U.S. markets were mixed today, nervously anticipating a decision out of Brussels as finance ministers in the eurozone met to discuss what will be done about the Greek government’s debts. Greece’s finance minister, Yanis Varoufakis, is looking for some type of “bridge program” to cover the government’s funding needs while the debt pact negotiations continue.
Oil was lower for the second consecutive day as crude inventories rose to 4.9 million barrels, topping expectations. Another negative for the market was that the Mortgage Bankers Association said that weekly mortgage applications were 9% lower on a seasonally adjusted basis.
When they rang the bell, both the Dow Jones Industrial Average and the S&P 500 traded flat for the day, while the Nasdaq Composit was 0.3% higher.
Three stocks which did not feel the harmful effects of Greece, oil or slippery mortgage numbers were Rite Aid Corporation (NYSE:RAD), Chico’s FAS, Inc. (NYSE:CHS), and 3D Systems Corporation (NYSE:DDD).
Rite Aid Corporation (NYSE:RAD)
Rite Aid stock had all the right stuff going for it today, blistering up more than 6% on strong volume of 115 million shares. The pharmacy retail chain decided to take on the big boys, CVS Health Corp (NYSE:CVS) and Walgreens Boots Alliance Inc (NYSE:WAG) by paying almost $2 billion to purchase EnvisionRx, a pharmacy-benefits manager. EnvisionRX was formerly owned by TPG Capital, L.P., a private-equity company with sales of about $5 billion a year.
Pharmacy-benefits managers help manage costs by negotiating discounts with drug companies, so this acquisition should help boost RAD’s sales growth and put it more on par with its competitors.
Chico’s FAS, Inc. (CHS)
CHS stock gapped up over 5% amid word that the company is in buyout talks with Sycamore Partners, another private-equity firm. Speculation is that the deal for the woman’s specialty clothing retailer could be worth over $3 billion.
CHS stock has been in a trading range between $14.50 and $19 over the past 52 weeks. Today’s action brought it right up to the top of that range before it settled back to finish at $18.24.
3D Systems Corporation (DDD)
A major announcement boosted shares of DDD stock today. 3D announced the completion of its acquisition of the total shares of Cimatron Ltd. (NASDAQ:CIMT) for $97 million. CIMT is a leading CAD/CAM software solutions provider and should enhance DDD’s product line, such as its digital fabrication offerings.
DDD stock has been unloved by investors over the past 14 months, falling from nearly $100 a share to $30. But today, DDD stock rose more than 5% and finished above its 50-day moving average for the first time since September.
So perhaps the CIMT completion will turn DDD’s poor performance around.
As of this writing, Ethan Roberts did not hold a position in any of the aforementioned securities.
