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5 Cool things you never knew about Elmer's Glue

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5:24 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

  • Healthcare:ALR (53.2 +43.01%),SVA (7.05 +40.44%)
  • Materials:SID (1.08 +40.26%),KGC (2.3 +40.24%),AUY (2.29 +34.71%),RGLD (39.22 +31.65%),HMY (2.34 +30.73%),IAG (1.87 +28.97%),SBGL (11.37 +28.33%) EGO (2.86 +27.68%),PAAS (8.44 +27.49%),AU (10.73 +26.53%),SSRI (5.41 +24.08%)
  • Industrials:RRTS (10.09 +27.4%)
  • Consumer Discretionary:BOOT (8.33 +37.01%),KORS (51.84 +29.92%),AYA (13.66 +29.36%)
  • Information Technology:MIME (10.35 +36.36%),MFLX (22.59 +35.03%),OCLR (4.3 +24.28%)
This week's top 20 % losers
  • Healthcare:AXON (11.23 -29.5%),HQY (15.87 -26.36%),NK (7.84 -23.88%)
  • Materials:PPP (1.62 -35.2%)
  • Industrials:ESL (53.07 -32.58%)
  • Consumer Discretionary:LGF (18.53 -29.14%),CCO (3.83 -24.16%)
  • Information Technology:DATA (41.33 -48.49%),LNKD (108.38 -45.24%),IDTI (18.1 -28.96%),SWIR (10.93 -26.84%),MTCH (9.3 -25.9%),PLT (33.48 -25.32%),CEVA (17.41 -24.79%)
  • Financials:KMPR (26.12 -24.42%)
  • Energy:LINE (0.5 -59.34%),MPLX (20.17 -34.45%),ECR (0.81 -33.06%),CRC (1.03 -27.97%),MRD (12 -24.58%)

5:17 pm Liberty Tax responds to Maryland investigation; says 'we have cooperated with the state, and immediately began significant efforts to look at the offices identified by the state' (TAX) :

  • Co announces its response to announcements by the Comptroller of Maryland over the last several days that the state has suspended accepting electronically filed Maryland state returns from a limited number of Liberty Tax offices, pending a review of returns by the state.
  • Co stated "Since we learned of Maryland's concerns late last week, we have cooperated with the state, and immediately began significant efforts to look at the offices identified by the state. We are in the midst of our own investigation of the offices involved, and will continue to conduct that investigation aggressively, and support the state's review, until all questions are resolved... I have asked that group to determine whether Maryland's concerns about a handful of offices are justified, and to determine what additional actions we may need to take, irrespective of the state's review."

5:06 pm Ellington Financial reports book value as of January 31, 2016 was $22.06/share or $21.76/share on a diluted basis (EFC) :  

5:02 pm Avista increases quarterly dividend 3.8% to $0.3425/share (AVA) :  

5:01 pm Brown & Brown acquires substantially all of the assets of Lumbermens Insurance; terms not disclosed (BRO) :

  • Lumbermens has annual net revenues of ~$2.0 mln.

4:41 pm Digital Realty Trust and Digital Realty Trust commence exchange offer of Digital Realty Trust's 3.400% notes due 2020 and 4.750% notes due 2025 for registered notes (DLR) :

  • Co announces that together with its operating partnership subsidiary, Digital Realty Trust it has commenced a registered exchange offer to exchange up to $500 mln aggregate principal amount of the Operating Partnership's 3.400% Notes due 2020 and $450 mln aggregate principal amount of the Operating Partnership's 4.750% Notes due 2025 for any and all of the Operating Partnership's outstanding 3.400% Notes due 2020 and 4.750% Notes due 2025, which were issued in a private placement in October 2015.

4:38 pm Baldwin & Lyons increases quarterly dividend 4% to $0.26/share (BWINB) :  

4:37 pm Willis Towers Watson approves a regular quarterly cash dividend of $0.48/share (WLTW) :

  • Willis Group and Towers Watson completed merger last month.

4:31 pm Xcel Energy CFO retires (XEL) : Teresa Madden will retire during the second quarter, 2016. Madden, 59, has been executive vice president and chief financial officer for Xcel Energy Inc. and its subsidiaries since September 2011. Xcel Energy has retained a firm to undertake a search for a successor and will be considering both internal and external candidates.

4:30 pm Park Sterling CFO resigns (PSTB) :

  • Co announced that David L. Gaines is stepping away from his role as Chief Financial Officer, and that Donald K. Truslow is joining the Company to assume that position
  • Gaines will remain with Park Sterling through the end of March and work closely during that time with Mr. Truslow to ensure a smooth transition

4:23 pm American Apparel (APPCQ) emerges from Chapter 11 as a private company; restructuring has significantly reduced debt and interest expense (APP) :

  • Co announces that it has emerged from chapter 11 as a private company after successfully implementing its plan of reorganization, approved by the Delaware bankruptcy court on January 27, 2016.
  • American Apparel's reorganization plan converted ~$230 mln of bonds into equity in the Company and provided for the infusion into the Company of $40 mln of exit capital and a commitment for a $40 mln asset-backed loan.
  • These sources of incremental liquidity will serve as vital support to the Company's turnaround plan, and interest expense will decrease by $20 mln as compared to the period before the Company's chapter 11 case.

4:23 pm WGL Holdings misses by $0.06, misses on revs; affirms FY16 EPS in-line; co raises dividend $0.10 to an annual rate of $1.95/share (WGL) :

  • Reports Q1 (Dec) operating earnings of $1.18 per share, $0.06 worse than the Capital IQ Consensus of $1.24; revenues fell 18.1% year/year to $613.4 mln vs the $773.19 mln two analyst estimate.
  • Board of directors has approved a $0.10 increase in its dividend to an annual rate of $1.95 per share. This increase is consistent with its previously announced goal of maintaining a 5% dividend growth rate
  • Co affirms guidance for FY16, sees EPS of $3.00-3.20, with expectations toward the higher end of this range, vs. $3.08 Capital IQ Consensus Estimate.

4:21 pm Cyclacel Pharma has not regained compliance with $1.00 min bid requirement to remain listed on Nasdaq; may request hearing to appeal (CYCC) : The co intends to timely request a hearing before the NASDAQ Listing Qualifications Panel, at which it will present its plan to regain compliance with the minimum bid price requirement, and request a further extension of time to do so.

4:20 pm Closing Market Summary: Indices End Week Under Pressure (:WRAPX) :

The major averages ended the final session of the week under heavy selling pressure as the health of the U.S. economy and its ability to sustain further fed funds rate hikes remained in focus following the release of the January Employment Situation Report. The report contained diverging metrics that showed weaker than expected job growth but stronger than expected wage growth. Additionally, the data showed that the unemployment rate fell to an eight-year low of 4.9%. The Nasdaq Composite (-3.3%) finished behind both the S&P 500 (-1.9%) and the Dow Jones Industrial Average (-1.3%).

Other contributing headwinds to today's session included:

  • A reversal in the dollar that weighed on oil
  • A lack of leadership from market cornerstones; and
  • Weaker than expected earnings results

Overnight sessions and futures were fairly restrained as global markets awaited the U.S. Nonfarm Payrolls report. Participants found the report disjointed with misses on headline metrics but positive growth from other benchmarks. For instance, both nonfarm payroll and private sector payroll numbers grew less than expected, but the unemployment rate dropped to 4.9%. Furthermore, hourly earnings rose 0.5% showing potential for an uptick in inflation. This disconnect between data points fueled anxiety over the health of the economy and increased speculation regarding future rate increases.

Countercyclical telecom services (+0.8%) and utilities (+0.3%) were able to end the day in positive territory while heavyweight sectors like technology (-3.4%) consumer discretionary (-3.2%) and health care (-2.0%) finished on the bottom of the leaderboard.

In the top-weighted technology space, large-cap constituents showed relative weakness with Facebook (FB 104.06, -6.42), Alphabet (GOOGL 703.76, -26.27), and Microsoft (MSFT 50.16, -1.84) declining between 3.5% and 5.8%. Elsewhere, LinkedIn (LNKD 108.38, -83.90) plunged 46.6% after below consensus guidance overshadowed a bottom line beat. The high-beta chipmakers showed relative weakness, evidenced by the 3.5% decline in the PHLX Semiconductor Index. Component Qorvo (QRVO 37.25, -1.53) underperformed in the sub-group after issuing below-consensus guidance.

Discretionary component Amazon (AMZN 502.13, -34.13) saw continued weakness, falling 6.4%. The stock has surrendered 20.5% since reporting its Q4 earnings on January 28th. Netflix (NFLX 82.79, -6.92) also extended its recent slide, diving 7.7%.

The commodity-sensitive energy space was hurt by falling oil prices as dollar strength weighed on the commodity and sector. WTI crude ended its pit session down 2.4% at $30.87/bbl. ConocoPhillips (COP 32.90, -2.42) extended its post-earnings losing streak as it declined 6.9%, registering its second consecutive loss after cutting its dividend.

Biotechnology showed relative weakness, evidenced by the 3.2% decline in the iShares Nasdaq Biotechnology ETF (IBB 256.24, -8.45). To be fair though, large-cap health care names Johnson & Johnson (JNJ 100.54, -3.36) and AbbVie (ABBV 53.12, -3.64) did not fare any better with respective declines of 3.2% and 6.4%.

Today's participation was above the recent average with more than 1.1 billion shares changing hands at the NYSE floor. 

Treasuries fell to their lows after the release of January's Employment Situation Report but eventually inched higher even as the sell off in equities continued. The yield on the 10-yr note ended its day higher by one basis point at 1.85%. 

Today's economic data included the January Nonfarm Payrolls report, December's Trade Balance, and Consumer Credit for December.

  • Nonfarm payrolls increased by 151,000 (Briefing.com consensus 188,000)
    • December nonfarm payrolls revised to 262,000 from 292,000
    • November nonfarm payrolls revised to 280,000 from 252,000
  • Private sector payrolls increased by 158,000 (Briefing.com consensus 183,000)
    • December private sector payrolls revised to 251,000 from 275,000
    • November private sector payrolls revised to 279,000 from 240,000
  • Unemployment rate was 4.9% (Briefing.com consensus 5.0%) versus 5.0% in December
    • The U6 unemployment rate, which accounts for the total unemployed plus persons marginally attached to the labor force and the underemployed, was unchanged at 9.9%
    • Persons unemployed for 27 weeks or more accounted for 26.9% of the unemployed versus 26.3% in December
  • January average hourly earnings were up 0.5% (Briefing.com consensus 0.3%) after increasing x% in December
    • Over the last 12 months, average hourly earnings have risen 2.5% versus 2.5% in December
    • Aggregate earnings were up 0.9%, which should be a positive portent for consumer spending
  • The average workweek was up 0.1 to 34.6 hours (Briefing.com consensus 34.5)
    • January manufacturing workweek was up 0.1 hours to 40.7 hours
    • Factory overtime was unchanged at 3.3 hours
  • The labor force participation rate was 62.7% versus 62.6% in December
  • The December trade deficit widened to $43.4 billion from an upwardly revised deficit of $42.2 bln (from $42.4 bln) for November (Briefing.com consensus estimate of -$43.5 billion).
    • The widening in the deficit was owed to imports increasing by $0.6 billion from November to $224.9 billion in December and exports decreasing by $0.5 billion to $181.5 billion.
    • On a year-over-year basis, exports were down 6.9% while imports were down 6.5%. December marked the 12th straight month that exports have declined on a year-over-year basis. Imports have declined year-over-year for the last nine months.
    • For 2015, the goods and services deficit increased by $23.2 billion to $531.5 billion with exports decreasing $112.9 billion to $2,230.3 billion and imports falling $89.7 billion to $2761.8 billion.
    • The real trade deficit averaged $60.2 billion in the fourth quarter versus $58.8 billion in the third quarter. That increase helps explain the negative contribution net exports had on fourth quarter GDP.
  • The Consumer Credit report for December showed an increase of $21.27 billion (Briefing.com consensus$16.50 billion). November's credit growth was revised higher to $14.02 billion from $13.95 billion.

Investors will not receive any economic data on Monday. 

  • Russell 2000 -13.1% YTD
  • Nasdaq  -12.9% YTD
  • S&P 500 -8.0% YTD 
  • Dow Jones -7.0% YTD

Week in Review: Rate Hike Jitters Keep Market Pressured

The stock market endured another shaky week, which ended with a Friday pounding in the wake of an Employment Situation report for January that missed on the headline level (151K; Briefing.com consensus 188K), but better than expected hourly earnings growth (+0.5%; Briefing.com consensus 0.3%) re-invited fears about the Federal Reserve potentially hiking the fed funds rate again as early as March.

