InPlay from Briefing.com

Briefing.com

12:56 pm Midday Market Summary: Industrials Lead (:WRAPX) : The major averages hover near their highs at midday with the Dow (+0.6%) and S&P 500 (+0.5%) trading well ahead of the Nasdaq Composite (+0.2%) prior to the 14:00 ET release of the latest policy directive from the Federal Open Market Committee.  

Although the Fed is not expected to rock the interest rate boat this time around, investors will comb through the statement in search of clues about the expected rate path going forward. Treasuries have spent the day in a steady retreat, sending the 10-yr yield higher by four basis points to 2.29%.

Meanwhile, nine of ten sectors hold midday gains with five of six cyclical sectors trading ahead of the broader market. Most notably, the industrial sector (+1.0%) has been boosted by transport stocks, evidenced by a 1.4% spike in the Dow Jones Transportation Average. The bellwether complex is now up 4.0% for the week with today's move paced by C.H. Robinson (CHRW 70.50, +3.77) after the company beat bottom-line estimates on light revenue.

Elsewhere among cyclical groups, consumer discretionary (+0.7%) and financials (+0.7%) outperform while the top-weighted technology sector (+0.3%) has struggled to keep pace since the start. Large cap tech names like Apple (AAPL 122.52, -0.86), Google (GOOGL 654.92, -4.74), and Qualcomm (QCOM 63.06, -0.04) show losses between 0.1% and 0.8% while Twitter (TWTR 31.69, -4.85) has tumbled 13.3% after the company's bottom-line beat was overshadowed by cautious commentary regarding user growth outlook.

In other earnings of note, Gilead Sciences (GILD 116.32, +3.25) has jumped 2.9% in reaction to better than expected results, but the biotech group has slipped into the red with iShares Nasdaq Biotechnology ETF (IBB 377.08, -5.76) trading lower by 1.5%. For its part, the broader health care sector (+0.2%) has retreated from its early high.

On the downside, the utilities sector (-0.4%) hovers in the red as higher yields reduce the relative attractiveness of utilities even though Exelon (EXC 31.00, 0.00), PG&E (PCG 52.04, -0.24), and Southern (SO 43.26, -0.27) reported better than expected earnings.

Economic data released this morning was limited to the MBA Mortgage Index and Pending Home Sales:

  • The weekly MBA Mortgage Index rose 0.8% to follow last week's 0.1% uptick 
  • Pending home sales for June fell 1.8% while the Briefing.com consensus expected an increase of 1.0%

12:40 pm Enviva Partners declares an initial distribution of $0.263/unit (EVA) : The distribution represents the prorated amount of the Partnership's minimum quarterly distribution of $0.4125 per unit

12:39 pm Stock indices edge back slightly off highs in midday trade -- Dow +95, S&P +9, Nasdaq Comp +6.7 (:TECHX) :  

12:31 pm Wingstop (+6%) near all time highs following well received results from Buffalo Wild Wings (BWLD), up 13%, near all time highs (WING) :

  • WING will report its first public quarter next Thursday afternoon (Aug 6). 
  • Note is a carryout/delivery restaurant whereas BWLD is also a bar.

12:21 pm Republic Airways (+55%) surges after falling 60% in the prior two sessoins as ongoing labor disputes with pilot union disrupt operations (RJET) :  

12:19 pm Luxottica and Burberry (BURBY) renew exclusive license agreement for development, production and worldwide distribution of sunglasses and prescription frames under the Burberry name (LUX) : The 10-year agreement will extend to December 31, 2025.

12:14 pm NCI awarded a firm-fixed-price contract valued at $9.4 mln to provide IT services in support of the Network Enterprise Center at Fort Benning, Georgia (NCIT) :  

12:10 pm Cardiome Pharma increases the size of its previously announced bought deal financing to $20 mln (CRME) : In connection with the Offering, the Company has entered into an underwriting agreement with a syndicate of underwriters who have agreed to purchase, on a bought deal basis, 2,500,000 common shares from the treasury of the Company at a price of $8.00 per share for gross proceeds of $20.0 million.

12:08 pm Marathon Petroleum increases quarterly dividend 28% to $0.32/share from $0.25/share (MPC) :  

12:05 pm Treasury Auction Preview (BONDX) : Auction Preview

  • $35 bln 5-year note auction:
    • Prior auction results:
      • High yield: 1.71%
      • Bid-to-cover: 2.39
      • Indirect bid: 57.2%
      • Direct bid: 5.56%
    • Prior 12-auction average results:
      • High yield: 1.57%
      • Bid-to-cover: 2.55
      • Indirect bid: 56.5%
      • Direct bid: 9.7%

12:05 pm Yahoo! introduces Yahoo Livetext, a new app for one-to-one live video texting on iPhone and Android phones (YHOO) :  

12:02 pm Middleburg Financial increases quarterly dividend to $0.13 from $0.10/share (MBRG) :  

11:51 am European Markets Closing Prices (:SUMRX) : European markets are now closed; stock markets across Europe performed as follows:

  • UK's FTSE:+1.2%
  • Germany's DAX:+0.3%
  • France's CAC:+0.8%
  • Spain's IBEX:+0.2%
  • Portugal's PSI:+0.7%
  • Italy's MIB Index:-0.3%
  • Irish Ovrl Index:+0.7%
  • Greece ASE General Index: CLOSED

11:44 am Nasdaq Comp +15 finally joins Dow +114 and S&P +12 above opening highs (:TECHX) :  

11:42 am Splunk down 4% in sympathy with Tableau (DATA) following earnings (SPLK) : Splunk (SPLK) is down 4% as big data/growth peer Tableau (DATA) is down 20% following another beat and raise quarter. While results beat sell side estimates, DATA appears to be the latest victim of elevated expectations (re: AAPL), slowing growth and more modest upside.

  • SPLK will report earnings at the end of August.

11:40 am Stocks/ETFs that traded to new 52 week highs/lows this session - New lows (145) outpacing new highs (86) (:SCANX) : Stocks that traded to 52 week highs: AAP, AF, AFG, AGN, AIZ, ALGT, ALLE, AMED, AMWD, ASBB, ATRC, BCS, BDX, BEAT, BECN, BF.A, BF.B, CHE, CLS, CMG, CSRE, CTLT, CTXS, CVS, CYT, DCM, DVAX, EEFT, EW, FBC, FCFP, GD, GIG, GMED, GPN, GWB, HQY, HSIC, ICCC, ICLR, JAH, LMAT, LMT, LOB, MAS, MD, MDLZ, MMI, MMU, MNST, NOC, NTT, NUVA, OMAB, ORI, PFBC, PFE, PGND, PLL, PNRA, PPBI, PUB, Q, RAI, RGR, ROL, RSG, SGU, SHPG, SPR, STON, SUPN, TANH, TECH, TFX, THW, TOWN, TSS, UA, ULTI, VNTV, VRSK, WBA, WOOF, WWAV, XON

Stocks that traded to 52 week lows: ACI, ACP, AGYS, AI, AIQ, AMBR, APIC, APOL, ARMF, ARO, ASX, ATE, AU, AUO, BANX, BASI, BBDO, BBOX, BCA, BDC, BGI, BIOA, BTH, BUFF, CAP, CCCR, CHCI, CMLS, CRD.A, CYBE, CYD, DAEG, DOM, DRD, DTEA, ENG, ENI, EOX, EVA, EXAR, FAX, FLDM, FOR, FREE, FSTR, FT, GCA, GHM, GOV, GULTU, HART, HDNG, HERO, HMSY, HRZN, HSGX, IMOS, INVE, ISD, JASN, JCS, JGH, JMM, KBIO, KCAP, KFS, KOOL, LALT, LF, LSCC, MGRC, MHE, MHF, MXC, MXF, NADL, NETE, NIHD, NSA, NSLP, NVET, NVTA, NXRT, OFC, OIS, PCTI, PDVW, POT, PRSN, PSEC, PSUN, PTX, PVA, QDEL, QUAD, RAS, RBCN, RNN, RRC, RWC, SBGL, SFXE, SLCA, SMT, SNH, SNR, SPAR, SPIL, SRI, STWD, SWSH, SYX, TAC, TGC, THTI, TLN, TNGO, TORM, TRST, TWIN, TWN, TWTR, UFPT, UIS, UNVR, UNXL, URG, VHI, VIAVV, VMM, VPCO, VRS, VSCP, WAVX, WEA, WGBS, WIA, WIW, WLFC, WOWO, WSR, WTI, XPL, YELP, YPRO

ETFs that traded to 52 week highs: IYK, XLP

ETFs that traded to 52 week lows: ECH

11:25 am Relative sector strength (:TECHX) : Crude Oil USO, Energy XLE and Oil Service OIH have continued to pace the way along with Telecom IYZ, Industrial XLI and Materials XLB. Seeing some relative strength in early lagging Bank KBE, Reg Bank KRE, Finance XLF in recent trade as well.

11:22 am Steady climb to new highs for Dow +105 and S&P +11 continues, Nasdaq Comp +10 again working toward its opening peak (:TECHX) :  

11:19 am Currency Commentary: Fed Day (:SUMRX) :

  • The Dollar Index is holding steady as we prepare for today's Fed announcement. The DXY has been trading in the 96.49-96.88 area. The Fed is not expected to make any moves today but markets will be closely following the commentary for clues on the next direction. The economy, inflation, and jobs will all be in focus. Any hint of a more hawkish Fed will lead to higher expectations of a September rate hike. So far economists are on board but markets are still pointing toward only a 20% chance of a hike. The Fed will try to keep the comment as unambiguous as possible so that it can remain data dependent.
  • The euro is coming under some early selling pressure ahead of the event as it prepares to test 1.10 for support. The euro is simply taking its lead from the dollar at the moment. The market will be paying close attention though in case a more dovish Fed fails to inspire buying in the single currency. This could lead to further downward momentum in the euro. 
  • The pound is under some intense pressure to start off the session. Sterling was trading at 1.5690 but once again failed to break above 1.57 resistance. This has led to steady selling over the past hour. Cable has dropped a quick 50 pips. 
  • The yen has been sliding lower in early trade here but remains in that 123-124 area. Yen has stayed in the 123 area for the entire week (BONDX, FOREX).

11:10 am Canadian Pacific reaches five-year tentative agreement with the Brotherhood of Railway Carmen (CP) : The BRC represents employees on its wholly owned subsidiary, Soo Line Railroad Company. Full details of the tentative agreement are being withheld pending ratification by the BRC membership.

11:09 am Sprint announces new Family Share Pack plans; Options for Unlmtd talk, text, 10GB data for $100/month (S) : Sprint release w/pricing details 

10:59 am Relative sector weakness (:TECHX) : Sectors that are underperforming the S&P on a relative basis in recent action include: Biotech IBB, Bank KBE, Utility XLU, Pharma PPH, Networking IGN.

10:56 am Dow +85 and S&P +9 continue to extend, Nasdaq Comp +10 hovering below its opening high (:TECHX) : Oil Service OIH, Energy XLE, Transports IYT, Rail, Airline JETS, Trucking, Industrial XLI, Coal KOL, Steel SLX are displaying relative strength vs. the S&P.

10:44 am Fresh highs for S&P +8 and Dow +77 -- Nasdaq Comp +9 still hovering below opening high (:TECHX) :  

10:32 am Relative sector strength (:TECHX) : Sectors displaying relative strength in recent trade include: Crude Oil USO, Energy XLE, Oil Service OIH.

10:31 am Span-America Medical increases its quarterly dividend to $0.16/share, up from $0.15/share (SPAN) :  

10:24 am S&P +5.3 extends near its 50 sma at 2100 -- session high 2099.52 (:TECHX) : The Dow +53 is vacillating near its 200 ema at 17681.

10:22 am Dow +58 and S&P +6 push to new session highs -- Nasdaq Comp has edged off its low +5.9 (:TECHX) : Watching to see if Nasdaq Comp can confirm the new high on this move.

10:17 am KaloBios Pharma regains compliance with the Nasdaq minimum price bid requirement (KBIO) :  

10:06 am iShares DJ Transports ETF displaying relative strength, probing 50 day again (IYT) : The Transports have underperformed the overall market most of the year with a steady downtrend developing off early year highs. Each of the recovery attempts (April, May, June, July) flirted with the 50 day averages and faltered. This morning the Transports have outperformed with it back probing the 50 day averages (Click for chart). Trucking +3.4% is outperforming within the sector. 

10:02 am Box hires Paul Chapman as its new Chief Information Officer (BOX) : Chapman was most recently the CIO of HP Software for Hewlett-Packard Company (HPQ).

