Tuesday was another modestly positive day on Wall Street, as major benchmarks again generally finished with slight gains that continued their upward trend so far in 2017. A lot of attention was focused on President Trump's speech at the United Nations in New York, which reiterated the White House's viewpoint about the threat that North Korea poses to the world. Elsewhere, this week's two-day meeting of the Federal Open Market Committee policymaking body began, and most investors expect no change in rates now but an additional rate hike to come before the year ends. Helping to lift major indexes were several high-profile stocks with substantial gains. Sprint (NYSE:S), Chicago Bridge & Iron (NYSE:CBI), and Bob Evans Farms (NASDAQ:BOBE) 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.
Sprint climbs on M&A speculation -- again
Shares of Sprint rose 7% as reports once again raised the possibility that the wireless service provider would pursue a potential merger with rival T-Mobile US (NASDAQ:TMUS) that would join the No. 3 and No. 4 domestic players in the industry. Sprint has often talked about joining forces with T-Mobile, but in the past, federal regulators have been loath to allow further consolidation in the sector. With T-Mobile having surpassed Sprint in terms of market share, it's uncertain whether T-Mobile would want to move forward. Yet with both companies potentially gaining from a deal, it's fair for conversations to continue even if they won't necessarily yield a quick resolution.
Chicago Bridge keeps winning deals
Chicago Bridge & Iron stock finished higher by 7% after favorable news on the contract front. The company said yesterday that it and a consortium partner would provide engineering, procurement, and construction of a product export terminal at the Duqm port in Oman, with Chicago Bridge's portion of the contract worth about $140 million. Chicago Bridge has seen its stock get hammered recently due suspending its dividend and reporting a massive drop in sales during the second quarter. Some believe that the two recent hurricanes that hit the U.S. could result in substantial project work for the company, but Chicago Bridge needs to demonstrate its ability to bounce back quickly if it wants to regain shareholder confidence.
Bob Evans makes a deal
Finally, shares of Bob Evans Farms gained 6%. The food distributor and food-service company said that Post Holdings (NYSE:POST) had agreed to buy Bob Evans in an all-cash deal that will pay shareholders $77 per share, valuing the company at about $1.5 billion. The Bob Evans name is well-known for its restaurants, but Bob Evans Farms divested its restaurant assets earlier this year. Following strong earnings results in its most recent quarter, the time was ripe for a deal, and the move should help Post Holdings expand its food offerings and find new synergies to reduce costs and increase efficiency going forward.
Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Post Holdings. The Motley Fool owns shares of Bob Evans Farms. The Motley Fool recommends T-Mobile US. The Motley Fool has a disclosure policy.