Including the Friday plunge, the S&P 500 lost 3.1% for the week while the Nasdaq underperformed, diving 5.4% for the week. The two indices ended the first week of February with respective year-to-date losses of 8.0% and 12.9%.

Nasdaq's underperformance was fueled by a woeful Friday session that featured a 43.6% collapse in the shares of LinkedIn (LNKD 108.38, -83.90) and a 49.4% dive in Tableau Software (DATA 41.33, -40.42) after both names issued cautious guidance. The broader technology sector lost 3.4% on Friday, ending the week lower by 5.4%.

The Friday plunge in equities followed two days of volatile action that ended with slight gains. Going into Friday, the slight upticks from Wednesday and Thursday appeared somewhat encouraging while dovish comments from New York Federal Reserve President William Dudley provided added, albeit fleeting, support. Mr. Dudley's remarks fostered a belief that the Fed will be cautious in its approach to future rate hikes, but Friday's Employment Situation report shook that belief.

The market will be on the lookout for policy cues next week when Fed Chair Janet Yellen takes part in the Semiannual Monetary Policy Report to the Congress starting with a February 10 appearance before the House Financial Services Committee at 10:00 ET. The next day, Chair Yellen will appear before the Senate Banking Committee, but the first day of testimony is likely to receive the highest degree of attention from market participants.

Treasuries ended the week just below their highs with the 10-yr yield registering its lowest weekly close (1.85%) since April 2015, which represented an eight-basis point decline for the week.

4:11 pm Canadian Natl Rail will enter into an agreement with a third party to repurchase up to 1.5 mln common shares through daily purchases that will take place from March 1 to March 11 (CNI) :

Co announces that it will repurchase common shares under a specific share repurchase program.

  • The purchase will form part of the Normal Course Issuer Bid for up to 33 million shares announced on Oct. 27, 2015.
  • CN will enter into an agreementwith a third party to repurchase common shares through daily purchases that will take place from March 1, 2016, or upon the completion of the previous agreement to March 11, 2016, subject to a maximum of 1.5 mln common shares.
  • Pursuant to the terms of the Agreement, and subject to the terms of an issuer bid exemption order issued by the Autorit des marchs financiers, the third party will purchase CN's common shares on the open market for its own account in accordance with the rules applicable to the Bid, for the purpose of ultimately fulfilling its delivery obligations to CN under the Agreement.
  • The price that CN will pay for any common shares purchased by it from the third party under the Agreement will be negotiated by CN and the third party and will be at a discount to the prevailing market price of CN's common shares on the TSX at the time of the purchase.

4:07 pm Mattel to host a live Q & A session with securities analysts on Feb 16 (MAT) : The call will take place on Tuesday, February 16, 2016 at ~8:30 am ET and will last 1 hour.

4:01 pm Broadwind Energy Boards approves an amendment to the Co's plan to preserve Broadwind's substantial tax assets associated with net operating loss carryforwards (BWEN) :

Broadwind Energy announced today that its Board of Directors has approved an amendment to the Company's Section 382 Rights Plan designed to preserve Broadwind's substantial tax assets associated with net operating loss carryforwards under Section 382 of the Internal Revenue Code. The amendment extends the Rights Plan through February 22, 2019. 

  • "The Rights Plan was designed to serve the interests of all shareholders by helping to protect Broadwind's valuable tax assets of approximately $200 million that can be used to offset future taxable income."

3:50 pm Treasury Market Summary (BONDX) :

Yield Curve Flattens After Jobs Report

  • Treasuries ended today's session mixed and the yield curve flattened as stocks sold off sharply on a modestly positive January jobs report. Hourly earnings grew by 0.5%, well ahead of the Briefing.com consensus of 0.3%, but the nonfarm payroll number missed (+151K versus Briefing.com consensus of 188K). The Treasury market made no firm conclusions from the data, although wage growth has been very sluggish throughout the recovery and today's release could have justified some selling in fixed-income assets. The U.S. Dollar Index dropped initially before rallying sharply after a brutal weak for the greenback. The S&P 500 is down 2.01% to 1,876.8
  • Yield Check:
    • 2-yr: +1 bp to 0.72%
    • 5-yr: unch at 1.25%
    • 10-yr: -1 bp to 1.85%
    • 30-yr: -2 bps to 2.68%
  • News:
    • The U.S. economy added 151K nonfarm payrolls in January, down from 262K in December (revised down from 292K). The Briefing.com consensus was 188K
      • The nonfarm private payroll number was +158K, down from 251K in December (revised down from 275K)
      • The unemployment rate fell to 4.9%, beating the Briefing.com consensus for no change at 5.0%
      • Hourly earnings grew 0.5% after staying flat in December. The Briefing.com consensus was for a gain of 0.3%
      • The average workweek was 34.6, above the Briefing.com consensus and prior reading for 34.5
      • Unseasonably warm weather may have affected the data, given that the payroll growth was biased in favor of weather-sensitive industries
    • The December trade deficit widened to $43.4 bln from an upwardly revised deficit of $42.2 bln (from $42.4 bln) for November. The December deficit was largely in-line with the Briefing.com consensus estimate of -$43.5 bln
    • Consumer credit grew by $21.3 bln in December versus the Briefing.com Consensus $16.5 bln. November's reading was revised to $14.0 bln from $13.9 bln
  • Commodities:
    • WTI crude: -2.43% to $30.95/bbl.
    • Gold: +1.42% to $1,173.90/troy oz.
    • Copper: -1.97% to 2.0895/lb.
  • Currencies:
    • EUR/USD: -0.49% to $1.1144
    • USD/JPY: +0.02% to 116.97
  • Week Ahead:
    • Monday: (no scheduled market-moving events)
    • Tuesday: December Wholesale Inventories (10:00 ET); $24 bln 3-year note auction (results at 13:00 ET)
    • Wednesday: MBA Mortgage Index for the week ending 2/6 (07:00 ET); Fed Chair Yellen (FOMC voter) testifies before House Financial Services Committee (10:00 ET); Crude Inventories for the week ending 2/6 (10:30 ET); $23 bln 10-year note auction (results at 13:00 ET); San Francisco Fed President Williams (non-FOMC voter) (13:30 ET); January Treasury Budget (14:00 ET)
    • Thursday: Initial Jobless Claims for the week ending 2/6 and Continuing Jobless Claims for the week ending 1/30 (08:30 ET); Fed Chair Yellen (FOMC voter) testifies before Senate Banking Committee (10:00 ET); Natural Gas Inventories for the week ending 2/6 (10:30 ET); $15 bln 30-year auction (results at 13:00 ET)
    • Friday: January Export Prices ex-ag. and Import Prices ex-oil (08:30 ET); January Retail Sales and Retail Sales ex-auto (08:30 ET); December Business Inventories (10:00 ET); February Michigan Sentiment (10:00 ET); New York Fed President Dudley (FOMC voter) speaks on household borrowing and indebtedness (10:00 ET)

3:46 pm United Comm Banks increases quarterly dividend to $0.07/share from $0.06/share (UCBI) :  

3:46 pm Floor Talk (:TALKX) :

It may be easy to attribute today's selloff to the January Employment Report, but there are a few other factors worth mentioning that could be adding pressure to the broader market and weighing disproportionately on the Nasdaq.

First, the jobs report contained some key developments that could keep the Fed inclined to raise the fed funds rate again in 2016 -- and perhaps sooner rather than much later like the fed funds futures market thinks. The room for rate-hike cover lies in the unemployment rate dropping to 4.9% and average hourly earnings increasing 2.5% year-over-year. Both are signs of progress with respect to the Fed working to achieve its dual mandate. The knee-jerk reaction in the futures market in the wake of the employment data was lower, most likely because of the awareness that the January employment report didn't support the belief of the fed funds futures market that the next rate hike from the Fed will wait until 2017.

In addition to that, several high-multiple Nasdaq components are seeing major selloffs post-earnings, with LinkedIn (LNKD) lower by 43% and Tableau Software (DATA) down 48%. Other widely-held tech names such as Netflix (NFLX -8.0%), Facebook (FB -5.5%), Apple (-2.5%) are weak, which is contributing to the relative weakness in the Nasdaq Composite (-3.2%).

Add to that the possibility of some forced liquidation, as there are rumblings that a hedge fund with exposure to some of those names is shutting down as a result of the losses.

Finally, a 2.7% decline oil isn't helping, and while the energy sector is faring better than technology, it's still off 2.2% and a laggard.

3:23 pm S&P -35 tests early week/last week low at 1872 and attempts to stabilize (:TECHX) : Noted support at 1872 in The Technical Take and at 4365/4355 Nasdaq Comp (session low 4352) with some upticks developing. MSFT retested support at its 200 ema and has lifted (14:55).

3:02 pm Lake Share Gold confirms it is not aware of any material undisclosed corporate developments that would account for recent trading in its stock (stock is halted) (LSG) : Co is issuing this press release in response to a request by market regulation services to comment on recent trading activity in its stock. The Company has also become aware of speculation concerning a potential transaction involving the Company. As a general policy, the Company does not publicly comment on market speculation and rumours. The Company is not aware of any material, undisclosed corporate developments that would account for recent trading in its stock. The Company will continue to keep the market informed as required but does not intend to make any further comment or release regarding market speculation.

2:55 pm Microsoft is back hovering just above its session low at 49.70 (MSFT) : Note that its 200 day ema, which limited the decline in Jan, comes into play today at 49.58. The Jan/four month low is at 49.10 (200 sma at 48.73).

2:52 pm Currency Market Summary (:FOREX) :

Dollar Bounces

  • The U.S. Dollar Index added 0.61% to 97.07after the January Employment Situation Report allayed investors' worst fears after a nerve-wracking January in financial markets. The week has been a very bad one for the dollar and so there was some buying interest despite Treasury yields moving lower
    • The U.S. economy added 151K nonfarm payrolls in January, down from 262K in December (revised down from 292K). The Briefing.com consensus was 188K
    • Hourly earnings grew 0.5% after staying flat in December. The Briefing.com consensus was for a gain of 0.3%
  • EUR/USD: -0.51% to $1.1141
    • German factory orders fell 0.7% m/m in December, missing expectations and giving back some of the 1.5% growth in November
  • GBP/USD: -0.50% to $1.4499
  • USD/CHF: -0.18% to 0.9916
  • USD/JPY: -0.02% to 116.93
    • Japanese foreign reserves rose to $1,248.1bln in January from $1,233.2bln in December
    • Japan's index of coincident indicators fell 0.7% mm/ in December
    • Japan's index of leading indicators fell 1.2% m/m in December
  • USD/CAD: +0.99% to 1.3895
  • AUD/USD: -1.61% to $0.7071
    • The Reserve Bank of Australia cited China's transition to a more service oriented economy as the key downside risk for Australia. The RBA maintained its 2016 growth targetb of 2-3%
    • Australian retail sales were flat m/m in December, lower than both forecasts and the 0.4% growth in November
    • Australia's AIG Construction Index fell more than expected to 46.3 in January from 46.8 in December
  • NZD/USD: -1.48% to $0.6627
  • USD/BRL: +0.49% to 3.9094
    • Brazil's CPI rose 1.27% m/m in January, higher than both forecasts and the 0.96% growth in December

2:49 pm Earnings preview for the week of February 8th (:SUMRX) :

Confirmed companies reporting earnings next week include:

  • Monday (Feb 8)
    • Pre Market: LCTSH, CNA, HAS, ON, LII, MCY, DO, BWP, WEX, VRTU, CTS, NAT
    • After Hours: FOXA, PAGP, PAA, MOH, OMI, OI, BKD, PRE, RBC, WCN, ALSN, BRS, BFAM, AGII, BRX, CMP, PINC, OTTR, YELP, MXL, etc..
  • Tuesday (Feb 9)
    • Pre-Market: CVS, KO, CNC, ACM, OMC, GT, WCG, CDW, IR, VIAB, AGU, TEN, FIS, MAS, ICL, WYN, REGN, GPK, MLM, SABRSABR, SAVE, GWR, WEN, SALE, etc..
    • After-Hours: DIS, AIZ, CSC, NCR, WU, WLTW, ACGL, SCSC, RGC, KS, PNRA, NGHC, AKAM, TRMB, NUAN, OTEX, CTLT, VSAT, KFRC, SCTY, RKUS, SGEN, DWRE, ATEN, etc..
  • Wednesday (Feb 10)
    • Pre-Market: HUM, TWX, ARMK, DTE, HSIC, VOYA, SEE, BERY, OC, AFSI, AXTA, BGCP, CAE, FLOW, CG, EEFT, ACCO, ENSG, CRL, FSV, MRKT, GWPH, etc..
    • After-Hours: CSCO, PRU, WFM, CTL, MYL, PPC, ORLY, FNF, TSLA, EXPE, NSIT, ANDE, CNO, FMC, BGC, FLO, PXD, SCI, IFF, GPRE, TWTR, IRBT, ZNGA, LOCK, etc..
  • Thursday (Feb 11)
    • Pre-Market: PEP, MFC, BG, INT, TEVA, PAG, ALU, NOK, PBF, TRI, K, CVE, RAI, GPI, HUN, AAP, BWA, TCK, MOS, AVP, SHPG, Q, WWAV, TAP, DBD, GNC, VSTO, MGI, LC, CPLA, etc..
    • After-Hours: AIG, CBS, DVA, RSG, ATVI, HE, LPLA, GRPN, COLM, NUS, DNB, P, EGN, KN, KNL, SCSS, VRSN, CRAY, INFN, DDR, FEYE, ZG, ROVI, BCOR, LOGM, CYBR, etc..
  • Friday (Feb 12)
    • Pre-Market: BAM, IPG, LPNT, CPN, AXL, BPL, VTR, XRAY, NSP, ITT, POR, ZAYO, RRGB, IPGP, OFC, RUTH, ESNT
    • After-Hours: None confirmed

2:37 pm Twitter declines to new session low 15.62 (TWTR) : This week's low is at 15.55 with its all time low from Jan at 15.48.