9:56 am Bel Fuse reported Q2 adj. EPS $0.55 vs $0.46 Capital IQ two est avg; revs +47% to $145.7 mln vs $149.43 mln Capital IQ two est avg (BELFB) :  

9:55 am Relative sector weakness (:TECHX) : Sectors that have underperformed the S&P in recent trade include: Internet FDN, Semi SMH, Technology XLK, Software IGV, Fiance XLF, Bank KBE, Reg Bank KRE, Telecom IYZ, Gold GLD, Silver XLV, Crude Oil USO, REITs IYR,

9:51 am Stock indices slip off highs with Nasdaq Comp -3 the first to reach negative territory-- Dow +16, S&P +1 (:TECHX) :  

9:38 am Opening Market Summary: Health Care Sector Paces Opening Advance (:WRAPX) : Equity indices began the trading day with modest gains. The Dow, Nasdaq, and S&P 500 all show gains close to 0.2% apiece as seven of ten sectors trade in the green.

The telecom services sector (+0.7%) leads, but more notably the heavily-weighted health care sector (+0.6%) trades well ahead of the broader market thanks to gains among biotechnology names.

Elsewhere among cyclical sectors, consumer discretionary (+0.2%) and industrials (+0.1%) also trade ahead of the broader market while financials (unch) and technology (-0.1%) lag.

The Pending Home Sales report will be released at 10:00 ET (Briefing.com consensus 1.0%).

9:38 am Early sector leadership (:TECHX) : The sectors that have outperformed in early trade include: Materials XLB, Defense PPA, Casino BJK, Trucking, Networking, Steel SLX, Mining XME, Solar TAN, Restaurant, Retail XRT, Pharma PPH.

9:38 am PartnerRe: Exor (EXOSF) says that proxy firm Proxy Mosaic recommends PRE shareholders vote against the Axis Capital (AXS) transaction (PRE) :  

9:36 am Mildly firmer tone off the open for the major averages with Nasdaq pacing the way -- Nasdaq Comp +9.3, Dow +17, S&P +2 (:TECHX) :  

9:29 am Netflix and Telecom Italia (TI) partner to deliver easy access to Netflix to TI's customers directly on the TIMvision set-top box (NFLX) :  

9:29 am On the Wires (:WIRES) :

  • Wipro Limited (WIT) announced that it has been selected by DSM, as its strategic IT partner to provide Workplace Services
  • Honeywell Aerospace (HON) has signed a contract with Turkish airline SunExpress to supply the company's latest cockpit technologies for its first delivery of newly purchased Boeing (BA) 737-800 airplanes
  • Pulmatrix (PULM) will webcast an investor presentation on August 6th. As part of the presentation, the co will review its strategic plan and provide an update on the co's pipeline of inhaled therapeutics based on their proprietary iSPERSE inhaled dry powder technology
  • AudioCodes (AUDC) announced that Netia, Poland's second-largest fixed-line operator, has selected AudioCodes One Box 365 to enable hosted unified communications with Skype for Business turn-key solutions for its business customers
  • Maxim Integrated Products (MXIM) has collaborated with NVIDIA (NVDA) to enable the analog blocks on automotive infotainment and advanced driver assistance systems, for NVIDIA's DRIVE CX and PX platforms
  • Blue Earth (BBLU) announced that David Prezioso has joined the Company as CEO of Blue Earth Combined Heat and Power. That unit will be opening offices in the Atlanta and Chicago areas

9:15 am S&P futures vs fair value: +1.60. Nasdaq futures vs fair value: +6.90. (:WRAPX) : The stock market is on track for a flat open as futures on the S&P 500 trade within two points of fair value. Index futures held modest gains during early morning action after China's Shanghai Composite spiked 3.4%, but the futures market has retreated not long ago in a move that coincided with European indices slipping from their highs.

Yesterday, the S&P 500 rallied throughout the day, hitting a session high just above its 50-day moving average (2,095). Ultimately, the benchmark index settled two points below that mark and the 50-day average is likely to come into focus today as well.

Investors have received another batch of earnings since yesterday's close with Gilead Sciences (GILD 117.33, +4.26) up 3.8% in pre-market after beating bottom-line estimates on a 25.8% spike in year-over-year revenue. Elsewhere, Twitter (TWTR 32.35, -4.19) is on track to open lower by 11.5% after the company's cautious comments about expected user growth overshadowed a bottom-line beat.

Treasuries hover in the red, but they have inched up off their lows with the 10-yr yield higher by two basis points at 2.27%.

The Pending Home Sales report will be released at 10:00 ET (Briefing.com consensus 1.0%) while the latest policy directive from the FOMC will be released at 14:00 ET.

9:05 am Cullen/Frost misses by $0.01 (CFR) : Reports Q2 (Jun) earnings of $1.11 per share, $0.01 worse than the Capital IQ Consensus Estimate of $1.12. 

  • "Even with the lingering slowdown in the energy sector and a highly competitive lending environment, we increased average loans over the same quarter last year by double digits." 
  • The net interest margin was 3.47% for the second quarter, a six basis point increase from the 3.41 reported in the first quarter of 2015.

9:02 am Capitol Federal reports Q3 EPS of $0.14 vs $0.14 Capital IQ Consensus Estimate; NIM 1.71% (2.05%, excluding effects of daily leverage strategy) (CFFN) :

9:01 am Sysorex Global announces that Hearst Corporation has signed a three-year renewal for Sysorex's Shoom eTearsheets (SYRX) :  

9:01 am Ryerson enters into a new $1 billion credit facility (RYI) : Co announced today that it entered into a new $1 billion credit facility secured primarily by the inventory and accounts receivables of the company's U.S. and Canadian operating subsidiaries, replacing its previous credit facility.

  • Co has used the new facility to repay its previous facility and intends to use the new facility for general corporate purposes, which may include working capital needs, capital expenditures, funding of possible acquisitions, and satisfaction of other obligations of the company. 
  • The new credit facility has a maturity date of the earlier of July 24, 2020 or 60 days prior to the stated maturity of any outstanding indebtedness with a principal amount of $50 million or more. 
    • Under the new agreement, the total credit facility size was reduced to $1 billion and the interest rate on current outstanding borrowings decreased 50 basis points.

9:01 am Cullen/Frost announces that Chairman and CEO Dick Evans will retire effective March 31, 2016; will name President Phillip Green as new CEO (CFR) : At that time, Cullen/Frost President Phillip D. Green will become chairman and CEO and will replace Evans on the Cullen/Frost board of directors.

9:00 am U.S. Concrete announces that CFO William Brown will step down from his position, effective August 25, 2015 (USCR) : Brown has accepted the position of chief financial officer with an international building products company based in the Dallas, Texas area. A national search for a new chief financial officer has already been initiated

8:59 am S&P futures vs fair value: +0.90. Nasdaq futures vs fair value: +5.20. (:WRAPX) : The S&P 500 futures trade one point above fair value.

Markets in the Asia-Pacific region were mostly higher on Wednesday, none more so than China's Shanghai Composite (+3.4%), which flirted with another day of losses before a late-day rally turned the tide of negative sentiment. Wall Street's positive showing on Tuesday and the reversal in the Chinese equity market helped underpin some of Wednesday's buying interest.

  • In economic data: 
    • Japan's June Retail Sales +0.9% year-over-year (expected 0.5%; prior 3.0%)
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  • Japan's Nikkei declined 0.1%, held back by losses in the industrials (-4.0%) and technology (-1.3%) sectors, which flowed out of profit warnings from Fanuc (-10.7%) and Tokyo Electron (-11.4%). Those two stocks were the worst-performing issues. NTT Data (+3.5%), Nippon Electric Glass (+3.5%), and Shiseido (+3.1%) paced the winners. Out of the 225 index members, 134 ended higher, 82 finished lower, and 9 were unchanged. 
  • Hong Kong's Hang Seng increased 0.5%, pushing higher in its afternoon session in conjunction with a rebound in mainland markets. Index gains were led by Kunlun Energy (+4.1%), China Merchants Holdings International (+3.5%), and PetroChina (+2.8%). Top laggards included China Mengniu Dairy (-1.9%), Tencent Holdings (-1.4%), and Ping An Insurance (-1.1%). Out of the 50 index members, 28 ended higher, 18 finished lower, and 4 were unchanged. 
  • China's Shanghai Composite increased 3.4%, capturing all of its gains in a closing rally that began with about 90 minutes left in its trading day. There was no specific news catalyst for the spike, which reports attributed mostly to the thinking among market participants that the government will continue to support equity prices. The CSI 300 Index for its part gained 3.1%. 
Major European indices have retreated from their best levels of the day, but they remain mostly higher while Italy's MIB (-1.2%) underperforms. European Economic and Monetary Affairs Commissioner Pierre Moscovici said that the risk of a Greek exit from the Eurozone has diminished and that negotiations on the third bailout package have gotten off to a good start.
  • Participants received several data points: 
    • Germany's August GfK Consumer Climate held at 10.1, as expected 
    • UK's June BoE Consumer Credit GPB1.22 billion (expected GBP1.10 billion; prior GBP1.06 billion) while June Mortgage Approvals hit 66,580 (expected 66,000; prior 64,830). Separately, July CBI Distributive Trades Survey fell to 21 from 29 (expected 30) 
    • France's July Consumer Confidence ticked down to 93 from 94 (expected 94) 
    • Spain's June Retail Sales +2.3% year-over-year (consensus 3.3%; prior 3.1%) 
    • Swiss June Consumption Indicator inched up to 1.68 from 1.62 (expected 2.50) 
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  • UK's FTSE trades higher by 0.7% with health care and consumer names in the lead. Hikma Pharmaceuticals has spiked 3.4% while British American Tobacco and Imperial Tobacco hold respective gains of 3.0% and 2.0%. On the downside, miners lag with Antofagasta, BHP Billiton, and Glencore down between 0.1% and 2.1%. 
  • In France, the CAC has narrowed its gain to 0.1%. Peugeot remains in the lead, trading higher by 6.2% after beating earnings expectations. Meanwhile, financials lag with BNP Paribas and Credit Agricole both down near 1.2%. 
  • Germany's DAX has returned to its flat line even though Bayer trades up 4.5% after reporting better than expected results. Peer Merck trades higher by 2.0% while exporters lag. BMW, Daimler, and Volkswagen are down between 0.4% and 3.0%. 
  • Italy's MIB underperforms with a loss of 1.2%. Saipem is the weakest performer, down 6.7%, after lowering its guidance and announcing plans to cut jobs. Elsewhere, Unicredit, UBI Banca, BMPS, and Intesa Sanpaolo show losses between 1.0% and 3.2%.

8:57 am On the Wires (:WIRES) :

  • NetSol Technologies (NTWK) announced that the China subsidiary of an international construction equipment leasing company implemented the NetSol Financial Suite Contract Management System application. The implementation, including customization, was valued at ~$1 million and was completed in less than 90 days
  • Clean Diesel Technologies (CDTI) announced it has hired Eric Bippus as Executive Vice President of Sales and Marketing
  • Kennedy Wilson (KW) announced that the company and its equity partners have, in an off-market transaction, acquired Slate Creek at Johnson Ranch, a 612-unit apartment community located in Roseville, California, for $100 million. Co invested $38.5 million of equity in the transaction (inclusive of closing costs), of which the company's initial share is ~ 12.5%. As part of the transaction, the company and its equity partners assumed $63 million of debt
  • The Spectranetics Corporation (SPNC) announced it has completed enrollment of 300 subjects in the ILLUMENATE Pivotal clinical study, a prospective, randomized controlled, multicenter study designed to assess the clinical performance of the Stellarex drug-coated angioplasty balloon. Enrollment is now complete for all five studies in the ILLUMENATE series of clinical studies.
  • State Street Corporation (STT) announced that it has named Lou Maiuri to head its Global Exchange business
  • Inovio Pharmaceuticals (INO) announced that its DNA-based monoclonal antibody, targeting dengue virus provided protection against a lethal dengue virus challenge in mice, as shown in a A paper: "Protection against dengue disease by synthetic nucleic acid antibody prophylaxis/immunotherapy" published in Scientific Reports, a Nature Publishing Group journal
  • Denison Mines Corp (DNN) reported the completion of the definition drilling component of the summer exploration program at the Gryphon Zone on the Wheeler River property, and the discovery of uranium mineralization at the Murphy Lake property

8:57 am Mannkind announces an exchange agreement, with holders of its 5.75% Senior Convertible Notes due 2015 (MNKD) : Co announced that it has entered into separate, privately-negotiated exchange agreements with select holders of its existing 5.75% Senior Convertible Notes due 2015  to exchange up to an aggregate principal amount of $84.6 million of the 2015 notes.

  • Pursuant to the exchange agreements with certain holders, the Company has agreed to issue new 5.75% Senior Subordinated Convertible Notes due 2018 in the aggregate principal amount of $27.7 million in exchange for the same aggregate principal amount of 2015 notes.
  • The Company has agreed to issue shares of its common stock in exchange for up to $56.9 million aggregate principal amount of 2015 notes. 
    • The 2018 notes will be convertible into shares of MannKind's common stock at a conversion rate of 147.0859 shares per $1,000 principal amount of 2018 notes, which is equal to a conversion price of ~ $6.80 per share

8:53 am Community Trust Bancorp increases its quarterly cash dividend by 3.3%, to $0.31/share (CTBI) :  

8:42 am European Markets Update: FTSE +0.7%, CAC +0.1%, DAX UNCH, MIB -0.9% (:SUMRX) : Major European indices have retreated from their best levels of the day, but they remain mostly higher while Italy's MIB (-0.9%) underperforms. European Economic and Monetary Affairs Commissioner Pierre Moscovici said that the risk of a Greek exit from the Eurozone has diminished and that negotiations on the third bailout package have gotten off to a good start.

