Why Sears Holdings, Chuy's Holdings, and RLJ Lodging Trust Jumped Today
The stock market was relatively flat on Monday, as minute losses for the S&P 500 and Dow Jones Industrials took the benchmarks off their all-time highs from Friday. Positive economic news from China helped international stock markets carry forward the momentum that last week's record performance for U.S. stocks started, but falling oil prices and nervousness about the beginning of earnings season held back stocks closer to home from pushing further into uncharted territory. That didn't stop some individual companies from giving investors good news today, and several posted strong gains. Sears Holdings (NASDAQ: SHLD), Chuy's Holdings (NASDAQ: CHUY), and RLJ Lodging Trust (NYSE: RLJ) 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 Sears Holdings climbed 12% after the ailing department store retailer got a new loan from a key stakeholder. Sears CEO Eddie Lampert operates ESL Partners, a hedge fund that has previously made substantial investments in Sears and other retailers, and the fund agreed to give Sears a loan for another $200 million. The move is the latest sign of Lampert's ongoing confidence in Sears, and it also gives the retailer more time to get things moving in the right direction. The terms of the loan reflect the risk involved, carrying a 9.75% interest rate and maturing in just five months. Even with new strategic moves like a fresh slate of store closures, many investors doubt that Sears will be able to avoid bankruptcy in the long run.
Image source: Sears.
Source: Fool.com