2:20 pm Amazon sinks to a fresh session low with the broader market, probing the $500-mark for the first time since September. (AMZN) :  

1:50 pm Major averages slip under morning lows with Nasdaq continuing to pace the way -- Dow -236, S&P -35, Nasdaq Comp -137 (:TECHX) :  

1:40 pm Peak Resorts names new Board member, comments on current ski season (SKIS) :

The co announced that its board of directors appointed David W. Braswell, Esq., as a member of the board and as a member of the nominating and corporate governance committee. Braswell is replacing Michael Staenberg, who resigned from the board effective February 3, 2016, for personal reasons.

  • "This year's ski season continues to develop from its warm start. We experienced very strong activity across the entire 14-resort portfolio in the second half of January, reflecting pent up demand and the improved weather conditions. Now we are looking forward to an excellent Presidents' Day holiday across all of our resorts, but particularly in the Northeast, where many schools close for a full week for this holiday. We also anticipate United States Citizenship and Immigration Services approval of our first EB-5 investor's I-526 Petition in the near future.....We anticipate the board will declare the next regular quarterly dividend in March, reflecting continued confidence in our operations and outlook."

1:35 pm QLT Inc acquires 7.2 mln common shares in Aralez Pharmaceuticals, which was formed through the combination of POZEN (POZN) and Tribute Pharmaceuticals, for $45 mln (QLTI) : As previously announced, QLT intends to distribute the Aralez Shares to its shareholders as a special distribution

1:20 pm POZEN and Tribute Pharmaceuticals complete business combination; company will be renamed Aralez Pharmaceuticals and commence trading 'on or about' Monday under the symbol ARLZ (POZN) : Under the terms of the Agreement and Plan of Merger and Arrangement, each share of POZEN common stock has been converted into the right to receive one Aralez common share and each common share of Tribute (other than dissenting shares) has been exchanged for 0.1455 Aralez common shares.

1:07 pm Midday Market Summary: Indices Trade Sharply Lower After Jobs Report (:WRAPX) :

The major averages began their day under heavy selling pressure as participants ruminated over January's Employment Situation Report. While the report saw misses on headline metrics, it did point to a falling unemployment rate and growing wages, which could underpin the Fed's potential decision to continuing raising rates in 2016. In response to this uncertainty over the potential future of the fed funds rate, equity markets have sold off. At this juncture, the averages have extended their losses with the Nasdaq Composite (-2.6%) underperforming the S&P 500 (-1.6%) and the Dow Jones Industrial Average (-1.2%).

Today's Nonfarm Payroll report saw a miss on both nonfarm payroll increases (151,000 vs. expected 188,000) and private sector payroll increases (158,000 vs expected 183,000). Despite these eye-catching misses, the report goes on to cloud our view of the health of the economy as it reports that the unemployment rate has dropped to 4.9% (Breifng.com consensus 5.0%) and that hourly earnings rose 0.5% (Breifng.com consensus 0.3%). This seeming disconnect between data points has fueled anxiety over the health of the economy and whether the market as a whole could sustain further rate increases.

Eight of ten sectors currently trade in negative territory with countercyclical telecom services (+0.5%) leading the upside. On the flipside, heavyweight technology (-2.8%) and consumer discretionary (-2.5%) lead the downside.

Money center banks have shown relative strength in the financial sector (-1.1%) so far today with Wells Fargo (WFC 48.00, -0.24) and JPMorgan Chase (JPM 57.90, -0.50) showing declines of 0.5% and 0.9%, respectively. JPMorgan is also benefitting from an upgrade at UBS from 'Neutral' to 'Buy'. CME Group (CME 88.02, +1.69) outperforms after reporting a fourth quarter EPS beat on in-line revenue.

In the heavyweight technology space, large-cap constituents Facebook (FB 104.44, -6.05), Alphabet (GOOGL 707.16, -22.87), and Microsoft (MSFT 50.53, -1.47) have shown relative weakness with losses between 2.5% and 5.6%. Qorvo (QRVO 35.87, -2.91) underperforms in the PHLX Semiconductor Index after it issued revenue guidance below analyst expectations. Elsewhere, LinkedIn (LNKD 111.54, -80.70) has plunged 42.1% after a defensive outlook overshadowed a bottom line beat.  

Amazon (AMZN 507.21, -28.84) has tumbled 5.4% in the consumer discretionary sector as heavy selling pressure continues to force the stock lower. The retail giant has plummeted 20.1% since reporting its Q4 earnings on January 28th. Fellow large-cap Starbucks (SBUX 55.27, -3.02) has declined 5.2%.

In the health care space (-1.4%), Johnson & Johnson (JNJ 100.36, -3.54) and AbbVie (ABBV 53.98, -2.78) show relative weakness. Biotechnology continues to underperform the broader sector, evidenced by the 3.0% decline in the iShares Nasdaq Biotechnology ETF (IBB 256.81, -7.88).

On the commodities front, oil has seen headwinds from today's dollar strength, leading the commodity lower by 0.8% at $31.46/bbl.

Treasuries have inched off their lows as the selloff in equities continues with the yield on the 10-yr note higher by two basis points at 1.86%.

Today's economic data has included the January Nonfarm Payrolls report and December Trade Balance. Meanwhile, December Consumer Credit (Briefing.com consensus $16.50 billion) will be reported at 15:00 ET.

  • Nonfarm payrolls increased by 151,000 (Briefing.com consensus 188,000)
    • December nonfarm payrolls revised to 262,000 from 292,000
    • November nonfarm payrolls revised to 280,000 from 252,000
  • Private sector payrolls increased by 158,000 (Briefing.com consensus 183,000)
    • December private sector payrolls revised to 251,000 from 275,000
    • November private sector payrolls revised to 279,000 from 240,000
  • Unemployment rate was 4.9% (Briefing.com consensus 5.0%) versus 5.0% in December
    • The U6 unemployment rate, which accounts for the total unemployed plus persons marginally attached to the labor force and the underemployed, was unchanged at 9.9%
    • Persons unemployed for 27 weeks or more accounted for 26.9% of the unemployed versus 26.3% in December
  • January average hourly earnings were up 0.5% (Briefing.com consensus 0.3%) after increasing x% in December
    • Over the last 12 months, average hourly earnings have risen 2.5% versus 2.5% in December
    • Aggregate earnings were up 0.9%, which should be a positive portent for consumer spending
  • The average workweek was up 0.1 to 34.6 hours (Briefing.com consensus 34.5)
    • January manufacturing workweek was up 0.1 hours to 40.7 hours
    • Factory overtime was unchanged at 3.3 hours
  • The labor force participation rate was 62.7% versus 62.6% in December
  • The December trade deficit widened to $43.4 billion from an upwardly revised deficit of $42.2 bln (from $42.4 bln) for November (Briefing.com consensus estimate of -$43.5 billion).
    • The widening in the deficit was owed to imports increasing by $0.6 billion from November to $224.9 billion in December and exports decreasing by $0.5 billion to $181.5 billion.
    • On a year-over-year basis, exports were down 6.9% while imports were down 6.5%. December marked the 12th straight month that exports have declined on a year-over-year basis. Imports have declined year-over-year for the last nine months.
    • For 2015, the goods and services deficit increased by $23.2 billion to $531.5 billion with exports decreasing $112.9 billion to $2,230.3 billion and imports falling $89.7 billion to $2761.8 billion.
    • The real trade deficit averaged $60.2 billion in the fourth quarter versus $58.8 billion in the third quarter. That increase helps explain the negative contribution net exports had on fourth quarter GDP.

1:02 pm Cameron and Schlumberger (SLB) confirm the European Commission cleared proposed merger without any conditions (CAM) : Under the terms of the merger agreement, Schlumberger (SLB) and Cameron only await regulatory approval from the Ministry of Commerce of the People's Republic of China. The Chinese authorities started their 30-day Phase 1 review process on February 4, 2016. Schlumberger and Cameron expect to close the merger in 1Q16.

1:02 pm GoPro is displaying relative strength, up ~7.5%, after hitting an all time low yesterday morning following earnings (GPRO) :  

12:49 pm Kona Grill signs franchise development agreement with Entretenimiento Roma S.A. de C.V to develop six Kona Grill restaurants in the cities of Mexico City and Monterrey, NL over the next seven years (KONA) :  

12:48 pm Bristol-Myers: FDA approves expanded use of Daklinza in combination with sofosbuvir in genotypes 1 and 3 (BMY) : The expanded label includes data in three additional challenging-to-treat patient populations: chronic hepatitis C virus (:HCV) patients with HIV-1 coinfection, advanced cirrhosis, or post-liver transplant recurrence of HCV. The Daklinza plus sofosbuvir regimen is already available for the treatment of chronic HCV genotype 3, and is currently the only 12-week, once-daily all-oral treatment option for these patients.

12:03 pm European Markets Closing Prices (:SUMRX) : European Markets Closing PricesEuropean markets are now closed; stock markets across Europe performed as follows:

  • UK's FTSE:-0.9%
  • Germany's DAX:-1.1%
  • France's CAC:-0.7%
  • Spain's IBEX:+0.4%
  • Portugal's PSI:-0.2%
  • Italy's MIB Index:-2.1%
  • Irish Ovrl Index:-1.4%
  • Greece ASE General Index: -1.1%

11:51 am Alcoa continues to display relative strength, sets new session high of 8.47 (AA) : Its 50 day sma is just above at 8.50.

11:44 am Facebook slides to new session low of 104.12 (FB) : Its 50 day sma/ema come into play below at 103.54/103.06

11:33 am Currency Market Update (:FOREX) :

Dollar Finds Relief Rally

  •  The U.S Dollar Index is up 0.66% to 97.05, having pulled back from its high of 97.27
  • EUR/USD: -0.55% to $1.1138
    • The euro initially rallied on the U.S. employment report but sold off afterwards, trading down to the 50% Fibonacci retracement of the 2015 range
  • GBP/USD: -0.62% to $1.4482
    • Cable followed the same pattern as the euro following the jobs data
  • USD/JPY: -0.08% to $116.86
  • The antipodean currencies are the worst losers today, with both Aussie and Kiwi getting smushed for over 1.5% following the U.S. employment data
  •     AUD/USD: -1.38% to 0.7087
  •     NZD/USD: -1.50% to 0.6627

11:30 am Splunk (-24%) falls to three year low after data analytics peer Tableau (DATA -47%) misses license estimates and guides down FY16 (SPLK) :

  • DATA blamed macro but MSFT is a looking competitor.
  • High multiple/growth stocks are leading the decline in equities this session with QQQ down a whopping 3%.