  • Participants received several data points: 
    • Germany's August GfK Consumer Climate held at 10.1, as expected 
    • UK's June BoE Consumer Credit GPB1.22 billion (expected GBP1.10 billion; prior GBP1.06 billion) while June Mortgage Approvals hit 66,580 (expected 66,000; prior 64,830). Separately, July CBI Distributive Trades Survey fell to 21 from 29 (expected 30) 
    • France's July Consumer Confidence ticked down to 93 from 94 (expected 94) 
    • Spain's June Retail Sales +2.3% year-over-year (consensus 3.3%; prior 3.1%) 
    • Swiss June Consumption Indicator inched up to 1.68 from 1.62 (expected 2.50) 
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  • UK's FTSE trades higher by 0.7% with health care and consumer names in the lead. Hikma Pharmaceuticals has spiked 3.4% while British American Tobacco and Imperial Tobacco hold respective gains of 3.0% and 2.0%. On the downside, miners lag with Antofagasta, BHP Billiton, and Glencore down between 0.1% and 2.1%. 
  • In France, the CAC has narrowed its gain to 0.1%. Peugeot remains in the lead, trading higher by 6.2% after beating earnings expectations. Meanwhile, financials lag with BNP Paribas and Credit Agricole both down near 1.2%. 
  • Germany's DAX has returned to its flat line even though Bayer trades up 4.5% after reporting better than expected results. Peer Merck trades higher by 2.0% while exporters lag. BMW, Daimler, and Volkswagen are down between 0.4% and 3.0%. 
  • Italy's MIB underperforms with a loss of 0.9%. Saipem is the weakest performer, down 6.7%, after lowering its guidance and announcing plans to cut jobs. Elsewhere, Unicredit, UBI Banca, BMPS, and Intesa Sanpaolo show losses between 1.0% and 3.2%.

8:41 am Suffolk Bancorp announces a quarterly cash dividend of $0.10/share, up from $0.06/share prior (SUBK) :  

8:37 am Hudson City Banc beats by $0.06 -- merging with M&T (MTB) (HCBK) : Reports Q2 (Jun) earnings of $0.07 per share, $0.06 better than the Capital IQ Consensus Estimate of $0.01. 

  • Net income for the first six months of 2015 reflects the continued decrease in the Company's net interest margin that is the result of our elevated level of low-yielding, short-term, liquid assets combined with our high-cost borrowings. Over the last several quarters, we have managed our balance sheet on a dual-track strategy which includes the implementation of our strategic plan initiatives and preparing for the completion of the merger with M&T Bank Corporation (the "Merger"). The operational core of the strategic plan includes the expansion of our loan and deposit product offerings over time and the diversification of our revenue sources.

8:36 am Avery Dennison beats by $0.04, reports revs in-line; reaffirms FY15 EPS in-line (AVY) : Reports Q2 (Jun) earnings of $0.91 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus Estimate of $0.87; revenues fell 6.2% year/year to $1.52 bln vs the $1.52 bln consensus.

  • Sales were up 4% on an organic basis, as exceptional performance in Pressure-sensitive Materials offset a decline in Retail Branding and Information Solutions. Despite the headwind from currency translation, we delivered mid-teens growth in adjusted earnings per share, continued to expand adjusted operating margin, and generated significantly higher cash flow compared to last year. "Pressure-sensitive Materials delivered great results through the consistent execution of our strategy, leveraging our scale and strengths in innovation, quality, and service across the entire portfolio," Scarborough added. "Results in Retail Branding and Information Solutions were disappointing. Actions are underway to build a better foundation for long-term profitable growth and value creation in all segments of this business." 
  • Co reaffirms guidance for FY15, sees EPS of $3.25-3.45, excluding non-recurring items, vs. $3.34 Capital IQ Consensus Estimate.

8:35 am New Source Energy announces that the Board of its General Partner has decided to suspend the cash distribution on common units (NSLP) : "The continued low commodity price environment coupled with current market conditions have led the Board of Directors to suspend the cash distribution on our common units. Preservation of this capital allows the Partnership to focus on executing our plan to restructure the business and position the Partnership for growth. We will continue to analyze accretive acquisitions to grow the E&P business while we explore the best opportunity to execute our restructuring plan to deliver value to our unitholders via a potential monetization or spin-out of our OFS business."

8:35 am Gapping down (:SCANX) : Gapping down
In reaction to disappointing earnings/guidance
: YELP -20.4%, DATA -12.4%, VDSI -10.2%, GIGA -9.8%, TWTR -9.8%, AKAM -9%, ATML -6.4%, MDCO -5.3%, BBOX -5.1%, SLCA -5%, CNHI -4.7%, CG -3.9%, IPHI -3.1%, DORM -2.7%, BDC -2.6%, MA -2.3%, HA -1.7%, AFL -1.7%, GTI -1.6%, CBZ -1.4%, RES -1.3%, GIB -1.2%, DXYN -1.1%, Q -1%, ETN -0.9%, LVLT -0.8%, SNCR -0.6%, SPWR -0.5%, EW -0.5%


Other news: SFY -13.7% ( Retains Lazard to Advise as to Strategic Alternatives Related to Its Capital Structure ), ZGNX -4.2% ( announces a public offering of 3.8 mln common stock shares), PPP -2.2% (reported a fatal accident involving an employee at its San Dimas mine in Mexico; normal operations continue as co and local authorities investigate the incident), V -1% (in symp with MA results) 

Analyst comments: MDXG -1.6% (downgraded to Buy at Needham), POT -0.7% (downgraded to Mkt Perform from Outperform at Raymond James ), ADM -0.5% (downgraded to Neutral from Buy at Citigroup)

8:35 am UPS announces agreements for up to 46 mln gallons of renewable fuels over the next three years (UPS) :

  • Co announced agreements for up to 46 mln gallons of renewable fuels over the next three years, constituting a 15-fold increase over prior contracts and making UPS one of the largest users of renewable diesel in the world.
  • The agreements with three leading suppliers of renewable fuels, secure access to an advanced renewable diesel fuel in order to meet the company's objectives for alternative fuel utilization. Neste, Renewable Energy Group (REGI) and Solazyme (SZYM) will supply renewable diesel to UPS to help facilitate the company's shift to move more than 12% of its purchased ground fuel from conventional diesel and gasoline fuel to alternative fuels by the end of 2017
  • UPS has previously announced a goal of driving one billion miles with our alternative fuel and advanced technology vehicles by the end of 2017.

8:34 am Boingo Wireless has been selected by Deutsche Telekom (DTEGY) for global Wi-Fi roaming services (WIFI) : Cos announced a global roaming agreement benefitting Deutsche Telekom business customers. Under the agreement, Boingo's network of hotpots will now be available to Deutsche Telekom's business customers in more than 50 countries. 

8:33 am CDK Global Correction: Misses Q4 estimates; guides FY16 below consensus (CDK) : Reports Q4 (Jun) earnings of $0.28 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus of $0.29; revenues fell 0.5% year/year to $503.1 mln vs the $520.29 mln consensus.

  • Co issues downside guidance for FY15, sees EPS +25% to over $1.61 vs. $1.66 Capital IQ Consensus; sees FY15 revenue growth of 4-5% or roughly $2.098-2.12 bln vs. $2.21 bln Capital IQ Consensus Estimate.
  • Earlier we compared FY16 guidance to FY15 consensus -- that comment has been removed.

8:33 am MBIA announces a repurchase authorization for $100 mln of common stock; terminates prior $61 mln facility (MBI) : The prior authorization had approximately $61 million of unused capacity at the time it was terminated.

8:33 am Gapping up (:SCANX) : Gapping up
In reaction to strong earnings/guidance
: NHTC +23.7%, ( increases dividend by 33% to $0.04 per share, authorizes $15 mln share repurchase) STLY +19.8%, RUBI +16.5%, CALX +14.3%, AIZ +9.6%, MTSI +8.6%, BBSI +8.5%, BWLD +8%, PNRA +7.8%, RSYS +7.4%, MVIS +7.4%, CLF +7.1%, VIV +6.5%, ATRC +5.9%, FCF +5.5%, WNC +5.1%, NVMI +4.9%, CETV +4.4%, SONS +4.4%, BLDP +4.3%, NUVA +4.1%, (reached a definitive settlement with the US DOJ; co will pay $13.5 mln, plus fees and accrued interest in settlement ), CTXS +3.8%, (Citrix Systems enters into an agreement with Elliott Management Corporation; appoints Elliott's Jesse Cohn to the Board; announces the impending retirement of CEO Mark Templeton; co initiates a CEO search process ), GILD +3.7%, MILL +3.6%, WOOF +3.3%, ACCO +3.1%, AMED +3%, RGR +2.9%, TRU +2.6%, ANTM +2.5%, X +2.4%, GD +2.2%, STRZA +2.2%, BCS +2.1%, STNG +2.1%, MNDO +2.1%, IP +2%, NGD +1.9%, IACI +1.7%, HLT +1.5%, HURN +1.3%, MO +1.2%, NCR +1%, CRI +1%, APC +0.9%, PAG +0.9%

M&A news: CYT +27.6% (Solvay (SVYZY) to acquire Cytec for $75.25 per share in cash)


Other news: NHTC +23.4% (increased quarterly dividend by 33% and authorized $15 mln share repurchase; co also reported earnings),OGEN +19% (announced positive data for multiple compounds from its Mutacin 1140 lantibiotic platform ),MNGA +7% (announces that a major waste to energy company has placed multiple orders),GALE +5.6% (announced the product launch for Zuplenz (ondansetron) Oral Soluble Film in the United States),ARNA +4.9% (initiates a Phase 2 proof-of-concept clinical trial of APD334 in ulcerative colitis),ARIA +2.2% (PDL BioPharma enters into a revenue interest assignment agreement, to provide ARIAD Pharmaceuticals (ARIA) with up to $200 million in financing, in exchange for royalties on Iclusig),STO +1.5% (cont strength)

Analyst comments: SALT +4.5% (upgraded to Buy from Hold at Deutsche Bank),AKS +3.8% (upgraded to Outperform from Neutral at Macquarie ),YRCW +3.6% (upgraded to Strong Buy from Mkt Perform at Raymond James),DDD +2% (upgraded to Neutral from Underperform at Longbow),AMZN +1% (upgraded to Buy from Hold at Stifel),WFC +0.5% (upgraded to Buy from Neutral at Guggenheim)

8:32 am ADT reports EPS in-line, revs in-line (ADT) : Reports Q3 (Jun) earnings of $0.49 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate of $0.49; revenues rose 5.8% year/year to $898 mln vs the $897.55 mln consensus.

  • The third quarter was further evidence of continued improvement in our core operations, while strategically positioning ADT for a bright and profitable future through targeted growth investments," said Michael Geltzeiler, ADT's chief financial officer.
  • "We are delivering upon the commitments we outlined earlier in the year and at our recent investor day meeting, driving increases in gross adds, improving our operating metrics and investing in growth initiatives in commercial, customer experience, and the DIY market. Overall, we drove 5% gross add growth year-over-year, reduced attrition and lowered our direct SAC creation multiple net of upgrades, while generating higher levels of operating cash flow."
  • "We continue to improve our subscriber acquisition costs, driving net SAC in our direct channel lower on a sequential basis despite increased Pulse take rates. EBITDA before special items was nearly flat with last year largely driven by the negative impact of the marketing efficiency program and increased maintenance and service costs targeted at improving customer service levels, as well as the investments we are making in growth initiatives such as commercial, our DIY offering and the new Pulse mobile app. Pre-SAC EBITDA before special items grew 3% over last year."

8:32 am Jamba announces an update on its re-franchising initiative; expects that deals for 74 additional stores will be refranchised between the California Chicago/Midwest markets by 1Q16 (JMBA) : Co expects that deals for 74 additional stores will be refranchised for three California markets by the end of 2015 and the Chicago/Midwest market by the first quarter of 2016. At the end of 2015 co expects to be at 90%+ franchise organization.

  • Co stated: ""As we move ahead on the Company's commitment to an asset light model, these deals position us well to reach our goal of generating $60 - $70 million of cumulative cash proceeds from refranchising in 2015."

8:32 am Electro Scientific beats by $0.04, beats on revs; guides Q2 EPS in-line, revs in-line (ESIO) : Reports Q1 (Jun) loss of $0.14 per share, $0.04 better than the Capital IQ Consensus Estimate of ($0.18); revenues rose 23.1% year/year to $43.1 mln vs the $40.2 mln consensus.

  • Co issues in-line guidance for Q2, sees EPS of ($0.15)-($0.10) vs. ($0.11) Capital IQ Consensus Estimate; sees Q2 revs of $42-47 mln vs. $45.00 mln Capital IQ Consensus Estimate.

