The stock market had another volatile session on Friday, clawing its way back from precipitous declines early in the day to finish with solid gains. Despite the rising tensions on trade between the U.S. and China, investors seem to be resolute in their belief that the U.S. economy will be able to keep outperforming the rest of the world and producing solid growth. Good news from certain key companies also helped to bolster sentiment. Buckeye Partners (BPL), Guardant Health (GH -5.19%), and Chico's FAS (CHS) were among the top performers. Here's why they did so well.
Buckeye gets bought
Partnership units of Buckeye Partners soared 28% after the master limited partnership received a buyout bid. Institutional investor IFM Global Infrastructure Fund agreed with Buckeye to buy all of its outstanding units for $41.50 per unit in cash. The deal puts an enterprise value of $10.3 billion on Buckeye, which has an extensive network of pipelines, delivery locations, and terminals for transporting energy products. The move is the logical conclusion of Buckeye's review of its strategic options, although the fact that units traded above the $41.50 offering price suggests at least some hope that other bidders will emerge for the master limited partnership.
Image source: Buckeye Partners.
Guardant looks healthy
Guardant Health saw its shares jump more than 18% following the release of the oncology testing specialist's first-quarter financial results. Guardant said that revenue more than doubled from year-ago levels, with substantial increases in the number of tests it conducted for clinical and biopharmaceutical customers during the period. The company also raised its revenue guidance for the full year, expecting to see $145 million to $150 million on the top line. That's higher by $15 million from previous guidance, and even though Guardant continues to lose money, investors are optimistic that it has carved out a lucrative niche.
Chico's gets a lowball offer
Finally, shares of Chico's FAS finished higher by 8%. The ailing retailer received a bid from private equity company Sycamore Partners to purchase its stock for $3.50 per share. The odd thing about the move is that Chico's shares started the day at $3.70, making it unlikely that the retailer will accept the deal. Chico's did say that it would review the unsolicited bid from Sycamore, which owns 6.6% of the company's stock. Yet the share-price move today suggests that shareholders will want more than $3.50 per share in order to accept a buyout bid -- even with its long struggles.