11:30 am Facebook extends lower this morning to challenge last week's earnings' gap near 104.81. (FB) :  

11:27 am Starbucks aggressive follow through after breach of its 200 day sma (SBUX) : Noted the test of its 200 day sma this morning (10:15) at 56.84 with the penetration extend as low as 55.08 in recent trade.  Its five month low from Jan is at 54.94. 

11:23 am NIKE working back toward its five month close low from Jan (NKE) : Stock gapped lower and broke below its 200 day sma/ema with the recent new session low of 57.56 testing its 57.56. Its five month intraday low from Jan is at 56.59.

11:17 am Party City enter into an e-commerce fulfillment relationship with Staples (SPLS) (PRTY) : The Company will utilize its partycity.com facility in Naperville, IL to provide "white label" fulfillment for items from its product portfolio that are displayed on e-commerce websites operated by Staples.

11:02 am FCB Financial Chairman & the CEO purchased 3,024 shares at current market prices on Feb 4 (FCB) : Co announces that Vincent Tese (Chairman of the Board) & Kent Ellert, (CEO) purchased a total of 3,024 shares of FCB common stock for their personal brokerage accounts.

11:02 am Stock indices grinding low -- Nasdaq Comp -98, Dow -176, S&P -24 (:TECHX) :  

10:43 am Healthsouth launches exchange offer for $350 mln of its 5.75% Senior Notes due 2024 and $350 mln of its 5.75% Senior Notes due 2025 (HLS) :  

10:31 am Ford Motor sold a record 130,832 vehicles in January in China; up 36% (F) :

  • Changan Ford sold a record 111,856 vehicles in January; up 58%
  • Jiangling Motor Corporation sold 17,255 vehicles in January

10:25 am Underperforming Nasdaq 100 / QQQ drops to new low for the week -- Dow -114 and S&P -18 set new session lows (:TECHX) :  

10:24 am Lions Gate Entertainment - - Earnings Mover down nearly -30% as it sinks towards early 2013 lows near $16 (LGF) :  

10:23 am 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

  • TSN (58.46 +12.53%): Raised FY16 EPS guidance this morning to $3.85-3.95 from $3.50-3.65 ($3.66 Consensus); beat on Q1 EPS of $1.15 ($0.89 Consensus).
  • SYMC (20.39 +6.31%): Beat on Q3 EPS of $0.26 ($0.24 Consensus); announced $500 mln strategic investment by Silver Lake.
  • HIG (42.16 +5.93%): Beat on Q4 EPS of $1.07 ($0.98 Consensus); missed on revs of $4.5 bln ($4.7 bln two analyst estimate).

Large Cap Losers

  • LNKD (118.77 -38.23%): Downside guidance for Q1 EPS of ~$0.55 ($0.74 Consensus); Downside guidance for FY16 EPS of $3.05-3.20 ($3.73 Consensus).
  • HBI (26.21 -10.84%): Missed on Q4 EPS of $0.44 ($0.46); Downside guidance for FY16 revs of $5.8-5.9 bln ($6.0 bln Consensus).
  • HES (39.14 -9.96%): Oil stocks trade lower with WTI trading lower this morning (COP, DVN, NBL, APA, PXD)

Mid Cap Gainers

  • UBNT (34.39 +22.52%): Beat on Q2 EPS of $0.58 ($0.51 Consensus); Upside guidance for Q3 EPS of $0.53-0.60 ($0.51 Consensus); Upgraded by Wunderlich and Raymond James.
  • POST (65.57 +14.17%): Missed on Q1 EPS of $0.15 ($0.34 Consensus); raised FY16 adj EBITDA guidance to $810-840 mln from $780-820 mln.
  • G (25.52 +6.24%): Beat on Q4 EPS of $0.34 ($0.31 Consensus).

Mid Cap Losers

  • DATA (43.86 -46.35%): Downside guidance for FY16 EPS of $0.22-0.35 ($0.61 Consensus) and revenues of $830-850 mln ($871 mln Consensus).
  • ESL (53.42 -29.5%): Missed on Q1 EPS of $0.62 ($1.02 Consensus); Downside guidance for FY16 EPS of $4.40-4.80 ($5.70 Consensus); Downgraded by Wells Fargo and Canaccord Genuity.
  • LGF (18.15 -28.68%): Missed on Q3 EPS of $0.45 ($0.63 Consensus) and on revs of $671 mln ($770 mln Consensus).

10:19 am Netflix sets new session low of 85.50 to challenge its nine month low from Aug at 85.50 and pauses (NFLX) :  

10:15 am Starbucks declines to new session low of 56.85 to probe its 200 day sma at 56.84 (SBUX) : Note that its 200 day ema comes into play at 56.20. 

10:11 am Relative sector strength (:TECHX) : Noted relative strength in Banking (KRE / KBE) in early action and have also seen relative strength vs. the S&P developing in recent action in Housing XHB, Telecom IYZ, Rail, Transports IYT, Coal KOL, Steel SLX, Industrial XLI.

10:08 am S&P -10 stabilizes near short term supports (:TECHX) : The index dropped back near first level support at 1900/1898 (The Technical Take, 09:43 -- session low 1897.67) with some limited upticks developing. As noted earlier, watching 1911 and the flat line 1915 for a read on the potential for intraday upticks.

10:06 am iShares DJ Transports ETF edges higher this morning, trying to build on yesterday's strong momentum over 3-week highs near 126.50 area (IYT) :  

9:57 am First Trust DJ Internet ETF drops below Jan trough to set a new six month low (FDN) : It hit 61.79 in Jan and stabilized but it underperformed the overall market this week and has dropped to a new multi-month low this morning.  LNKD -40% has dropped to its lowest level since its 2013 low at 109.80 with pressure also noted in Social Media SOCL and Software IGV.  Individual laggards include: CRM -9%, TWTR -4.5%, AMZN -4%, NFLX -2.9%, RAX -2.8%, FB -2.4%, YHOO -2.1%, PYPL -2%, GOOGL -2%, ADBE -5.5%, CTXS -3.2%, INTU -2%, ADSK -1.9%, ORCL -1.9%, SAP -1.7%. 

9:51 am Alphabet A extends this week's "post-earnings' drop" to probe last week's lows along the 713-area (GOOGL) :  

9:47 am Morning Market Summary: Indices Open Day Lower (:WRAPX) :

The stock market opened its day on a a lower note as equities initially slide lower following the release of the January Employment Situation Report. The tech-heavy Nasdaq (-0.9%) underperforms the S&P 500 (-0.6%) and the Dow Jones Industrial Average (-0.3%). 

Seven sectors trade in negative territory as energy (-2.0%) leads the retreat while the other decliners show losses between industrials (-0.3%) and technology (-1.1%). On the flipside, telecom services (+0.5%) shows the largest advance of the day while consumer staples (+0.3%) follows.

On the commodities front, WTI crude has declined 1.5% to $31.23/bbl as headwinds from a rebound in the dollar weigh on the commodity. 

Treasuries have ticked off their lows but the yield on the 10-yr note remains higher by four basis points to 1.88%. 


9:43 am S&P -10 probes initial supports (SPY) : Noted supports at a minor chart level (1903) and the 1900/1898 zone in The Technical Take with the index slipping to 1902 off the open. The 62% retrace of Wed-Thur bounce is at 1893. On the upside initially watching 1911 and the flat line at 1915.

9:37 am Weaker bias off the open -- Dow -60, S&P -12, Nasdaq Comp -39 (:TECHX) : Sector laggards in the early going include: Internet FDN, Social Media SOCL, Software IGV, Gold Miners GDX, Steel SLX, Energy XLE, Mining XME, Crude Oil USO, OIl Service OIH, Semi SMH.  Banking (KRE / KBE) has displayed some early relative strength 

9:32 am Horizon Bancorp announces the signing of a merger agreement with Kosciusko Financial for $22.5 mln in cash and/or stock (HBNC) :

Privately held Kosciusko, through its wholly-owned subsidiary Farmers State Bank, serves northeast Indiana with five full-service banking locations. As of December 31, 2015, Kosciusko had total assets of ~$148.2 mln and total equity of $16.5 mln. Under the terms of the merger agreement, shareholders of Kosciusko will have the option to receive $81.75/share in cash or 3.0122 shares of Horizon common stock for each share of Kosciusko's common stock or a combination thereof, provided the overall shares exchanged consist of 65% stock and 35% cash. Based upon the Feb 3 closing price of $23.99/share of Horizon common stock, the transaction has an implied valuation of ~$22.5 mln.

9:29 am Immunomedics: FDA grants Breakthrough Therapy Designation for sacituzumab govitecan (IMMU) :

Immunomedics's lead investigational antibody-drug conjugate, sacituzumab govitecan, or IMMU-132, has received Breakthrough Therapy Designation from the FDA for the treatment of patients with triple-negative breast cancer who have failed at least 2 prior therapies for metastatic disease. 

  • The Breakthrough Therapy Designation was supported by a Phase 2 study in patients with metastatic TNBC who had received a median of 5 prior therapies

9:26 am Tyson Foods shares rallying pre-market after raising FY16 EPS guidance this morning to $3.85-3.95 vs. $3.66 Capital IQ Consensus Est, up from prior guidance of $3.50-3.65 (TSN) :  

9:25 am On The Wires (:WIRES) :

  • Realtor.com, subsidiary of News Corp (NWSA), announced that its website had 50 mln unique users in January 2016. In 2015, the number of unique visitors to realtor.com on desktop and mobile devices grew more than 40% YoY, reaching a previous peak of more than 48 mln unique users in July. Total page views and the average time users spent on the site also grew more than 30% during the year, based on internal statistics.
  • Harris (HRS) was awarded a $28 mln contract to repair US Navy electronic warfare technology. The contract includes a two-year base period and three one-year options.
  • Medtronic (MDT) received FDA approval for its Amplia MRI Quad CRT-D SureScan and Compia MRI Quad CRT-D SureScan systems. Now, patients in the U.S. who receive these devices have access to MRI scans. 
  • Biostar Pharma (BSPM) authorizes a reverse split of its common stock at a ratio of 1-for-7, with anticipated trading on the post-split basis on NASDAQ commencing at the open of the stock market on February 5, 2016.
  • Diana Shipping (DSX) agreed to extend the present time charter contract with RWE Supply & Trading GmbH, Essen, Germany, for one of its Capesize dry bulk vessels, the m/v G. P. Zafirakis, for a period of minimum 15 months to maximum 18months. The gross charter rate is $6,500 per day minus a 5% commission paid to third parties. The new charter period is expected to commence on February 14, 2016. Co subsidiary enters into a time charter contract with Rio Tinto Shipping, Singapore, for one of its Capesize dry bulk vessels, the m/v New York Co subsidiary enters into a time charter contract with Nidera S.P.A., Roma, for one of its Panamax dry bulk vessels, the m/v Dione
  • Raytheon (RTN) awarded a $135 mln FAA contract modification to upgrade air traffic control systems at the final 22 airports of the Standard Terminal Automation System. Implementation of STARS at these 22 sites will complete the NextGen terminal automation modernization of every major FAA National Air Space facility by December 2019.

9:25 am On The Wires (:WIRES) :

  • Cancer Genetics (CGIX) signed an in-network provider agreement with the healthcare network Blue Cross Blue Shield of Minnesota. As part of the agreement, the over 2.6 million members of the Blue Cross Blue Shield plan will have access to CGI's cancer diagnostics and genomic testing services.
  • White Mountains (WTM) reported an adjusted book value per share of $699 at December 31, 2015, up 6.8% and 5.3% for the quarter and year ended December 31, 2015, including dividends. Adding the estimated gain of $84 per share for the previously announced Sirius Group sale, adjusted book value per share is approximately $783, up 18.0% for the year ended December 31, 2015, including dividends.
  • SPI Energy (SPI) announced that its majority-owned subsidiary, Beijing Yiwei New Energy Technology Development has expanded its business into China's southern province of Hainan. The Internet-based electric vehicle rental service provider, which has existing operations in Beijing and Shenzhen, is expanding to Hainan, which is expected to see a spike in tourism during the upcoming Chinese New Year holiday

9:15 am S&P futures vs fair value: -2.00. Nasdaq futures vs fair value: -7.00. (:WRAPX) :

The stock market is on track for a flat open with S&P 500 futures currently trading two points below fair value. Futures held a defensive stance prior to the release of January's Employment Situation Report but have since sold off in light of the disappointing figure. Equity futures have been able to bounce off their low but a decline in oil has not helped matters. Currently, WTI crude trades lower by 0.2% at $31.65/bbl. The U.S. Dollar Index rallied after the release of the data but has ticked lower from its high. The index is higher by 0.6% at 97.09.

