InPlay from Briefing.com

Briefing.com

4:51 pm CYREN confirms terms of registered direct offering of ordinary shares and warrants (CYRN) : Co announced earlier today the pricing of a registered direct offering of 4,771,796 shares and warrants to purchase 1,670,128 ordinary shares with certain institutional investors in combinations consisting of one ordinary share and one warrant to purchase 0.35 of an ordinary share at an offering price per fixed combination of $2.41. Each warrant will have an exercise price of $3.08 per share and will be exercisable following the six-month anniversary of the date of its issuance. CYREN will receive gross proceeds of $11.5 million before deducting placement agent fees and offering expenses (but excluding any proceeds to be received upon exercise of the warrants).

4:31 pm Tyson Foods announces plant closures in Iowa, New York, and New Mexico (TSN) : As part of ongoing efforts to improve the performance of its prepared foods business, Tyson Foods (TSN) plans to discontinue operations at three facilities, the company announced today. The closings will enable the company to use more of the available production capacity at some of its other prepared foods plants.

  • Tyson Foods' Cherokee, Iowa, plant will close effective September 27, while the company's Buffalo, New York, and Santa Teresa, New Mexico, plants are expected to cease operations during the first half of calendar 2015. The decision will affect approximately 950 people, including 450 at Cherokee, 300 at Buffalo and 200 at Santa Teresa.
  • The planned closures are due to a combination of factors including changing product needs, the age of the Cherokee facility and prohibitive cost of its renovation and the distance of the Buffalo and Santa Teresa plants from their raw material supply base in the Midwest. In addition, the closings will allow the company to shift some of the production and equipment to other, more cost-efficient Tyson Foods locations.

4:26 pm This week's biggest % gainers/losers (:SCANX) : The following are this week's top 20 percentage gainers and top 20 percentage losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week's top 20 % gainers

  • Technology:NQ (6.67 +42.76%),TRLA (56.35 +39.11%),ENPH (11.43 +25.92%),SFUN (12.11 +23.83%),LOGI (15.08 +19%),PLUG (5.42 +17.69%)
  • Services:GOL (6.4 +17.56%)
  • Industrial Goods:NNBR (29.09 +22.73%)
  • Healthcare:PBYI (200.68 +259%),INO (12.63 +37.79%),ISRG (469.7 +23.84%),ARIA (5.89 +23.35%),EXEL (4.19 +22.74%),EPZM (33.16 +20.4%),PTCT (27.8 +20.31%)
  • Financial:EJ (11.43 +20.71%),LEJU (13.52 +19.47%),Z (158.86 +17.86%)
  • Consumer Goods:UA (69.11 +22.02%)
  • Basic Materials:STLD (21.66 +18.47%)
This week's top 20 % losers
  • Technology:RP (16.37 -23.06%),ANGI (8.21 -20.75%),AMD (3.76 -18.38%),OIBR-C (0.68 -17.66%),IQNT (11.46 -15.08%),XLNX (41.45 -13.02%),CPHD (39.47 -12.21%)
  • Services:EDU (19.4 -20.27%),DFRG (21.73 -13.28%),LTM (41.02 -12.71%)
  • Healthcare:IVC (15 -14.9%)
  • Financial:TBBK (9.54 -14.9%)
  • Consumer Goods:KNDI (17.38 -13.18%)
  • Basic Materials:KEG (6.71 -18.76%),PVG (6.98 -17.88%),RBY (1.45 -12.8%),SVM (1.86 -12.75%),ROYT (10.27 -12.35%),MUX (2.86 -12.25%),ANV (3.24 -11.7%)

4:19 pm Closing Market Summary: Stocks Slump Amid Disappointing Earnings (:WRAPX) : The stock market capped the trading week with losses across the major averages. The S&P 500 fell 0.5% to surrender its weekly gain, while the Dow Jones Industrial Average (-0.7%) and Russell 2000 (-0.9%) underperformed. The two indices posted respective losses of 0.8% and 0.6% for the week.

Equity indices were pressured from the get-go after several heavyweights disappointed the market with their earnings and/or guidance, which led to some broader profit-taking. After the opening slide was complete, the major averages began inching higher, but were knocked to fresh lows in short order when it was reported that European Council President Herman Van Rompuy suggested the next round of sanctions against Russia should target oil (but not gas) companies.

The retreat in equities signaled the presence of underlying concerns that a new round of economic sanctions could have a boomerang effect on the global economy. For its part, oil futures responded by spiking off their lows to end little changed at $102.10/bbl.

Eight of ten sectors finished in the red with the consumer discretionary space (-1.2%) at the bottom of the leaderboard. The sector, and Nasdaq Composite (-0.5%), were pressured by shares of Amazon.com (AMZN 324.01, -34.60), which fell 9.7% in reaction to a bottom-line miss and cautious guidance. Other retailers did not escape unscathed with the SPDR S&P Retail ETF (XRT 84.33, -1.00) sliding 1.2%.

Elsewhere among cyclical groups, the top-weighted S&P 500 sector-technology (-0.2%)-ended ahead of the broader market despite a 3.6% drop in Visa (V 214.77, -7.97). The payment processor reported better than expected earnings, but its guidance was a point of concern for investors.

Deeper in the tech sector, high-beta chipmakers displayed broad losses after Freescale Semiconductor (FSL 19.98, -2.11), Maxim Integrated (MXIM 29.38, -3.56), and KLA-Tencor (KLAC 71.60, -1.42) reported disappointing results. The trio lost between 1.9% and 10.8%, while the PHLX Semiconductor Index fell 2.0%.

Even though the tech sector finished ahead of the broader market, other heavily-weighted sectors like energy (-0.8%) and financials (-0.6%) prevented the S&P 500 from staging an afternoon recovery.

The financial sector settled just behind the S&P 500, which was fitting as both the economically-sensitive sector and the benchmark index ended the week unchanged. Insurer Chubb (CB 89.62, -3.14) was a notable underperformer, falling 3.4% in reaction to a lowered full-year outlook on the back of a disappointing second quarter and larger than expected insurance payouts.

Although the market ended near its lows, that was not the case for El Pollo Loco (LOCO 24.03, +9.03), which made its debut today. The newcomer soared 60.2% after its IPO priced at $15.00 per share and opened at $19.00.

Treasuries rallied into the early afternoon and the 10-yr note settled on its high with the benchmark yield down four basis points at 2.47%.

Participation was well below average with under 558 million shares changing hands at the NYSE, suggesting there was no 'rush for the exits' taking place.

On the economic front, the durable orders report for June surpassed estimates (+0.7% versus Briefing.com consensus 0.3%), but shipments of goods declined 1.0%, which will be a negative for Q2 GDP.

Monday's data will be limited to the Pending Home Sales report for June (Briefing.com consensus -0.8%), which will be released at 10:00 ET.

  • S&P 500 +7.0% YTD 
  • Nasdaq Composite +6.5% YTD 
  • Dow Jones Industrial Average +2.3% YTD 
  • Russell 2000 -1.5% YTD
Week in Review: Earnings in Focus

Things could have been better on Monday for the stock market and they could have been worse. They were worse in the early going as the major indices backpedaled quickly at the start of trading. The ostensible catalysts for the opening retreat were geopolitical concerns over Israel's ground assault in Gaza and the troublesome diplomatic dealings in the wake of Malaysian Air flight MH17 being shot down over eastern Ukraine last week. At their lows of the morning, the Dow, Nasdaq, and S&P 500 were down 126, 28, and 12 points, respectively. They would eventually battle back, though, to pare their losses, drawing encouragement from technical support holding at 1966 for the S&P 500 and a small sense of relief that remarks from President Obama did not include the imposition of any new sanctions against Russia.

The market finished the Tuesday session on an upbeat note with small caps pacing the rally. The Russell 2000 advanced 0.8%, while the S&P 500 added 0.5% with eight sectors ending in the green. Although geopolitical concerns factored into the modest retreat on Monday, the worries were cast aside on Tuesday after separatist forces in eastern Ukraine handed over black boxes from MH17 to Malaysian authorities and Secretary of State John Kerry began working on brokering a cease fire in Gaza. Furthermore, the sentiment was boosted by a slate of mostly better than expected earnings. Notably, Chipotle Mexican Grill (CMG) soared 11.8% after beating estimates and surpassing comparable restaurant sales growth expectations. However, McDonald's (MCD) painted a less upbeat picture with its stock falling 1.3% in reaction to below-consensus earnings and revenue.

Equities ended the Wednesday session on a mixed note. The tech-heavy Nasdaq displayed relative strength, climbing 0.4%, while the S&P 500 added 0.2% with five sectors settling in the green. For its part, the Dow Jones Industrial Average (-0.2%) spent the entire trading day below its flat line. The midweek affair started on a rather unassuming note in the absence of market-moving news or economic releases. With those pieces missing from the equation, participants turned their attention to quarterly earnings as another dose of better than expected results pushed the S&P 500 into record territory.

On Thursday, stocks maintained a narrow trading range before ending the session essentially where they began. The S&P 500 added less than a point, while the small-cap Russell 2000 (-0.2%) underperformed. Equity indices displayed early strength thanks in part to an overnight boost from better than expected economic data in China and Europe. Specifically, China's HSBC Manufacturing PMI surged to an 18-month high (52.0 from 50.7), while Eurozone Manufacturing PMI (51.9; expected 51.7) and Services PMI (54.4; expected 52.7) also surpassed estimates. In addition to upbeat data from overseas, participants received a batch of better than expected earnings, but the market had a difficult time building on its early gain. The S&P 500 surrendered its opening advance during the initial minutes, but was able to follow that with a rally to a fresh record high (1991.39). The index could not hold that level into the afternoon and slipped back to its flat line by the close.

4:10 pm Frontier Communications: FCC approves Frontier's acquisition of AT&T's (T) Connecticut wireline operations (FTR) : Co announced that the Federal Communications Commission (:FCC) has approved its proposed acquisition of AT&T's (T)  local wireline, broadband and video operations in Connecticut. The company is currently also seeking approval from the Connecticut Public Utilities Regulatory Authority (PURA), and has already received Justice Department approval. Pending PURA approval, the company expects to close the Connecticut acquisition transaction in the fourth quarter.

4:01 pm Ntelos Holdings announces time change for its second quarter 2014 earnings call on July 28th; call will now begin at 8:00 a.m. ET (NTLS) :  

4:01 pm Northrop Grumman awarded $205 mln mission support services contract (NOC) : The U.S. Army awarded NOC a cost-plus-fixed-fee contract, with a potential value of $205 mln, to continue providing mission logistics services in support of combat brigades training at the National Training Center in Fort Irwin, California.

4:00 pm Immune Design announces filing of new lawsuit by Theravectys SA; repeats some claims made by TVS in prior lawsuit that it previously voluntarily dismissed (IMDZ) :

  • Co announced that the day after it began trading on the Nasdaq Global Market, Theravectys SA ("TVS") filed a lawsuit against the company repeating claims that it had made in a prior lawsuit which TVS had earlier voluntarily dismissed. 
  • TVS alleges that it has a contractual relationship with a Belgian manufacturer, Henogen, SA, which contained an exclusivity provision limiting Henogen's ability to manufacture certain lentiviral vectors for third parties and a provision preventing Henogen from sharing or using certain TVS confidential technology related to manufacturing processes developed by TVS with or for the benefit of others. TVS asserts that the company induced Henogen to breach its exclusivity obligations by manufacturing and supplying clinical batches of lentiviral vectors to the company and seeks monetary damages, as well as injunctive relief. TVS raises claims of tortious interference with contractual relations, misappropriation of trade secrets, unfair competition and unjust enrichment.
  • The company is not currently using Henogen to manufacture its lentiviral vectors for its clinical trials. The company developed its own vector manufacturing process that it previously transferred to Henogen, and did not have any knowledge of TVS' processes. The company believes this lawsuit is without merit and intends to vigorously defend it.

4:00 pm Cal-Maine Foods announced the Company has entered into a new joint venture for specialty egg sales with Hickman's Egg Ranch (CALM) :

  • Co announced the Company has entered into a new joint venture for specialty egg sales with Hickman's Egg Ranch, Inc. Based in Buckeye, Arizona, a suburb of Phoenix in western Maricopa County, Hickman's Egg Ranch, Inc. has been family-owned and operated since 1944. With processing operations located in Arizona, Colorado and California, and capacity for approximately 6.0 million laying hens, Hickman's Egg Ranch, Inc. ranks among the top twenty family egg farms in the United States. 
  • Pursuant to this transaction, the new joint venture, known as Southwest Specialty Eggs, LLC, will acquire the Egg-Land's Best, Inc. franchise for the state of Arizona with exclusive licensing agreements for the sale of Egg-Land's Best and Land O' Lakes branded specialty eggs and other premium brands. Sales of Egg-Land's Best specialty eggs accounted for approximately 14.3 percent of Cal-Maine's total shell egg sales in fiscal 2013.

3:35 pm Earnings Preview for the week of July 28 - August 1 (:SUMRX) : Of the companies reporting earnings for the week of July 28 - August 1 some of the bigger names include:

  • Monday:
    • Pre Market - TSN, CMI, TEN, RPM, ROP, LECO, AWI, MCY, ARLP, SOHU
    • After Hours - JEC, EMN, OMI, MAS, WRB, XL, PRE, HLF, AFG, NCLH, AMKR, CR, GGP, HLS, RRC
  • Tuesday:
    • Pre Market - HMC, BP, UPS, AET, PFE, MRK, HCA, IP, UBS, ETN, ARW, NOV, TRW, PCAR, NEE, ITW, WM, ECL, MMC, ETR, AGCO, GLW, RAI, OSK, EME, AXE, LVLT, FIS, NLSN, AKS, TLM, HRS, MHFI, ALLY, FDP, SIRI, XYL, CNX, ACI, GNC, FSRV, VSH, AMG, UAM, SAVE, 
    • After Hours - ESRX, AXP, AFL, AMGN, X, APC, MAR, CHRW, AMP, RKT, GNW, TX, CBG, NEM, NCR, UGI, TRN, FISV, CINF, AXS, AJG, WSH, DOX, GPRE, RBC, GAS, BXP, BWLD, TWTR, DWA, NTRI, SQNM, 
  • Wednesday:
    • Pre Market - AUO, PSX, VLO, WLP, HUM, S, GT, CVE, SO, PAG, TRI, RRD, HUN, D, GIB, HES, PEG, BEN, SEE, PTRY, ROK, INGR, MWV, LO, BAH, SPW, SPB, ENR, LPLA, HSP, WEC, AMT, PBI, ADT, IACI, AB, LL, HAE, 
    • After Hours - MET, INT, SU, TSO, ALL, KRFT, HIG, WDC, WFM, LNC, TS, UNM, ABX, MOH, PPC, FNF, WMB, WPZ, OI, KBR, CNW, MUR, LRCX, ESV, NE, FBHS, SPN, MTW, FMC, CBT, TGI, KGC, MEOH, WLL, AEM, AUY, CTRP, 
  • Thursday:
    • Pre Market - XOM, MCK, MPC, COP, BG, EPD, BUD, CI, DTV, AZN, OXY, TWC, EXC, TEVA, DLPH, CL, PCG, K, APA, ALU, ADP, LLL, CDW, PPL, CVI, XEL, MOS, MA, TRP, CHTR, BLL, AVP, BWA, BDX, VRX, PNR, PWR, LKQ, DISCA, NWL, HST, SC, IVZ, NI, ATK, H, GEL, RFP, GG, COMM, Q, SCG, MTOR, SBH, HP, PNW, TKR, WWE, 
    • After Hours - BSAC, FLR, CYH, DVA, EIX, EEP, MHK, LYV, ASH, NU, NSIT, EXPE, ARRS, WU, MRC, YRCW, THG, JLL, ACGL, TSLA, ONNN, SWN, BYD, WSTC, SPF, OUTR, G, MCHP, LNKD, PSA, OIS, RMD, SYNA, KOG, AMSG, GPRO, 
  • Friday:
    • Pre Market - CVX, PG, MT, ENB, CTRX, PBF, HLT, WY, NGLS, SPR, CLX, CPN, TDS, XLS, AXL, HCN, CHD

3:00 pm Franklin Street Properties announces retirement of Barbara Fournier effective March 31, 2015 (FSP) : Co announced that Barbara J. Fournier has decided that, effective March 31, 2015, she will retire from FSP and resign her positions as the Company's Executive Vice President, Chief Operating Officer, Treasurer and Secretary. In addition, Ms. Fournier has decided that she will not stand for re-election to the Board of Directors upon the conclusion of her term as a Class II director at the 2015 annual meeting of stockholders. Ms. Fournier is one of the Company's original founders and has served on the Board of Directors since 2002.

