A triple whammy hit the U.S. markets today, sending the major averages significantly lower in the morning, before paring off some of the losses after the Federal Reserve minutes were released earlier than usual.
Investors were initially worried about another drop in the price of oil, problems in the Chinese markets and the aforementioned Fed minutes. But fears were somewhat allayed by the release of the minutes, which showed the Fed may not feel that inflation is sufficient enough to warrant a rate hike.
The Dow Jones Industrial Average was off 0.9%, while the S&P 500 and Nasdaq were both off 0.8%.
Still, every dog has its day, and a few stocks did well on a broader off day. Specifically, Arch Coal Inc (NYSE:ACI), Dot Hill Systems Corp (NASDAQ:HILL) and Cempra Inc (NASDAQ:CEMP), zoomed to lead our list of some of Wednesday’s best stocks.
Arch Coal Inc (ACI)
It’s takes quite a lot to make up for a drop from $10 to $1, but ACI was off to a good start today, surging 55% after it was reported that Arch Coal is seeking to avoid a bankruptcy by working together with lenders to find a compromise.
Currently ACI has a $1.9 billion loan outstanding and could offer the holders some better terms. The lenders are opposed to a proposed $2.38 billion trade-off of junior ranking borrowing for new obligations, which is less restrictive and would have seniority.
Several other coal companies besides ACI have also filed for bankruptcy in the past year-and-a-half, as the coal industry has been decimated by price drops near 60%.
Dot Hill Systems Corp (HILL)
HILL stock surged 86% today after reporting it has been acquired by Seagate Technology PLC (NASDAQ:STX) for $694 million, or $9.75 a share.
The merger is a good fit, as Seagate tries to move away from selling hard drives to making storage drive systems, and Dot Hill manufactures external storage arrays.
The deal is expected to close before the end of 2015, and Seagate expects it to be accretive to earnings beginning in 2016.
Cempra Inc (CEMP)
CEMP stock was up 5% today after announcing that the Food and Drug Administration has given it a “fast track” designation for solithromycin intravenous and capsules.
Solithromycin is used for the treatment of community acquired bacterial pneumonia (CABP), as well as urethritis, and is currently in Phase 3 development. Cempra has already announced it will submit a New Drug Application with the FDA in 2016.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
