- S&P 500 gains more than 1% on Tuesday.
- American Airlines shares fall sharply on pricing of follow-on and convertible offerings.
- Mohawk Industries Inc (MHK) is up 10% as the top-performer.
Major equity indexes in the US opened the day in the positive territory and continue to push higher with the S&P 500 Index rising to 3,150 points and gaining more than 1% on a daily basis.
Among the 11 major S&P 500 sectors, the defensive Utilities and the Real Estate indexes trade in the negative territory. The remaining nine major sectors are up between 0.45% and 1.75% with the Technology Index leading the rally.
S&P 500 top movers
Despite a lack of stock-specific news, flooring manufacturer Mohawk Industries Inc (MHK) shares are up 10% on Tuesday, trading at $101.50. Sysco Corp (SYS) and Darden Restaurants Inc (DRI) are rising 6.4% and 5%, respectively, behind MHK.
On the other hand, American Airlines Group Inc (AAL) shares fell sharply on Tuesday after the company announced its pricing on follow-on and convertible offerings. As of writing, AAL was down 7.5% on the day at $13.80.
“AAL sells 74.1 million shares at $13.50 for ~$1 bln gross raise and offers $1 bln 5-yr convertible senior notes for general corp purposes,” Reuters reported. “Convertible deal prices with 6.5% coupon and conversion price of $16.20, 20% premium to the equity offering price.”
The company is aiming to raise $1.5 billion that will be split equally between equity and convertible bond sales.
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