2:50 pm NYMEX Energy Closing Prices (:COMDX) :

  • Sep crude oil rose $0.04 to $102.10/barrel 
  • Aug natural gas fell 7 cents to $3.78/MMBtu 
  • Aug heating oil rose 5 cents to $2.92/gallon 
  • Aug RBOB rose 2 cents to $2.86/gallon

2:49 pm Stock indices work up toward midday rebound highs -- Dow -124, S&P -8.5, Nasdaq Comp -21 (:TECHX) :  

2:30 pm Dollar Crosses 81.00: 10-yr: +10/32..2.465%..USD/JPY: 101.78..EUR/USD: 1.3435 (:SUMRX) :

  • The Dollar Index drifts near session highs as trade fights for its first close above the 81.00 level since the beginning of February. Click here to see a weekly Dollar Index chart.
  • Today's bid has the Index higher for the tenth time in twelve sessions, and has trade nearing the key 81.40 area. 
  • EURUSD is -30 pips @ 1.3430 as action contends with its lowest close since Veterans' Day. Weighing on the euro was today's disappointing German Ifo Business Climate survey, and reports European governments are considering further sanctions against Russia. Support near 1.3400 looms large. 
  • GBPUSD is -15 pips @ 1.6970 as trade presses lower for an eighth day. The losing streak has shaved off approximately 175 pips, and has trade testing support in the 1.6950/1.7000 area that is helped by the 50 dma. 
  • USDCHF is +20 pips @ .9045 as trade readies for its best close in almost six months. The .9100 area is setting up as a key level, but action will remain closely correlated to the euro.
  • USDJPY is -5 pips @ 101.75 after surrendering its early gains. The pair threatened the 102.00 mark in response to this morning's CPI data, but has seen steady selling over the course of the U.S. session as the bears stepped in at the convergence of the 50, 100, and 200 dma. On the downside, the 101.00/101.25 area remains key.
  • AUDUSD is -20 pips @ .9395 as selling takes hold for a second day. Support near .9350 remains in focus as the 50 dma also lurks in the vicinity. 
  • USDCAD is +70 pips @ 1.0815 as trade surges to its best level since the middle of June. Today's bid has run the pair above its 50 dma, and has action testing resistance guarded by the 200 dma.

2:27 pm CBOT Agriculture and Ethanol/ICE Sugar Closing Prices (:COMDX) :

  • Sep corn rose 2 cents to $3.63/bushel 
  • Sep wheat rose 9 cents to $5.38/bushel 
  • Aug soybeans rose 4 cents to $12.12/bushel 
  • Sep ethanol rose 3 cents to $2.04/gallon 
  • Sep sugar (#16 (U.S.)) rose 0.01 of a penny to 24.54 cents/lbs

1:56 pm COMEX Metals Closing Prices (:COMDX) :

  • Aug gold rose $12.80 to $1303.00/oz 
    • Gold climbed higher today on continued geopolitical tension over Ukraine and Gaza. Headlines indicated Russia's foreign minister reiterated his belief that the U.S. shares blame for the bloodshed in Ukraine. The yellow metal came off its session low of $1293.30 and touched a session high of $1303.80 moments before settling with a 1.0% gain. Despite today's advance, gold booked a 0.5% loss for the week. 
  • Sep silver rose $0.23 to $20.64/oz 
    • Silver also traded in positive territory, trading as high as $20.65. It settled with a 1.1% gain, cutting weekly losses to 1.1%. 
  • Sep copper fell 3 cents to $3.24/lbs

1:54 pm Kosmos Energy Announces Pricing of Private Offering of Senior Secured Notes Due 2021 (KOS) : Co announced the pricing of its previously announced private offering to eligible purchasers of $300 mln aggregate principal amount of its 7.875% senior secured notes due 2021. The net proceeds from the offering, after deducting discounts, commissions and other expenses, are expected to be approximately $292.5 mln.

  • The offering is expected to close on August 1, 2014. Kosmos intends to use the net proceeds from this offering to repay a portion of the outstanding indebtedness under its commercial debt facility and for general corporate purposes.

1:37 pm Notable movers of interest (:SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).

Large Cap Gainers

  • RBS (12.38 +10.72%): Provided updated on first half of 2014 and outlook for second half; First half operating profit excluding restructuring and litigation conduct costs improved to GBP 3.365 bln vs GBP 1.6 bln in prior year; co expects that credit impairment charges in the second half will remain low
  • BIDU (223.69 +9.51%): Beat quarterly EPS by $0.35 ($1.73 ex items vs $1.38 estimate), revs rose 58.5% yoy to $1.93 bln vs $1.93 bln estimate; sees Q3 revs of $2.163-2.221 bln vs $2.13 bln estimate
  • SWK (90.44 +6.37%): Beat quarterly EPS by $0.06 ($1.43 ex items vs $1.37 estimate), revs rose 1.0% yoy to $2.89 bln vs $2.94 bln estimate; sees FY14 EPS of $5.50-5.60 (raised from $5.35-5.50) vs $5.43 estimate
Large Cap Losers
  • AMZN (324 -9.65%): Missed quarterly EPS by $0.12 (-$0.27 vs -$0.15 estimate), revs rose 23.2% yoy to $19.34 bln vs $19.32 bln estimate; operating income -$15 mln vs -$455 to -$55 mln guidance and -$60 mln estimate; sees Q3 revs of $19.7-21.5 bln vs $20.82 bln estimate; sees Q3 operating loss of -$810 to -$410 mln; downgraded at B. Riley & Co, Raymond James, and CRT Capital
  • AON (86.99 -4.38%): Beat quarterly EPS by $0.05 ($1.25 vs $1.20 estimate), revs rose 0.8% yoy to $2.92 bln vs $2.97 bln estimate
  • V (213.75 -4.04%): Beat quarterly EPS by $0.08 ($2.17 vs $2.09 estimate), revs rose 5.1% yoy to $3.15 bln vs $3.15 bln estimate; Co sees FY14 constant revenue growth in the 9-10% range, lowered from previous 10-11% range
Mid Cap Gainers
  • QLIK (26.65 +13.93%): Beat quarterly EPS by $0.05 ($0.02 ex items vs -$0.03 estimate), revs rose 21.9% yoy to $131.6 mln vs $125.26 mln estimate; sees Q3 EPS of -$0.02 to $0.01 ex items vs $0.04 estimate, revs of $122-126 mln vs $123.25 mln estimate; sees FY14 EPS of $0.23-0.27 ex items vs $0.25 estimate, revs of $545-555 mln vs $547.81 mln estimate
  • VRSN (55.47 +11.32%): Beat quarterly EPS by $0.04 ($0.68 vs $0.64 estimate), revs rose 4.6% yoy to $250.4 mln vs $251.73 mln estimate; upgraded to Neutral from Sell at Citigroup; price target raised to $74 from $72 at Topeka
  • SWI (43.94 +11.07%): Beat quarterly EPS by $0.04 ($0.41 vs $0.37 estimate), revs rose 31% yoy to $101.5 mln vs $98 mln estimate; sees Q3 EPS of $0.42-0.44 vs $0.41 estimate, revs of $109-111.5 mln vs $107.05 mln estimate; sees FY14 EPS of $1.68-1.72 vs $1.65 estimate, revs of $420.5-426.5 mln vs $416.64 mln estimate
Mid Cap Losers
  • WCG (61.41 -20.09%): Reported Q2 EPS of -$0.07 vs $0.90 estimate, revs rose 35% yoy to $3.1 bln vs $3.02 bln estimate; sees FY14 EPS of $2.20-2.50 (lowered from $4.40-4.75) vs $4.30 estimate; downgraded to Market Perform from Outperform at Wells Fargo and to Market Perform from Outperform at Raymond James
  • SWFT (21.73 -15.81%): Reported Q2 EPS of $0.33 (in-line) revs rose 4.6% yoy to $1.08 bln vs $1.09 bln estimate
  • SLAB (40.31 -13.88%): Beat quarterly EPS by $0.12 ($0.58 ex items vs $0.46 estimate), revs rose 9.5% yoy to $154.9 mln vs $149.01 mln estimate; sees Q3 EPS of $0.45-0.51 ex items vs $0.54 estimate, revs of $153-157 mln vs $156.8 mln estimate

1:23 pm Kellogg declares quarterly dividend of $0.49 per share vs $0.46 per share in prior quarter (K) : Co announced that its Board of Directors declared a dividend of $0.49 per share on the common stock of the Company. As the company previously announced in April, this reflects a 6.5% increase to the quarterly dividend. The dividend is payable on September 15, 2014, to shareowners of record at the close of business on September 2, 2014. The ex-dividend date is August 28, 2014.

1:14 pm Goldcorp: Cerro Negro achieves first gold production (GG) : Co announced that first gold production has been achieved at Cerro Negro, a high grade gold mine located in the Santa Cruz province of Argentina.

  • "We are very pleased to have first production on schedule and within our current capital cost guidance range from this world class mine," said Chuck Jeannes, Goldcorp President and Chief Executive Officer.
  • Production guidance for 2014 is expected to be between 130,000 and 180,000 ounces of gold. Initial capital costs have been reduced by $100 mln and are now expected to be between $1.6 and $1.7 bln.

1:05 pm Destination Maternity withdraws proposal to combine with Mothercare (DEST) :

  • Co announced that it does not intend to make an offer for Mothercare and is withdrawing its proposal for a possible combination with Mothercare. On 2 July 2014, Destination Maternity made an announcement confirming its interest in a possible combination with Mothercare and confirming its submission of two non-binding written proposals for a possible combination, both of which had been rejected by the Board of Directors of Mothercare. 
  • This announcement was required by the UK Takeover Code in light of press speculation at the time regarding Destination Maternity's interest in a possible combination with Mothercare. Following the announcement on 2 July 2014, Destination Maternity's financial adviser canvassed the views of shareholders who hold a substantial proportion of Mothercare shares. 
  • While Destination Maternity believes that its proposal was compelling, it is clear that the shareholders of Mothercare believe that only a very significant increase in the value of such proposal would be acceptable. In light of this and considering Destination Maternity has not been permitted by the Mothercare Board to conduct customary due diligence, Destination Maternity is unwilling to increase the value of its proposal and has therefore decided to withdraw its proposal.

1:00 pm Midday Market Summary: Disappointing Earnings Pressure Stocks at Midday (:WRAPX) : The major averages trade lower across the board at midday with the Russell 2000 (-0.8%) pacing the retreat. The S&P 500 holds a slimmer loss of 0.4% with eight sectors in the red.

Market participants received mostly better than expected quarterly reports during the first four sessions of the week, but that trend did not hold up into today. Equities slumped at the open with disappointing earnings and/or guidance from heavyweights like Amazon.com (AMZN 324.63, -33.96), Chubb (CB 89.45, -3.31), WellCare Health Plans (WCG 61.33, -15.52), KLA-Tencor (KLAC 72.10, -0.92), and Visa (V 213.30, -9.44), spurring some profit taking across most sectors.

Despite the opening slide, the initial 90 minutes of action had some makings of a rebound in progress, but the major averages then took another leg lower, while oil spiked to new highs (-0.1% at $101.99/bbl) amid reports European Council President Herman Van Rompuy suggested the next round of sanctions against Russia should target oil companies.

At this juncture, the consumer discretionary space (-1.0%) trades well behind the remaining sectors with Amazon.com contributing to the weakness. The online retail giant missed bottom-line estimates and guided lower. Other areas of the sector are also on the defensive with homebuilders showing losses across the board. The iShares Dow Jones US Home Construction ETF (ITB 23.12, -0.26) is lower by 1.1%.

Elsewhere, the top-weighted sector-technology (-0.3%)-has climbed ahead of the broader market, but chipmakers remain in a position of relative weakness. Shares of KLAC have factored into the underperformance with disappointing results from Freescale Semiconductor (FSL 20.44, -1.66) and Maxim Integrated (MXIM 28.93, -4.01) also contributing to the 1.6% loss in the PHLX Semiconductor Index.

Also of note, the tech sector has been able to climb off its worst level of the day, but the Dow Jones Industrial Average (-0.7%) remains near its low due to a 4.0% loss in its top-weighted component. Shares of Visa continue trading near their opening levels in reaction to disappointing guidance.

The weakness in stocks has given a boost to Treasuries. The 10-yr note sits on its high with the benchmark yield down three basis points at 2.48%.

On the economic front, the durable orders report for June surpassed estimates (+0.7% versus Briefing.com consensus 0.3%), but shipments of goods declined 1.0%, which will be a negative for Q2 GDP.

12:15 pm NGL Energy Partners announces conversion of subordinated units to occur following quarterly distribution; 5,919,346 subordinated units will convert on a one-for-one basis into common units effective August 15, 2014 (NGL) :  

12:11 pm Relative sector strength (:TECHX) : The major averages have worked off their morning lows/supports with some relative sector strength on this move (outperforming the S&P) noted in: Biotech IBB, Health XLV, Semi SMH, Technology XLK.

12:03 pm Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (82) outpacing new lows (70) (:SCANX) : Stocks that traded to 52 week highs: ACH, AHGP, ARCI, ARRS, ATVI, BBL, BIDU, BMO, BNS, CAJ, CAM, CHRW, CIB, CM, CMG, CORR, CTCT, CTRP, DCM, DECK, DLB, DPS, EFX, FFCO, FOLD, GD, GIL, GLNG, HCA, HLS, HPQ, IDXX, KED, LAWS, LAZ, LEA, LMT, LPNT, LRE, LUV, LYB, MAG, MAMS, MAR, MCK, MCO, MPB, MPWR, NOC, NSH, NTRS, PBA, PFG, PPC, QCOR, R, RBS, RCL, RFMD, RGA, SBAC, SGC, SKX, SLF, SVU, SWC, TCP, TCX, TD, THC, TMH, TQNT, UA, UHS, VIPS, WAB, WIN, WLB, WLK, WOOF, WRI, XRX

Stocks that traded to 52 week lows: ACXM, AGM, ALDX, AQXP, ASPN, BCOV, BLMN, BONT, BPI, CAS, CBDE, CERS, CGA, CGG, CLRX, CNHI, CPWR, CRRS, CYRN, DRNA, DVR, EDMC, ESI, ESIO, GFIG, GIMO, GLF, GSK, HHS, IDI, IKAN, IMGN, IMN, INFA, INTX, ISNS, IVC, MBLX, MCRI, MGLN, MORN, NCFT, NEWL, NKSH, NWBI, OCFC, PGEM, PGTI, PNRA, PSUN, QLGC, RCPI, REXX, RNDY, SILC, SRDX, TBBK, TCCO, TILE, TLYS, TNAV, TNDM, TOPS, TRC, TUP, TWI, VII, VVI, XNY, XXIA

ETFs that traded to 52 week highs: DBB, GXC, XLB

ETFs that traded to 52 week lows: BAL, RJA

11:59 am Minor follow through upticks for major averages -- Dow -137, S&P -10, Nasdaq Comp -29 (:TECHX) : The Nasdaq Comp and S&P have slightly extended the bounce after vacillating near supports noted at 11:26. The S&P needs to sustain a push through the 1981/1982 area in order to begin to improve the intraday pattern.