8:32 am Franklin Resources misses by $0.06, misses on revs (BEN) : Reports Q3 (Jun) earnings of $0.82 per share, $0.06 worse than the Capital IQ Consensus Estimate of $0.88; revenues fell 6.1% year/year to $2 bln vs the $2.05 bln consensus.

AUM Commentary

Total assets under management ("AUM") were $866.5 billion at June 30, 2015, down $14.1 billion or 2% during the quarter. Net new outflows of $11.1 billion and market depreciation of $3.9 billion were partially offset by a $1.8 billion increase due to foreign exchange revaluation. AUM decreased $54.0 billion or 6% year over year, primarily due to $20.3 billion of net new outflows, a $17.7 billion decrease from foreign exchange revaluation and $10.9 billion of market depreciation. The foreign exchange revaluations are related to AUM in products that are not U.S. dollar denominated, which represents approximately 12% of total AUM, and primarily resulted from fluctuation of the U.S. dollar against the Canadian dollar, Euro, Australian dollar and Pound Sterling.

8:31 am Arch Coal announces that term loan lenders have sent a letter to its term loan administrative agent, directing it to not cooperate with co's exchange offer (ACI) : Co announced that certain unidentified term loan lenders under the Credit Agreement purporting to hold more than 50% of the term loans under the Credit Agreement delivered a letter to the Term Loan Administrative Agent directing the Term Loan Administrative Agent to refrain from executing documentation relating to the Exchange Offers and the establishment of the New Term Loans, approving the New Intercreditor Agreement and certain other documentation and appointing a new collateral agent under the Credit Agreement. No approval by or consent of the existing term loan lenders is required in connection with the contemplated transactions.

  • In addition, the letter includes certain other assertions regarding the Exchange Offers, the Proposed Revolver Amendments, the New Intercreditor Agreement and the existence of a default under the Credit Agreement, as more fully set forth below. 
  • Co has evaluated the assertions made in the letter and believes they are without merit, as set forth below. While the co believes that the assertions and directions set forth above and are without merit, and intends to contest them vigorously, it cannot predict what effect the assertions and direction set forth in the letter, or any future claims, might have on the Exchange Offers

8:31 am Arcadia Biosciences receives European patent for water use efficiency trait technology (RKDA) :

  • Co announced that the European Patent Office has granted a key patent for its Water Use Efficiency trait. The patent covers the use of Arcadia's WUE trait to develop drought resistant and water efficient plants, which will help growers produce higher yields per unit of available water.
  • The platform technology was invented by Drs. Shimon and Amira Gepstein at the Technion-Israel Institute of Technology and Dr. Eduardo Blumwald at the University of California, Davis, and is licensed exclusively to Arcadia.

8:30 am JA Solar's special committee retains financial and legal advisors to consult on previously announced 'going private' offer (JASO) :  

8:30 am Gladstone makes a secured first lien debt investment in StrataTech Education Group, a portfolio company of Summer Street Capital Partners (GLAD) :  

8:29 am Digital Ally announces a favorable ruling by the USPTO, regarding its litigation with Utility Associates (DGLY) : Co announced that the United States Patent & Trademark Office issued a Final Decision invalidating the majority of claims asserted in U.S. Patent No. 6,831,556 ("the '556 Patent" or "Boykin Patent"), of which Utility Associates, Inc. is the owner/holder. On July 27, 2015, the USPTO invalidated substantially all of the claims identified in Utility's '556 Patent, a patent which, according to Utility, covers all mobile surveillance systems capable of capturing video, audio, and other data. The Final Decision by the Patent Trial and Appeal Board of the USPTO was in response to a petition filed by Digital Ally, Inc. requesting each of the claims asserted in the '556 Patent be found to be unpatentable. The Final Decision by the USPTO invalidates 23 of the 25 claims asserted in the '556 Patent and, in the process, curtails or possibly eliminates Utility's ability to threaten the Company and law enforcement agencies, municipalities, and others with patent infringement.

8:26 am S&P futures vs fair value: +3.30. Nasdaq futures vs fair value: +13.20. (:WRAPX) : Equity futures have ticked down from their morning highs while European indices have also retreated from their best levels of the day.

Investors have received a heavy batch of quarterly results since yesterday's closing bell and although most names have beat bottom-line estimates, year-over-year revenue growth has remained quite scarce. However, that dynamic has not been applicable to biotechnology companies like Gilead Sciences (GILD 116.93, +3.86), which has spiked 3.4% in pre-market after beating estimates on a 25.8% spike in year-over-year revenue. As a result, the iShares Nasdaq Biotechnology ETF (IBB 385.58, +2.74) has climbed 0.7% in pre-market action.

8:25 am United Micro raises Q3 margin guidance (UMC) :

  • Co raises Q3 guidance
  • Based on its 3Q 2015 outlook, UMC expects foundry segment gross profit margin to be in the high-teens percentage range, compared to its previously stated guidance of mid-teens percentage range in the company's earlier 2Q 2015 earnings announcement.

8:25 am Mind C.T.I. reports Q2 results (MNDO) : Co reports Q2 EPS of $0.08 vs $0.08 year ago; revs -17.5% to $5.2 mln (no estimates).

  • "As previously announced and anticipated, the delays in wins in 2014 impact our 2015 revenues. We experience this impact now and we continue to see hesitance to commit to large projects of business transformation and very long sales cycles. We are pleased with our execution of ongoing projects, with our swift response to the drop in revenues, including the efficiency steps we implemented, the strong recurrent revenue stream and our success in finally closing one of the delayed deals that we mentioned previously. We hope to close additional new deals in the near term."

8:19 am On the Wires (:WIRES) :

  • Ryder System (R) announced that Royal Building Products has renewed its contract with Ryder Dedicated Transportation Solutions
  • Inovalon (INOV) announced a new, multi-year agreement with HP (HPQ) to provide a solution for healthcare quality analytics, for the State of Georgia Department of Community Health's Medicaid and PeachCare for Kids programs
  • Five9 (FIVN) announced that one of the largest global commercial and residential solar power companies has selected it to power its contact center. Five9 solutions will be supporting more than 400 agents in the company's contact center
  • BroadSoft (BSFT) announced that GlobalPhone Corporation will upgrade its hosted PBX and Unified Communications offering by migrating to the company's fully-managed hosted service, BroadCloud
  • Wayfair (W) announced a partnership with Sherwin-Williams (SHW), to launch the Restore & Renew DIY Hub. The custom-designed online resource features four Sherwin-Williams Diversified Brands, including Purdy, Krylon, Thompson's WaterSeal and Minwax, with content that will help consumers with their DIY projects
  • The Carlyle Group (CG) announced it has raised 3.75B for its latest Carlyle Europe Partners fund, closing at the fund's hard cap

8:17 am Goodyear Tire beats by $0.07, reports revs in-line (GT) : Reports Q2 (Jun) adj earnings of $0.84 per share, $0.07 better than the Capital IQ Consensus Estimate of $0.77; revenues fell 10.4% year/year to $4.17 bln vs the $4.13 bln consensus. 

  • Outlook: The company reaffirmed its 2015-2016 financial targets, which include: Segment Operating Income growth of between 10 percent and 15 percent per year. Annual positive Free Cash Flow from Operations and, An Adjusted Debt to EBITDAP ratio of 2.0x to 2.1x.

8:16 am European Yields (BONDX) : Sovereign Yields All Higher

  • European sovereign debt sold off today despite disappointing Spanish retail sales data and consumer confidence in France. The equity rally that began yesterday morning in the U.S. has affected European indices as well, albeit to a lesser extent, and that risk-on trade has sapped demand for European sovereigns. The 10-yr German Bund yield, over the past several weeks, has seemingly found support around 0.60% and resistance around 1.00%
  • French Consumer Confidence unexpectedly fell in July to 93, from 94 in June
  • Retail Sales in Spain grew only 2.3% y/y in June, less than expected and less than the 3.1% growth seen in May
  • The German GfK Consumer Climate Index was 10.1 in August, in line with expectations and the prior month's reading
  • There is now talk that Greece will need a bridge loan to make its 3.2 bln euro payment to the ECB on August 20th because a deal will not necessarily be agreed by then
  • Yield Check:
    • France, 10-yr OAT: +4 bps to 1.02%
    • Germany, 10-yr Bund: +3 bps to 0.68%
    • Greece, 10-yr note: +37 bps to 12.06%
    • Italy, 10-yr BTP: +2 bps to 1.90%
    • Portugal, 10-yr note: unch at 2.51%
    • Spain, 10-yr ODE: +3 bps to 1.95%
    • U.K., 10-yr Gilt: +4 bps to 2.00%

8:11 am Cliffs Natural Resources misses by $0.14, misses on revs (CLF) : Reports Q2 (Jun) loss of $0.28 per share, $0.14 worse than the Capital IQ Consensus Estimate of ($0.14); revenues fell 33.4% year/year to $498.1 mln vs the $594.1 mln consensus. 

  • "As actions are taken to combat the influence of unfairly-traded steel in the United States, we expect to see improved industry operating conditions and profitability in the second half of this year."
  • U.S. Iron Ore pellet sales volume in Q2 of 2015 was 4.2 mln tons, a 2% decrease when compared to Q2 of 2014. The decrease was driven by reduced YoY export sales and lower demand by U.S. mills, partially offset by improved shipping conditions on the Great Lakes.
Outlook:
  • Cliffs provides full-year expected revenues-per-ton ranges based on different assumptions of seaborne iron ore prices.
  • Cliffs indicated that each different pricing assumption holds all other assumptions constant, including customer mix, as well as industrial commodity prices, freight rates, energy prices, production input costs and/or hot-band steel prices.
U.S. Iron Ore Outlook (Long Tons):
  • For 2015, the co is lowering its full-year sales and production volume expectation by 1.5 mln tons to 19 mln tons of iron ore pellets, reflecting currently low capacity utilization rates among Cliffs' U.S. steel customers, mainly attributed to heavy imported steel penetration. Despite the reduction in production tonnage, Cliffs is maintaining its previous cash production cost expectation of $55-60/ton and the previous cash cost of goods sold per ton expectation of $60-65.
Asia Pacific Iron Ore Outlook (Metric Tons, F.O.B. the port):
  • Co is maintaining its full-year 2015 Asia Pacific Iron Ore expected sales and production volumes of ~11 mln tons. The product mix is expected to contain 52% lump and 48% fines. Based on a full-year average exchange rate of $0.77 U.S. Dollar to Australian Dollar, the Co is maintaining its full-year 2015 Asia Pacific Iron Ore cash production cost per ton expectation of $30 - $35.

8:10 am BGC Partners beats by $0.01, beats on revs (BGCP) : Reports Q2 (Jun) earnings of $0.18 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.17; revenues rose 59.1% year/year to $684.6 mln vs the $668 mln consensus. 

  • "This was the fourth consecutive quarter of record profits for the Company, and the third quarter in a row of best-ever revenues. This significant improvement was driven by the addition of GFI, the ongoing success of our Real Estate Services company, Newmark Grubb Knight Frank, and the continued strong, triple-digit percentage growth of our high margin fully electronic businesses. These fully electronic businesses increased their revenues by approximately 182 percent and their pre-tax distributable earnings by over 120 percent. Our record results came despite the stronger U.S. dollar reducing our Financial Services revenues by more than $27 million during the second quarter of 2015."
  • Q3 outlook: 
    • The Company expects to produce its fourth consecutive record quarter of distributable earnings revenues and its fifth quarter in a row of record pre-tax distributable earnings.
    • BGC anticipates distributable earnings revenues to increase by 51-61% and to be between $680 million to $725 million, compared with $449.8 million.  

8:09 am Choice Hotels beats by $0.02, beats on revs; guides Q3 EPS below consensus; raises FY15 EPS slighty to in-line (CHH) : Reports Q2 (Jun) earnings of $0.62 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.60; revenues rose 17.5% year/year to $232.16 mln vs the $208.86 mln consensus. Domestic system-wide revenue per available room increased 6.7% in the second quarter of 2015, as occupancy and average daily rates increased 170 basis points and 3.8%, respectively from the same period of 2014.

  • Co issues downside guidance for Q3, sees EPS of $0.72 vs. $0.75 Capital IQ Consensus Estimate. 
  • Co issues in-line guidance for FY15, sees EPS of $2.18-2.22 vs. $2.21 Capital IQ Consensus Estimate. (Raised and narrowed from prior guidance of $2.14-2.21). Full year 2015 EBITDA expected to be between $237-241 million

8:08 am VCA Antech beats by $0.05, beats on revs; guides FY15 EPS above consensus, revs above consensus (WOOF) : Reports Q2 (Jun) earnings of $0.70 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus Estimate of $0.65; revenues rose 12.1% year/year to $548.8 mln vs the $538.75 mln consensus. Co issues upside guidance for FY15, sees EPS of $2.25-2.35, excluding non-recurring items, vs. $2.25 Capital IQ Consensus Estimate; sees FY15 revs of $2.12-2.13 bln vs. $2.10 bln Capital IQ Consensus Estimate.

