diff --git a/tests/test_parser.py b/tests/test_parser.py
index 16f7e3806..a53606db2 100644
--- a/tests/test_parser.py
+++ b/tests/test_parser.py
@@ -59,6 +59,14 @@ def check_ast(input):
     # round trip by running xonsh AST via Python
     exec(compile(obs, '<test>', 'exec'))
 
+def check_stmts(input):
+    if not input.endswith('\n'):
+        input += '\n'
+    check_ast(input)
+
+#
+# Tests
+#
 
 def test_int_literal():
     yield check_ast, '42'
@@ -420,6 +428,9 @@ def test_dictcomp_if_dictcomp():
 def test_dictcomp_if_dictcomp_if():
     yield check_ast, '{x:y for x in "mom" if True for y in "dad" if y == "d"}'
 
+def test_equals():
+    yield check_stmts, 'x = 42'
+
 
 
 
diff --git a/xonsh/ast.py b/xonsh/ast.py
index e0bfea993..e316462c5 100644
--- a/xonsh/ast.py
+++ b/xonsh/ast.py
@@ -4,4 +4,5 @@ from ast import Module, Num, Expr, Str, Bytes, UnaryOp, UAdd, USub, Invert, \
     BinOp, Add, Sub, Mult, Div, FloorDiv, Mod, Pow, Compare, Lt, Gt, LtE, \
     GtE, Eq, NotEq, In, NotIn, Is, IsNot, Not, BoolOp, Or, And, Subscript, \
     Index, Load, Slice, List, Tuple, Set, Dict, AST, NameConstant, Ellipsis, \
-    Name, GeneratorExp, Store, comprehension, ListComp, SetComp, DictComp
\ No newline at end of file
+    Name, GeneratorExp, Store, comprehension, ListComp, SetComp, DictComp, \
+    Assign
\ No newline at end of file
diff --git a/xonsh/parser.py b/xonsh/parser.py
index be1ff3f7b..e08208fe2 100644
--- a/xonsh/parser.py
+++ b/xonsh/parser.py
@@ -152,7 +152,7 @@ class Parser(object):
             'comma_test',
             'argument_comma',
             'comma_argument',
-            'comma_item', 
+            'comma_item',
             )
         for rule in list_rules:
             self._list_rule(rule)
@@ -279,7 +279,11 @@ class Parser(object):
                         | simple_stmt 
                         | compound_stmt NEWLINE
         """
-        p[0] = p[1]
+        p1 = p[1]
+        if p1 == '\n':
+            p1 = []
+        p0 = ast.Module(body=p1)
+        p[0] = p0
 
     def p_file_input(self, p):
         #"""file_input : newline_or_stmt 
@@ -419,7 +423,11 @@ class Parser(object):
     def p_simple_stmt(self, p):
         """simple_stmt : small_stmt semi_small_stmt_list_opt semi_opt NEWLINE
         """
-        p[0] = p[1:]
+        p1, p2 = p[1], p[2]
+        p0 = [p1]
+        if p2 is not None:
+            p0 += p2
+        p[0] = p0
 
     def p_small_stmt(self, p):
         """small_stmt : expr_stmt 
@@ -431,13 +439,21 @@ class Parser(object):
                       | nonlocal_stmt 
                       | assert_stmt
         """
-        p[0] = p[1:]
+        p[0] = p[1]
 
     def p_expr_stmt(self, p):
         """expr_stmt : testlist_star_expr augassign yield_expr_or_testlist 
                      | testlist_star_expr equals_yield_expr_or_testlist_list_opt
         """
-        p[0] = p[1:]
+        p1, p2 = p[1], p[2]
+        if len(p) == 3:
+            for targ in p1:
+                targ.ctx = ast.Store()
+            p0 = ast.Assign(targets=p1, value=p2, lineno=self.lineno, 
+                            col_offset=self.col)
+        else:
+            assert False
+        p[0] = p0
 
     def p_comma(self, p):
         """comma : COMMA"""
@@ -456,12 +472,12 @@ class Parser(object):
     def p_testlist_star_expr(self, p):
         """testlist_star_expr : test_or_star_expr comma_test_or_star_expr_list_opt comma_opt
         """
-        #p1 = p[1]
-        #if len(p) <= 3:
-        #    p[0] = [p1]
-        #else:
-        assert False
-        #p[0] = p0
+        p1, p2, p3 = p[1], p[2], p[3]
+        if p2 is None and p3 is None:
+            p0 = [p1]
+        else:
+            assert False
+        p[0] = p0
 
     def p_augassign(self, p):
         """augassign : PLUSEQUAL 
@@ -487,7 +503,7 @@ class Parser(object):
 
     def p_equals_yield_expr_or_testlist(self, p):
         """equals_yield_expr_or_testlist : EQUALS yield_expr_or_testlist"""
-        p[0] = p[1] + p[2]
+        p[0] = p[2]
 
     #
     # For normal assignments, additional restrictions enforced