11:53 am European Markets Closing Prices (:SUMRX) : European markets are now closed; stock markets across Europe performed as follows:

  • UK's FTSE:-0.4%
  • Germany's DAX:-1.5%
  • France's CAC:-1.8%
  • Spain's IBEX:+0.3%
  • Portugal's PSI:-0.3%
  • Italy's MIB Index:-0.9%
  • Irish Ovrl Index:-0.3%
  • Greece ASE General Index: +3.3%

11:44 am Currency Commentary: DXY Testing Multi-Month Highs (:SUMRX) :

  • The Dollar Index is testing the 81 level for the first time since June 5. The dollar is bumping up against multi-month resistance as it remains in an upward trend. This will mark a big hurdle for the DXY. It comes ahead of a busy week of economic data that includes an FOMC meeting (Wed) and culminates with one of the busiest days of economic data on record (Friday) when jobs, Personal Income & Spending, ISM, Construction Spend and Vehicle sales all hit the wires. 
  • The euro in the mean time is sliding towards the low end of 1.34. The currency is getting hit on concerns that economic ties with Russia will see further strain as the region prepares additional sanctions. German consumer and business confidence missed expectations adding to the pressure.
  • The pound has slipped below the key 1.70 level and is trading at its lowest against the dollar since June 19. This is of course the day after the Fed meeting. The pound is testing its 50 sma. Sterling remains strong overall but is being outpaced by the dollar over the past couple of weeks.
  • The yen was sliding back to test the 102 level but has reversed course this morning as investors pullback risk trades. Weaker earnings news and continued geopolitical pressures have led to the risk off trade. But it should be noted that equities were overextended and buyers exhausted in the short term. Overall the yen move has not been all that impressive as it moves back to 101.70 but remains in a tight trading range in the 101 level (BONDX, FOREX).

11:35 am Ferrellgas Partners: Ferrellgas, L.P. and Ferrellgas Finance commence exchange offer for $475 mln of senior notes due 2022 (FGP) : Ferrellgas, L.P. and Ferrellgas Finance, a wholly-owned subsidiary of Ferrellgas, L.P., commenced an offer to exchange $475 million principal amount of their 6.75% Senior Notes due 2022 for a like principal amount of their outstanding and unregistered 6.75% Senior Notes due 2022, the principal amount of $325 million of which were issued on November 4, 2013, and the principal amount of $150 million of which were issued on June 13, 2014 each in a private placement. Ferrellgas, L.P. and Ferrellgas Finance Corp. are acting as co-obligors and co-issuers of the new notes.

11:26 am Floor Talk (:TALKX) : The stock market has been on the defensive since the start of trading, weighed down by a change in the dynamic of the earnings reporting period that came courtesy of a batch of warnings from some high-profile companies. Some of the notable offenders in that respect include:

  • Amazon.com (AMZN 317.62, -40.99) - warned of a much wider than expected operating loss for its third quarter which, in turn, stirred valuation concerns
  • WellCare Health Plans (WCG 61.90, -14.95) - reported a big shortfall for its second quarter and issued a big downward revision for its full year, citing higher medical benefit expenses
  • Visa (V 211.59, -11.15) - trimmed its full-year revenue growth outlook due to negative currency impact and depressed cross-border volumes
  • KLA-Tencor (KLAC 71.14, -1.88) - cut its first quarter outlook well below consensus expectations, citing an extended lead time and resulting shipment backlog
  • Chubb (CB 88.99, -3.78) - cut its full-year outlook on the back of a disappointing second quarter and larger than expected insurance payouts
In addition to the aforementioned earnings disappointments, geopolitical discord has kept buying interest in check in front of the weekend.
  • The major indices recently slipped to new session lows as headlines indicated Russia's foreign minister reiterated his belief that the US shares blame for the bloodshed in Ukraine.  Such a remark raises concerns for the market that Russia isn't going to back down from an offensive-minded posture and that such a stance risks inviting more economic sanctions that will have a boomerang effect on the global economy
The consumer discretionary sector (-1.3%) is the worst-performing sector and the Russell 2000 (1.1%) leads to the downside among the major indices.  The semiconductor industry, however, is one of the weakest links today, evidenced by a 2.2% drop in the Philadelphia Semiconductor Index.  Including today's losses, the SOX Index is down 4.4% for the week.

The Treasury market has been a beneficiary of the safety trade today.  The 10-yr note is up nine ticks and its yield has dropped back below the closely-watched 2.50% level to 2.47%.

11:26 am Stock indices extend lower -- Dow -166, S&P -13, Nasdaq Comp -41 (:TECHX) : The Nasdaq Comp is vacillating near support from The Technical Take at 4434/4425 (session low 4430). The S&P has dipped fractionally below support at 1975 (session low 1974.37).

11:12 am Gold and silver futures just spiked to new session highs. Aug gold is now +0.6% at $1298.60/oz, Sept silver is +0.7% at $20.56/oz (:COMDX) :  

11:03 am S&P -10.7 and Nasdaq Comp -33 join Dow -154 at new lows (:TECHX) : Relative sector weakness in recent trade has been noted in: Biotech IBB, Health XLV, Semi SMH, Discretionary XLY.

10:59 am Narrow range trade near opening lows gives way in Dow -134 -- S&P -8.7 and Nasdaq Comp -30 are approaching their early lows (:TECHX) :  

10:56 am Verso Paper postpones Special Meeting of stockholders to August 12, 2014 (VRS) :  

10:55 am Sept crude oil just rallied, erasing losses and rising back above $102/barrel. Crude is currently +0.1% at $102.17/barrel (:COMDX) :  

10:29 am Freeport-McMoRan announces resumption of exports from Indonesian Subsidiary; concentrate exports are expected to commence in August 2014 (FCX) : Co announced that its Indonesian subsidiary PT Freeport Indonesia received approval from the Government of Indonesia to resume exports of copper concentrates. PT-FI will resume full operations immediately and concentrate exports are expected to commence in August 2014.

  • PT-FI has entered into a Memorandum of Understanding with the Government of Indonesia under which the Government and PT-FI have agreed to negotiate an amended Contract of Work, to be completed over the next six months, to address provisions related to the size of concession area, royalties and taxes, domestic processing and refining, divestment, local content, and continuation of operations post-2021. 
  • Effective with the signing of the MOU, PT-FI has agreed to pay export duties set forth in a new regulation issued in July 2014, to provide a $115 mln assurance bond to support its commitment for smelter development and to increase royalties to 4.0% for copper and 3.75% for gold from the current rates of 3.5% for copper and 1% for gold.

10:24 am CVS Caremark vacillating near its 52-wk close high at 78.92 for second day in a row (CVS) : Stock is up for the fourth day in a row and again probing its 52-wk close high. Thur/Friday highs are at 79.01 with the 52-wk intraday high from June at 79.43.

9:53 am Ambac announces its subsidiary, Ambac Assurance Corporation, finalized LTGO settlement with the City of Detroit; 'co expects to continue to pay claims of scheduled principal and interest on the bonds insured by Ambac Assurance' (AMBC) : Co announced that its principal financial guarantee subsidiary, Ambac Assurance Corporation, has finalized a settlement with the City of Detroit regarding its insured limited tax general obligation bonds.

  • The LTGO settlement is comprised of new LTGO notes equivalent to 34% of the LTGO allowed claim and a 20% share of any notes remaining in a litigation reserve related to the City's pension bond litigation, which may increase the recovery. 
  • The notes in the litigation reserve are a portion of the "B notes" referenced in the City's plan of adjustment. 
  • If the City eventually wins the litigation, Ambac Assurance's share of the B notes may equate to a recovery of an additional 19% of its allowed claim with respect to the LTGO bonds. 
  • If the City loses the litigation, Ambac Assurance will not get any further recovery. If the litigation is settled, Ambac Assurance may get a partial incremental recovery.
  • The Company expects to continue to pay claims of scheduled principal and interest on the bonds insured by Ambac Assurance. 

9:50 am Dow -109 set new session low but S&P -7 and Nasdaq Comp -24 hold above opening lows (:TECHX) :  

9:45 am MAXIMUS awarded new health and work service program for the UK's Department for Work and Pensions (MMS) : Co announced that its wholly owned subsidiary, Health Management, will operate the new Health and Work Service program on behalf of the United Kingdom's Department for Work and Pensions. The 63-month contract will begin on August 1, 2014 and will run through October 31, 2019.

9:44 am Opening Market Summary: Earnings Weigh During Opening Action (:WRAPX) : The major averages slumped out of the gate with the consumer discretionary sector (-1.0%) leading the slide due to an 11.1% loss in the shares of Amazon.com (AMZN 319.00, -39.61) after the retailer reported disappointing results for the quarter.

The discretionary space is a clear laggard, while other cyclical sectors like energy (-0.5%) and technology (-0.4%) also display notable losses. The energy sector trades in the red amid weakness in crude oil futures (-0.8% at $101.26/bbl), while the tech sector has been pressured by the likes of KLA-Tencor (KLAC 71.24, -1.78) and Visa (V 212.87, -9.87). The two hold respective losses of 2.6% and 4.1% after disappointing with their earnings (KLAC) or guidance (V).

On the upside, telecom services (+0.5%) and materials (+0.3%) sport slim gains.

9:43 am Bluerock Residential Growth: MacKenzie Realty Capital announces a tender offer for Class B shares of BRG (BRG) : MacKenzie Realty Capital announced a tender offer for Class B Shares of Bluerock Residential Growth REIT. MacKenzie Realty Capital is offering to purchase up to 30,000 Class B-1, 30,000 Class B-2, and 30,000 Class B-3 Shares for $11.00, $10.00, and $9.00 per Share, respectively. The Class B Shares will convert to Class A Shares of Bluerock Residential Growth REIT 360, 540, and 720 days following Bluerock Residential Growth REIT's initial public offering of Class A Shares on April 2, 2014.

9:41 am Weakness off the open for major averages -- Dow -98, S&P -6.9, Nasdaq Comp -24 (:TECHX) : Early relative sector weakness has been noted in: Internet FDN, Semi XSD, Paper, Social Media SOCL, Discretionary XLY, Housing XHB, Internet, Auto, Solar TAN, Casino BJK.

9:41 am Minco Gold announces sale of the Gold Bull Mountain Project; total consideration of RMB 7 mln (~CDN$1.2 mln) (MGH) : Co announced that its wholly owned subsidiary Minco Mining Co., Ltd has entered into an agreement with a private Chinese individual to sell the Company's Gold Bull Mountain Project located in Hunan Province, China for total consideration of RMB 7 mln  (~CDN$1.2 mln). The co has received the first installment payment (30% of the total) from the Purchaser.

9:34 am Amazon.com gaps aggressively lower, probes 315/314 zone (AMZN) : The gap down start quickly brought into play its May peak/breakout point and the 62% retracement of the May to July surge at 315/314 (session low 314.76).

9:31 am DragonWave prices public offering of 13,850,000 units at CAD1.80 per Unit, for gross proceeds of ~ CAD25 mln (DRWI) :  

9:27 am VisionChina Media, Oak Investment and Gobi Partners jointly announce closing of litigation settlement (VISN) :

  • Co, Oak Investment Partners XII, Gobi Partners, Gobi Fund Gobi Fund II and Shareholder Representative Services, and Thomas GaiTei Tsao, jointly announced the closing of the settlement agreement of all litigations arising from VisionChina Media's Nov 16, 2009 acquisition of Digital Media from the Selling Shareholders.
  • Under the terms of the settlement agreement, VisionChina Media agrees pay to the Selling Shareholders an aggregate amount of $70 million, including $12 million in cash and $58 million in six-year term convertible promissory notes issued by VisionChina Media, in addition to certain other consideration to satisfy the judgment of $71,800,047.46 entered in the 2011 Action on or about July 26, 2013. 
  • By the date of this joint press release, all claims in these pending lawsuits have been dismissed and all closing conditions of the settlement agreement have been met.

9:26 am On The Wires (:WIRES) :

  • MobileIron (MOBL) announced support for Fire Phone, the first smartphone designed by Amazon. The MobileIron Mobile@Work client is available through the Amazon Appstore today.
  • Amazon (AMZN) announced its third original kids series, Annedroids, is now available for unlimited streaming on Prime Instant Video at no additional cost to Prime members. 
  • TrueCar (TRUE) has signed a long-term lease for ~33,700 square feet of office space at 1401 Ocean Avenue in Santa Monica, California.
  • KBR (KBR) has received a letter of award from Hyundai Heavy Industries to perform engineering design services for the Abu Dhabi Marine Operating Company Al-Nasr Full Field Development project, located offshore Abu Dhabi. KBR will provide engineering design and support services for the entire Al-Nasr Package 2 scope with the services provided by KBR's office in Singapore and supported by other KBR offices.

9:22 am CYREN prices registered direct offering of 4,771,796 shares and warrants to purchase 1,670,128 ordinary shares with certain institutional investors in combinations consisting of one ordinary share and one warrant to purchase 0.35 of an ordinary share at offering price per fixed combination of $2.41 (CYRN) :  

9:16 am S&P futures vs fair value: -5.50. Nasdaq futures vs fair value: -20.30. (:WRAPX) : The stock market is on track for a modestly lower open with futures on the S&P 500 trading six points below fair value. Nasdaq futures, meanwhile, underperform (-20 pts v fair value) due to noteworthy pre-market weakness in the shares of Amazon.com (AMZN 317.98, -40.63) after the online retail giant missed bottom-line estimates and forecast a wider than expected operating loss for Q3.

Similar to Amazon.com, KLA-Tencor (KLAC 69.67, -3.35), Visa (V 214.77, -7.97), and WellCare Health Plans (WCG 61.00, -15.85) are also indicated to start notably lower in reaction to disappointing earnings and/or guidance.

On the economic front, the durable orders report for June surpassed estimates (+0.7% versus Briefing.com consensus 0.3%), but shipments of goods declined 1.0%, which will be a negative for Q2 GDP.

Treasuries are on their highs with the 10-yr yield off two basis points at 2.49%.

9:04 am Mines Management agrees to sell 4,000 units consisting of one share of the co's Series B 6% Convertible Preferred Stock and warrant to purchase ~ 636 shares of the co's common stock at $1,000 per unit (MGN) : Co announced that it has agreed to sell 4,000 units consisting of one share of the co's Series B 6% Convertible Preferred Stock, no par value, and a warrant to purchase approximately 636 shares of the co's common stock, par value $0.001 per share, at a price to the public of $1,000 per unit.

  • Each share of Series B Convertible Preferred Stock is convertible into shares of common stock at a conversion rate of approximately 1,271 shares of common stock for each share of Series B Convertible Preferred Stock (equivalent to a conversion price of $0.7866 per share of common stock). The warrants will be immediately exercisable at an exercise price of $1.0816 per share and will expire 52 months from the date of issuance.
  • Mines Management expects that the offering will yield gross proceeds, before estimated offering expenses, of $4.0 mln and intends to use the net proceeds from this offering for (i) the advancement of the permitting process for its Montanore Project and preparation for the delineation drilling program, which will include completion of the dewatering and rehabilitation of the Libby adit and (ii) general corporate purposes, including possible acquisition and exploration of new mining properties.