  • "We had a great quarter. Our Animal Hospital business segment same-store revenue growth rate continues to accelerate, driven once again by an increase in both the number of orders and the average revenue per order. Our Laboratory business segment experienced 7.3% internal revenue growth resulting in a 220 basis point increase in gross profit margin. Accordingly, we remain very optimistic with respect to our results for the full year ended December 2015."

8:07 am Synchronoss Tech beats by $0.05, reports revs in-line (SNCR) : Reports Q2 (Jun) earnings of $0.56 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.51; revenues rose 33.2% year/year to $137.82 mln vs the $137.03 mln consensus. 

  • "Each of our businesses performed well in the quarter and we were pleased to see some of our new wins began to scale and drive volumes, particularly on the cloud side."

8:06 am Scorpio Tankers beats by $0.05, beats on revs (STNG) : Reports Q2 (Jun) earnings of $0.32 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus Estimate of $0.27; revenues rose 228.3% year/year to $188.46 mln vs the $168.64 mln consensus.

8:06 am BOK Financial beats by $0.05 (BOKF) : Reports Q2 (Jun) earnings of $1.15 per share, $0.05 better than the Capital IQ Consensus Estimate of $1.10. Net interest revenue totaled $175.7 million for the second quarter of 2015, up $8.0 million over the first quarter of 2015. Net interest margin was 2.61 percent for the second quarter of 2015 and 2.55 percent for the first quarter of 2015. Average earning assets increased $383 million during the second quarter of 2015, primarily related to a $351 million increase in average loan balances.

8:03 am First Commonwealth reports EPS in-line (FCF) : Reports Q2 (Jun) earnings of $0.15 per share, in-line with the Capital IQ Consensus Estimate of $0.15.

  • Co reported nine basis point decrease in the net interest margin to 3.26%, of which seven basis points was attributable to a special FHLB dividend of $1.0 million in the first quarter of 2015.

8:03 am Exelon beats by $0.06, reports revs in-line; guides FY15 EPS in-line (EXC) : Reports Q2 (Jun) earnings of $0.59 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus Estimate of $0.53; revenues rose 8.1% year/year to $6.51 bln vs the $6.5 bln consensus. Co issues in-line guidance for FY15, sees EPS of $2.35-2.55, excluding non-recurring items, vs. $2.44 Capital IQ Consensus Estimate.

8:03 am American States Water increases quarterly dividend to $0.224/share from $0.213/share (AWR) :  

8:03 am Independence Realty Trust reports FFO in-line, beats on revs (IRT) : Reports Q2 (Jun) funds from operations of $0.19 per share, in-line with the Capital IQ Consensus Estimate of $0.19; revenues rose 96.6% year/year to $22.8 mln vs the $22.4 mln consensus.

8:03 am Level 3 beats by $0.03, reports revs in-line (LVLT) : Reports Q2 (Jun) earnings of $0.42 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.39; revenues rose 1.5% year/year to $2.06 bln vs the $2.08 bln consensus.

2015 Outlook
 "We remain confident in our performance for the remainder of the year and are reiterating the outlook we provided last quarter. We continue to expect 2015 Adjusted EBITDA growth of 14 to 17 percent and Free Cash Flow of $600 to $650 million for the full year 2015. Given the capital markets activity in the quarter, we are lowering our interest expense outlook for the full year 2015, and now expect GAAP interest expense of approximately $650 million and net cash interest expense of approximately $640 million, compared to our prior outlook of $660 million and $645 million, respectively."

8:03 am Meritor beats by $0.08, reports revs in-line; guides FY15 EPS above consensus, reaffirms revs guidance (MTOR) : Reports Q3 (Jun) earnings of $0.41 per share, $0.08 better than the Capital IQ Consensus Estimate of $0.33; revenues fell 7.2% year/year to $909 mln vs the $908.19 mln consensus. This decrease was due to currency exchange rate declines in Europe and Brazil against the U.S. dollar. When adjusted for the impact of foreign currency, sales for the period increased 1 percent from a year ago.

  • Co updates guidance for FY15, raises EPS guidance to $1.40-1.50 vs. $1.38 Capital IQ Consensus Estimate; reaffirms FY15 revs of $3.50-3.55 bln vs. $3.52 bln Capital IQ Consensus Estimate. 

8:03 am DineEquity beats by $0.06, beats on revs; reiterates its financial performance guidance for fiscal 2015 (DIN) :

  • Reports Q2 (Jun) earnings of $1.53 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus Estimate of $1.47; revenues rose 6.9% year/year to $171.6 mln vs the $167.79 mln consensus. 
  • IHOP's domestic system-wide same restaurant sales increased 6.2% for the second quarter of 2015 compared to the same period in 2014. Applebee's domestic system-wide same-restaurant sales increased 1.0% for the second quarter of 2015 compared to the second quarter of 2014.
  • Co reiterates its financial performance guidance for fiscal 2015 contained in the press release issued on February 25, 2015 and the Form 8-K issued on February 26, 2015, except for domestic system-wide same-restaurant sales for both IHOP and Applebee's. The Company revised IHOP's sales performance guidance to range between positive 4.0% and positive 6.0%. This reflects an increase from the previous expectations of between positive 2.0% and positive 5.0%. Applebee's sales performance guidance was revised to range between positive 1.0% and positive 3.0%. This reflects a decrease from the previous expectations of between positive 1.0% and positive 4.0%.

8:02 am MasterCard reports EPS in-line, misses on revs -- co will update July metrics/guidance on the call (MA) : Reports Q2 (Jun) earnings of $0.85 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate of $0.85; revenues rose 0.9% year/year to $2.39 bln vs the $2.42 bln consensus. Adjusted for currency, net revenue increased 7%.

  • Net revenue growth was driven by the impact of the following: An increase in cross-border volumes of 17%; A 13% increase in gross dollar volume, on a local currency basis, to $1.1 trillion; and An increase in processed transactions of 13%, to 12.0 billion. 
  • These factors were partially offset by an increase in rebates and incentives, primarily due to new and renewed agreements and increased volumes. Acquisitions contributed 2 percentage points to total net revenue growth. 
  • Worldwide purchase volume during the quarter was up 12% on a local currency basis versus the second quarter of 2014, to $841 billion.

8:02 am Rovi renews its discovery patent portfolio license agreement with Funai Electric, covering Japan and Europe (ROVI) : The cross-regional licenses enable Funai to use Rovi's patent portfolio for digital consumer electronics. The announcement further builds upon Funai's existing North American Intellectual Property license agreement.

8:02 am Arena Pharm initiates a Phase 2 proof-of-concept clinical trial of APD334 in ulcerative colitis (ARNA) : The 12-week, three-arm, double-blind, placebo-controlled Phase 2 trial will enroll approximately 240 patients with moderate to severe ulcerative colitis. The primary endpoint of the trial is clinical remission. Continuation of treatment to 52 weeks will be offered to participants in a separate long-term extension study.

8:01 am Magnegas announces that a major waste to energy company has placed multiple orders (MNGA) : Co announced today that a major waste to energy company, which previously viewed a demonstration of MagneGas fuel for metal cutting, has placed multiple orders. Company officials viewed a MagneGas demonstration in Florida and New Jersey and requested formal testing at their company headquarters. Testing was successful and the Company has placed multiple orders of MagneGas for metal cutting to begin roll-out of the product to their facilities. MagneGas will be used as a replacement to acetylene for repairs and demolition. The waste to energy company has 45 facilities throughout the world that process large volumes of solid waste into renewable energy. The company is publicly traded on the NYSE, with a market value of over $2 billion. Their name is being held confidential until completion of the roll out.

7:58 am S&P futures vs fair value: +5.80. Nasdaq futures vs fair value: +17.70. (:WRAPX) : U.S. equity futures hover near their pre-market highs after spending the night inside a ten-point range with the S&P 500 futures trading six points above fair value.

The overnight session saw a 3.4% rally in China's Shanghai Composite while most European markets have also climbed this morning.

On the economic front, the weekly MBA Mortgage Index rose 0.8% to follow last week's 0.1% uptick.

More data will be released today with the Pending Home Sales report scheduled for 10:00 ET (Briefing.com consensus 1.0%) while the latest policy directive from the FOMC will be released at 14:00 ET.

Treasuries have marked session lows not long ago before inching up of those levels with the 10-yr yield higher by two basis points at 2.27%.

In U.S. corporate news of note:

  • Anthem (ANTM 158.50, +4.30): +2.8% after reporting in-line with its early results announced on July 24. 
  • Buffalo Wild Wings (BWLD 186.45, +15.17): +8.9% after better than expected comparable store sales overshadowed a bottom-line miss. 
  • Citrix Systems (CTXS 72.80, +3.17): +4.6% in reaction to a bottom-line beat and mixed guidance. 
  • Gilead Sciences (GILD 117.20, +4.13): +3.7% after beating earnings and revenue estimates. 
  • Twitter (TWTR 33.00, -3.54): -9.7% despite beating estimates and guiding Q3 revenue in-line with estimates. 
  • U.S. Steel (X 17.35, -0.38): -2.1% in reaction to disappointing earnings/revenue. 
Reviewing overnight developments:
  • Asian markets ended mostly higher. China's Shanghai Composite +3.4%, Hong Kong's Hang Seng +0.5%, and Japan's Nikkei -0.1% 
    • In economic data: 
      • Japan's June Retail Sales +0.9% year-over-year (expected 0.5%; prior 3.0%) 
    • In news: 
      • According to reports from China, Wednesday saw the third consecutive decline in margin debt with the total figure falling to CNY1.38 trillion from CNY1.43 trillion, representing a four-month low.
  • Major European indices trade mostly higher. UK's FTSE +0.7%, France's CAC +0.1%, and Germany's DAX +0.1%. Elsewhere, Italy's MIB -1.1% and Spain's IBEX -0.5% 
    • Participants received several data points: 
      • Germany's August GfK Consumer Climate held at 10.1, as expected 
      • UK's June BoE Consumer Credit GPB1.22 billion (expected GBP1.10 billion; prior GBP1.06 billion) while June Mortgage Approvals hit 66,580 (expected 66,000; prior 64,830). Separately, July CBI Distributive Trades Survey fell to 21 from 29 (expected 30) 
      • France's July Consumer Confidence ticked down to 93 from 94 (expected 94) 
      • Spain's June Retail Sales +2.3% year-over-year (consensus 3.3%; prior 3.1%) 
      • Swiss June Consumption Indicator inched up to 1.68 from 1.62 (expected 2.50) 
    • Among news of note: 
      • European Economic and Monetary Affairs Commissioner Pierre Moscovici said that the risk of a Greek exit from the Eurozone has diminished and that negotiations on the third bailout package have gotten off to a good start.

7:55 am GrafTech Intl misses by $0.04, misses on revs; co does not expect a significant improvement in 2H15 (GTI) : Reports Q2 (Jun) adj. loss of $0.12 per share, $0.04 worse than the Capital IQ Consensus of ($0.08); revenues fell 41.9% year/year to $165.1 mln vs the $221.06 mln consensus. Lower shipment volumes and pricing in both business segments primarily drove the reduction in net sales.

  • Guidance: Market conditions remain challenging in both the Industrial Materials segment and Engineered Solutions segment. Pricing in the Industrial Materials segment will be lower year-over-year, while volumes in this segment remain under pressure due to weak electric arc furnace steel production in response to continued end market weakness and temporary displacement by high Chinese steel export levels. In the Engineered Solution segment, weak advanced consumer electronics and oil and gas market demand for our products is negatively impacting volumes and pricing. While the previously announced cost initiatives are on track to deliver $50 million in cash savings in 2015, these savings will not fully offset the decline in pricing and volume across both business segments. In light of these market conditions, the Company will reduce production rates further to align with current market demand. 
  • Co does not expect a significant improvement in results in the second half of 2015.

7:54 am United Bankshares reports EPS in-line (UBSI) : Reports Q2 (Jun) earnings of $0.50 per share, in-line with the Capital IQ Consensus Estimate of $0.50.

  • Second quarter of 2015 results produced an annualized return on average assets of 1.15% and an annualized return on average equity of 8.23%, respectively.
  • For the first half of 2015, United's return on average assets was 1.15% while the return on average equity was 8.30%.
  • United's Federal Reserve peer group's (bank holding companies with total assets over $10 billion) most recently reported average return on assets and average return on equity were 0.90% and 7.77%, respectively, for the first quarter of 2015.
  • United's asset quality continues to be sound. At June 30, 2015, nonperforming loans were $120.5 million, or 1.33% of loans, net of unearned income, up from nonperforming loans of $109.0 million or 1.20% of loans, net of unearned income, at December 31, 2014

7:51 am Subsea 7 SA reports Q2 results (SUBCY) : Co reports Q2 results: Revenue of $1,352 million was down $553 million on the prior year quarter, reflecting the difficult industry conditions and declining workload. Excluding charges, adjusted EBITDA was $375 million and the margin was 27.7%. In terms of the outlook, co says the sustained downturn in oil company expenditure continues to result in lower industry activity and the timing of new awards to market remains highly uncertain.

