The stock market was once again mixed on Thursday, with the Dow Jones Industrials gaining ground to set a record high for the third session in a row even as other major benchmarks lagged behind. Market participants turned their attention to the interest rate arena today, weighing the prospects for another rate hike from the Federal Reserve. Although most economists believe that the impact of the two major hurricanes that have hit the U.S. over the past month will forestall any September increase from the Fed, the possibility of an increase in December is still on the table. Today's data on consumer prices showed some signs of inflation, which could give the Fed room to hike rates.
Beyond that, investors focused largely on individual stocks today, and Halozyme Therapeutics (NASDAQ: HALO), Tenet Healthcare (NYSE: THC), and AMC Entertainment Holdings (NYSE: AMC) 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.
Halozyme makes some deals
Shares of Halozyme Therapeutics jumped 21% after the biotechnology company announced two major collaborations with larger peers in the healthcare space. Halozyme said that it had entered into a collaboration and licensing agreement with Bristol-Myers Squibb (NYSE: BMY) covering Halozyme's Enhanze drug-delivery technology, with terms including an initial $105 million payment and the potential to earn as many as 11 separate milestone payments of up to $160 million each if the collaboration reaches certain targets. Separately, Halozyme also licensed Enhanze to Roche for an initial $30 million payment, with its own milestone payment prospects of up to $160 million. Halozyme already had an arrangement with Roche, but the new deal with Bristol-Myers Squibb makes it clear just how promising Enhanze is to the industry.
Tenet: Headed for a sale?
Tenet Healthcare stock climbed nearly 6% as shareholders speculated about a potential sale of the hospital operator. Tenet has faced tension from activist investors who have sought to have the company look more seriously at ways to change its strategic direction, whether through a change in leadership or an outright sale of the company. As a result, Tenet CEO Trevor Fetter said last month that he would step down, and new reports suggest that the company might be moving forward more seriously with a look at its strategic options. Even with the gains today, Tenet stock is down by more than two-thirds since mid-2015.
AMC hits the big time
Finally, AMC Entertainment Holdings finished up 5%. The movie theater operator said that it had concluded a deal worth $130 million under which it sold seven theater properties to a third-party buyer and then immediately leased back the theaters. AMC said that the move was part of a broader initiative to monetize $400 million in assets within 24 months, and the company hopes to use the cash proceeds to pay down debt, buy back shares, and make strategic investments to bolster its growth. Times have been tough for AMC and the theater business, but the company remains confident that it can bounce back.
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