9:04 am Orion Engineered Carbons (NYSE: OEC) priced upsized 19.5 mln share IPO (from 18.0 mln shares) at $18.00 per share, below the $21-24 expected range (:IPOXX) :  

9:03 am Gorman-Rupp misses by $0.07, misses on revs (GRC) : Reports Q2 (Jun) earnings of $0.34 per share, $0.07 worse than the Capital IQ Consensus Estimate of $0.41; revenues rose 3.1% year/year to $109.7 mln vs the $113.98 mln consensus. 

  • "We are pleased with the Company's performance during the first six months of the year and remain encouraged by the incoming order activity we are seeing across most of the key markets we serve. This activity continued to increase this quarter and helped us achieve a strong start in 2014 with record first half year revenue and earnings. We also are pleased about the recent acquisition of Bayou City Pump Company and the new niche market opportunities it should provide."

9:03 am Jabil Circuit authorizes new stock repurchase program of up to $100 mln (JBL) : Co announced that its Board of Directors has authorized the repurchase of up to $100 mln worth of shares of the Co's common stock. This share repurchase program expires on August 31, 2015. The Co's current repurchase authorization of $200 mln is anticipated to be completed by August 31, 2014.

9:03 am Aviat Networks appoints Chuck Kissner as Executive Chairman (AVNW) : Co announced that its Board of Directors has appointed Chuck Kissner as Executive Chairman. As Executive Chairman, Kissner will assist Michael Pangia, Aviat's President and Chief Executive Officer, and the rest of Aviat's management team, with strategic initiatives, long-term product and service planning and further alignment of Aviat's business model.

9:02 am Darden Restaurants announces extension of cash tender offer and early tender date (DRI) : Co announced that it is extending the expiration date in the previously announced cash tender offers for its outstanding 4.50% Senior Notes due 2021, 3.350% Senior Notes due 2022, 6.000% Senior Notes due 2035 and 6.200% Senior Notes due 2017. The Offers will now expire at 12:00 midnight, New York City time, on August 7, 2014, unless further extended or earlier terminated. Darden reserves the right to terminate, withdraw or amend the Offers at any time subject to applicable law.

  • The terms and conditions of the Offers are set forth in its Offer to Purchase, dated June 30, 2014, and the related Letter of Transmittal and remain unchanged, except as amended hereby and as amended on July 15, 2014 to (i) increase the maximum aggregate principal amount of Notes the be purchased to $610 mln and (ii) eliminate the tender caps for the 2021 Notes and the 2022 Notes.

9:02 am RSP Permian announces Northern Midland Basin acquisitions for $259 mln (RSPP) : Co announced it has entered into definitive agreements in separate transactions with multiple sellers to acquire certain undeveloped acreage and oil and gas producing properties located in Glasscock County for an approximate aggregate price of $259 million in cash.

  • 7,680 gross (6,652 net) surface acres or 21,440 gross (19,367 net) effective horizontal acres in Glasscock County, adding another primary operating area in the core of the Northern Midland Basin 
  • 188 gross (156 net) horizontal drilling locations, 158 gross (132 net) vertical drilling locations on 40-acre spacing, and 158 gross (132 net) vertical drilling locations on 20-acre spacing 
  • 100% RSP-operated upon closing, approximately 87% average working interest 
  • Aggregate current net production of approximately 1,106 Boe/d (74% liquids) with 13 vertical wells drilled to date 
  • Net proved reserves of approximately 22 million Boe (9% developed) with over 125 million Boe of resource potential based on internal estimates
The company expects to fund the acquisitions with a combination of borrowings under its revolving credit facility, which carries a current borrowing base of $375 million prior to any adjustments for the proposed transactions, and potential equity market transactions. 

9:01 am AT&T: Amazon (AMZN) Fire now available at AT&T and Amazon (T) :  

9:01 am Tompkins Finl announces approval of 400k stock repurchase program (TMP) : Co announced today that its Board of Directors has authorized, at the discretion of Senior Management, the repurchase of up to 400,000 shares of the Company's outstanding common stock. Purchases may be made on the open market or in privately negotiated transactions over the next 24 months.

9:00 am Molson Coors Brewing CEO Peter Swinburn to retire at end of 2014; Board names Molson Coors Europe CEO Mark Hunter as successor (TAP) :  

9:00 am S&P futures vs fair value: -4.30. Nasdaq futures vs fair value: -18.50. (:WRAPX) : The S&P 500 futures trade four points below fair value.

The major Asian markets ended the week on a higher note.

  • In economic data: 
    • Japan's National CPI increased 3.6% year-over-year (previous 3.7%), while National Core CPI rose 3.3%, as expected. Separately, Tokyo CPI jumped 2.8% year-over-year (prior 3.0%) and Tokyo Core CPI climbed 2.8% (consensus 2.7%, prior 2.8%) 
    • South Korea's Consumer Confidence slipped to 105 from 107 
    • New Zealand's ANZ Business Confidence slipped to 39.7% from 42.8% 
    • Singapore's Industrial Production rose 0.4% year-over-year (expected 1.3%, previous -1.9%)
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  • Japan's Nikkei rose 1.1%, closing at a six-month high. Robotics maker Fanuc climbed 5.3% after providing a strong outlook. 
  • Hong Kong's Hang Seng added 0.3%, finishing at its best level since April 2011. Retail-related names were strong with Belle International and China Resources Enterprises tacking on 4.9% and 2.0%, respectively. 
  • China's Shanghai Composite added 1.0%, gaining for a fourth straight day and ending at levels last seen in the middle of April. Financials saw solid gains with Agricultural Bank of China up 2.1% and Industrial & Commercial Bank of China higher by 1.2%. 
Major European indices trade mostly lower, while Spain's IBEX (+0.5%) outperforms. In Ukraine, Volodymyr Hroisman was appointed acting prime minister following Arseniy Yatseniuk's resignation. Mr. Hroisman was previously the Deputy Prime Minister
  • Participants received several data points: 
    • Eurozone M3 Money Supply increased 1.5% year-over-year (expected 1.1%, previous 1.0%), but Private Loans fell 1.7% year-over-year (consensus -1.8%, prior -2.0%) 
    • Germany's Ifo Business Climate Index fell to 108.0 from 109.7 (expected 109.4) as Current Assessment slipped to 112.9 from 114.8 (consensus 114.5) and Business Expectations ticked down to 103.4 from 104.8 (expected 104.5). Separately, GfK Consumer Climate ticked up to 9.0 from 8.9 (expected 8.9) 
    • Great Britain's GDP rose 0.8% quarter-over-quarter, while the year-over-year reading increased 3.1%. Separately, Index of Services rose 1.0%. All three figures matched expectations 
    • Italy's Wage Inflation came in at 0.1% month-over-month (previous 0.1%) 
    • Spain's PPI rose 0.4% year-over-year (previous -0.4%) 
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  • Great Britain's FTSE is lower by 0.1% with British Sky Broadcasting leading the slide. The stock is lower by 5.0% after the company announced the acquisitions of Sky Italia and Sky Deutschland. Royal Bank of Scotland outperforms with a gain of 13.7% after reporting upbeat earnings. 
  • Germany's DAX holds a loss of 0.6% with 20 of 30 components in the red. Health care names lag with Bayer and Henkel down 1.0% and 1.5%, respectively. On the upside, Commerzbank is higher by 2.5%. 
  • In France, the CAC is lower by 0.9%. Consumer name LVMH Moet Hennessy has tumbled 6.7% in reaction to disappointing results. Financials outperform with BNP Paribas and Credit Agricole up 0.9% and 1.6%, respectively. 
  • Spain's IBEX outperforms with a gain of 0.5% amid strength in bank shares. Banco Popular, CaixaBank, and Banco Santander are up between 0.8% and 3.3%.

8:53 am NuStar Energy beats by $0.11, misses on revs (NS) : Reports Q2 (Jun) earnings of $0.56 per share, $0.11 better than the Capital IQ Consensus Estimate of $0.45; revenues fell 17.1% year/year to $749.8 mln vs the $807.15 mln consensus. 

Guidance: "NuStar's third quarter EPU and EBITDA results as well as our coverage ratio should exceed last year's third quarter results. Similar to the second quarter, third quarter EBITDA results in our pipeline, storage and fuels marketing segments are all expected to be higher than last year's third quarter...In regard to full year 2014 guidance, we still expect our pipeline segment EBITDA to be $40 to $60 million higher than 2013 and our storage segment adjusted EBITDA to be comparable to 2013. However, we now expect our fuels marketing segment to generate EBITDA in the range of $20 to $30 million. Based on these projections, we expect to cover our distributions for the full year 2014...Our 2014 internal growth spending projections have been reduced slightly to reflect the deferral of spending on some of our key growth projects into 2015. Spending is now expected to be in the range of $330 to $350 million, the majority of which will be spent on projects in our pipeline segment."

8:53 am Pharmacyclics: European Medicines Agency issues positive opinion, recommends full approval of IMBRUVICA (ibrutinib) for treatment of two blood cancers (PCYC) : Co announced that the Committee for Medicinal Products for Human Use of the EMA issued a positive opinion recommending the granting of full marketing approval for IMBRUVICA (ibrutinib) in the European Union. IMBRUVICA is being jointly developed and commercialized in the United States by Pharmacyclics and Janssen Biotech, Inc. In Europe, once approved, Janssen-Cilag International NV will be the marketing authorization holder. Janssen will market IMBRUVICA in EMEA, as well as the rest of the world, outside of the United States.

  • The positive opinion was based on data from the Phase II study (PCYC-1104) in MCL, and a Phase III RESONATE study (PCYC-1112-CA) and a Phase II study (PCYC-1102) in CLL.
  • IMBRUVICA received accelerated approval from the FDA for two indications based on overall response rate: for the treatment of patients with MCL and CLL who have received at least one prior therapy. 

8:48 am European Markets Update: FTSE -0.1%, DAX -0.6%, CAC -0.9%, IBEX +0.5% (:SUMRX) : Major European indices trade mostly lower, while Spain's IBEX (+0.5%) outperforms. In Ukraine, Volodymyr Hroisman was appointed acting prime minister following Arseniy Yatseniuk's resignation. Mr. Hroisman was previously the Deputy Prime Minister

  • Participants received several data points: 
    • Eurozone M3 Money Supply increased 1.5% year-over-year (expected 1.1%, previous 1.0%), but Private Loans fell 1.7% year-over-year (consensus -1.8%, prior -2.0%)
    • Germany's Ifo Business Climate Index fell to 108.0 from 109.7 (expected 109.4) as Current Assessment slipped to 112.9 from 114.8 (consensus 114.5) and Business Expectations ticked down to 103.4 from 104.8 (expected 104.5). Separately, GfK Consumer Climate ticked up to 9.0 from 8.9 (expected 8.9) 
    • Great Britain's GDP rose 0.8% quarter-over-quarter, while the year-over-year reading increased 3.1%. Separately, Index of Services rose 1.0%. All three figures matched expectations 
    • Italy's Wage Inflation came in at 0.1% month-over-month (previous 0.1%) 
    • Spain's PPI rose 0.4% year-over-year (previous -0.4%) 
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  • Great Britain's FTSE is lower by 0.1% with British Sky Broadcasting leading the slide. The stock is lower by 5.0% after the company announced the acquisitions of Sky Italia and Sky Deutschland. Royal Bank of Scotland outperforms with a gain of 13.7% after reporting upbeat earnings. 
  • Germany's DAX holds a loss of 0.6% with 20 of 30 components in the red. Health care names lag with Bayer and Henkel down 1.0% and 1.5%, respectively. On the upside, Commerzbank is higher by 2.5%. 
  • In France, the CAC is lower by 0.9%. Consumer name LVMH Moet Hennessy has tumbled 6.7% in reaction to disappointing results. Financials outperform with BNP Paribas and Credit Agricole up 0.9% and 1.6%, respectively. 
  • Spain's IBEX outperforms with a gain of 0.5% amid strength in bank shares. Banco Popular, CaixaBank, and Banco Santander are up between 0.8% and 3.3%.

8:42 am Freddie Mac issues monthly volume summary for June 2014; total mortgage portfolio decreased at an annualized rate of 0.1% in June (FMCC) : June 2014 Highlights:

  • The total mortgage portfolio decreased at an annualized rate of 0.1% in June.
  • Single-family refinance-loan purchase and guarantee volume was $9.2 bln in June representing 42% of total single-family mortgage portfolio purchases or issuances. Relief refinance mortgages comprised approximately 26% of co's total single-family refinance volume during June 2014 based on unpaid principal balance (:UPB).
  • Total number of loan modifications were 4,814 in June 2014 and 35,255 for the six months ended June 30, 2014.
  • Multifamily new business activity was $2.0 bln in June 2014 and $7.1 bln for the six months ended June 30, 2014, which reflects the UPB of Freddie Mac's multifamily new loan purchases, issuances of other guarantee commitments and issuances of other structured securities during the period.
  • The aggregate UPB of co's mortgage-related investments portfolio decreased by ~ $2.6 bln in June.
  • Freddie Mac mortgage-related securities and other guarantee commitments increased at an annualized rate of 1.6% in June. 
  • Co's single-family seriously delinquent rate decreased from 2.10% in May to 2.07% in June. Co's multifamily delinquency rate decreased from 0.06% in May to 0.02% in June.
  • The measure of co's exposure to changes in portfolio market value (PMVS-L) averaged $95 mln in June. Duration gap averaged 0 months.

8:33 am Market View: Sep. stock-index futures continue to trade down small vs. fair values following the 8:30 a.m. ET economic data (:TECHX) :

  • ESu4 currently trades @ 1977.50 -3.25

  • YMu4 currently trades @ 16976 -22

  • NQu4 currently trades @ 3958.75 -13.00

8:32 am Avery Dennison beats by $0.01, reports revs in-line; guides FY14 EPS in-line (AVY) : Reports Q2 (Jun) earnings of $0.80 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.79; revenues rose 4.1% year/year to $1.62 bln vs the $1.62 bln consensus.

Co issues in-line guidance for FY14, raises EPS to $3.00-3.10 from $2.90-3.20, excluding non-recurring items, vs. $3.03 Capital IQ Consensus. 

The company repurchased 3.1 million shares in the first half of 2014 at an aggregate cost of $153 million.

"Pressure-sensitive Materials delivered better-than-expected sales growth, driven by strong volume growth in Europe and the emerging markets. Adjusted operating margin was back above 10 percent, within our long-term target range, and we are on track with our consolidation of operations in Europe," Scarborough added. "While sales were down modestly for Retail Branding and Information Solutions, reflecting soft market conditions in the U.S., the RBIS team continued to make solid progress against its long-term margin improvement goal, and reported another quarter of strong earnings growth. "

8:32 am S&P futures vs fair value: -4.40. Nasdaq futures vs fair value: -15.80. (:WRAPX) : The S&P 500 futures trade four points below fair value.

June durable goods orders rose 0.7%, which was better than the 0.3% increase expected among economists polled by Briefing.com. This comes after the prior month's revised reading reflected a decrease of 1.0% (from -0.9%). Excluding transportation, durable orders increased 0.8% (consensus 0.7%) to follow the prior month's revised decrease of 0.1% (from 0.0%).

8:31 am Assembly Biosciences announces that it will not pursue further development of VEN 307, an investigational product for the treatment of anal fissures (ASMB) : Co announced that it will not pursue further development of VEN 307, an investigational product for the treatment of anal fissures. VEN 307 was being developed by Ventrus Biosciences prior to its recent merger with Assembly Pharmaceuticals. Post-merger, Assembly Biosciences is focused on development of its potentially curative programs for HBV and CDAD.