As guided previously, Group revenue is expected to be significantly lower in 2015 compared to the record level reported last year and adjusted EBITDA margin is expected to decrease compared to 2014. The fundamental long-term outlook for deepwater subsea field developments remains intact despite the challenges facing the industry as a result of lower oil prices.

7:50 am Linde AG reports first half of 2015; oper. profit rose 11%, positive trend in operating cash flow continued (LNAGF) :

  • German-based Linde Aktiengesellschaft (LNAGF) reported a year/year revenue increase of 10% to EUR 9.036 bln in the first half of 2015, compared to EUR 8.212 bln in the first six months of 2014
  • After adjusting for exchange rate effects, revenue was similar to the level achieved in the first half of 2014
  • Operating profit improved by 11.0% to EUR 2.104 bn (2014: EUR 1.896 bn); After adjusting for exchange rate effects, operating profit rose by 0.4%
  • The Group operating margin increased from 23.1% in the first half of 2014 to 23.3% in the first half of 2015. The exceptionally positive trend in operating cash flow continued.
Outlook:
  • "Continuing weak demand will remain the main challenge for us in the second half of 2015. This makes it all the more important now that we continue to act to strengthen our competitive situation."

7:49 am HeidelbergCement reported Q2 EPS of 1.44 vs 1.24 last year; Group revenue up by 10% to EUR 3.6 billion (HDELY) :

  • Outlook for 2015 confirmed: Positive outlook for the global economy; geopolitical and macroeconomic risks remain. Growth in sales volumes of cement, aggregates, and ready-mixed concrete expected. Significant rise in revenue, operating income, and profit for the financial year. Generation of cost of capital. HeidelbergCement well positioned to benefit over-proportionally from the continued economic recovery, particularly in the USA and the United Kingdom.

7:49 am On the Wires (:WIRES) :

  • Aeterna Zentaris (AEZS) announced it has selected an optimized Erk inhibitor molecule for development, thus achieving another important milestone in the development of a new class of potential cancer therapies. An optimized Erk inhibitor compound, AEZS-140, and back-up candidates were identified as a result of the development efforts
  • Qualcomm Incorporated (QCOM) and BRUSA Elektronik AG announced that they have entered into a Wireless Electric Vehicle Charging patent license agreement. BRUSA, an automotive Tier 1 power electronics supplier, has licensed Qualcomm Halo patented inventions to commercialize WEVC systems for Plug-In Hybrid and Electric Vehicles. Under the terms of the agreement, Qualcomm granted to BRUSA a royalty-bearing patent license to develop, make and supply WEVC systems for certain automobile manufacturers
  • Cardtronics (CATM) has renewed its ATM services agreement with Sunoco, a unit of Energy Transfer Partners (ETP), adding a long-term extension to a 15-year relationship between the two companies
  • WEX Inc. (WEX) announced that it has been selected to provide its full suite of corporate payments solutions to ServiceMaster Global Holdings. Through the agreement, all corporate and participating franchise vehicles within ServiceMaster's network 6,600, will utilize WEX's fleet, virtual and analytics solutions
  • H.B. Fuller (FUL) announced that the company broke ground on its future manufacturing facility in Surabaya, Indonesia

7:41 am Jones Lang LaSalle beats by $0.16, reports revs in-line (JLL) : Reports Q2 (Jun) earnings of $2.01 per share, $0.16 better than the Capital IQ Consensus Estimate of $1.85; revenues rose 7.5% year/year to $1.37 bln vs the $1.38 bln consensus.

7:39 am WEX beats by $0.01, misses on revs; guides Q3 EPS in-line, revs below consensus; guides FY15 EPS in-line, revs below consensus (WEX) : Reports Q2 (Jun) earnings of $1.25 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $1.24; revenues rose 6.0% year/year to $213.7 mln vs the $218.1 mln consensus.

  • For Q3, co sees EPS of $1.38-1.46, excluding non-recurring items, vs. $1.45 Capital IQ Consensus Estimate; sees Q3 revs of $224-233 mln vs. $234.5 mln Capital IQ Consensus Estimate. 
  • For FY15, co sees EPS of $4.94-5.14, excluding non-recurring items, vs. $5.09 Capital IQ Consensus Estimate; sees FY15 revs of $847-872 mln vs. $880.3 mln Capital IQ Consensus Estimate.
  • Co says it's pleased to report solid top and bottom line results this quarter that were in line with its expectations. WEX Europe Services and Evolution1 continue to progress better than anticipated, which have partially offset softness in macroeconomic factors, including continued fuel price headwinds. 
  • Co says it remains optimistic about the trajectory of its long term growth. Its guidance assumes that 2015 will continue to be "a year of investment as we ramp our global operations and optimize the efficiency of our expanded infrastructure and assets."

7:37 am Spirit Aerosystems beats by $0.13, misses on revs; guides FY15 EPS below consensus, revs below consensus (SPR) : Reports Q2 (Jun) earnings of $1.11 per share, excluding non-recurring items, $0.13 better than the Capital IQ Consensus Estimate of $0.98; revenues fell 5.8% year/year to $1.7 bln vs the $1.72 bln consensus.

  • Co issues downside guidance for FY15, sees EPS of $3.6-3.8 bln vs. $3.87 Capital IQ Consensus Estimate; sees FY15 revs of $6.6-6.7 bln vs. $6.74 bln Capital IQ Consensus Estimate. 
  • Co announced a share repurchase program of up to $350 mln

7:36 am PDL BioPharma enters into a revenue interest assignment agreement, to provide ARIAD Pharmaceuticals (ARIA) with up to $200 million in financing, in exchange for royalties on Iclusig (PDLI) : Co announced that it has entered into a revenue interest assignment agreement in which it has agreed to provide ARIAD Pharmaceuticals (ARIA) with up to $200 million in revenue interest financing in exchange for royalties on the net revenues of Iclusig (ponatinib). ARIAD also has an option to draw up to an additional $100 million at any time between the sixth and twelfth month anniversaries of the closing date.

  • PDL will initially receive 2.5% of the worldwide net revenues of Iclusig until the one year anniversary of the closing date, at which time the royalty increases to 5.0% of the worldwide net revenues of Iclusig and remains until December 31, 2018. 
    • Beginning January 1, 2019 and thereafter, the royalty rate will increase to 6.5%, subject to an additional increase to 7.5% if PDL's funding exceeds $150 million

7:36 am Rollins reports EPS in-line, revs in-line; financial goals for 2015 on track (ROL) : Reports Q2 (Jun) earnings of $0.21 per share, in-line with the Capital IQ Consensus Estimate of $0.21; revenues rose 6.2% year/year to $392.2 mln vs the $388.69 mln consensus. "We are on track and dedicated to achieve our financial goals for the year."

7:35 am Penske Auto beats by $0.06, reports revs in-line (PAG) : Reports Q2 (Jun) earnings of $1.05 per share, $0.06 better than the Capital IQ Consensus Estimate of $0.99; revenues rose 12.2% year/year to $4.9 bln vs the $4.88 bln consensus.

  • Same-store Retail Revenue Increases 5.6%, excluding foreign exchange 9.8%
  • "We just completed the best quarter and six-month period in the history of our company," said Chairman Roger S. Penske.
  • The record second quarter results were driven by a 7.5% increase in retail automotive unit sales, a 50-basis point increase in automotive retail service and parts gross margin and a reduction of 110 basis points in selling, general and administrative expenses as a percent of gross profit."

7:35 am Dixie Group misses by $0.01, misses on revs (DXYN) : Reports Q2 (Jun) earnings of $0.03 per share, $0.01 worse than the Capital IQ Consensus Estimate of $0.04; revenues rose 1.9% year/year to $109.96 mln vs the $114.6 mln consensus. 

  • "Sales for the first four weeks of the third quarter are ahead of the same quarter last year by 5%, while our carpet sales are ahead of last year by over 6% on a year-over-year basis."

7:34 am Belden beats by $0.01, misses on revs; guides Q3 EPS below consensus, revs below consensus; guides FY15 EPS below consensus, revs below consensus (BDC) : Reports Q2 (Jun) earnings of $1.21 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $1.20; revenues fell 3.2% year/year to $585.8 mln vs the $604.28 mln consensus.

  • Co issues downside guidance for Q3, sees EPS of $1.05-1.15 vs. $1.49 Capital IQ Consensus Estimate; sees Q3 revs of $580-600 mln vs. $625.48 mln Capital IQ Consensus Estimate. 
  • Co issues downside guidance for FY15, sees EPS of $4.70-4.90 vs. $5.33 Capital IQ Consensus Estimate; sees FY15 revs of $2.36-2.39 vs. $2.44 bln Capital IQ Consensus Estimate. Prior guidance: EPS of $5.28-5.48 on revs of $2.45-3.5 bln

7:33 am Hospira beats by $0.05, reports revs in-line (HSP) : Reports Q2 (Jun) earnings of $0.85 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus Estimate of $0.80; revenues rose 4.2% year/year to $1.18 bln vs the $1.18 bln consensus.

  • Given the announcement early in Q1 that Hospira and Pfizer (PFE) had entered into a merger agreement, the company is not providing annual projections for 2015.
  • "Hospira continues to see good momentum across our product lines, resulting in strong sales and profitability in the first half of the year...Complementing our strong financial performance is our continued progress on many fronts, including new generic injectable product launches, advancements in our on-market biosimilars and related pipeline, and execution of our Device Strategy."

7:33 am Humana beats by $0.04; guides Q3 EPS in-line; reaffirms FY15 EPS guidance; as previously announced, being acquired by AET (HUM) : Reports Q2 (Jun) earnings of $1.67 per share, $0.04 better than the Capital IQ Consensus Estimate of $1.63.

  • Co issues in-line guidance for Q3, sees EPS of $2.15 vs. $2.16 Capital IQ Consensus Estimate. 
  • Co reaffirms guidance for FY15, sees EPS of $7.75 vs. $7.77 Capital IQ Consensus Estimate. 
  • On July 3, 2015, the company announced it entered into a definitive agreement with Aetna Inc. (AET) under which Aetna will acquire all outstanding shares of Humana for a combination of cash and stock. Under terms of the agreement, Humana stockholders will receive $125 in cash and 0.8375 of an Aetna common share for each Humana share.

7:32 am General Dynamics beats by $0.22, beats on revs; Raises FY15 EPS guidance above consensus (GD) : Reports Q2 (Jun) earnings of $2.27 per share, $0.22 better than the Capital IQ Consensus Estimate of $2.05; revenues rose 5.5% year/year to $7.88 bln vs the $7.68 bln consensus. Co issues upside guidance for FY15, sees EPS of $8.70-8.80 vs. $8.61 Capital IQ Consensus Estimate.

Backlog
General Dynamics' backlog remained steady at the end of second-quarter 2015, with funded backlog at $55.4 billion and total backlog of $70 billion. Aerospace backlog increased by seven percent in the quarter, with strong order activity across the product line. Information Systems and Technology also had several notable orders in the quarter leading to higher backlog. Estimated potential contract value, representing management's estimate of value in unfunded indefinite delivery, indefinite quantity (:IDIQ) contracts and unexercised options, was $25.6 billion. Total potential contract value, the sum of all backlog components, was $95.6 billion at the end of the quarter.

7:32 am Tableau Software beats by $0.02, beats on revs -- guides on the call (DATA) : Reports Q2 (Jun) earnings of $0.07 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.05; revenues rose 65.3% year/year to $149.9 mln vs the $141.22 mln consensus. 

  • License revenue increased 60% to $96.7 million, up from $60.4 million in the second quarter of 2014. 
  • International revenue grew to $36.7 million, up 83%, from $20.1 million in the second quarter of 2014.
  • Guidance on the call at 8:00.

7:31 am Saia beats by $0.04, beats on revs (SAIA) : Reports Q2 (Jun) earnings of $0.75 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.71; revenues fell 2.1% year/year to $323.5 mln vs the $319.55 mln consensus.

  • Operating ratio improved to 90.3 compared to 93.1
  • LTL shipments were down 2.9% as LTL tonnage decreased 6.0%
  • LTL revenue per hundredweight increased by 3.9% despite the impact of lower year-over-year fuel surcharges 

7:31 am Capita reported H1 EPS of GBP 0.32 vs GBP 0.28 last year; revenues rose 10% YoY to GBP 2.283 bln (CTAGY) :

  • Co reported GBP 1.6bn of major contract wins (H1 2014: 1.3bn) including milestone contracts and frameworks in health and science.
  • Guidance: "We continue to expect to deliver low double digit revenue growth in 2015, with a slight increase in organic growth in the second half of the year, following the delayed start of some new contracts. We expect organic growth to accelerate in 2016, supported by the conversion of our bid pipeline."

7:31 am Viking Therapeutics announces plans to conduct a Phase 2 trial of VK2809, in patients with hypercholesterolemia and fatty liver disease (VKTX) : Co intends to file an investigational new drug (IND) application and initiate the clinical development program in the fourth quarter of 2015.

