Tuesday was not a happy day on Wall Street as investors fretted about the direction of the U.S. economy. Major stock indexes traded mostly lower on the day, with particularly significant losses within the tech-heavy Nasdaq Composite. However, amid the general pessimism, company-specific good news sent some share prices higher. State Street (NYSE:STT), Mallinckrodt (NYSE:MNK), and ArcelorMittal (NYSE:MT) were among the day's top performers. Here's why their shares did so well.
State Street sees better times ahead
Shares of State Street picked up 8% after a top manager said that the financial giant doesn't expect recent interest rate movements will hurt its net interest income immediately. CFO Eric Aboaf told attendees of a conference in New York that net interest income would likely be flat on a quarter-over-quarter basis. State Street has done a better job than anticipated of holding onto its deposit base, and it had warned in July that falling rates could hurt its results. Moreover, thanks to its exposure to broader financial markets through its SPDR line of exchange-traded funds, State Street isn't as vulnerable to interest rates as some of its banking peers.
Mallinckrodt makes a sale
Mallinckrodt's stock soared 75% following the announcement that the biopharmaceutical company will sell a key unit to a private equity company. Management will sell its BioVectra contract-manufacturing subsidiary to H.I.G. Capital for up to $250 million, including $175 million in cash and debt and contingent payments of up to $75 million. CEO Mark Trudeau pointed to the benefits of selling off a non-core operation to help the company focus on its proprietary biopharmaceutical lines. Investors, meanwhile, believe that having cash on hand could help the company as it looks to settle some of its potential liability from its alleged contributions to the opioid crisis.
ArcelorMittal steels its resolve
Finally, shares of ArcelorMittal were higher by 6%. The global steel giant is reportedly looking at selling its construction business in order to concentrate its efforts on its most lucrative businesses. It could get between 700 million and 800 million euros ($773 million to $883 million) for the business according to reports from Bloomberg. The move would be part of a broader initiative that the steelmaker believes could bring in $2 billion over multiple years. With steel prices suffering due to global trade tensions and economic sluggishness, any tactics ArcelorMittal can employ to get itself through these tough times in good financial health would be welcomed by investors.