  • At a meeting last month, the FDA indicated that it would consider accepting for review a NDA for VEN 307, but that chances of approval were unclear without another clinical trial. As a result of this feedback and the shift in the co's strategic focus post-merger, management has decided to forego further investment in the VEN 307 program.

8:31 am Herbalife has appointed Alan L. Hoffman to the newly established role of Executive Vice President of Global Corporate Affairs (HLF) : Hoffman serves as the Senior Vice President for Global Public Policy at PepsiCo (PEP). Herbalife also announced that Barbara Henderson will be retiring as its Senior Vice President of Global Corporate Communications. 

8:30 am Sinclair Broadcast raises additional term loans; amends and restates certain loan terms; downsizes the previously announced expected raise of $500 mln after upsizing a recent senior unsecured notes offering (SBGI) : Co announced that its wholly-owned subsidiary, Sinclair Television Group, Inc., intends to raise new incremental tranche B term loans and to amend and restate certain terms of its existing bank credit facility. Sinclair expects to raise $400.0 mln in new incremental tranche B term loans (downsized from the previously announced expected raise of $500 mln after upsizing a recent senior unsecured notes offering by the same $100 mln amount).

  • The loans are expected to mature July 2021, to be priced at 99.75% of par, and bear interest at LIBOR plus 2.75% with a 0.75% LIBOR floor. 
  • In addition, Sinclair intends to convert ~ $327.7 mln of drawn tranche A term loans and delayed draw tranche A term loans and undrawn commitments into revolving commitments, with no change in maturity or rate. 
  • The new incremental tranche B term loans are expected to be used to fund the Allbritton acquisition and for general corporate purposes.

8:25 am On The Wires (:WIRES) :

  • Activision Publishing, Inc., a wholly owned subsidiary of Activision Blizzard, Inc. (ATVI) announced plans to bring "Eon's Elite," a new set of premium toys, to Skylanders fans worldwide this fall. 
  • API Technologies (ATNY) received a $1 mln order for the manufacture of satellite communication systems from a leading commercial wireless network equipment company.
  • Lion Biotechnologies (LBIO) has entered into an exclusive, worldwide license agreement with Moffitt Cancer Center.

    Under the terms of the agreement, Lion has licensed from Moffitt the rights to develop and commercialize new technologies to enhance TIL production from melanoma.

8:16 am China Commercial Credit issues update on recovery of loan guarantee payments; co expects to announce that its Q2 payments to lenders on behalf of loan guarantee customers will still amount to ~ $3.7 mln (CCCR) : Co said it has made progress toward recovering a significant portion of the $5.4 mln it paid in the first quarter of 2014 to lenders on behalf of 11 loan guarantee service customers who had borrowed funds from these lenders but defaulted on their loan repayments.

  • After determining that the majority of these defaulting borrowers had subsequently acquired the capability of repaying these funds, CCCR recovered ~ $0.7 mln in cash from these borrowers and converted an additional $2.1 mln of their debt into one-year loan notes payable by the borrowers directly to the company. All funds reclaimed via the above measures will be applied to CCCR's total capital available for use on its microfinance lending and loan guarantee businesses. 
  • The co expects to announce that its second quarter payments to lenders on behalf of loan guarantee customers, although less than in the first quarter, will still amount to about $3.7 mln. Of this total, CCCR has thus far recovered $1.1 mln and converted an additional $1.6 mln of their debt into one-year loan notes payable by the borrowers directly to the company. The financial adjustments related to these events will be included in the co's upcoming Q2 report.

8:10 am Guided Therapeutics files PMA amendment with FDA for LuViva advanced cervical scan (GTHP.OB) : The filing follows the face-to-face meeting the company had with the FDA in May 2014 and addresses questions raised in a September 6, 2013 not-approvable letter that the company received from the agency. The FDA has 180 days to respond to the amendment.

8:05 am Lakeland Financial reports Q2 EPS of $0.68 vs. $0.66 Capital IQ consensus (LKFN) :  

8:05 am MYOS extends manufacturing and supply agreement for Fortetropin (MYOS) : Co announced that it has signed an extension of its supply agreement with Deutsches Institut fuer Lebensmitteltechnik e.V, the German Institute for Food Technologies, for the continued manufacturing and supply of Fortetropin , the first clinically proven natural myostatin inhibitor. DIL is a world leader in developing and providing the finest products in food technology today.

  • Under the terms of the agreement, DIL will manufacture and supply Fortetropin exclusively for MYOS through the end of 2016 with a significant cost-savings component. The supply relationship maintains the stable, world-class manufacturing and supply of Fortetropin, the primary proprietary ingredient in MYOS' core muscle health bionutrition supplement products. 
  • Fortetropin is produced using a proprietary method in accordance with the highest industry standards, incorporating DIL's state of the art High Pressure Pasteurization technology for preserving the high quality freshness of the natural ingredients. 
  • Use of the proprietary manufacturing process at DIL's cutting edge facilities ensures the continued efficacy and quality of Fortetropin. The Supply Agreement extension also requires ongoing adherence to the highest levels of product testing.

8:05 am Sinclair Broadcast announces the FCC and the Department of Justice have approved the co's acquisition of Allbritton television stations; co intends to close the transaction on Aug 1, 2014 (SBGI) :  

8:05 am TCF Financial beats by $0.02, reports revs in-line (TCB) : Reports Q2 (Jun) earnings of $0.29 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.27; revenues rose 2.5% year/year to $309.4 mln vs the $309.41 mln consensus. 

  • Net interest margin in the second quarter of 2014 was 4.65 percent, compared with 4.72 percent in the second quarter of 2013 and remained relatively flat compared to the first quarter of 2014. The decrease from the second quarter of 2013 was primarily due to downward pressure on origination yields in consumer real estate due to the increasingly competitive low interest rate environment as well as a shift in commercial real estate from higher yielding fixed-rate loans to lower yielding variable-rate loans due to marketplace demand. Loans and leases were $16.1 bln at June 30, 2014, an increase of $471.2 mln, or 3 percent, compared with June 30, 2013 and a decrease of $165.1 mln, or 1 percent, compared with March 31, 2014. 
  • Average loans and leases were $16.3 bln for the second quarter of 2014, an increase of $612.6 mln, or 3.9 percent, compared with the second quarter of 2013 and an increase of $240.6 mln, or 1.5 percent, compared with the first quarter of 2014.

8:04 am S&P futures vs fair value: -4.40. Nasdaq futures vs fair value: -15.50. (:WRAPX) : U.S. equity futures trade near their pre-market lows amid cautious action overseas. The S&P 500 futures hover four points below fair value, while Nasdaq futures underperform (-16 pts v fair value) as Amazon.com (AMZN 321.91, -36.20) weighs after reporting earnings.

Reviewing overnight developments:

  • Asian markets posted gains. Hong Kong's Hang Seng +0.3%, China's Shanghai Composite +1.0%, and Japan's Nikkei +1.1% 
    • In economic data: 
      • Japan's National CPI increased 3.6% year-over-year (previous 3.7%), while National Core CPI rose 3.3%, as expected. Separately, Tokyo CPI jumped 2.8% year-over-year (prior 3.0%) and Tokyo Core CPI climbed 2.8% (consensus 2.7%, prior 2.8%) 
      • South Korea's Consumer Confidence slipped to 105 from 107 
      • New Zealand's ANZ Business Confidence slipped to 39.7% from 42.8% 
      • Singapore's Industrial Production rose 0.4% year-over-year (expected 1.3%, previous -1.9%) 
    • In news: 
      • Markets in Asia took the release of Japan's CPI data in stride with the dollar/yen pair also not showing much movement in reaction to the release
  • Major European indices trade mostly lower. Great Britain's FTSE -0.1%, Germany's DAX -0.4%, and France's CAC -0.7%. Elsewhere, Italy's MIB -0.3% and Spain's IBEX +0.5% 
    • Participants received several data points: 
      • Eurozone M3 Money Supply increased 1.5% year-over-year (expected 1.1%, previous 1.0%), but Private Loans fell 1.7% year-over-year (consensus -1.8%, prior -2.0%) 
      • Germany's Ifo Business Climate Index fell to 108.0 from 109.7 (expected 109.4) as Current Assessment slipped to 112.9 from 114.8 (consensus 114.5) and Business Expectations ticked down to 103.4 from 104.8 (expected 104.5). Separately, GfK Consumer Climate ticked up to 9.0 from 8.9 (expected 8.9) 
      • Great Britain's GDP rose 0.8% quarter-over-quarter, while the year-over-year reading increased 3.1%. Separately, Index of Services rose 1.0%. All three figures matched expectations 
      • Italy's Wage Inflation came in at 0.1% month-over-month (previous 0.1%) 
      • Spain's PPI rose 0.4% year-over-year (previous -0.4%) 
    • Among news of note: 
      • In Ukraine, Volodymyr Hroisman was appointed acting prime minister following Arseniy Yatseniuk's resignation. Mr. Hroisman was previously the Deputy Prime Minister
In U.S. corporate news:

  • Amazon.com (AMZN 321.91, -36.20): -10.2% after missing bottom-line estimates and issuing cautious guidance 
  • Baidu (BIDU 220.03, +15.76): +7.7% after beating earnings estimates and guiding Q3 revenue higher 
  • KLA-Tencor (KLAC 68.26, -4.76): -6.5% missed earnings expectations 
  • LogMeIn (LOGM 44.80, +4.56): +11.3% after beating estimates and guiding higher 
  • Pandora Media (P 26.02, -2.70): -9.4% despite beating by one cent and guiding Q3 revenue above consensus 
  • Starbucks (SBUX 78.70, -1.75): -2.2% despite reporting a one-cent beat 
  • Visa (V 217.00, -5.74): -2.6% after beating earnings estimates and lowering its guidance
The Durable Orders report (Briefing.com consensus 0.3%) will be released at 8:30 ET.

8:04 am Moog beats by $0.04, beats on revs; reaffirms FY14 EPS guidance, guides FY14 revs in-line; guides FY15 below consensus (MOG.A) : Reports Q3 (Jun) earnings of $1.08 per share, $0.04 better than the Capital IQ Consensus Estimate of $1.04; revenues rose 2.0% year/year to $683.7 mln vs the $669.65 mln consensus.

  • Aircraft sales in the quarter of $294 million were up 8% from a year ago. Commercial aircraft sales of $147 million were up $30 million, or 25%. Sales of OEM products to Boeing were 39% higher, at $70 million, while Airbus sales were up 21%. Commercial aftermarket revenue, at $34 million, was 20% higher in the quarter due to strong initial provisioning of 787 spares.
Co issues guidance for FY14, reaffirms EPS of $3.65 vs. $3.79 Capital IQ Consensus Estimate; sees FY14 revs of $2.65 bln (from $2.64 bln) vs. $2.64 bln Capital IQ Consensus.

Co issues downside guidance for FY15, sees EPS of $4.25 vs. $4.58 Capital IQ Consensus Estimate; sees FY15 revs of $2.69 bln vs. $2.73 bln Capital IQ Consensus Estimate.

8:04 am Provident Finl reports EPS in-line (PFS) : Reports Q2 (Jun) earnings of $0.31 per share, in-line with the Capital IQ Consensus Estimate of $0.31.

8:03 am Gapping down (:SCANX) : Gapping down
In reaction to disappointing earnings/guidance
: WCG -15.4%, BCOV -15.3%, MXIM -13.5%, LSCC -12%, INFA -11.8%, NTGR -10.8%, AMZN -10.2%, P -8.8%, KLAC -6.5%, EPR -4.8%, MTSN -4.1%, WIRE -4.1%, CB -3.5%, TPX -3.5%, FSL -3.1%, GIMO -3.1%, V -2.6%, STO -2.3%, SBUX -2.2%, XRX -2.1%, WSTG -1.9%, LPNT -1.5%, TCB -1.2%, IM -1%, KEG -0.9%, DTE -0.9%, SWFT -0.8%.

M&A news: MCEP -0.6% (acquires mature Northeastern Oklahoma Properties, announces quarterly cash distribution).

Other news: FPI -3.2% (prices ~3.71 mln share public offering of common stock at $12.50 per share), GSJK -1.7% (prices 15,280,000 common units at $23.50 per unit), MA -1.4% (following V results), MSFT -0.4% (David Sachs (co-founder of Yammer) has left MSFT, according to reports).

Analyst comments: CNC -2.1% (downgraded to Market Perform from Outperform at Wells Fargo), GSK -1.8% (downgraded at UBS), NNN -1.5% (downgraded to Neutral from Buy at Ladenburg Thalmann), GM -1.4% (downgraded to Hold from Buy at Deutsche Bank), XOM -0.7% (downgraded to Underweight from Equal Weight at Barclays).

8:03 am General Moly announces US district court order confirming bureau of land management's record of decision approving the Mt Hope project (GMO) :

  • Co announced that the U.S. District Court for the District of Nevada issued its Order denying the plaintiffs' Motion for Summary Judgment which sought to vacate the U.S. Bureau of Land Management's November 2012 Record of Decision approving the Plan of Operations for the development and construction of the Mt. Hope Project and the corresponding Final Environmental Impact Statement prepared by the BLM.


8:02 am Dominion subsidiary, Dominion Gas, announces exchange offer extension (D) : Dominion Gas, wholly owned subsidiary of Dominion, announced that it has extended the expiration date of its offer to exchange (i) $400 mln aggregate principal amount of its registered 1.05% Series A Senior Notes due 2016 for an equal aggregate principal amount of its unregistered 1.05% Series A Senior Notes due 2016; (ii) $400 mln aggregate principal amount of its registered 3.55% Series B Senior Notes due 2023 for an equal aggregate principal amount of its unregistered 3.55% Series B Senior Notes due 2023; and (iii) $400 mln aggregate principal amount of its registered 4.80% Series C Senior Notes due 2043 for an equal aggregate principal amount of its unregistered 4.80% Series C Senior Notes due 2043. All other terms of the exchange offer, as described in the prospectus dated June 25, 2014, remain unchanged.

8:01 am Noah Education announces shareholders' approval of merger agreement (NED) : Co announced that its shareholders voted in favor of the proposal to approve the previously announced agreement and plan of merger dated April 2, 2014, among the company, Rainbow Education Holding Limited and Rainbow Education Merger Sub Holding Limited.

  • Of the company's ordinary shares entitled to vote at the extraordinary general meeting, approximately 81.6% of such ordinary shares were voted in person or by proxy at today's meeting with the proposal to approve the merger agreement receiving approval from holders of approximately 98.3% of the ordinary shares present and voting.
  • If and when completed, the merger would result in the unaffiliated shareholders receiving US$2.85 per ordinary share and the unaffiliated holders of American depositary shares of the company, each representing one ordinary share, receiving US$2.85 per ADS, in each case, in cash, without interest and net of any applicable withholding taxes, the company becoming a privately-held company, and the ADSs no longer being listed on the NYSE

7:59 am Gapping up (:SCANX) : Gapping up
In reaction to strong earnings/guidance
: DTLK +19%, RBS +12.8%, ACTG +12.5%, LOGM +11.8%, QLIK +11.2%, AWAY +10.3%, ECHO +9.3%, DECK +8.5%, BIDU +7.8%, SWI +7.6%, LEA +7.5%, MLNX +6.5%, RFMD +6.3%, ALGN +6.1%, ATRC +5.6%, MKTO +5.5%, PFPT +3.7%, PSO +3.2%, COLM +2.7%, GRAM +2.7%, CTCT +2.4%, VOD +2.3%, RVBD +2.2%, UHS +2.1%, CBI +2%, HBOS +1.8%, MCO +1.6%, BLDR +0.9%, MPWR +0.9%, SPSC +0.9%, VRSN +0.8%, BJRI +0.8%, .

