Stocks finished the week in strong fashion as investors ditched safe-haven assets for riskier fare after the U.S. Labor Department said employers in the world’s largest economy added 242,000 new jobs last month. Employment gains for December and January were also revised slightly higher and the unemployment rate stayed at 4.9%.
The S&P 500 rose 0.33% while the Dow Jones Industrial Average and the Nasdaq Composite added 0.37% and 0.2%%, respectively.
Oil prices surged again, closing the week higher by more than 9%. Stronger commodities prices and renewed risk appetite are among the catalysts that are lifting downtrodden emerging markets stocks. The widely followed MSCI Emerging Markets Index jumped more than 9% this week.
Speaking of catalysts, Carmike Cinemas, Inc. (NASDAQ:CKEC), Petroleo Brasileiro SA Petrobras (ADR) (NYSE:PBR) and Seadrill Ltd (NYSE:SDRL) had plenty of those, explaining why these names are among today’s best stocks.
Carmike Cinemas, Inc. (CKEC)
Shares of movie theater operator Carmike Cinemas rocketed higher by 16.5% on volume that was more than 45 times the daily average following news that rival AMC Entertainment Holdings Inc. (NYSE:AMC) will acquire Carmike for $30 per share in cash, valuing the company at $1.1 billion. On a per-share basis, that values CKEC at more than 19% above the stock’s Thursday closing price.
The combined company will have nearly 8,400 movie screens at 600 locations in 45 states, reports 24/7 Wall Street. Shares of AMC finished higher by 5.1%.
Petroleo Brasileiro SA Petrobras (PBR)
The American depositary receipts of Petroleo Brasileiro SA Petrobras, also known as Petrobras, surged almost 11.7% after former Brazilian President Luiz Inacio Lula da Silva was detained as part of an ongoing, sweeping anti-corruption probe in Latin America’s largest economy. Volume in the stock was more than triple the daily average.
Police questioned Lula regarding his potential role in graft at PBR, Brazil’s state-controlled oil company. Lula is widely seen as the architect of PBR’s ascent while he was in power and one of Brazil’s largest offshore oilfields is named Lula in the former president’s honor. A statement issued by Brazilian police said Lula determined PBR directors and that he and his campaigns financially benefited from his role at Petrobras.
This is also seen as a possible catalyst for impeaching current Brazilian President Dilma Rousseff, Lula’s hand-picked successor. Critics assert Rousseff has been impotent in the face of widespread corruption at Petrobras.
Seadrill Ltd (SDRL)
Seadrill, the offshore drilling contractor and provider of offshore drilling services, more than doubled today alone on volume that was more 15 times the daily average on news that the John Fredriksen, the company’s primary owner, has recently been raising cash.
A Bloomberg report noted Fredriksen recently raised $510 million, a move that has stoked buyout rumors.
Short covering was also at play as drilling services stocks are heavily shorted, with Friday’s move in SDRL helping lift shares of the company’s rivals. In addition to SDRL, several other drilling services providers were among today’s top percentage gainers.
SDRL shares more than tripled this week.
At the time of this writing, Todd Shriber did not own any of the aforementioned securities.
