U.S. Stocks Rally on Warren Buffett Deal, Transocean Gets Upgrade

U.S. markets are solidly in the green in midday trading Monday, reversing last week’s sharp declines. The DJIA is up more than 200 points after it closed lower on Friday and posted its first seven day losing streak since the summer of 2011. In the deal space, Warren Buffett’s Berkshire Hathaway (BRK.A) announced it will acquire Precision Castparts (PCP), an aircraft equipment maker, for $32 billion. It’s the largest deal ever for Buffett, who likes to buy low and invest for the long run. The deal comes after Berkshire Hathaway reported disappointing quarterly results Friday after the close of trading. Second quarter profit slid 37 percent on a decline in investment gains and an underwriting losses from its insurance business. Shares of Transocean (RIG) moved higher on Monday following an analyst upgrade. Jefferies raised its rating to Hold from UNDERPERFORM for the offshore contract drilling service provider, with a price target of $13 a share.