M&A news: TRLA +0.5% (follow through premarket following yesterday's M&A spec).

Select EU financial related names showing strength following RBS update: NBG +3%, BCS +2.5%, SAN +0.9%.

Other news: ACRX +7.1% (confirms July 27, 2014 PDUFA date for Zalviso),MGNX +6.3% (still checking),KERX +4% (co announced Zerenex (ferric citrate) long-term Phase 3 study results were published in the Journal of the American Society of Nephrology), ATLS +3.3% (declared 6.5% increased quarterly distribution of $0.49 per common unit),SVU +2.4% (positive Mad Money mention),PT +2.1% (still checking),SNE +1.6% (still checking, Nikkei was up over 1% last night).

Analyst comments: PBR +0.8% (upgraded to Overweight from Equal Weight at Barclays)

7:58 am AbbVie beats Q2 estimates; guides Q3 EPS towards high end; reaffirms recently raised Fy14 EPS guidance (ex-Shire) (ABBV) : Q2 adj. EPS $0.82 vs. $0.76 CIQ Consensus; rev +5% to $4.926 bln vs. the $4.7 bln consensus.

  • On an operational basis, sales increased 4.8%, excluding a 0.2% favorable impact from foreign exchange rate fluctuations. Excluding sales from our lipid franchise due to the loss of exclusivity, sales increased 12.3% on an operational basis in the quarter. 
  • Second-quarter sales growth was driven primarily by the continued strength of HUMIRA. 
    • Global HUMIRA sales increased 26.2% to $3.29 bln vs. ests of ~$3.0 bln, or 25.4% on an operational basis, excluding the impact of foreign exchange rate fluctuations. 
  • Total company sales growth was also driven by strong growth from key products including Synthroid, Sevoflurane and Duodopa. 
  • The adjusted gross margin ratio in the second quarter was 79.6%, excluding intangible asset amortization and other specified items. 
Guidance ex-SHire (SHPG):
  • Co sees Q3 adj. EPS of $0.77-0.79 vs. 0.77 Consensus. 
  • Co reaffirms FY14 adj. EPS guidance (raised from $3.00-3.10 in June) of $3.06-3.16 vs. $3.14 Consensus.

7:55 am Allergan announces OZURDEX (dexamethasone 700 mcg intravitreal implant in applicator) receives European positive opinion for the treatment of Diabetic Macular Edema (AGN) : Co announced that the European Union's Committee for Medicinal Products for Human Use (CHMP) has recommended extending the Marketing Authorization for OZURDEX (dexamethasone 700 mcg intravitreal implant in applicator) to treat adult patients with vision loss due to diabetic macular edema who are pseudophakic (have an artificial lens implant), or who are considered insufficiently responsive to, or unsuitable for non-corticosteroid therapy. The CHMP is the scientific committee of the European Medicines Agency (EMA.TO) that recommends medicines for Marketing Authorization across the 28 member states of the European Union. The final decision from the European Commission is expected within a few months.

  • OZURDEX (dexamethasone 700 mcg intravitreal implant in applicator) is already available throughout the European Union as a treatment licensed for macular edema in patients with retinal vein occlusion and for inflammation of the posterior segment of the eye characterized as non-infectious uveitis.3

7:45 am AcelRx also commented on rumors; has been no notification from the FDA regarding the status of the Zalviso New Drug Application (ACRX) : The company recently learned that a rumor circulated online stating the FDA had approved Zalviso. As of July 24, 2014 there has been no notification to the company from the FDA regarding the status of the Zalviso New Drug Application. 

7:41 am Dorian LPG announces strategic relationship with HNA Logistics Group Co., Ltd. and delivery of first VLGC in newbuilding program (LPG) : announced that it has entered into a Memorandum of Understanding, with HNA Logistics Group Co., Ltd. to explore opportunities in the liquefied petroleum gas logistics market.

Separately, Dorian LPG is pleased to announce that it has today taken delivery of the eco VLGC "Comet" from Hyundai Heavy Industries Co. Ltd in Ulsan, South Korea. The vessel will immediately enter into a 5-year time charter with Shell (RDS.A).

7:39 am Asian Markets Close: Nikkei +1.1%, Hang Seng +0.3%, Shanghai +1.0% (:SUMRX) :

  • Markets finished mixed across Asia. 
  • Japanese data saw Tokyo Core CPI hold CPI at 2.8% YoY (2.7% YoY expected) while the less closely followed National CPI eased to 3.3% YoY (3.3% YoY expected, 3.4% YoY previous). 
  • Singapore's industrial production rose 0.4% YoY. 
  • Malaysia's unemployment rate held at 2.9%. 
  • The Philippines' trade balance swung to a $718.1 mln surplus (-$743.1 mln previous). 
  • Japan's Nikkei (+1.1%) closed at a six-month high. Robotics maker Fanuc climbed 5.3% after providing a strong outlook. 
  • Hong Kong's Hang Seng (+0.3%) finished at its best level since April 2011. Retail-related names were strong as Belle International and China Resources Enterprises tacked on 4.9% and 2.0%, respectively. 
  • China's Shanghai Composite (+1.0%) gained for a fourth straight day and ended at levels last seen in the middle of April. Financials saw solid gains with Agricultural Bank of China up 2.1% and Industrial & Commercial Bank of China higher by 1.2%. 
  • India's Sensex (-0.6%) eased off record highs. IT service provider Wipro was among the laggards, off 4.5% following its earnings miss. 
  • Australia's ASX (-0.1%) held near its best levels in more than six years. 
  • Regional Decliners: Taiwan -0.9%...Vietnam -0.3%...Indonesia -0.2%...Singapore -0.1%...Thailand UNCH...Philippines UNCH 
  • Regional Advancers: Malaysia UNCH 
  • Fx: USDCNY slipped to 6.1920, a four-month low...USDINR eased to 60.08...USDJPY +10 pips @ 101.90...AUDUSD -10 pips @ .9405

7:31 am On The Wires (:WIRES) :

  • Rexford Industrial Realty (REXR) announced that it has acquired Chatsworth Industrial Park, a 153,212 square foot industrial park located in the West San Fernando Valley for $16.8 million, or $110 per square foot.
  • CanTx Inc., and its parent company, Novogen (NVGN), have named two key contract manufacturing organizations to produce clinical batches of the experimental anti-cancer drug, Cantrixil. 

7:31 am Derma Sciences CEO discusses continued growth of MEDIHONEY at Comvita annual meeting of shareholders; expects MEDIHONEY product sales to approach $20 mln in 2014 (DSCI) : Co announced that Edward J. Quilty, its CEO, delivered a presentation highlighting MEDIHONEY at the Comvita Ltd. annual meetings of shareholders in New Zealand on Thursday, July 24 and stated that the company's sales of MEDIHONEY dressings are expected to approach $20 million in 2014, which would represent an increase of approximately 23% compared with 2013 sales. 

7:24 am Gilead Sciences confirms European CHMP adopts positive opinion for Gilead's zydelig for the treatment of chronic lymphocytic leukemia and follicular lymphoma (GILD) :

  • Co announced that the Committee for Medicinal Products for Human Use, the scientific committee of the European Medicines Agency, has adopted a positive opinion on the company's Marketing Authorization Application for Zydelig. 
  • The most common subtype of indolent non-Hodgkin lymphoma. The CHMP opinion supports the use of Zydelig in combination with rituximab for the treatment of adult patients with CLL who have received at least one prior therapy or, as first-line treatment in CLL patients in the presence of 17p deletion or TP53 mutation in patients unsuitable for chemo-immunotherapy and also as monotherapy for the treatment of adult patients with FL that is refractory to two prior lines of treatment. 
  • The CHMP's recommendation will now be reviewed by the European Commission, which has the authority to approve medicines for use in the 28 countries of the European Union.
  • The CHMP positive opinion for Zydelig is based on data from two clinical trials -- Study 116 and Study 101-09. Study 116, a pivotal Phase 3 trial, investigated the efficacy and safety of Zydelig in combination with rituximab in patients with previously treated CLL. The Phase 2 101-09 study assessed the efficacy and safety of Zydelig in patients with iNHL who are refractory to rituximab and alkylating agents. Results of Study 116 and Study 101-09 were published in The New England Journal of Medicine in March 2014. 

7:17 am First Niagara beats by $0.01 (FNFG) : Reports Q2 (Jun) earnings of $0.19 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.18. 

  • Revenues increased 1.5% QOQ. 
  • Noninterest income improved 5% QOQ driven by seasonal increases in various categories. 
  • Net interest income stable as balance sheet growth was offset by margin compression. 
  • Organic loan growth continues, with average loans up 7% annualized QOQ. 
  • Average commercial business and real estate loans increased 8% QOQ.
  • Momentum in average indirect auto loans continues with $137 million increase. 
  • Transactional deposits up 12% QOQ driven by higher customer balances and account acquisitions

7:17 am Dollar Ticks Higher in Early Trade: 10-yr: unch..2.502%..USD/JPY: 101.85..EUR/USD: 1.3450 (:SUMRX) :

  • The Dollar Index holds small gains as action probes the 80.90 level. 
  • The early bid has the Index higher for a fifth straight session, and on track to close at its best level in seven and a half months.
  • EURUSD is -10 pips @ 1.3450 as sellers have taken control despite today's mostly upbeat data. Eurozone private loans (-1.7% YoY actual v. -1.8% YoY expected), M3 money supply (1.5% YoY actual v. 1.1% YoY expected), and GfK German Consumer Climate (9.0 actual v. 8.9 expected, 8.9 previous) all topped estimates, but the disappointing German Ifo Business Climate (108 actual v. 109.6 expected, 109.7 previous) is weighing. Any loss on the day would make for the lowest close since November. 
  • GBPUSD is -5 pips @ 1.6980 as sellers look to remain in control for an eighth straight day. The light selling comes following the in-line preliminary GDP print of 0.8% QoQ, and has action flirting with support in the area helped by the 50 dma. 
  • USDCHF is +5 pips @ .9030 as action ticks to a five and a half-month high. A quiet trade has held the pair in a tight 25 pip range as trade remains a derivative of the euro.
  • USDJPY is +5 pips @ 101.85 as buyers fight to remain in control for a sixth day. Today's advance has run the pair above the 50 dma and comes as Tokyo CPI held at 2.8% YoY (2.7% YoY expected). The less closely followed National CPI eased to 3.3% YoY (3.3% YoY expected, 3.4% YoY previous). Many will be watching the 102.00 level as both the 100 and 200 dma lurk in the vicinity. Click here to see a weekly USDJPY chart.
  • AUDUSD is -5 pips @ .9410 as selling takes hold for a second day. Minor support rests near .9400, but the .9350 level and the 50 dma are far more important. 
  • USDCAD is +15 pips @ 1.0760 as action tests the July highs. Overhead resistance near 1.0800 is defended by the 50 and 200 dma.

7:09 am ConnectOne Bancorp reports Q2 EPS of $0.26 vs. $0.30 in prior year period (CNOB) :  

7:08 am Innocoll (Nasdaq: INNL) prices upsized 6.5 mln ADS IPO (from 5.35 mln ADSs) at $9.00 per ADS, below the $13-15 expected range (:IPOXX) :  

7:08 am DTE Energy misses by $0.03, beats on revs; reaffirms FY14 EPS guidance (DTE) : Reports Q2 (Jun) earnings of $0.73 per share, excluding non-recurring items, $0.03 worse than the Capital IQ Consensus Estimate of $0.76; revenues rose 21.3% year/year to $2.7 bln vs the $2.18 bln consensus.

Co reaffirms guidance for FY14, sees EPS of $4.20-4.40, excluding non-recurring items, vs. $4.42 Capital IQ Consensus Estimate.

7:07 am Aaron's reports in line with pre-announcement; guides Q3 EPS below consensus, revs below consensus; guides FY14 EPS below consensus, revs above consensus (AAN) : Reports Q2 (Jun) earnings of $0.37 per share, excluding non-recurring items (co -re-announced on Jul 15 of $0.34-0.37), $0.02 better than the Capital IQ Consensus Estimate of $0.35; revenues rose 22.2% year/year to $672.5 mln (Co pre-announced $672 mln) vs the $672.31 mln consensus.

  • Co issues downside guidance for Q3, sees EPS of $0.36-0.41 vs. $0.45 Capital IQ Consensus Estimate; sees Q3 revs of ~$695 mln vs. $699.69 mln Capital IQ Consensus Estimate. 
  • Co issues guidance for FY14, lowers EPS to $1.65-1.75 from $1.95-2.10 vs. $1.77 Capital IQ Consensus Estimate; lowers top end of FY14 revs to $2.65-2.70 bln from $2.65-2.75 bln vs. $2.61 bln Capital IQ Consensus Estimate. 
  • Revenues of Aaron's Sales & Lease Ownership division, excluding the RIMCO division which was sold in January 2014, decreased $11.7 million, or 2%, in the second quarter of 2014 to $516.9 million compared to $528.6 million in revenues in the second quarter of 2013. Sales and lease ownership revenues for the first six months of 2014 decreased 1% to $1.082 billion compared to $1.098 billion for the same period a year ago.

7:06 am Lifepoint Hospitals beats by $0.29, beats on revs; raises FY14 guidance (LPNT) : Reports Q2 (Jun) earnings of $0.84 per share, $0.29 better than the Capital IQ Consensus Estimate of $0.55; revenues rose 15.4% year/year to $1.25 bln vs the $1.19 bln consensus.

  •  "Our results reflect improving margins, enhancements to patient safety and quality of care, the strength of our recent acquisitions, and our successful efforts to capture the benefits of expanded coverage under healthcare reform. As a result of these factors, we are raising our guidance for the remainder of the year." 
  • Co increases full-year 2014 EBITDA guidance to $605-620 mln; EPS of $2.99-3.19 vs. $2.70 Capital IQ Consensus Estimate; revs of $4.25 -4.35 bln, may not be comparable to $4.88 bln Capital IQ Consensus Estimate.

7:06 am IDEXX Labs beats by $0.04, beats on revs; guides FY14 EPS in-line, revs above consensus; increases buyback (IDXX) : Reports Q2 (Jun) earnings of $1.10 per share, $0.04 better than the Capital IQ Consensus Estimate of $1.06; revenues rose 10.6% year/year to $390.1 mln vs the $385.38 mln consensus. Operating margins for the second quarter of 2014 were consistent with expectations. Gross margins were basically flat compared to the prior year period, with improvements from price offset in part by the absence of prior year foreign exchange hedging gains and higher freight and distribution costs. Operating expenses for the second quarter of 2014 increased 14%, compared to the prior year period, reflecting planned increases in global commercial resources.

  • Co issues guidance for FY14, sees EPS of $3.79-3.86 vs. $3.84 Capital IQ Consensus Estimate; sees FY14 revs of $1.51-1.52 bln vs. $1.5 bln Capital IQ Consensus Estimate. 
  • The IDEXX Board of Directors has authorized the repurchase by the Company of up to an additional five million shares of its common stock under its ongoing share repurchase program.

7:05 am Moody's beats by $0.11, beats on revs; reaffirms FY14 EPS and margin guidance; raises rev guidance (MCO) : Reports Q2 (Jun) adj. earnings of $1.12 per share, $0.11 better than the Capital IQ Consensus Estimate of $1.01; revenues rose 15.5% year/year to $873.5 mln vs the $803.35 mln consensus.

