The stock market was mixed Friday, but still closed the week with solid gains. Investors will now turn their focus to next week's meeting of the Federal Open Market Committee, when we will learn if the central bank is going to continue loosening monetary policy by cutting the benchmark fed funds rate for a second straight month. Amid a relatively quiet trading day, a few companies stood out by delivering upbeat news that sent their shares higher. PG&E (NYSE:PCG), Kemet (NYSE:KEM), and Cars.com (NYSE:CARS) were among the top performers. Here's why their stock prices did so well.
PG&E reaches an agreement
Shares of PG&E ended the day up almost 11% after it announced a major settlement with insurance companies. The California utility said it reached an agreement in principle with insurers representing about 85% of outstanding claims related to California wildfires in 2017 and 2018, under which it would pay $11 billion to settle fire-related claims. The bankruptcy court overseeing PG&E's case will have to review the settlement and its place in the utility's plan of reorganization, but CEO Bill Johnson described it as "another step in doing what's right for the communities, businesses, and individuals affected by the devastating wildfires." PG&E still faces further risk, as there is a third group of wildfire claimants whose claims are still outstanding, but investors are pleased that the utility is making progress.
Kemet gets a good review
Shares of electronic components specialist Kemet gained more than 7% following favorable comments about the company from Wall Street analysts. Specifically, analysts at Stifel upgraded the stock from hold to buy. The entire industry is facing tough conditions as demand starts to slacken. However, Stifel is optimistic that Kemet's product line is setting it apart from its rivals, which puts it in a better position to get through the rough patch than those competitors. Kemet's stock price has had its ups and downs so far this year, but shareholders were happy to see analysts get excited about the company.
Cars.com gets together with GM
Finally, shares of Cars.com climbed more than 9%. The online automotive specialist said that Dealer Inspire, its digital marketing solutions unit, had inked a new agreement with General Motors (NYSE:GM). Under the collaboration, Dealer Inspire will provide website services for more than 4,000 Chevy, Buick, Cadillac, and GMC dealerships across the country. Among those services are customization and personalization of websites, as well as up-to-date inventory search and proprietary reporting capabilities. The deal shows that Cars.com could generate significant revenue from multiple car-related business lines over the long term.