  • The planned Phase 2 study will be a randomized, double-blind, parallel group, placebo-controlled trial designed to evaluate the efficacy, safety and tolerability of VK2809 in approximately 100 patients with elevated LDL cholesterol and fatty liver disease. Viking expects to complete the study in 2016.

7:31 am Navidea Biopharma awarded $1.7 mln fast track NIH SBIR grant for evaluation of Manocept in rheumatoid arthritis (NAVB) : Navidea announces the receipt of an initial notice of award for a Fast Track Small Business Innovation Research grant providing for up to $1.7 mln from the National Institutes of Health's National Institute of Arthritis and Musculoskeletal and Skin Diseases, to fund preclinical animal studies and a Phase 1/2 human clinical study examining the ability of Tc 99m-tilmanocept, a Manocept platform product, to identify skeletal joints that are inflamed due to rheumatoid arthritis. 

The funds for this Fast Track grant will be released in two parts, which together have the potential to provide a total of $1.7 mln in resources over 2.5 years to achieve the specific aims and objectives of the grant. The first part will provide $225,000 to support preclinical animal studies and to support activities needed to prepare for the Phase 1/2 clinical study while the second part of the award will support the Phase 1/2 study, the results from which are expected to confirm the safety and effectiveness of Tc 99m-tilmanocept to identify skeletal joint inflammation due to RA.

7:31 am Pall shareholders approve merger with Danaher (DHR); deal expected to close by the end of calendar 2015 (PLL) :  

7:29 am Jarden reports EPS and revs in-line with July 16 pre-announcement (JAH) : Reports Q2 (Jun) earnings of $0.59 per share, in-line with pre-announcement, which was released on July 16 (Capital IQ Consensus Estimate is also $0.59); revenues rose 1.5% year/year to $2.01 bln, in-line with the July 16 pre-announcement of $2 bln (consensus is $1.97 bln). Organic net sales grew 7.0% or $138 million in the second quarter of 2015;

7:29 am On the Wires (:WIRES) :

  • Descartes Systems Group (DSGX) announced that it has signed a software development cooperation agreement with SAP SE (SAP). The partnership provides customers with an end-to-end business-content network for logistics collaboration and connectivity by creating a logistics message exchange between Descartes' cloud-based Global Logistics Network and the SAP Transportation Management application
  • Galena Biopharma (GALE) announced the product launch for Zuplenz (ondansetron) Oral Soluble Film in the United States. Zuplenz is now available nationwide and is supplied in both 4 mg and 8 mg strengths
  • Evogene Ltd (EVGN) announced the discovery and successful validation in plants of the first set of novel plant targets, representing a key milestone in its product program for new chemical herbicides
  • Cepheid (CPHD) announced the international availability of an update to its Xpert Carba-R product, with the addition of two newly emerging carbapenemase genes, OXA-181 and OXA-232
  • Teleflex Incorporated (TFX) announced that newly published research in the American Journal of Infection Control, has further documented the ability of the Company's ARROW Central Venous Catheter with ARROWg+ard Blue Technology, to reduce both catheter-related bloodstream infections and direct costs associated with treating those infections
  • OnDeck (ONDK) announced the launch of its new mobile app that allows small business owners the ability to manage their OnDeck accounts on the go
  • Can-Fite BioPharma Ltd (CANF) announced that the World Health Organization's International Nonproprietary Name group has accepted the proposed generic name "piclidenoson" for its lead drug candidate, CF101

7:28 am Overnight Treasury Summary (BONDX) : Yields Move Higher

  • U.S. Treasury coupon securities fell overnight as global equities edged higher ahead of the FOMC's rate decision this afternoon
  • Yield Check:
    • 2-yr: +3 bps to 0.70%
    • 5-yr: +3 bps to 1.62%
    • 10-yr: +2 bps to 2.27%
    • 30-yr: +2 bps to 2.99%
  • International News:
    • In Japan, Retail Sales fell less than expected, down 0.8% m/m in June
      • Many forecasters are predicting negative growth in the second quarter. GDP data for Q2 will be released on August 17th
    • The MBA Mortgage Index for the week ending 07/25 rose 0.8% versus +0.1% in the week prior
    • In Germany, the GfK German Consumer Climate Index was flat in August at 10.1, in line with forecasts
    • Retail Sales in Spain rose a less-than-expected 2.3% y/y in June, versus a 3.1% jump in May
    • Greece and its creditor institutions agreed on a FY 2015 GDP growth forecast of -3.3% due to the damage done to the real economy by the debt crisis
      • Greece owes the European Central Bank 3.2 bln euro on August 20th
  • Data out Today:
    • June Pending Home Sales (10:00 ET)
    • Crude Inventories for the week ending 7/25 (10:30 ET)
    • July FOMC Rate Decision (14:00 ET)
  • Auctions:
    • $35 bln 5-year note auction (results at 13:00 ET)
    • $15 bln 2-year floating rate note auction (results at 13:00 ET)

7:25 am CNH Industrial misses by $0.06, misses on revs; reaffirms sales, lower margin guidance (CNHI) : Reports Q2 (Jun) adj. earnings of $0.11 per share, 0.06 worse than the Capital IQ Consensus of $0.17; revenues fell 21.9% year/year to $6.96 bln vs the $7.48 bln consensus. 

  • Full year guidance updated as follows: net sales of Industrial Activities in the range of $26-27 billion, with operating margin of Industrial Activities between 5.6% and 6.0% (from 6.1-6.4%) and net industrial debt at the end of 2015 between $2.0 billion and $2.2 billion.

7:22 am GlaxoSmithKline reports EPS in-line, revs in-line; provides FY15 and FY16 guidance (GSK) : Reports Q2 (Jun) core earnings of GBP0.17 per share, in-line with the Capital IQ Consensus Estimate of GBP0.17; revenues rose 5.9% year/year to GBP5.89 bln vs the GBP5.88 bln consensus. 

  • FY15 Guidance: Core EPS for 2015 is expected to decline at a percentage rate in the high teens (Capital IQ consensus -16%) primarily due to continued pricing pressure on Seretide/Advair in US/Europe, the dilutive effect of the Novartis transaction and the inherited cost base of the Novartis businesses. 
  • FY16 Guidance: In 2016, GSK expects to see a significant recovery in core EPS with percentage growth expected to reach double digits on a CER basis as the adverse impacts seen in 2015 diminish and the sales and synergy benefits of the Novartis transaction contribute more meaningfully.

7:21 am RPC misses by $0.05, reports revs in-line (RES) : Reports Q2 (Jun) loss of $0.16 per share, $0.05 worse than the Capital IQ Consensus Estimate of ($0.11); revenues fell 48.9% year/year to $297.6 mln vs the $299.11 mln consensus.

  • "RPC's financial results during Q2 of 2015 reflect our industry's declining activity levels and competitive pricing for our services," stated Richard A. Hubbell, RPC's President and Chief Executive Officer.
  • "The average U.S. domestic rig count during Q2 was 907, a decrease of 51.1% compared to the same period in 2014, and a decrease of 35.4% compared to Q1 of 2015. The average price of natural gas was $2.70 per Mcf, a 40.7% decrease compared to the prior year, and a 4.3% decrease compared to Q1 of 2015. The unconventional rig count declined by 45.6% compared to the prior year and 33.1% sequentially. The average price of oil during the quarter was $57.53 per barrel, a 44.3% decrease compared to the prior year but a 17.4% increase compared to the first quarter of 2015. Our sequential revenue decline was slightly less than overall industry declines because of the increasing service intensity of pressure pumping, which is RPC's largest service line."

7:20 am Southern beats by $0.01, misses on revs (SO) : Reports Q2 (Jun) adj. earnings of $0.71 per share, $0.01 better than the Capital IQ Consensus of $0.70; revenues fell 2.9% year/year to $4.34 bln vs the $4.64 bln consensus. Earnings for the second quarter of 2015 were positively influenced by retail revenue effects at Southern Company's traditional operating companies, warmer weather and stronger than expected performance of its Southern Power subsidiary. Earnings were negatively influenced by increased non-fuel operations and maintenance expenses.

7:18 am Vantiv beats by $0.02, beats on revs; guides Q3 EPS in-line, revs in-line; guides FY15 EPS above consensus, revs above consensus (VNTV) : Reports Q2 (Jun) earnings of $0.56 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.54; revenues rose 27.9% year/year to $423.6 mln vs the $408.4 mln consensus. Co issues in-line guidance for Q3, sees EPS of $0.54-0.56, excluding non-recurring items, vs. $0.55 Capital IQ Consensus Estimate; sees Q3 revs of $410-415 mln vs. $408.42 mln Capital IQ Consensus Estimate. Co issues upside guidance for FY15, sees EPS of $2.15-2.20, excluding non-recurring items, vs. $2.14 Capital IQ Consensus Estimate; sees FY15 revs of $1.625-1.645 bln vs. $1.62 bln Capital IQ Consensus Estimate.

7:17 am FLY Leasing beats by $0.11, misses on revs (FLY) : Reports Q2 (Jun) earnings of $0.23 per share, excluding non-recurring items, $0.11 better than the Capital IQ Consensus Estimate of $0.12; revenues fell 6.1% year/year to $102.8 mln vs the $104.76 mln consensus. 

  • "Combined with the sale of eight B757s previously announced, we have agreements to sell a total of 41 aircraft averaging 12.9 years of age at June 30."

7:17 am Monotype Imaging beats by $0.01, beats on revs; guides Q3 EPS below consensus, revs in-line; guides FY15 EPS above consensus, revs in-line (TYPE) : Reports Q2 (Jun) earnings of $0.24 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.23; revenues rose 3.2% year/year to $46.4 mln vs the $45.28 mln consensus.

  • Co issues guidance for Q3, sees EPS of $0.22-0.26, excluding non-recurring items, vs. $0.27 Capital IQ Consensus Estimate; sees Q3 revs of $46.5-49.5 mln vs. $48.82 mln Capital IQ Consensus Estimate. 
  • Co issues guidance for FY15, sees EPS of $1.05-1.11, excluding non-recurring items, vs. $1.04 Capital IQ Consensus Estimate; sees FY15 revs of $188-194 mln vs. $190.74 mln Capital IQ Consensus Estimate.

7:17 am American Tower beats by $0.10, reports revs in-line; raises FY15 guidance (AMT) : Reports Q2 (Jun) adj. funds from operations of $1.26 per share, $0.10 better than the Capital IQ Consensus Estimate of $1.16; revenues fell 89.4% year/year to $1.17 bln vs the $1.18 bln consensus. Total rental and management revenue Core Growth was ~23.2%, and total rental and management Organic Core Growth was approximately 7.3%. Total rental and management Gross Margin increased 13.1% to $843 million, and total rental and management Gross Margin percentage was 73%. Adjusted EBITDA increased 11.7% to $762 million, Core Growth in Adjusted EBITDA was 21.1%, and Adjusted EBITDA Margin was 65%.

  • Raises FY15 AFFO to $2.095-2.135 bln from $2.035-2.075 bln; EBITDA $3.02-3.06 bln from $2.99-3.03 bln; rental and mgmt rev $4.645-4.695 bln from $4.555-4.605 bln.

7:17 am Seventy Seven Energy beats by $0.02, beats on revs (SSE) : Reports Q2 (Jun) loss of $0.93 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of ($0.95); revenues fell 46.3% year/year to $295.1 mln vs the $281.1 mln consensus. Note: During Q2, the co sold its drilling rig relocation and logistics business (Hodges Trucking Company, L.L.C.) and water hauling assets.

7:15 am Apollo Global Management beats by $0.03 (APO) : Reports Q2 (Jun) earnings of $0.38 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.35. total assets under management of $162.5 billion

7:15 am ACCO Brands beats by $0.08, beats on revs; guides FY15 EPS above consensus (ACCO) : Reports Q2 (Jun) earnings of $0.24 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus Estimate of $0.16; revenues fell 7.7% year/year to $394.7 mln vs the $383.52 mln consensus.

  • Co issues upside guidance for FY15, sees EPS of $0.75-0.78, excluding non-recurring items, vs. $0.72 Capital IQ Consensus Estimate.
  • The company continues to expect full year free cash flow of approximately $140 mln.

7:14 am Amedisys beats by $0.10, beats on revs (AMED) : Reports Q2 (Jun) earnings of $0.43 per share, $0.10 better than the Capital IQ Consensus Estimate of $0.33; revenues rose 3.0% year/year to $314.1 mln vs the $307.07 mln consensus.  

  • "We are extremely pleased with our second quarter performance. We made progress toward implementing our key strategies - delivering clinical excellence, empowering our people, improving operational efficiency and accelerating growth. I'd like to thank our team of 13,000 employees for delivering great results."

7:14 am Intl Paper beats by $0.05, misses on revs (IP) : Reports Q2 (Jun) operating earnings of $0.97 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus Estimate of $0.92; revenues fell 3.1% year/year to $5.71 bln vs the $5.82 bln consensus.