  • U.S. revenue of $461.1 million and non-U.S. revenue of $412.4 million increased 13% and 19%, respectively, from the second quarter of 2013. Revenue generated outside the U.S. represented 47% of Moody's total revenue for the quarter, consistent with the year-ago period.
Co reaffirms guidance for FY14, sees EPS of $3.90-4.00 vs. $3.98 Capital IQ Consensus. The co now expects full-year 2014 revenue to grow in the low-double-digit percent range, up from high single digits. Full-year 2014 operating expenses are now projected to increase in the high-single-digit percent range. These expenses now include costs related to our acquisitions of a majority stake in ICRA and of WebEquity, as well as additional incentive compensation. Full-year 2014 operating margin is still projected to be 42 to 43 percent and adjusted operating margin for the year is still expected to be 45 to 46 percent. 

7:04 am TrueCar increases 2014 annual sales forecast to 16.35 mln; new light vehicle sales in the U.S. (including fleet) are expected to reach 1,444,000 units, up 9.9% from July 2013 and up 1.8% from June 2014 (TRUE) : Co released its July 2014 sales and incentives forecast:

  • New light vehicle sales in the U.S. (including fleet) are expected to reach 1,444,000 units, up 9.9 percent from July 2013 and up 1.8 percent from June 2014.
    • Highest July sales since 2006
  • Seasonally adjusted annualized rate of 16.7 million new vehicle sales is up 6.8 percent from July 2013.
  • Share of retail (non-fleet) sales is expected to be down 1.1 percent compared to July 2013 and up 4.5 percent from June 2014.
  • Fleet and rental sales are expected to make up 12.8 percent of total industry sales in July 2014
  • The industry average incentive spending per unit is expected to be approximately $2,731 in July 2014, an increase of 7.1 percent from July 2013 and a decrease of 0.6 percent from June 2014.
  • Used car sales, including sales from franchise dealerships, independent dealerships and private party sales, are estimated to be 3,308,844. 
    • The ratio of new to used is estimated to be 1:2.3 for July 2014. 

7:03 am Lear beats by $0.15, beats on revs; guides FY14 revs in-line (LEA) : Reports Q2 (Jun) earnings of $2.12 per share, $0.15 better than the Capital IQ Consensus Estimate of $1.97; revenues rose 11.5% year/year to $4.59 bln vs the $4.44 bln consensus.  In the second quarter, global vehicle production increased 3% from a year ago, reflecting production increases in each of the three largest automotive markets in the world. Production was up 12% in China, 4% in North America and 2% in Europe & Africa. Production was down 25% in South America. 

  • Co issues in-line guidance for FY14, sees FY14 revs of $17.6-17.9 vs. $17.54 bln Capital IQ Consensus Estimate.
    • Core operating earnings are expected to be in the range of $975 to $1,025 million, up from the prior range of $935 to $985 million.
    • Adjusted net income attributable to Lear is expected to be in the range of $610 to $645 million.  

7:03 am SolarCity prices offering by its subsidiary, SolarCity LMC Series III, of $201,500,000 aggregate principal amount of Solar Asset Backed Notes, Series 2014-2 consisting of two classes of notes (SCTY) : The notes were priced on July 24, 2014 and were offered only to persons. The senior class of the notes (Class A Notes) consists of $160 mln aggregate principal amount that will have an interest rate of 4.026%, which represents a credit spread of 1.8% over the benchmark rate, and an anticipated repayment date of July 20, 2022. The junior class of the notes (Class B Notes) consists of $41.5 mln aggregate principal amount that will have an interest rate of 5.45%, which represents a credit spread of 3.224% over the benchmark rate, and an anticipated repayment date of July 20, 2022.

7:02 am Ritchie Bros. sells more than $49 mln of equipment in Fort Worth, TX (RBA) : Co sold more than $49 mln of equipment items and trucks at its unreserved public auction in Fort Worth, Texas on July 23 - 24, 2014. Equipment sale highlights included a 2012 Caterpillar D6T XW crawler tractor, which sold for $295K; three 2012 Kenworth T800 sleeper truck tractors that sold for $102K each; and three 2012 Kenworth T800 sleeper truck tractors that sold for $100K each. Bids were made in person at the auction site, online at rbauction.com and by proxy.

7:01 am StoneMor Partners L.P increases quarterly dividend to $0.61 from $0.60/share (STON) :  

7:00 am Magnum Hunter announces acquisition of Ormet Mineral interest in Monroe County, Ohio and Wetzel County, West Virginia for ~ $22.7 mln (MHR) : Co announced today that it closed on the purchase of approximately 1,700 net mineral acres located in Monroe County, Ohio and Wetzel County, West Virginia for approximately $22.7
million from the Ormet Corporation.

  • This acquisition will increase the cos net revenue interest on its existing 875 acre oil and gas lease located on the related acreage from approximately 86% to nearly 100% in the Marcellus Shale formation only.
  • Under the same agreement, the company has also acquired an approximate 100% net revenue interest in the balance of the mineral rights to this acreage which will also include the Utica Shale formation.

7:00 am Lindsay Corp increases quarterly dividend to $0.27 from $0.26/share (LNN) :  

6:59 am American Electric beats by $0.05, reports revs in-line; reaffirms FY14 EPS guidance (AEP) : Reports Q2 (Jun) earnings of $0.80 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus Estimate of $0.75; revenues rose 11.1% year/year to $4 bln vs the $3.99 bln consensus.

Co reaffirms guidance for FY14, sees EPS of $3.35-3.55, excluding non-recurring items, vs. $3.49 Capital IQ Consensus. 

"We continue to see the positive effects of executing our regulated earnings growth strategy," said Nicholas K. Akins, AEP chairman, president and chief executive officer. "Our solid financial performance in the second quarter was supported by the rate base growth we've achieved through investments in infrastructure and system improvements for the benefit of our customers. Our focus on transmission also is boosting earnings. AEP Transmission Holding Co., including equity earnings from joint ventures, contributed 10 cents per share to earnings in second-quarter 2014, 6 cents higher than the earnings contribution in second-quarter 2013."

6:54 am LyondellBasell beats by $0.29, beats on revs (LYB) : Reports Q2 (Jun) earnings from cont ops of $2.22 per share, $0.29 better than the Capital IQ Consensus Estimate of $1.93; revenues rose 9.1% year/year to $12.12 bln vs the $11.5 bln consensus. 

  • "During the first weeks of the third quarter, industry conditions have been similar to the second quarter environment. U.S. oil, natural gas, and natural gas liquids production remain strong. Together these support margins in our Olefins and Polyolefins -- Americas, Intermediates and Derivatives, and Refining segments. However, our results in the next quarter will be negatively impacted by the delayed start-up of our La Porte ethylene plant."

6:53 am S&P futures vs fair value: -5.00. Nasdaq futures vs fair value: -18.50. :

6:53 am European Markets : FTSE...6813.11...-8.40...-0.10%.  DAX...9745.55...-48.50...-0.50%.

6:53 am Asian Markets : Nikkei...15457.87...+173.50...+1.10%.  Hang Seng...24216.01...+74.50...+0.30%.

6:52 am Xerox beats by $0.01, reports revs in-line; guides Q3 EPS in-line; raises low end of FY14 EPS guidance (XRX) : Reports Q2 (Jun) earnings of $0.27 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.26; revenues fell 1.8% year/year to $5.29 bln vs the $5.31 bln consensus.

  • Revenue from the company's Services business, which represented 57 percent of total revenue, was $3.0 billion, up 2 percent year-over-year or 1 percent in constant currency. Revenue from the company's Document Technology business, which represented 40 percent of total revenue, was $2.1 billion, down 6 percent or 7 percent in constant currency. 
  • "The second quarter demonstrates progress in executing on our strategy. In our Services business, revenue growth and margin are trending well in commercial services, document outsourcing and internationally. Services segment margin improvement was muted by continued pressure in our government healthcare business including unplanned impairment charges. Our Document Technology business continues to deliver strong profitability through a disciplined and effective approach to operations." 
  • Second-quarter operating margin of 9.7 percent improved 0.3 points year-over-year and resulted in operating profit of $514 million, up 1 percent. Gross margin was 30.8 percent, and selling, administrative and general expenses were 18.4 percent of revenue.
Co issues in-line guidance for Q3, sees EPS of $0.25-0.27, excluding non-recurring items, vs. $0.26 Capital IQ Consensus Estimate.

Co issues in-line guidance for FY14, raises EPS to $1.09-1.13 from $1.07-1.13, excluding non-recurring items, vs. $1.10 Capital IQ Consensus Estimate.

6:44 am African Barrick Gold reports Q2 gold production of 178,206 ounces, 8% higher than Q2 2013, with gold sales of 171,563 ounces (ABGLY) : Reports:

  • H1 revenue of US$446 million, 9% below H1 2013, as the impact of a lower average realised gold price more than offset increased sales volumes
  • H1 EBITDA1,3 of US$132 million, 1% higher than H1 2013, due to lower cash costs
  • H1 net earnings of US$41 million (US10.0 cents per share) impacted by a higher non cash tax charge during Q2 2014
  • "During H1 2014 we produced 346,581 ounces of gold, an improvement of 13% on the same period in 2013, at an AISC of US$1,118 per ounce, a reduction of 25% on the previous year. During the second quarter, we delivered the first ounces from the Bulyanhulu CIL Expansion project with development work on the Bulyanhulu Upper East zone and the Gokona underground exploration portal progressing to plan. As a result of the strong H1 2014 performance and the incorporation of the expected production from Bulyanhulu Upper East, we now expect full year gold production to be in excess of 700,000 ounces whilst continuing to target an AISC at the bottom of our guidance range of US$1,100-1,175 per ounce."

6:41 am WABCO Holdings misses by $0.04, misses on revs; narrows FY14 EPS in-line, lowers top end of FY14 revs below consensus (WBC) : Reports Q2 (Jun) earnings of $1.42 per share, excluding non-recurring items, $0.04 worse than the Capital IQ Consensus Estimate of $1.46; revenues rose 8.4% year/year to $735 mln vs the $750.32 mln consensus.

  • Co issues guidance for FY14, narrows EPS to $5.45-5.75 from $5.30-5.80, excluding non-recurring items, vs. $5.69 Capital IQ Consensus Estimate; lowers top end of FY14 revs to +6-9% in local currency from +6-11% to ~$2.888-2.965 bln vs. $2.99 bln Capital IQ Consensus Estimate. 
  • Co reiterates that WABCO expects in 2014 to convert between 80 and 90 percent of its net income attributable to the company into free cash flow, excluding payments associated with streamlining, separation and acquisition items. 
  • "Looking ahead, our three-pillar strategy of technology leadership, globalization and excellence in execution will continue to drive WABCO's differentiation that positions us as preferred supplier in the global commercial vehicle industry," said Esculier. "Indeed, our solid results in Q2 2014 proved once again that, despite uncertainty and volatility in demand across different regions, WABCO continues to strongly outperform the market while we also maintain our ability to reliably deliver a robust incremental operating margin,"

6:38 am Barnes Group reports EPS in-line, beats on revs; guides FY14 EPS in-line (B) : Reports Q2 (Jun) earnings of $0.59 per share, in-line with the Capital IQ Consensus Estimate of $0.59; revenues rose 20.5% year/year to $322.1 mln vs the $316.83 mln consensus.

  • Co issues in-line guidance for FY14, sees EPS of $2.23-2.33 vs. $2.26 Capital IQ Consensus Estimate. 
  • Barnes Group now expects 2014 total revenue to grow 15% to 17% (consensus calls for +16%), 5% to 7% on an organic basis, and forecasts adjusted operating margins in the range of 15.0% to 15.5%.

6:35 am Arctic Cat beats by $0.03, beats on revs; reaffirms FY15 EPS guidance, revs guidance (ACAT) : Reports Q1 (Jun) adj. earnings of $0.35 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.32; revenues rose 18.9% year/year to $143.6 mln vs the $132.78 mln consensus, chiefly due to higher snowmobile sales to its OEM partner, in addition to increased sales from its parts, garments and accessories (PG&A) business.

  • Gross profit margin in the 2015 first quarter was 21.4 percent compared to 24.1 percent in the prior-year quarter. The gross profit margin decline of 270 basis points stemmed primarily from the unfavorable Canadian currency exchange, as ~30 percent of Arctic Cat's annual sales are to Canada. Also impacting gross margin in the quarter were lower-margin OEM sales.
Co reaffirms guidance for FY15, sees EPS of $2.33-2.43, excluding non-recurring items, vs. $2.42 Capital IQ Consensus; sees FY15 revs of $775-786 mln vs. $779.56 mln Capital IQ Consensus Estimate. Arctic Cat's fiscal 2015 outlook includes the following assumptions versus the prior fiscal year: core ATV North America industry retail sales flat to up 2 percent; side-by-side North America industry retail sales up 6 percent to 9 percent; North America snowmobile industry retail sales flat to up 3 percent; slightly higher operating expense levels as a percent of sales primarily due to the Canadian currency hedge benefit received during last fiscal year 2014; and increasing cash flow from operations. The company expects gross margins to be down 110 basis points, chiefly due to Canadian currency and, to a lesser extent, product mix and tooling amortization.

"We expect this to be a challenging year, particularly in the first half of fiscal 2015... We had record sales for a first quarter, with strong contributions from snowmobile sales. We shipped a large percentage of our lower-margin OEM partner models in the quarter. Sales of ATVs and side-by-sides were lower in the first quarter, as planned, to reduce dealer inventories ahead of our ATV dealer show in September. Higher sales were not enough to overcome the unfavorable Canadian currency and the planned increase in OEM sales in the 2015 first quarter, resulting in lower profitability compared to record earnings in the year-ago period. Going forward, we remain focused on increasing sales this fiscal year by introducing innovative new products, as well as continuing to leverage the company's operating efficiency."

6:35 am Aon beats by $0.05, misses on revs (AON) : Reports Q2 (Jun) earnings of $1.25 per share, $0.05 better than the Capital IQ Consensus Estimate of $1.20; revenues rose 0.8% year/year to $2.92 bln vs the $2.97 bln consensus. 

  • "Our second quarter results reflect strong earnings per share growth of 13 percent, including organic growth in each segment, underlying operational improvement and effective capital management, despite challenges from both foreign currency translation and market impact," said Greg Case, president and chief executive officer. "Looking forward, we are well on track to deliver continued organic growth across each segment and operational improvement through returns on investments in GRIP and healthcare exchanges. We continue to effectively manage capital for shareholders, as highlighted by the return of $1.4 billion of capital through the first six months of 2014."

6:29 am Anglo American beats on top and bottom lines (AAUKY) : Reports H1 EPS of $1.00 vs $0.89 CIQ est; revs were flat YoY to $16.1 bln vs $15.7 bln CIQ est.

Commentary on H1
"Our Driving Value programme is delivering improved operational performance, reflecting a greater focus on mining processes and costs. Across the portfolio, production volumes were up, with the notable exception of Platinum. At Sishen, where the recovery plan is being implemented, we have seen improved mining and production volumes of 5% and expect a further increase in waste volumes in the second half. In our Copper business, the 12% increase in production also demonstrates the benefits of greater mine efficiency and throughput gains..."

Outlook:
"As we look at the global economic outlook, uncertainty is likely to persist for the balance of 2014, though there are some encouraging signs that activity is strengthening in our key markets. Our diversified portfolio positions us well for the potential significant further urbanisation and industrialisation required to support growth in China and other emerging economies, while an expanding middle class is expected to support a rising intensity of consumption for our late cycle products. Over the long term, we expect new supply to be constrained and to see tightening market fundamentals and a recovery in price performance."

6:25 am On The Wires (:WIRES) :

  • Corporate Office Properties Trust (OFC) has executed a 10-year lease with a major defense contractor for 131,600 square feet at its Redstone Gateway project in Huntsville, AL.
  • Orbitz.com (OWW) released a customized app for Amazon's new Fire phone.