In corporate news, consumer staples constituent Tyson Foods (TSN 55.00, +3.05) outperforms after beating analyst's EPS expectations on its Q4 earnings report. Meanwhile, financial giants JPMorgan Chase (JPM 58.69, +0.29) and Goldman Sachs (GS 157.44, +0.95) have both been able to make advances after receiving upgrades at UBS from 'Neutral' to 'Buy'.

On the economic front, January's Nonfarm Payrolls came in at 151,000 (Briefing.com consensus 188,000) while Nonfarm private payrolls added 158,000 against the 183,000 expected by the consensus. Separately, the December trade balance showed a deficit of $43.40 billion (Briefing.com consensus -$43.50 billion). December Consumer Credit (Briefing.com consensus $16.50 billion) will be reported at 15:00 ET.

Treasuries have fallen to fresh lows in recent trade with the yield on the 10-yr note higher by four basis points at 1.88%.

8:56 am S&P futures vs fair value: -5.50. Nasdaq futures vs fair value: -15.70. (:WRAPX) :

The S&P 500 futures trade six points below fair value. 

Equity markets across Asia ended the week on a mixed note with trading volume a bit below average as the region readies for Lunar New Year, which will keep markets in China shuttered through next week. The People's Bank of China injected another CNY150 billion in liquidity and set a modestly higher fix for the yuan, returning the exchange rate to levels from early January. Elsewhere, the Reserve Bank of Australia released a dovish policy statement, which overshadowed a disappointing Retail Sales report, which hit a five-month low.

  • In economic data:
    • Japan's December Leading Index 102.0 (expected 102.8; last 103.5) and Coincident Indicator -0.7% month-over-month (prior -1.4%)
    • Australia's January AIG Construction Index 46.3 (expected 46.8; previous 46.8) and December Retail Sales 0.0% month-over-month (expected 0.5%; prior 0.4%); +0.6% quarter-over-quarter (expected 0.9%; last 0.6%)

---Equity Markets---

  • Japan's Nikkei lost 1.3%, widening its 2016 decline to 11.6%. Most sectors finished the day in negative territory while energy (+1.9%) outperformed. On the downside, financials (-3.3%), consumer discretionary (-2.2%), utilities (-2.1%), and technology (-1.8%) saw the biggest declines. Toshiba, TDK, Furukawa, Daiwa House Industry, Pioneer, Mazda Motor, and Mizuho Financial lost between 4.6% and 11.2%.
  • Hong Kong's Hang Seng added 0.6%, narrowing this year's drop to 12.0%. Financials and energy-related names kept the index afloat with Bank of East Asia, China Life Insurance, Bank of China, and Ping An Insurance climbing between 1.7% and 5.5% while CNOOC and Petrochina both gained 2.2%.
  • China's Shanghai Composite surrendered 0.6%, widening its 2016 loss to 21.9%. Gemdale, Anhui Expressway, Jinshan Development Construction, and Luoyang Glass lost between 6.0% and 9.0%. Shangdong Gold Mining and Hainan Island Construction outperformed with gains of 10.0% apiece.

Major European indices trade in mixed fashion with Germany's DAX (-0.2%) underperforming. Financials have been in focus during the early portion of the session after BNP Paribas released its earnings and raised its dividend.

  • Economic data was limited:
    • Germany's December Factory Orders -0.7% month-over-month (expected -0.5%; previous 1.5%)
    • France's December Current Account deficit EUR700 million (prior -EUR1.50 billion) and December trade deficit -EUR3.90 billion (consensus -EUR4.40 billion; last -EUR4.50 billion)

---Equity Markets---

  • Germany's DAX has ticked declined 0.2%. Fresenius is the weakest performer, down 2.2%, while Bayer, Adidas, Beiersdorf, and SAP show losses between 0.8% and 1.3%. On the upside, Volkswagen, BMW, and Daimler are up between 1.6% and 2.8%. Financials also outperform with Deutsche Bank and Commzerbank up 1.8% and 2.7%, respectively.
  • UK's FTSE has ticked higher by 0.1% with miners pacing the advance. Anglo American and Glencore have spiked 9.5% and 4.3%, respectively, while Royal Bank of Scotland and Tesco also outperform with gains close to 2.4% apiece. On the downside, countercyclical names lag with Royal Mail, National Grid, United Utilities, and Severn Trent down between 0.6% and 1.3%.
  • France's CAC trades higher by 0.3% with BNP Paribas spiking 4.6% after reporting upbeat results. Peers Societe Generale and Credit Agricole follow with respective gains of 2.3% and 1.6% while ArcelorMittal lags, trading lower by 7.1%.

8:37 am HRG Group reports Q1 results (HRG) :

  • Q1 EPS $0.06 vs. ($0.63) last year. The improvement was due primarily to the higher operating income as well as a gain on the sale of certain oil and gas assets
  • HRG recorded total revenues of $1.2 billion for the Fiscal 2016 Quarter, an increase of $84.4 million, or 7.4%, as higher Consumer Products revenues, driven primarily by growth from acquisitions and organic revenue growth, more than offset the impact of unfavorable FX as well as the impact of net investment losses in Insurance.

8:33 am Nathan's Famous Q3 EPS $0.10 vs. $0.49 last year; rev -8% to $20.6 mln (no estimates); authorizes repurchase of additional 200,000 shares (NATH) :  

8:32 am Market View: Mar. E-mini stock-index futures slide to pre-mkt. lows on the heels of the Jan. Employment Report- ESh6 now -8.50 (:TECHX) :  

8:32 am Amarantus Bioscience requests Rare Pediatric Disease Designation from the FDA for treating retinitis pigmentosa w/ MANF (AMBS) : In December 2015, Amarantus submitted ODD and RPDD applications to the US FDA for engineered skin substitute in the treatment of Giant Congenital Hairy Nevus (:GCMN), in addition to its ODD application to the US FDA for eltoprazine in the treatment of Parkinson's disease levodopa-induced dyskinesia (PD-LID) submitted in October 2015. The Company expects to receive responses regarding these designation applications in the first quarter of 2016.

8:32 am January Nonfarm Payrolls Below Estimates...S&P futures vs fair value: -4.80. Nasdaq futures vs fair value: -15.70. (:WRAPX) :

The S&P 500 futures trade five points below fair value.

January Nonfarm Payrolls came in at 151,000 while the Briefing.com consensus expected a reading of 188,000. The prior month's reading was revised down to 262,000 from 292,000. Nonfarm private payrolls added 158,000 against the 183,000 expected by the consensus. The unemployment rate slipped to 4.9% while the Briefing.com consensus expected the rate to hold at 5.0%.

Hourly earnings rose 0.5%, while the consensus expected an uptick of 0.3%. The average workweek was reported at 34.6 while the consensus expected a reading of 34.5.

Separately, the December trade balance showed a deficit of $43.40 billion while the Briefing.com consensus expected the deficit to come in at $43.50 billion. The November reading was revised to a deficit of $42.2 billion from $42.4 billion.

8:32 am Ku6 Media retains legal and financial advisors to evaluate the previously announced 'going-private' offer (KUTV) :  

8:19 am Leapfrog to be acquired by VTech Holdings for $1.00/share in cash (LF) : VTech plans to acquire 100% of the outstanding common stock of LeapFrog through an all cash tender offer followed by a second-step merger. In the tender offer, VTech will offer LeapFrog investors $1.00 per share for LeapFrog's Class A and Class B shares, which represents a 75.4% premium over the closing price of LeapFrog's Class A shares on 4 February 2016. The total purchase consideration amounts to approximately $72 million. VTech will fund the tender offer through internal resources.

8:18 am Gapping up/down: UBNT +20.1%, HIG +7.4% on earnings, MFLX +39.9% on M&A, oil/gas names higher.... DATA -39.9%, LNKD -30.7% on earnings (:SUMRX) : Gapping up
In reaction to strong earnings/guidance
: UBNT +20.1%, ECOM +12.5%, SYMC +11.1% (also announces $500 mln strategic investment by Silver Lake, increases total capital return program to $5.5 bln), HIG +7.4%, PCTY +7.2%, TSN +4.4%, LITE +4.1%, PXLW +3.6%, MOBL +3.1%, SSD +3.1%, NTGR +3%, KIRK +2.4%, MTD +1.4%, ELY +1.3%, ELY +1.3%, TTMI +1.1%, SKYW +0.7%.

M&A news: MFLX +39.9% (Multi-Fineline to be acquired by Suzhou Dongshan Precision Manufacturing for $23.95 share in cash,BSI +18.5% (receives offer from the Zeevi Group to acquire 51% of BSI's outstanding shares from Alon Retail Ltd. for NIS 85 mln)

Select oil/gas related names showing strength: SDRL +7.8%, STO +4.8%, RDS.A +2.6%, CHK +1.2%, BP +1.2%, RIG +1.1%

Other news: SCLN +16.8% (SciClone announces final resolution with the Securities And Exchange Commission and The Department Of Justice),BCRX +6.6% (Baker Bros. boosts active stake to 20.5% (Prior 19.5%),GENE +2.7% (executes a Settlement and Release Agreement with Hendrix Genetics B.V.)

Analyst comments: GLUU +3% (upgraded to Buy at Benchmark),WFM +1.6% (upgraded to Neutral at Longbow)

Gapping down
In reaction to disappointing earnings/guidance
: DATA -39.9%, LNKD -30.7%, GIGA -28.6%, OUTR -23.5%, SWIR -22.4%, YRCW -18.8%, EDE -17.2%, AME -11%, HBI -10.2%, DECK -9.8%, ESL -9.2%, LGF -5%, TEAM -4.6%, ASYS -4.5%, LPTH -3.9%, ATHN -3.7%, RNG -3.5%, OCLS -2.4%, UEPS -1.9%

Other news: LINE -41.4% (announces Process to Explore Strategic Alternatives Related to Its Capital Structure), HES -10.2% (prices offerings of 25 mln shares of common stock at $39.00 per share, and 10 mln depositary shares of its 8.00% Series A Mandatory Convertible Preferred Stock), QTNT -8.7% (prices 4,444,445 of ordinary shares at $9.00 per share), MT -7% (reports Q4 results; confirms capital raise and sale of stake in Gestamp), ZBH -1.6% (prices 11,027,558 shares of its common stock, which are being sold by current stockholders, at $96.45/share), TWTR -0.9% (in symp with LNKD earnings), FB -0.9% (in symp with LNKD earnings)

Analyst comments: N/A.

8:16 am Gapping down (:SUMRX) : Gapping down
In reaction to disappointing earnings/guidance
: DATA -39.9%, LNKD -30.7%, GIGA -28.6%, OUTR -23.5%, SWIR -22.4%, YRCW -18.8%, EDE -17.2%, AME -11%, HBI -10.2%, DECK -9.8%, ESL -9.2%, LGF -5%, TEAM -4.6%, ASYS -4.5%, LPTH -3.9%, ATHN -3.7%, RNG -3.5%, OCLS -2.4%, UEPS -1.9%


Other news: LINE -41.4% (announces Process to Explore Strategic Alternatives Related to Its Capital Structure), HES -10.2% (prices offerings of 25 mln shares of common stock at $39.00 per share, and 10 mln depositary shares of its 8.00% Series A Mandatory Convertible Preferred Stock), QTNT -8.7% (prices 4,444,445 of ordinary shares at $9.00 per share), MT -7% (reports Q4 results; confirms capital raise and sale of stake in Gestamp), ZBH -1.6% (prices 11,027,558 shares of its common stock, which are being sold by current stockholders, at $96.45/share), TWTR -0.9% (in symp with LNKD earnings), FB -0.9% (in symp with LNKD earnings)

Analyst comments: N/A.

8:14 am Gapping up (:SUMRX) : Gapping up
In reaction to strong earnings/guidance
: UBNT +20.1%, ECOM +12.5%, SYMC +11.1% (also announces $500 mln strategic investment by Silver Lake, increases total capital return program to $5.5 bln), HIG +7.4%, PCTY +7.2%, TSN +4.4%, LITE +4.1%, PXLW +3.6%, MOBL +3.1%, SSD +3.1%, NTGR +3%, KIRK +2.4%, MTD +1.4%, ELY +1.3%, ELY +1.3%, TTMI +1.1%, SKYW +0.7%.

