Why PG&E, Kemet, and Cars.com Jumped Today
The stock market was mixed Friday, but still closed the week with solid gains. Investors will now turn their focus to next week's meeting of the Federal Open Market Committee, when we will learn if the central bank is going to continue loosening monetary policy by cutting the benchmark fed funds rate for a second straight month. Amid a relatively quiet trading day, a few companies stood out by delivering upbeat news that sent their shares higher. PG&E (NYSE: PCG), Kemet (NYSE: KEM), and Cars.com (NYSE: CARS) were among the top performers. Here's why their stock prices did so well.
Shares of PG&E ended the day up almost 11% after it announced a major settlement with insurance companies. The California utility said it reached an agreement in principle with insurers representing about 85% of outstanding claims related to California wildfires in 2017 and 2018, under which it would pay $11 billion to settle fire-related claims. The bankruptcy court overseeing PG&E's case will have to review the settlement and its place in the utility's plan of reorganization, but CEO Bill Johnson described it as "another step in doing what's right for the communities, businesses, and individuals affected by the devastating wildfires." PG&E still faces further risk, as there is a third group of wildfire claimants whose claims are still outstanding, but investors are pleased that the utility is making progress.
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Source Fool.com