6:20 am Tyco reports EPS in-line, revs in-line (TYC) : Reports Q3 (Jun) earnings of $0.54 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.54; revenues rose 3.4% year/year to $2.62 bln vs the $2.64 bln consensus. 

  • Organic revenue grew 4% in the quarter, with growth across all segments, led by products with a 12% increase from the prior year quarter. Acquisitions contributed 2 percentage points of growth, which was partially offset by the impact of divestitures. 
  • "The pickup in revenue growth we started to see last quarter continued, resulting in strong organic growth of 4%. In addition, we moved quickly to deploy the proceeds from our recent divestitures to maximize shareholder value, repurchasing 20 million shares over the past three months."

6:16 am Prosperity Bancshares beats by $0.06 (PB) : Reports Q2 (Jun) earnings of $1.08 per share, $0.06 better than the Capital IQ Consensus Estimate of $1.02. 

  • Net interest income before provision for credit losses for the quarter ended June 30, 2014 increased 46.6% to $174.055 million, compared with $118.742 million during the same period in 2013. The increase was primarily due to a 30.7% increase in average interest-earning assets for the same period. 
  • The net interest margin on a tax equivalent basis for the three months ended June 30, 2014 increased to 3.83%, compared with 3.43% for the same period in 2013 and increased from 3.62% for the three months ended March 31, 2014.
  • Loans at June 30, 2014 were $9.308 billion, an increase of $3.136 billion or 50.8%, compared with $6.172 billion at June 30, 2013, primarily due to the acquisitions of FVNB and F&M. 

6:14 am Viad Corp beats by $0.07, beats on revs; guides Q3 EPS below consensus, revs in-line (VVI) : Reports Q2 (Jun) earnings of $0.44 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus Estimate of $0.37; revenues rose 4.1% year/year to $256.4 mln vs the $243.92 mln consensus.

  • Co issues guidance for Q3, sees EPS of $0.91-1.01 vs. $1.08 Capital IQ Consensus Estimate; sees Q3 revs of $285-300 mln vs. $288.00 mln Capital IQ Consensus Estimate.
  • "With two solid quarters under our belts, 2014 is indeed shaping up to be a year of significant growth for us. In addition to organic growth, we will also benefit from the July 1 acquisition of the West Glacier Motel & Cabins, the Apgar Village Lodge and related amenities in the Glacier National Park market. We remain sharply focused on driving revenue growth and operational excellence in our existing business, as well as pursuing acquisitions that enhance shareholder value." 
  • FY14 Guidance: Marketing & Events Group: Revenue is expected to increase at a high single to low double-digit rate from $844.9 million in 2013. Base same-show revenue is expected to increase at a low to mid single-digit rate in the U.S. Base same shows are defined as shows that take place in the same city during the same quarter each year. Show rotation is expected to have a net positive impact on full year revenue of approximately $60 million. Show rotation refers to shows that occur less frequently than annually, as well as annual shows that shift quarters from one year to the next. Travel & Recreation Group: Revenue is expected to increase at a mid to high single-digit rate from $108.4 million in 2013. Exchange rate variances are expected to negatively impact revenue by approximately $5 million versus 2013. Corporate & Other: Corporate activities expense is expected to approximate $9.0 million to $9.5 million.

6:14 am AngloGold Ashanti -- Rand Refinery and corporate update; loan facility extended to it by certain of its shareholders; ongoing restructuring at its Obuasi mine in Ghana, will also impact earnings for the second quarter (AU) : Co referred to announcement by Rand Refinery regarding a loan facility extended to it by certain of its shareholders, as a precautionary measure. This follows challenges encountered in the implementation of a new Enterprise Resource Planning system at the refinery. AngloGold Ashanti confirms its participation in the loan facility.

  • AngloGold Ashanti owns a 42.41% stake in the Rand Refinery and accounts for it using the equity accounting method as an associate. AngloGold Ashanti expects to make a provision in its accounts for $51m, which will impact second quarter earnings scheduled for release on August 11. 
  • In addition, AngloGold Ashanti notes that costs incurred in the previously announced closure of the Yatela mine in Mali, and ongoing restructuring at its Obuasi mine in Ghana, will also impact earnings for the second quarter.

6:08 am Stanley Black & Decker beats by $0.06, misses on revs; raises FY14 EPS above consensus (SWK) : Reports Q2 (Jun) earnings of $1.43 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus Estimate of $1.37; revenues rose 1.0% year/year to $2.89 bln vs the $2.94 bln consensus.

  • Co issues raised guidance for FY14, sees EPS of $5.50-5.60 from $5.35-5.50, excluding non-recurring items, vs. $5.43 Capital IQ Consensus Estimate. 
  • The gross margin rate for the quarter was 36.5%. Excluding charges the gross margin rate was also 36.5%, up 100 basis points from the prior year rate of 35.5%, as price, productivity and cost actions more than offset significant unfavorable currency. 
  • Guidance Commentary: "We anticipate a stronger full year financial performance within certain of our businesses, most notably the Industrial segment, and further Company-wide cost savings to more than offset slightly lower full year organic sales growth due to the weather impact on the CDIY outdoor product season and slower underlying emerging markets growth. This revised guidance is consistent with our EPS profile in recent years whereby approximately 45% of annual EPS typically falls within the first half of the year. We have strong conviction that our 2014 free cash flow will be at least $675 million inclusive of approximately $250 million of one-time payments primarily relating to 2013 restructuring actions."

6:05 am Covidien beats by $0.04, reports revs in-line (COV) : Reports Q3 (Jun) earnings of $1.04 per share, $0.04 better than the Capital IQ Consensus Estimate of $1.00; revenues rose 4.3% year/year to $2.69 bln vs the $2.69 bln consensus. Third-quarter 2014 gross margin of 58.9% declined 0.6 percentage points from 59.5% in the prior-year period. On an adjusted basis, excluding the specified items shown on the attached tables containing non-GAAP reconciliations, third-quarter 2014 gross margin of 59.4% was about level with a year ago.

6:04 am Silicon Labs beats by $0.12, beats on revs; guides Q3 EPS below consensus, revs in-line (SLAB) : Reports Q2 (Jun) earnings of $0.58 per share, excluding non-recurring items, $0.12 better than the Capital IQ Consensus Estimate of $0.46; revenues rose 9.5% year/year to $154.9 mln vs the $149.01 mln consensus.

  • Co reports Q2 Non-GAAP Gross margin was 64.1 percent. 
  • Co issues guidance for Q3, sees EPS of 0.45-0.51, excluding non-recurring items, vs. $0.54 Capital IQ Consensus Estimate; sees Q3 revs of $153-157 mln vs. $156.80 mln Capital IQ Consensus Estimate. 

6:04 am Corp Office Props reports FFO in-line, beats on revs; guides Q3 /Q4 FFO in-line; raises FY14 FFO (still in-line) (OFC) : Reports Q2 (Jun) funds from operations of $0.44 per share, in-line with the Capital IQ Consensus Estimate of $0.44; revenues rose 2.4% year/year to $139.82 mln vs the $133.91 mln consensus.

  • Co issues in-line guidance for Q3, sees FFO of $0.46--0.48 vs. $0.48 Capital IQ Consensus Estimate. Co issues in-line guidance for Q4 (Dec), sees FFO of $0.48-0.50 vs. $0.48 Capital IQ Consensus Estimate. 
  • Co raises guidance for FY14, sees FFO of $1.86--$1.90, prior $1.85--$1.92 vs. $1.88 Capital IQ Consensus Estimate.

4:03 am On The Wires (:WIRES) :

  • Gulf Island Fabrication (GIFI), announced that, they have signed a cooperative agreement with Bechtel Oil, Gas, and Chemicals to work together to pursue opportunities for offshore projects for the U.S. Gulf of Mexico and abroad. Gulf Island's fabrication experience, infrastructure, and skilled labor along with Bechtel's unmatched engineering, project management, and direct-hire construction capabilities, provides customers a strong EPC provider.
  • Power management company Eaton (ETN) and Shaanxi Fast Gear Co announced they have signed a joint venture agreement to support the growing commercial vehicle clutch market in China. The formation of the joint venture is subject to regulatory approvals and customary closing conditions. Terms were not disclosed. 

3:05 am 21st Century Fox agrees to combine European Satellite Television Holdings; New Sky will be Europe's leading pay-television business (FOXA) : 21st Century Fox (FOXA, FOX) announced that it will transfer Sky Italia and its 57.4% interest in Sky Deutschland (SKDTY) to BSkyB to create a pan-European digital television leader through the combination of these assets. 

In exchange for the transfer, 21st Century Fox will receive ~$9.3 billion in value from BSkyB comprised of ~$8.6 billion in cash and BSkyB's (BSYBY) 21% interest in National Geographic Channels International, raising 21st Century Fox's ownership stake to 73%. In addition, 21st Century Fox will participate in BSkyB's announced equity offering by purchasing ~$900 million of additional shares in BSkyB to maintain the Company's 39.1% ownership interest. The net, after-tax cash proceeds to be received by 21st Century Fox upon completion of all the elements of this transaction will approximate $7.2 billion. The agreement is subject to regulatory approvals, the approval of BSkyB stockholders and customary closing conditions. 

2:32 am Bayer AG and Onyx Pharmaceuticals report Phase 3 trial results of NEXAVAR in patients with advanced breast cancer did not meet its primary endpoint (BAYRY) : Bayer HealthCare and Onyx Pharmaceuticals, an Amgen subsidiary (AMGN), announced that an investigational Phase 3 trial of NEXAVAR tablets in patients with advanced breast cancer did not meet its primary endpoint of improving progression-free survival. 

The study, called RESILIENCE, evaluated the efficacy and safety of sorafenib in combination with capecitabine, an oral chemotherapeutic agent, compared to placebo plus capecitabine, in patients with HER2-negative breast cancer who are resistant to or have failed prior taxane therapy, and resistant to or failed anthracycline or for whom further anthracycline therapy is not indicated. Based on initial review of the data, the types of adverse events observed were generally comparable with those known for either sorafenib or capecitabine. Data from this study are expected to be presented at an upcoming scientific congress.

2:20 am Ocular Therapeutix (Nasdaq: OCUL) prices 5 mln share IPO at $13 per share, below the expected range of $14-16 (:IPOXX) :  

2:17 am TripAdvisor enters into agreement to acquire Viator (TRIP) : Co announces it has entered into an agreement to acquire Viator, a leading resource for researching and booking destination activities around the world. Viator features more than 20,000 bookable tours and attractions and more than 600,000 reviews, photos, and videos submitted by travelers.

  • The purchase price for the transaction is ~$200 million, subject to adjustment, and will be payable substantially in the form of cash.  

2:00 am Advanced Drainage Systems (NYSE: WMS) prices 14.5 mln share IPO (9.2 mln by selling stockholders) at $16.00 per share, below the expected range of $17-19 (:IPOXX) :  

1:49 am AcelRx confirms July 27, 2014 PDUFA date for Zalviso (ACRX) :  

1:44 am MB Financial receives OCC approval for pending merger (MBFI) : Co announces that the Office of the Comptroller of the Currency has approved the merger of Cole Taylor Bank, the bank subsidiary of Taylor Capital Group, Inc., with MB Financial, Inc.'s bank subsidiary, MB Financial Bank, N.A. As previously announced, the Board of Governors of the Federal Reserve System on June 30, 2014, approved the merger of Taylor Capital with MB Financial 

1:39 am Parnell Pharmaceuticals acquires license for intellectual property and rights to develop compounds for bone and dermal regeneration (PARN) : Co announces the successful licensing of two compounds that will be added to Parnell's already extensive pipeline through a license agreement with Australian-based CIMTECH Pty, a biotechnology company. The compounds now known as PAR 121 and PAR 122 have shown promise in bone regeneration and dermal regeneration, respectively. Parnell has received a license to develop the compounds for the veterinary market with the potential to also seek human drug approvals. 

  • Pre-clinical studies into PAR122 showed similarly impressive outcomes with a rapid and significant thickening of the epidermis in treated subjects and an improvement in acute wound healing. A drug developed with the PAR122 compound could be used to rapidly repair skin and therefore may be useful in treating conditions such as atopic dermatitis, a very common condition in dogs, typically caused by flea allergy.

1:35 am Mid-Con Energy Partners acquires mature Northeastern Oklahoma Properties, announces quarterly cash distribution (MCEP) : Co announces that it has entered into a definitive agreement to acquire net proved reserves estimated at 2.6 million barrels of oil equivalent ("Mmboe") for an aggregate purchase price of ~$56.5 million, subject to customary post-closing adjustments. The acquisition, expected to close and become effective on August 5, 2014, will be funded with ~2.2 million units of MCEP stock and $4.5 million in cash. 

Highlights of the acquisition include:

  • Mid-Con Energy acquires roughly 97% working interest and will assume operatorship upon closing 
  • Reserves of 88% PDP, 3% PDNP and 9% PUD comprised of 90% oil and 10% natural gas 
  • Estimated net proved reserves of 2.622 Mmboe as of July 1, 2014 acquired at ~$21.55 per barrel 
  • Average net production of 410 Boe/d in 2Q14 acquired at ~$138k per flowing barrel 
  • Reserve-to-production ratio of roughly 17.5 years 
Quarterly Cash Distribution
  • Mid-Con Energy Partners, LP announces today that the Board of Directors of its general partner approved a quarterly cash distribution of $0.515 per unit, or $2.06 per unit on an annualized basis, for the quarter ended June 30, 2014. The distribution will be payable August 11, 2014 to unitholders of record at the close of business on August 4, 2014.

1:30 am Basic Energy Services beats by $0.04, reports revs in-line (BAS) : Reports Q2 (Jun) earnings of $0.13 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus Estimate of $0.09; revenues rose 10.4% year/year to $359.7 mln vs the $357.44 mln consensus.

Business Segment Results

  • Completion and Remedial Services - Completion and remedial services revenue rose 20% to $164.4 million in the second quarter of 2014 from $137.5 million in the prior quarter.  The sequential increase in revenue was mainly due to an increased activity in our pumping and coil tubing services based on increased activity by our customers and a larger equipment base due to capital expenditures during the quarter. In the second quarter of 2013, this segment generated $132.2 million in revenue.
  • Well Servicing - At June 30, 2014, the well servicing rig count was 421, the same as the end of the prior quarter.  The weighted average number of well servicing rigs during the second quarter of 2014 was also 421. During the second quarter of 2013, the weighted average well servicing rig count was 421. Rig hours improved to 214,200 in the second quarter of 2014, up by two percent from 209,600 in the previous quarter and down three percent from 216,600 in the comparable quarter of last year. Rig utilization was 71% in the second quarter of 2014, equal to the prior quarter and 72% in the second quarter of 2013. Lost hours due to inclement weather in our Texas and Oklahoma footprint offset regular seasonal improvements during the second quarter.    
  • Fluid Services - Fluid services revenue in the second quarter of 2014 decreased three percent to $90.3 million compared to $92.8 million in the prior quarter.  The sequential decrease in revenue was due primarily to seasonal-based declines in frac heating and hot oiling, as well as inclement weather during the quarter impacting operations. During the second quarter of 2013, this segment generated $85.6 million in revenue.  
    • The weighted average number of fluid services trucks rose less than one percent to 1,015 during the second quarter of 2014, increasing by nine trucks from the weighted average truck count of 1,006 during the first quarter of 2014.  The weighted average number of fluid services trucks was 972 during the second quarter of 2013.  Truck hours of 630,900 during the second quarter of 2014 rose four percent from the 607,200 generated in the first quarter of 2014, and were up 11% compared to 568,500 in the same period in 2013.  

1:27 am Cempressco Partners prices 15,280,000 common units at $23.50 per unit (GSJK) :  

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