M&A news: MFLX +39.9% (Multi-Fineline to be acquired by Suzhou Dongshan Precision Manufacturing for $23.95 share in cash,BSI +18.5% (receives offer from the Zeevi Group to acquire 51% of BSI's outstanding shares from Alon Retail Ltd. for NIS 85 mln)

Select oil/gas related names showing strength: SDRL +7.8%, STO +4.8%, RDS.A +2.6%, CHK +1.2%, BP +1.2%, RIG +1.1%

Other news: SCLN +16.8% (SciClone announces final resolution with the Securities And Exchange Commission and The Department Of Justice),BCRX +6.6% (Baker Bros. boosts active stake to 20.5% (Prior 19.5%),GENE +2.7% (executes a Settlement and Release Agreement with Hendrix Genetics B.V.)

Analyst comments: GLUU +3% (upgraded to Buy at Benchmark),WFM +1.6% (upgraded to Neutral at Longbow)

8:04 am Medtronic receives FDA approval for its magnetic resonance imaging conditional cardiac resynchronization therapy defibrillators for the treatment of heart failure (MDT) : The Medtronic Amplia MRI Quad CRT-D SureScan and Compia MRI Quad CRT-D SureScan systems are approved for MRI scans on any part of the body without positioning restrictions. Now, patients in the U.S. who receive these devices, which help treat their heart failure and reduce their risk of sudden cardiac arrest, have access to MRI scans if and when they need them. Both CRT-D systems will be commercially available in the coming months.

8:03 am Beacon Roofing Supply beats by $0.05, beats on revs (BECN) :

  • Reports Q1 (Dec) earnings of $0.41 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus of $0.36; revenues rose 63.8% year/year to $976.5 mln vs the $937.65 mln Capital IQ Consensus.
  • "... For our seventh consecutive quarter, all three lines of business grew over the prior year, with residential leading the way with 76.6% growth. We also had solid gross margin growth and effective cost control after eliminating non-recurring acquisition costs. We have made great progress with the integration of RSG and remain on track to achieve expected synergies targets in 2016 and beyond. The additions of RCI, RIS and Statewide in December show that we have the financial and operational capacity to add high-quality companies to our team, and I expect that trend to continue. For the remainder of 2016, we will continue our focus on sales growth, gross margin stability and improved operating leverage, which should build on the momentum created in the first quarter and enable us to deliver strong full year performance and earnings for our shareholders."

8:01 am J. C. Penney is pursuing the potential sale and partial leaseback of its Home Office building in Plano, TX as part of an ongoing effort to reduce debt and cut costs (JCP) : Co is pursuing the potential sale and partial leaseback of its Home Office building in Plano, Texas as part of an ongoing effort to reduce outstanding debt and effectively manage expenses. A combination of favorable market conditions and a surplus of available square footage within the building make this an attractive real estate opportunity for the Company.

8:01 am USG beats by $0.11, misses on revs (USG) :

  • Reports Q4 (Dec) earnings of $0.42 per share, excluding non-recurring items, $0.11 better than the Capital IQ Consensus of $0.31; revenues fell 3.0% year/year to $925 mln vs the $941.29 mln Capital IQ Consensus.

8:01 am Catabasis Pharmaceuticals and the Muscular Dystrophy Association enter collaboration to support the Part B portion of the MoveDMD clinical trial of CAT-1004 for the treatment of patients with Duchenne muscular dystrophy (CATB) : Co announces a collaboration to support the Part B portion of the MoveDMD clinical trial of CAT-1004, a novel product candidate for the treatment of patients with Duchenne muscular dystrophy. Under the collaboration, MDA will provide funding for transportation to participants who need to travel to take part in the study. The boys in Part A of the trial will be asked to participate in Part B and additional participants will also be enrolled. Catabasis is currently identifying additional patients who are interested in participating in Part B of the trial. Enrollment criteria for Part B are expected to be similar to those for Part A.

8:01 am Vertex Pharma receives CRL from the FDA over its sNDA for KALYDECO in people with cystic fibrosis ages 2 and older who have one of 23 residual function mutations in the cystic fibrosis transmembrane conductance regulator gene (VRTX) :

Vertex received a Complete Response Letter from the FDA for its supplemental New Drug Application for the use of KALYDECO in people with cystic fibrosis ages 2 and older who have one of 23 residual function mutations in the cystic fibrosis transmembrane conductance regulator gene.The FDA determined that it cannot approve the application in its present form. Vertex plans to meet with the FDA to determine an appropriate path forward.

  • The sNDA is based on preclinical data for ivacaftor in residual function mutations, the established clinical profile of KALYDECO and on previously reported data from an exploratory Phase 2a study. In 19 of the 24 patients enrolled in this study, eight of the 23 mutations proposed in the sNDA were represented

8:00 am S&P futures vs fair value: +0.50. Nasdaq futures vs fair value: -1.50. (:WRAPX) :

U.S. equity futures trade little changed with S&P 500 futures hovering near fair value. Futures have been fairly restrained this morning as participants look ahead to the Employment Situation Report for January.

On the economic front, January Nonfarm Payrolls report (Briefing.com consensus 188k) and December Trade Balance (Briefing.com consensus -$43.5 billion) will be reported at 8:30 ET while December Consumer Credit (Briefing.com consensus $16.50 billion) will cross the wires at 15:00 ET.

Treasuries trade off their overnight highs but the yield on the 10-yr note remains lower by two basis point to 1.85%.

In U.S. corporate news of note:

  • LinkedIn (LNKD 136.51, -55.77): -29.0% after the company issued below consensus Q1 and FY16 EPS after reporting an earnings beat after yesterday's close.
  • Tyson Foods (TSN 53.00, +1.05): +2.0% following an EPS beat in their earnings report on lighter than expected revenue
  • Outerwall (OUTR 26.03, -6.66): -20.4% after the company guided FY16 core EPS lower to $5.00-6.30 following reporting Q4 EPS that may not compare to consensus expectations
  • Netsuite (N 66.93, -3.22): -4.6% following the company issuing lower than expected Q1 EPS guidance
  • Tableau Software (DATA 50.00, -31.75): -38.8% after reporting an EPS and revenue beat in their Q4 earnings report but issuing Q1 and FY16 guidance below analyst estimates

Reviewing overnight developments:

  • Asian markets ended mixed. Japan's Nikkei -1.3%, Hong Kong's Hang Seng +0.6%, China's Shanghai Composite -0.6%
    • In economic data:
      • Japan's December Leading Index 102.0 (expected 102.8; last 103.5) and Coincident Indicator -0.7% month-over-month (prior -1.4%)
      • Australia's January AIG Construction Index 46.3 (expected 46.8; previous 46.8) and December Retail Sales 0.0% month-over-month (expected 0.5%; prior 0.4%); +0.6% quarter-over-quarter (expected 0.9%; last 0.6%)
    • In news:
      • The People's Bank of China injected another CNY150 billion in short-term funds ahead of the Lunar New Year, which will keep the Chinese stock market closed throughout next week
  • Major European indices trade mostly higher. France's CAC +0.4%, UK's FTSE +0.4%, and Germany's DAX -0.2%. Elsewhere, Italy's MIB +0.3% and Spain's IBEX +1.1%
    • Economic data was limited:
      • Germany's December Factory Orders -0.7% month-over-month (expected -0.5%; previous 1.5%)
      • France's December Current Account deficit EUR700 million (prior -EUR1.50 billion) and December trade deficit -EUR3.90 billion (consensus -EUR4.40 billion; last -EUR4.50 billion)
    • Among news of note:
      • France's CAC has shown relative strength with leadership from BNP Paribas after the bank reported above-consensus results and boosted its dividend

7:34 am First Niagara reports EPS in-line, beats on revs (Announced in October it was being acquired by KeyCorp (KEY)) (FNFG) :

  • Reports Q4 (Dec) earnings of $0.15 per share, in-line with the Capital IQ Consensus of $0.15; revenues rose 2.6% year/year to $355.95 mln vs the $349.68 mln Capital IQ Consensus.

7:34 am Tyson Foods beats by $0.26, misses on revs; guides FY16 revs below consensus (TSN) :

  • Reports Q1 (Dec) earnings of $1.15 per share, excluding non-recurring items, $0.26 better than the Capital IQ Consensus of $0.89; revenues fell 15.4% year/year to $9.15 bln vs the $10 bln Capital IQ Consensus.
  • Co issues downside guidance for FY16, sees FY16 revs of $37 bln vs. $39.83 bln Capital IQ Consensus Estimate, prior guidance $41 bln.
  • In fiscal 2016, the company expects domestic protein production (chicken, beef, pork and turkey) to increase approximately 2-3% from fiscal 2015 levels and moderate export growth. As a result, increased domestic availability could pressure protein pricing.
  • Regarding Hillshire Brands, the co expects to realize incremental synergies in excess of $200 mln above the amount of synergies realized in fiscal 2015. In total, the co expects synergies of more than $500 mln in fiscal 2016 and more than $700 mln in fiscal 2017 from the acquisition as well as our profit improvement plan for legacy Prepared Foods business.

7:33 am Mobile Mini beats by $0.02, misses on revs; increases quarterly dividend (MINI) :

  • Reports Q4 (Dec) earnings of $0.41 per share, $0.02 better than the Capital IQ Consensus of $0.39; revenues rose 9.2% year/year to $134.51 mln vs the $136.5 mln Capital IQ Consensus.
  • "Demand in our construction, industrial and diversified sectors remains strong, and we are well-situated to capitalize on our existing Mobile Mini footprint to expand our downstream specialty containment market in 2016. Throughout the second half of 2015, we have gained traction and are well-positioned to leverage our investments for mid to high single-digit rental revenue growth in 2016."
  • The Company's Board of Directors increased the Company's first quarter 2016 cash dividend to $0.206/share from $0.187/share

7:32 am Domtar beats by $0.26, misses on revs (UFS) :

  • Reports Q4 (Dec) earnings of $1.11 per share, $0.26 better than the Capital IQ Consensus of $0.85; revenues fell 4.7% year/year to $1.31 bln vs the $1.33 bln Capital IQ Consensus.
  • Expects paper shipments in line with market demand while pulp shipments should be higher.

7:32 am MSG Networks misses by $0.03, beats on revs (MSGN) :

  • Reports Q2 (Dec) earnings of $0.45 per share, $0.03 worse than the Capital IQ Consensus of $0.48; revenues rose 2.2% year/year to $169.9 mln vs the $167.23 mln Capital IQ Consensus.

7:32 am Saia beats by $0.14, misses on revs (SAIA) :

  • Reports Q4 (Dec) earnings of $0.45 per share, $0.14 better than the Capital IQ Consensus of $0.31; revenues fell 7.1% year/year to $287.6 mln vs the $290.52 mln Capital IQ Consensus. "With effective mix management, we realized improvements in both our yield and revenue per shipment, despite weak industrial freight volumes. While it is somewhat satisfying to report our fourth consecutive year of record earnings per share, we enter 2016 with some uncertainty with regarding the health of the industrial economy."

7:23 am European Markets Update: DAX UNCH, FTSE +0.5%, CAC +0.5% (:SUMRX) :

Major European indices trade mostly higher while Germany's DAX underperforms. However, the current standing is all but sure to change upon the 8:30 ET release of the U.S. Employment Situation report for January. Financials have been in focus during the early portion of the session after BNP Paribas released its earnings and raised its dividend.

  • Economic data was limited:
    • Germany's December Factory Orders -0.7% month-over-month (expected -0.5%; previous 1.5%)
    • France's December Current Account deficit EUR700 million (prior -EUR1.50 billion) and December trade deficit -EUR3.90 billion (consensus -EUR4.40 billion; last -EUR4.50 billion)

---Equity Markets---

  • Germany's DAX hovers just below its flat line. Fresenius is the weakest performer, down 2.2%, while Bayer, Adidas, Beiersdorf, and SAP show losses between 0.8% and 1.3%. On the upside, Volkswagen, BMW, and Daimler are up between 1.6% and 2.8%. Financials also outperform with Deutsche Bank and Commzerbank up 1.8% and 2.7%, respectively.
  • UK's FTSE has climbed 0.5% with miners pacing the advance. Anglo American and Glencore have spiked 9.5% and 4.3%, respectively, while Royal Bank of Scotland and Tesco also outperform with gains close to 2.4% apiece. On the downside, countercyclical names lag with Royal Mail, National Grid, United Utilities, and Severn Trent down between 0.6% and 1.3%.
  • France's CAC is higher by 0.5% with BNP Paribas spiking 4.6% after reporting upbeat results. Peers Societe Generale and Credit Agricole follow with respective gains of 2.3% and 1.6% while ArcelorMittal lags, trading lower by 7.1%.

