Wall Street staged a relief rally today, as word from Brussels of a bailout settlement between Greece and the eurozone in exchange for some tough new measures buoyed the spirits of traders. However, it’s still not a done deal until and unless the Greek Parliament passes the new rules by Wednesday.
Although details were sketchy, it appeared that many of the economic reforms would be the same ones that the Greek populace rejected in last week’s referendum. These include reforming the VAT system, revamping many of the pensions and signing agreements that will trigger immediate spending cuts should Greece not live up to budget targets mandated by its creditors.
Also boosting stocks today was further stabilization of the Chinese Shanghai Composite, which rallied by more than 2%. Traders are also looking forward to second-quarter earnings reports, which begin tomorrow morning, with companies such as JPMorgan Chase & Co. (NYSE:JPM) and Wells Fargo & Co (NYSE:WFC) in the spotlight.
As they rang the closing bell, the Dow Jones Industrial Average was ahead by 1.2%, while the S&P 500 was up 1.1% and the Nasdaq 1.5%.
Acquisitions were once again creating big winners, such as Marathon Petroleum Corp (NYSE:MPC) and Remy International Inc (NASDAQ:REMY). They, along with Anacor Pharmaceuticals Inc (NASDAQ:ANAC), are three of today’s best stocks.
Marathon Petroleum Corp (MPC)
MPC stock was a big winner today, surging more than 7% after saying it will purchase natural gas processor MarkWest Energy Partners LP (NYSE:MWE), through MPC’s pipeline unit, MPLX LP (NYSE:MPLX), for $15.6 billion. The deal will create one of the larges LLP’s in the U.S., which will then be worth $21 billion.
Under the terms of the agreement, MWE unitholders will receive 1.09 MPLX units plus $3.37 cash per unit, for a total of $78.64 per unit. The deal is expected to close in Q4 2015.
MWE stock also did very well, closing 14% higher today.
Anacor Pharmaceuticals Inc (ANAC)
ANAC stock surged nearly 56% higher after reporting extremely positive results from two latter-stage trials for its non-steroidal crisaborole topical ointment to treat atopic dermatitis, more commonly known as eczema.
With these results, Anacor can enter a new drug application with the Food and Drug Administration, as early as 2016. The crisaborole ointment has the potential to be a blockbuster, with more than 25 million Americans currently affected by this itchy and uncomfortable skin condition.
Remy International Inc (REMY)
Acquisition news also drove REMY shares higher today amid news that BorgWarner Inc (NYSE:BWA) made a successful bid to buy Remy International for approximately $950 million in cash, valuing REMY shares at $29.50.
Remy International is an automotive parts manufacturer that makes electric motors and starters for hybrid and electric vehicles. BorgWarner manufactures components for automobile powertrains. The sale is expected to close during the last quarter of 2015.
Before today’s news, REMY stock had been trading sideways for most of 2015, but the stock bolted 42% higher on the acquisition news.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
