers of the day. Below, we'll look more closely at these stocks to tell you why they did so well.
Shares of Fiat Chrysler Automobiles, known for its flagship Jeep brand, gained 7% on reports that the company is considering a spinoff of its luxury Maserati and Alfa Romeo brands, as well as its components business. Estimates place the value of the luxury car companies at as much as $8.3 billion, while the parts operations could fetch nearly $6 billion. Fiat Chrysler had previously rejected an acquisition offer from a Chinese carmaker that it believed was too low, but this latest news indicates that the company may be looking to unlock value by selling off various subsidiaries in an effort to retire nearly $5 billion of its debt by next year. The company successfully spun off its super-performance Ferrari unit early last year, and that stock has nearly doubled since a percentage of its shares first went public in October 2015.
Image source: Fiat Chrysler Automobiles.
Source: Fool.com