7:14 am Henry Schein to acquire a majority ownership interest in Dental Cremer S.A.; terms not disclosed (HSIC) :

Dental Cremer is the dental distribution business of Cremer S.A. With 2015 sales of ~$70 mln, Dental Cremer serves approximately 60,000 dental practitioners across Brazil and has approximately 530 team members.

  • Schein expects the transaction to be neutral to its 2016 earnings per share and accretive to its 2017 EPS by $0.01-$0.02. The transaction expected to close in first half of 2016.

7:05 am CME Group beats by $0.02, reports revs in-line (CME) :

  • Reports Q4 (Dec) earnings of $0.92 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.90; revenues fell 3.2% year/year to $813.8 mln vs the $808.76 mln Capital IQ Consensus.
  • Fourth-quarter 2015 average daily volume was 13.2 million contracts, down 11 percent from fourth-quarter 2014.
  • Clearing and transaction fee revenue were $679 million, down 5 percent compared with fourth-quarter 2014.
  • Fourth-quarter 2015 total average rate per contract was 78.9 cents, up from 75.9 cents in third-quarter 2015, driven primarily by an increased proportion of the volume from higher paying non-members during the quarter, as well as strong energy volume.
  • Market data revenue was $99 million, up 11 percent compared with the fourth quarter last year.

7:05 am iRadimed reports EPS in-line, revs in-line; guides Q1 in-line; guides FY16 in-line (IRMD) :

  • Reports Q4 (Dec) earnings of $0.19 per share, in-line with the single analyst estimate of $0.19; revenues rose 144.4% year/year to $8.8 mln vs the $8.8 mln single analyst estimate.
  • Co issues in-line guidance for Q1, sees EPS of $0.17-0.18 vs. $0.18 single analyst estimate; sees Q1 revs of $9.0-9.1 mln vs. $9.05 mln single analyst estimate.
  • Co issues in-line guidance for FY16, sees EPS of $0.83-0.85 vs. $0.83 single analyst estimate; sees FY16 revs of $39-40 mln vs. $39.21 mln single analyst estimate.

7:05 am Broadwind Energy expects Q4 revs to be ~$38 mln vs. the $44.11 mln single analyst estimate (BWEN) :

  • The co announced that its revenue and loss per share for the quarter and year ending December 31, 2015 are expected to be below the previous estimates due to substantial production issues and one-time costs associated with an unprofitable contract in the Company's Abilene tower facility.
  • Based on preliminary financial results, the Company now expects consolidated fourth-quarter revenue to be approximately $38 million and the consolidated fourth-quarter operating loss to be approximately $11 million, versus guidance of a $4-5 million operating loss. This is primarily due to a $5 million loss in the Towers and Heavy Weldments segment mainly due to low production in the Company's Abilene tower facility, where labor overruns, inventory charges and other manufacturing inefficiencies were incurred, associated with a challenging order taken in 2014.

7:02 am WisdomTree reports EPS in-line, beats on revs (WETF) :

  • Reports Q4 (Dec) earnings of $0.15 per share, in-line with the Capital IQ Consensus of $0.15; revenues rose 54.2% year/year to $76.5 mln vs the $74.59 mln Capital IQ Consensus. 
  • "In challenging market conditions the benefit of the ETF structure becomes even more apparent. Against a backdrop of $125 billion in mutual fund outflows in 2015, the ETF industry enjoyed $232 billion in net inflows."

7:02 am Moody's beats by $0.04, beats on revs; guides FY16 EPS below consensus (MCO) :

  • Reports Q4 (Dec) earnings of $1.09 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus of $1.05; revenues fell 1.3% year/year to $865.9 mln vs the $855.89 mln Capital IQ Consensus.
  • Co issues downside guidance for FY16, sees EPS of $4.75-4.85 vs. $5.01 Capital IQ Consensus Estimate. Moody's expects full year 2016 revenue and operating expense to each grow in the mid-single-digit percent range. Moody's projects an operating margin of approximately 42% and an adjusted operating margin of approximately 45%.

7:01 am Cempra announces the publication of positive results from its pivotal Phase 3 clinical trial of solithromycin oral capsules in the treatment of patients with community-acquired bacterial pneumonia (CEMP) :

In the intent-to-treat population of this study (ITT, all randomized patients), solithromycin met the primary objective of statistical non-inferiority to oral moxifloxacin for the treatment of CABP with a treatment success rate at the early clinical response (ECR, 72 hours after the first dose of study drug) of 78.2% for solithromycin and 77.9% for moxifloxacin. The 95% confidence interval for the treatment difference had lower and upper bounds of -5.5% and 6.1%, respectively.

  • Treatment emergent adverse events were comparable for the two patient groups with 155 (36.6%) reported for solithromycin and 154 (35.6%) for moxifloxacin. There were no serious adverse events attributed to solithromycin. In addition, there were two cases of Clostridium difficile infection, both of which occurred in the moxifloxacin group.
  • In October, Cempra announced successful results of the second Phase 3 pivotal trial of solithromycin that used an intravenous formulation (Solitaire-IV), and has begun and is planning to complete a rolling New Drug Application (:NDA) submission to the FDA for the oral and intravenous formulations for the treatment of CABP during the first half of 2016.

6:59 am Estee Lauder beats by $0.12, beats on revs; guides Q3 EPS below consensus, revs above consensus; guides FY16 EPS below consensus (EL) :

  • Reports Q2 (Dec) earnings of $1.22 per share, excluding non-recurring items, $0.12 better than the Capital IQ Consensus of $1.10; revenues rose 2.6% year/year to $3.12 bln vs the $3.08 bln Capital IQ Consensus.
  • Co issues mixed guidance for Q3, sees EPS of $0.53-0.58 vs. $0.76 Capital IQ Consensus Estimate; sees Q3 revs +2-3% yr/yr, or roughly $3.1-3.14 bln vs. $2.65 bln Capital IQ Consensus Estimate.
  • Co issues downside guidance for FY16, sees EPS of $3.07-3.12 vs. $3.18 Capital IQ Consensus Estimate.

6:59 am On The Wires (:WIRES) :

  • Yingli Green Energy (YGE) has recently signed an agreement with Iberdrola, for the new product "Smart Solar Iberdrola", the turnkey solar PV solution that Iberdrola has set up to its customers which offers the possibility to generate and consume their own electricity by installing this technology. Through this partnership, Yingli will provide Iberdrola with its extensive portfolio of solar panels, experience and best resources including technical and human, for assembly work, configuration and monitoring of equipment performance, and preventive and corrective maintenance, to make sure the systems perform as safely and efficiently as possible.
  • On February 4, 2016, California Water Service Company, California Water's (CWT) California regulated utility subsidiary, received a letter from the California Public Utilities Commission addressed jointly to Cal Water and three other Class A water companies, granting the Joint Parties' request for a one-year extension in their cost of capital filing with the CPUC to March 31, 2017. The Joint Parties agreed to postpone adjustments of their Water Cost of Capital Mechanisms for one year.

6:57 am MVC Capital receives notice of non-compliance from the NYSE relating to the continued listing requirements under the timely filing criteria (MVC) : As previously disclosed on Form 12b-25 filed with the SEC on January 14, 2016, MVC requires additional time to complete its Form 10-K for the fiscal year ended October 31, 2015 for the reasons stated in such filing. MVC's Form 10-Q for the third fiscal quarter ended July 31, 2015 was filed on January 29, 2016. The specific timing for the filing of the 2015 Annual Report is not yet known, but it is currently expected to be filed in the first half of 2016.

6:56 am Asian Markets Close: Nikkei -1.3%, Hang Seng +0.6%, Shanghai -0.6% (:SUMRX) :

Equity markets across Asia ended the week on a mixed note with trading volume a bit below average as the region readies for Lunar New Year, which will keep markets in China shuttered through next week. The People's Bank of China injected another CNY150 billion in liquidity and set a modestly higher fix for the yuan, returning the exchange rate to levels from early January. Elsewhere, the Reserve Bank of Australia released a dovish policy statement, which overshadowed a disappointing Retail Sales report, which hit a five-month low.

  • In economic data:
    • Japan's December Leading Index 102.0 (expected 102.8; last 103.5) and Coincident Indicator -0.7% month-over-month (prior -1.4%)
    • Australia's January AIG Construction Index 46.3 (expected 46.8; previous 46.8) and December Retail Sales 0.0% month-over-month (expected 0.5%; prior 0.4%); +0.6% quarter-over-quarter (expected 0.9%; last 0.6%)

---Equity Markets---

  • Japan's Nikkei lost 1.3%, widening its 2016 decline to 11.6%. Most sectors finished the day in negative territory while energy (+1.9%) outperformed. On the downside, financials (-3.3%), consumer discretionary (-2.2%), utilities (-2.1%), and technology (-1.8%) saw the biggest declines. Toshiba, TDK, Furukawa, Daiwa House Industry, Pioneer, Mazda Motor, and Mizuho Financial lost between 4.6% and 11.2%.
  • Hong Kong's Hang Seng added 0.6%, narrowing this year's drop to 12.0%. Financials and energy-related names kept the index afloat with Bank of East Asia, China Life Insurance, Bank of China, and Ping An Insurance climbing between 1.7% and 5.5% while CNOOC and Petrochina both gained 2.2%.
  • China's Shanghai Composite surrendered 0.6%, widening its 2016 loss to 21.9%. Gemdale, Anhui Expressway, Jinshan Development Construction, and Luoyang Glass lost between 6.0% and 9.0%. Shangdong Gold Mining and Hainan Island Construction outperformed with gains of 10.0% apiece.
  • India's Sensex rose 1.1%, narrowing its 2016 drop to 5.8%. Vedanta was the top performer, spiking 9.0% while AXIS Bank, Hindalco Industries, ICICI Bank, and Tata Motors rallied between 2.5% and 4.4%. Only seven components finished in the red with Gail falling 3.6%.

---FX---

  • USDJPY +0.1% to 116.87
  • USDCNY -0.1% to 6.5691
  • USDINR +0.1% to 67.61

6:54 am Ametek reports EPS in-line, misses on revs; guides Q1 and FY16 below consensus; acquires Brookfield Engineering Laboratories and ESP/SurgeX (AME) :

  • Reports Q4 (Dec) earnings of $0.63 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.63; revenues fell 3.5% year/year to $988 mln vs the $1.01 bln Capital IQ Consensus.
  • Co issues downside guidance for Q1, sees EPS of $0.56-0.58 vs. $0.66 Capital IQ Consensus; sees Q1 sales down low isngle digits vs. +2.4% consensus.
  • Co issues downside guidance for FY16, sees EPS of $2.55-2.65 vs. $2.73 Capital IQ Consensus; low single digit sales growth vs. +3% consensus. 
  • "We do not anticipate a meaningful change in global economic conditions in 2016 with sluggish conditions across oil and gas, emerging markets and the broad industrial markets expected to continue. Despite this, we have proven that our strong portfolio of differentiated businesses, excellent operational capabilities, on-going investments in new product development and geographic expansion, and a continued focus on strategic acquisitions should enable us to perform well in 2016," 
  • Co has completed two acquisitions: Brookfield Engineering Laboratories for ~$167 mln, the world's leading manufacturer of viscometers and rheometers, and ESP/SurgeX for ~$130 mln, a leader in energy intelligence and power protection solutions.

6:47 am CONSOL Energy added 934 Bcfe of proved reserves through extensions and discoveries in 2015 (CNX) :

During 2015, drilling and completion costs incurred directly attributable to extensions and discoveries were $618.3 million. When divided by the extensions and discoveries of 934 Bcfe, this yields a drill bit finding and development cost of $0.66 per Mcfe, compared to $0.76 per Mcfe at year-end 2014.

  • Future development costs for PUD reserves are estimated to be approximately $943 million, or $0.48 per Mcfe.

6:37 am Synutra hires advisor to evaluate previously announced going-private offer; reports earnings (SYUT) :

  • Co has retained Houlihan Lokey Capital, Inc. as the Special Committee's independent financial advisor and Cleary Gottlieb Steen & Hamilton LLP as its U.S. legal counsel in connection with its review and evaluation of the non-binding proposal letter dated January 14, 2016, as revised on January 30, 2016, from Mr. Liang Zhang, the chairman of the Board and chief executive officer of Synutra, and an affiliated entity of Mr. Zhang, to acquire all of the outstanding common stock of the Company not already owned by the Buyer Group in a "going-private" transaction.
    •  The Special Committee is evaluating and considering the Proposal, which is an offer to buy the co for $5.91 per share.
  • Separately the company reported Q3 results; reported EPS of $0.21 vs. $0.30 in prior year period; sales declined 5% YoY to $109.3 mln (no estimates).
    • Co now expects 2016 sales to be between $375 and $400 million, and net income to be between $30 and 35 million.

