The stock market fell on Wednesday, with the majority of closely followed benchmarks moving slightly lower. Market participants focused their attention on the latest decision from the Federal Reserve to raise short-term interest rates, moving their target for the fed funds rate up a quarter percentage point to a new range of 1.75% to 2%. Investors weren't sure about the macroeconomic implications of the Fed statement, which included calls for faster economic growth but also potentially more aggressive tightening in the future. Yet some companies had indisputably good news that sent their shares higher. Twenty-First Century Fox (FOX) (FOXA), Enphase Energy (ENPH 5.31%), and Korn/Ferry International (KFY -0.03%) were among the best performers on the day. Here's why they did so well.
Crazy like a Fox
Shares of Twenty-First Century Fox jumped 7.5% as of the end of the regular trading session as investors assessed the likelihood that the content giant might receive a higher takeover bid for its media assets than the one Fox previously accepted from Disney (DIS -2.03%). Comcast (CMCSA -1.63%) has reportedly been waiting in the wings to make another bid for Fox after having been turned down late last year, but it had feared that the government's opposition to a deal between AT&T and Time Warner might make a Comcast bid for Fox unlikely to succeed. The court decision ruling in favor of allowing the AT&T/Time Warner deal to go forward signaled to investors that Comcast would likely follow up with a higher bid to buy Fox. Interestingly, Disney stock also rose, suggesting that its shareholders might actually be happier if Disney doesn't win a bidding war for Fox.
After the market closed, The Wall Street Journal reported Comcast has indeed made a higher bid of $65 billion in cash for Fox's media assets.
Image source: 21st Century Fox.
Enphase powers up
Enphase Energy stock soared 33% after the company announced that it will acquire the microinverter business of solar giant SunPower (SPWR). Enphase will pay $25 million in cash and 7.5 million shares of stock for the acquisition, which the company expects will add about $60 million to $70 million in revenue per year by the second half of 2019. The move also adds to Enphase's intellectual property holdings, with SunPower holding more than 140 patents. Enphase CEO Badri Kothandaraman noted that Enphase's IQ series microinverter "strongly complements SunPower's high efficiency solar cells," setting the stage for a partnership that the microinverter specialist hopes will extend beyond its initial five-year term.
Korn/Ferry reports a strong quarter
Finally, shares of Korn/Ferry International rose 12%. The personnel search and consulting company reported its fiscal fourth-quarter financial results, which included record revenue for the full year from fees and a 17% jump compared to the fourth quarter of fiscal 2017. Earnings climbed sharply as well, bolstered by both fundamental business strength and positive impacts from tax cuts. With solid economic conditions and an increasingly tight job market, Korn/Ferry could continue to demonstrate its value if it can keep providing its clients with the headhunting and job search services they need in order to find qualified applicants to gain a competitive edge.
