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The stock market finally broke out of its holding pattern on Friday, responding positively to news that showed a resilient economy. Employment figures were stronger than expected, but some of the numbers on wage growth eased lower, bringing hope that the Federal Reserve might finally stop its aggressive schedule of interest rate hikes. Gains for the S&P 500 (^GSPC 2.28%), Nasdaq Composite (^IXIC 2.56%), and Dow Jones Industrial Average (^DJI 2.13%) topped 2%.
Index
Daily Percentage Change
Daily Point Change
Dow
+2.13%
+701
S&P 500
+2.28%
+87
Nasdaq
+2.56%
+264
Data source: Yahoo! Finance.
Among the top performers were a pair of stocks you don’t often see mentioned together. World Wrestling Entertainment (WWE 16.98%) celebrated the return of its former leader, while satellite communications specialist Iridium Communications (IRDM 12.81%) entered into a potentially lucrative partnership. Read on for the details.
Shares of World Wrestling Entertainment jumped 17% on Friday. The company’s illustrious founder returned to the fold, and investors were excited about what the move could bring to the table.
Vince McMahon will come back to serve on WWE’s Board of Directors less than six months after his resignation as CEO, as the company’s executive team announced in an update Friday morning. McMahon, who is also the company’s majority shareholder, said that he doesn’t intend to disrupt WWE’s management team, which currently includes Stephanie McMahon as board chair, co-CEO Nick Khan, and Chief Content Officer Paul Levesque.
The move was part of a bigger shakeup in the board that had the founder remove three directors from the board and replace them with George Barrios and Michelle Wilson, along with his own role. Two other directors resigned of their own accord.
What likely triggered the big gains for WWE stock, though, was the company’s intention to pursue strategic alternatives to maximize shareholder value. That could potentially include a sale of the company, although WWE made sure to emphasize that there’s no assurance that any transaction will eventually take place. With the stock at its best levels since 2019, shareholders are clearly excited at the prospects of unlocking further share-price gains from those efforts.
Meanwhile, shares of Iridium Communications picked up 13% on Friday. The satellite network specialist announced a major partnership with Qualcomm (QCOM 5.43%) that could dramatically boost Iridium’s business and the space stock‘s price.
Under the terms of the agreement, Iridium’s fully operational satellite constellation will support Qualcomm’s new Snapdragon Satellite mobile solution, which is expected to make its debut in the second half of this year. Select premium smartphone models running the Android operating system will start offering emergency messaging over the satellite network in select regions, with plans to roll out service more broadly in the future.
In the long run, Iridium has even more ambitious plans for its satellite network. In addition to voice and data communications via mobile phone, Iridium also notes that its satellite connectivity can have equally useful applications for vehicles as well as in business assets connected through the Internet of Things. By making a partnership with Qualcomm rather than simply making technology available in a single cellphone model, Iridium ensures maximum penetration of its service and opens the door to wider adoption as users get familiar with the technology.
After more than a decade of holding still, Iridium stock has soared fivefold since 2018. Investors are more excited than ever that the long-term vision of the satellite network operator is finally becoming reality.
Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Qualcomm. The Motley Fool recommends World Wrestling Entertainment. The Motley Fool has a disclosure policy.
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