6:32 am Aon beats by $0.18, misses on revs (AON) :

  • Reports Q4 (Dec) earnings of $2.27 per share, excluding non-recurring items, $0.18 better than the Capital IQ Consensus of $2.09; revenues fell 0.3% year/year to $3.29 bln vs the $3.34 bln Capital IQ Consensus; adj. operating margin increased 110 basis points to 24.1%.

6:32 am Southwest Air reports prelim January traffic showing RPMs of 8.9 bln (+11.1% Y/Y); continues to expect its 1Q16 RASM to be in line w/ 1Q15 (LUV) :

  • RPMs of 8.9 bln, +11.1% YoY
  • ASMs of 11.5 bln, +7.8% YoY
  • Load Factor at 77.5%, +2.3% YoY
  • Based on results and current trends, co continues to expect its 1Q16 RASM to be in line w/ 1Q15

6:17 am Alon Blue Square Alon Blue Square receives offer from the Zeevi Group to acquire 51% of BSI's outstanding shares from Alon Retail Ltd. for NIS 85 mln (BSI) :

In addition, the purchaser would obtain a three year option to acquire an additional 21% of the Company's shares from Alon Retail at the same price per share.

  • As part of the transaction, the Company would enter into an arrangement with its bank lenders and other creditors, including a debt arrangement with Mega Retail, on terms to be agreed between the purchaser and the creditors, which would include, among others, a payment of NIS 500 million (50% payable within 10 days of closing and 50% within 120 days of closing). The remaining terms of repayment would be agreed with the creditors.
  • The transaction is subject to a 14 day due diligence review. Until the signing of the agreement, the Company and Alon Retail would agree to act in the ordinary course of business and not take specific actions in the Company or its subsidiaries without approval of the purchaser. The offer expires on February 12, 2016.

6:03 am Dehaier Medical Systems announces corporate and business restructuring plan (DHRM) :

As part of the restructuring, the Board of Directors of the Company directed the Company to set up a wholly owned subsidiary, Connection Wearable Health Technology in Beijing. The Company is conducting related procedures to establish CWHT and it anticipates the process to be completed by the end of February 2016. After its incorporation, CWHT will conduct wearable sleep respiratory and mobile health related businesses. On the other hand, Beijing Dehaier Medical Technology Co., Ltd. will focus on remaining profitable medical device sales, collection of existing accounts receivable, selling off remaining inventory, management and maintenance of intellectual property assets and certifications of all subsidiaries of the Company.

  • The Company expects to continue scaling down and discontinuing, as appropriate, its unprofitable medical device business, including assembly and sales of X-ray machines and anesthesia machines. The Company plans to maintain only a few profitable businesses such as sales of its patented medical air compressors and cardiopulmonary resuscitation instruments in the future.

6:02 am Zimmer Biomet prices 11,027,558 shares of its common stock, which are being sold by current stockholders, at $96.45/share; Co will repurchase $250 mln of shares being sold (ZBH) :  

6:02 am Fortress Investment commences a modified 'Dutch auction' self-tender offer to repurchase up to $100 mln Class A shares at $4.25 to $4.75 per share (FIG) : Fortress will use a portion of its cash and cash equivalents on hand to fund the repurchase of shares in the tender offer. The Company's directors and executive officers have informed the Company of their intention not to tender any shares in the tender offer.

6:01 am Baker Hughes reports complete rig count information for January (BHI) :

The co announced that the international rig count for January 2016 was 1,045, down 50 from the 1,095 counted in December 2015, and down 213 from the 1,258 counted in January 2015. The international offshore rig count for January 2016 was 242, down 8 from the 250 counted in December 2015, and down 72 from the 314 counted in January 2015.

  • The average U.S. rig count for January 2016 was 654, down 60 from the 714 counted in December 2015, and down 1,029 from the 1,683 counted in January 2015. The average Canadian rig count for January 2016 was 192, up 32 fom the 160 counted in December 2015, and down 176 from the 368 counted in January 2015.
  • The worldwide rig count for January 2016 was 1,891, down 78 from the 1,969 counted in December 2015, and down 1,418 from the 3,309 counted in January 2015.

5:54 am Shanghai...-0.63% (FXI) :  

5:54 am S&P futures vs fair value: +3.30. Nasdaq futures vs fair value: +6.00. :

5:54 am European Markets : FTSE...5933.4...+34.60...+0.60%.  DAX...9410.36...+17.00...+0.20%.

5:54 am Asian Markets : Nikkei...16820...-225.40...-1.30%.  Hang Seng...19288...+105.10...+0.60%.

5:17 am On The Wires (:WIRES) :

  • GE's Distributed Power business (GE) announced that Clarke Energy, GE's authorised distributor of Jenbacher gas engines, is supplying 10 of GE's high-efficiency Jenbacher gas engines to Territory Generation for an upgrade at its existing Owen Springs power station facility as a key part of the Northern Territory Government of Australia's $75 million investment in Central Australia.
  • The United States Social Security Administration has completed integration with Equifax (EFX) to supply identity proofing and account, address and mobile device verification. The services will help the SSA manage risk and mitigate fraud for my Social Security program which allows employees and retirees to monitor their social security accounts.
  • Panasonic (PCRFY) announced that it has developed a new highly functional global shutter technology for a CMOS image sensor using organic photoconductive film

5:16 am Genetic Technologies executes a Settlement and Release Agreement with Hendrix Genetics B.V. (GENE) : Following the execution of this Agreement, Genetic Technologies shall dismiss its legal action against Hendrix. The terms and conditions of the Agreement are covered by a confidentiality undertaking and cannot be disclosed.

4:38 am ArcelorMittal reports Q4 results; confirms capital raise and sale of stake in Gestamp (MT) :

Reports FY 2015 EBITDA of $5.2 billion; EBITDA of $1.1 billion in 4Q 2015, 18.4% lower as compared with 3Q 2015

  • FY 2015 steel shipments of 84.6Mt (-0.6% YoY); 4Q 2015 steel shipments of 19.7Mt down -6.8% versus 4Q 2014
  • FY 2015 iron ore shipments of 62.4Mt (-2.0% YoY), of which 40.3Mt shipped at market prices (+1.4% YoY); 4Q 2015 iron ore shipments of 15.6Mt (-4.2% YoY), of which 9.9Mt shipped at market prices (-0.5% YoY)
  • FY 2015 iron ore unit cash costs reduced by 20% YoY, exceeding the 15% target for 2015

Outlook and guidance:

  •  As indicated at 3Q 2015 results, a combination of Company actions and known developments is expected to support EBITDA in 2016 by $1.0 billion relative to the 4Q 2015 annual run-rate level.
  • Due to order book and the time lag required for lower raw material costs to positively impact cost of sales, EBITDA is expected to sequentially decline in 1Q 2016. Based on the assumption of prevailing raw material costs and spot steel spreads, the Company expects FY 2016 EBITDA to be in excess of $4.5 billion.
  • This guidance does not capture any upside to current market conditions.

Confirms Captial raise

  • Co confirmed a proposed capital raise of $3.0 billion which, alongside the sale of its minority stake in Gestamp for ~$1 billion (also announced today), would reduce pro forma net debt as of 31 December 2015 by $4 billion to below $12 billion.

4:28 am Julius Baer announces settlement with DOJ (JBAXY) :

Co announced that it has reached a final settlement with the DOJ in connection with its legacy U.S. cross-border private banking business.

  • This settlement is the result of Julius Baer's proactive and long-standing cooperation with the DOJ's investigation. The two Julius Baer employees indicted in this context in 2011 have also taken an important step towards a resolution of their cases.
  • Julius Baer has entered into a Deferred Prosecution Agreement pursuant to which it will pay $547.25 million. In anticipation of the final resolution, the Group had already taken provisions in June and December 2015, totalling this amount, and booked them to its 2015 results

3:39 am Align Tech announces Invisalign System now available commercially in India (ALGN) :

Co announced that the Invisalign system is now commercially available in India and that the Company has shipped its first Invisalign cases to Indian orthodontists.

  • Align is offering a comprehensive range of products including Invisalign Full, Invisalign Teen, and Invisalign Lite clear aligners, as well as Vivera Retainers for post treatment retention to Invisalign-trained orthodontists.
  • India is estimated to have nearly half a million new orthodontic case starts each year, with the total number of annual case starts expected to double by 2019.

3:36 am Weyerhaeuser beats by $0.11, beats on revs (WY) :

  • Reports Q4 (Dec) earnings of $0.35 per share, $0.11 better than the Capital IQ Consensus of $0.24; revenues rose 1.8% year/year to $1.82 bln vs the $1.73 bln Capital IQ Consensus.
  • 1Q 2016 Outlook -
    • Timberlands: Co expects comparable earnings from the Timberlands segment in the first quarter. In the West, the company expects higher log sales volumes and average realizations. In the South, the company anticipates seasonally lower fee harvest volumes and slightly decreased average log sales realizations due to mix. The company expects lower earnings from the disposition of nonstrategic timberlands in first quarter 2016 compared with fourth quarter 2015.
    • Wood Products: Co expects higher earnings from the Wood Products segment in the first quarter. The company expects moderately higher average sales realizations for lumber and increased production volumes across all product lines.
    • Cellulose Fibers: Co expects significantly lower earnings from the Cellulose Fibers segment in the first quarter. The company anticipates decreased average sales realizations for pulp, seasonally lower pulp sales volumes, and additional maintenance expense due to a scheduled outage at the company's liquid packaging board facility.

3:30 am IDEX Corp acquires Akron Brass for $224.2 mln (IEX) :

Co announced that that it has entered into a definitive agreement to acquire Akron Brass, an indirect wholly-owned subsidiary of Premier Farnell, for a cash consideration of $224.2 million, subject to customary adjustments.

  • Operating under the Akron Brass and Weldon brand names, the Company produces a large array of engineered life-safety products for the safety and emergency response markets, including apparatus valves, monitors, nozzles, specialty lighting, electronic vehicle-control systems and firefighting hand tools.
  • Akron Brass had revenues of ~$120 million for the trailing twelve months ended December 31, 2015 and will operate within the IDEX Fire and Safety/Diversified Products segment.

3:28 am Novogen appoints John O'Connor as new Chairman (NVGN) :

Co announces the appointment of a new Chairman, John O'Connor, and new Deputy Chairman, Bryce Carmine, effective immediately.

  • Incoming CEO, Dr James Garner, has also been formally appointed to the Board as an Executive Director and former Acting CEO, Mr Iain Ross, will resume his role on the Board as a Non-Executive Director.
  • O'Connor has been Deputy Chairman since 2014 and takes over from Ian Phillips MNZM who was appointed Interim Chairman in July 2015.

3:16 am United Micro reports Jan sales declined 6.8% YoY to NT$12.0 bln (UMC) :  

3:02 am Praxair prices offering of 550 mln of 1.20% notes due 2024 and $275 mln 3.20% notes due 2026 (PX) :  

2:57 am Quotient prices 4,444,445 of ordinary shares at $9.00 per share. (QTNT) :  

2:54 am On The Wires (:WIRES) :

  • Diebold, (DBD) announced it has commenced the voluntary public takeover offer for all no-par value bearer shares of Wincor Nixdorf Aktiengesellschaft. The German Federal Financial Supervisory Authority approved the publication of the German offer document.
  • SJW Corp. (SJW) announced that San Jose Water Company, its wholly owned subsidiary, along with three other California water utilities received a letter dated February 1, 2016 from the Executive Director of the California Public Utilities Commission granting the Joint Parties' request to postpone their scheduled Cost of Capital filings to March 31, 2017.

2:48 am Sensient appoints CEO Paul Manning as Chairman (SXT) :

  • Paul Manning is succeeding Kenneth Manning, who will be retiring from the Board of Directors in April.

2:14 am Hess prices offerings of 25 mln shares of common stock at $39.00 per share, and 10 mln depositary shares of its 8.00% Series A Mandatory Convertible Preferred Stock (HES) :  

2:13 am Charter Comm prices offering of offring of $1.7 bln of senior unsecured notes due 2024 (CHTR) :  

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