7:13 am Henry Schein reports EPS in-line, misses on revs; guides FY15 EPS in-line (HSIC) : Reports Q2 (Jun) earnings of $1.46 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate of $1.46; revenues rose 0.5% year/year to $2.63 bln vs the $2.68 bln consensus. Co issues in-line guidance for FY15, sees EPS of $5.90-6.00, excluding non-recurring items, vs. $5.92 Capital IQ Consensus Estimate.

7:13 am WEC Energy Group beats by $0.03, misses on revs (WEC) : Reports Q2 (Jun) earnings of $0.59 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.56; revenues fell 5.0% year/year to $991.2 mln vs the $1.05 bln consensus.

  • Residential use of electricity dropped by 5% from last year's second quarter. Consumption of electricity by small commercial and industrial customers rose by 2.3%. Electricity use by large commercial and industrial customers -- excluding the iron ore mines in Michigan's Upper Peninsula -- was down by 1.4%.

7:11 am Carbonite beats by $0.02, beats on revs; guides Q3 EPS in-line, revs below consensus; guides FY15 EPS in-line, revs in-line (CARB) : Reports Q2 (Jun) loss of $0.01 per share, $0.02 better than the Capital IQ Consensus Estimate of ($0.03); revenues rose 12.2% year/year to $34 mln vs the $33.58 mln consensus. Bookings for the second quarter were $35.7 million, an increase of 17% from $30.6 million in the second quarter of 2014.

  • Co issues mixed guidance for Q3, sees EPS of $0.04-0.06 vs. $0.06 Capital IQ Consensus Estimate; sees Q3 revs of $34.5-34.7 mln vs. $35.14 mln Capital IQ Consensus Estimate. 
  • Co issues in-line guidance for FY15, sees EPS of $0.09-0.11 vs. $0.10 Capital IQ Consensus Estimate; sees FY15 revs of $137.3-138.3 vs. $137.72 mln Capital IQ Consensus Estimate.

7:10 am Comstock Mining to amend the terms of the operating agreement for its Northern Comstock JV; will reduce its remaining capital contributions (LODE) : The co announced that it has reached a definitive agreement with John V. Winfield to amend the terms of the operating agreement for its Northern Comstock LLC joint venture, that will reduce the Company's remaining capital contributions from $31.05 million down to $9.75 million and permit such capital contributions to be made in the form of cash, or in certain circumstances, the Company's common stock, par value $0.000666 per share and defer certain payments to a more suitable schedule. In addition, any prior or future royalty commitments for the Northern Comstock properties and Mr. Winfield will be eliminated.

  • Additionally, the Company will mail notices and consent solicitations to all the holders of the Company's outstanding shares of convertible preferred stock, pursuant to which the Company is seeking written authorization from a majority of the holders of the Company's outstanding 7 1/2% Series A-1 Convertible Preferred Stock, 7 1/2% Series A-2 Convertible Preferred Stock and 7 1/2% Series B Convertible Preferred Stock to amend the certificates of designation of rights, preferences, rights and limitations of the Preferred. If adopted, the amendments to the Charters will result in the automatic conversion of the Preferred into shares of Common Stock. In addition, if the amendments to the Charters are approved, each holder of the Preferred will receive a one-time dividend of 127 shares of Common Stock, per share of Preferred.

7:10 am Booz Allen Hamilton beats by $0.01, beats on revs; reaffirms FY16 guidance (BAH) : Reports Q1 (Jun) earnings of $0.44 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.43; revenues rose 2.3% year/year to $1.35 bln vs the $1.34 bln consensus.

  • Co issues reaffirms guidance for FY16, sees EPS of $1.60-1.70 vs. $1.64 Capital IQ Consensus Estimate; sees FY16 revs growth of (2%)to +2% or roughly $5.16-5.38 bln vs. $5.3 bln Capital IQ Consensus Estimate.

7:09 am Garmin beats by $0.01 after lowering guidance two weeks ago; reaffirms FY15 guidance (lowered two weeks ago) (GRMN) :

  • Reports Q2 (Jun) earnings of $0.72 per share, $0.01 better than the Capital IQ Consensus of $0.71; revenues fell 0.5% year/year to $773.8 mln vs the $768.91 mln consensus, with fitness, outdoor, aviation and marine delivering 61% of total revenue and collectively growing 11% over the year ago quarter. The relative strength of the US Dollar compared to other major currencies negatively impacted revenue by ~$59 million, or 8%, in the second quarter of 2015. 
    • Shipped over 4 million units in the quarter, an 8% increase over the year ago quarter
  • Co preannuonced EPS $0.70-0.72 vs. $0.90 consensus; rev $770-775 mln vs. $771 consensus and lowered FY15 guidance on July 16.
  • Co reaffirms guidance for FY15, sees EPS of ~$2.65, excluding non-recurring items, vs. $2.63 Capital IQ Consensus Estimate; sees FY15 revs of ~$2.9 bln vs. $2.87 bln Capital IQ Consensus Estimate. The global currency situation is expected to continue to create downward pressure on revenue growth and profitability for the remainder of the year. In addition, we expect to incur higher advertising costs in the back half of 2015 in order to further solidify our position in key markets. 

7:08 am Installed Building Products reports EPS in-line, revs in-line (IBP) : Reports Q2 (Jun) earnings of $0.23 per share, in-line with the Capital IQ Consensus Estimate of $0.23; revenues rose 26.4% year/year to $159.7 mln vs the $159.09 mln consensus. 

  • "...Capital position remains strong, and we have a robust pipeline of potential acquisitions for the remainder of 2015 and through 2016. We expect positive momentum to continue throughout the remainder of the year as we continue to benefit from improving residential end markets."

7:07 am Silicon Labs beats by $0.03, misses on revs; guides Q3 EPS below consensus, revs below consensus (SLAB) : Reports Q2 (Jun) earnings of $0.56 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.53; revenues rose 6.4% year/year to $164.9 mln vs the $166.59 mln consensus.

"We delivered another record quarter, and are encouraged by the traction we are seeing in our strategic growth businesses including our Internet of Things, Infrastructure and Broadcast automotive products," said Tyson Tuttle, CEO of Silicon Labs. "However, we believe macro trends continue to stifle the global demand for TVs, with the latest market estimates calling for a reduction in unit demand for 2015. Accordingly, we expect Q3 Broadcast revenue to decline again by ~15%, counter to typical seasonality."

  • Co issues downside guidance for Q3, sees EPS of $0.39-0.45, excluding non-recurring items, vs. $0.60 Capital IQ Consensus Estimate; sees Q3 revs of $151-156 mln vs. $173.86 mln Capital IQ Consensus Estimate.

7:06 am Rockwell Automation beats by $0.05, reports revs in-line; guides FY15 EPS in-line, revs in-line (ROK) : Reports Q3 (Jun) earnings of $1.59 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus Estimate of $1.54; revenues fell 4.5% year/year to $1.58 bln vs the $1.58 bln consensus.

  • Co issues in-line guidance for FY15, sees EPS of $6.55-6.70 vs. $6.63 Capital IQ Consensus Estimate; sees FY15 revs of $6.4 bln vs. $6.42 bln Capital IQ Consensus Estimate.

7:06 am Genesis Energy, L.P. misses by $0.17, misses on revs (GEL) : Reports Q2 (Jun) earnings of $0.12 per share, $0.17 worse than the Capital IQ Consensus Estimate of $0.29; revenues fell 35.3% year/year to $656.3 mln vs the $690 mln consensus. 

  • "We increased our distribution to all unitholders for the fortieth consecutive quarter, thirty-five of which have been 10% or greater over the prior year's quarter and none less than 8.7%."

7:06 am Rex Energy announces Q2 production and price realization; reports production increased to 206.8 MMcfe/d, a 5% increase from Q1 2015 (REXX) : Rex Energy's second quarter 2015 production increased to 206.8 MMcfe/d, a 5% increase from first quarter 2015, and exceeded the high-end of the company's previously reported production guidance of 199.0-205.0 MMcfe/d.

  • Natural gas (Mcf) avg per day was 131,057 
    • Net realized price per Mcf of $2.53
  • Oil and condensate (Bbls) avg per day was 3,375
    • Net realized price per Bbl of $56.99

7:05 am Sonus Networks beats by $0.06, reports revs in-line; guides Q3 EPS above consensus, revs in-line; guides FY15 EPS above consensus, revs above consensus (SONS) : Reports Q2 (Jun) loss of $0.10 per share, $0.06 better than the Capital IQ Consensus Estimate of ($0.16); revenues fell 27.6% year/year to $54.7 mln vs the $54.17 mln consensus.

  • Co issues guidance for Q3, sees EPS of $0.05-0.08 vs. $0.05 Capital IQ Consensus Estimate; sees Q3 revs of approx $65 mln vs. $64.93 mln Capital IQ Consensus Estimate.
  • Co issues upside guidance for FY15, sees EPS of ($0.10)-$0.00 vs. ($0.19) Capital IQ Consensus Estimate; sees FY15 revs of $245-250 mln vs. $245.60 mln Capital IQ Consensus Estimate.

7:04 am Sprague Resources increases quarterly distribution to $0.4875/unit from $0.4725/unit (SRLP) :  

7:03 am Altria beats by $0.03, beats on revs; guides FY15 EPS in-line; Announces $1 bln share buyback (MO) : Reports Q2 (Jun) earnings of $0.74 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.71; revenues rose 5.7% year/year to $6.61 bln, which may not be comparable to the $4.75 bln consensus. Co issues in-line guidance for FY15, sees EPS of $2.76-2.81 vs. $2.81 Capital IQ Consensus Estimate. Altria expects its adjusted diluted EPS growth to moderate in the second half of 2015 versus the first-half rate due to several factors. These include lapping the effects of the 2014 improvements in the economy for adult tobacco consumers and lower gasoline prices, expected trade inventory movements and the effect of state excise tax increases. In addition, the comparative benefit from the expiration of the federal tobacco quota buy-out payments ends in the fourth quarter and Altria now estimates its 2015 full-year effective tax rate on operations will be 35.3%.

7:03 am WCI Communities beats by $0.07, beats on revs (WCIC) : Reports Q2 (Jun) earnings of $0.37 per share, $0.07 better than the Capital IQ Consensus Estimate of $0.30; revenues rose 62% year/year to $150.7 mln vs the $146.33 mln consensus.

  • New orders during the second quarter of 2015 increased 53.8% to 300 homes and the contract value of new orders was $128.6 million for the second quarter, an increase of 37.4% from the prior year period.
  • As of June 30, 2015, backlog contract value was $294.1 million, an increase of $64.1 million, or 27.9% from June 30, 2014. Backlog units totaled 627 units at the end of the second quarter, representing a 194 unit, or 44.8% increase from the prior year.

7:03 am Thomson Reuters beats by $0.02, misses on revs; reaffirms outlook (TRI) : Reports Q2 (Jun) earnings of $0.52 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.50; revenues fell 3.8% year/year to $3.04 bln vs the $3.07 bln consensus. 

  • Reaffirmed its full-year business outlook for 2015, which was previously communicated in February 2015. 
    • The company continues to expect: 
      • Positive organic revenue growth; 
      • Adjusted EBITDA margin to range between 27.5% and 28.5%;
      • Underlying operating profit margin to range between 18.5% and 19.5%; and 
      • Free cash flow to range between $1.550 billion and $1.750 billion in 2015.
  • Financial & Risk net sales were positive in all regions; net sales were positive for the fifth consecutive quarter. 
  • Revenues from ongoing businesses increased 2% (before currency) from the prior-year period driven by the Legal, Tax & Accounting and Intellectual Property & Science businesses, which grew 2% in aggregate, and by the Financial & Risk business, which grew 1%.

7:02 am Mylan Labs confirms regulatory clearance from the European Commission for its proposed acquisition of Perrigo (PRGO) (MYL) :  

7:01 am Westmoreland Coal confirms and responds to letter from Charles Frischer of LF Partners; saying 'we will certainly give Mr. Frischer's suggestions consideration' (WLB) : CEO Alessi stated: "I am in receipt of Mr. Charles Frischer's letter in which he directs numerous suggestions to me and the board of directors of Westmoreland. We will certainly give Mr. Frischer's suggestions consideration. We are acutely aware of the negative market sentiments caused by the failure of other coal companies. We will continue to tell the Westmoreland story centered on long-term contracted positions and a cash generating model, versus our industry's more common commodity price driven model. "

7:01 am Dorman Products misses by $0.04, misses on revs (DORM) : Reports Q2 (Jun) earnings of $0.65 per share, $0.04 worse than the Capital IQ Consensus Estimate of $0.69; revenues rose 1.3% year/year to $198.7 mln vs the $206.64 mln consensus.

7:00 am Asian Markets Close: Japan's Nikkei -0.1%; Hong Kong's Hang Seng +0.5%; China's Shanghai Composite +3.4% (:SUMRX) : Markets in the Asia-Pacific region were mostly higher on Wednesday, none more so than China's Shanghai Composite (+3.4%), which flirted with another day of losses before a late-day rally turned the tide of negative sentiment. Wall Street's positive showing on Tuesday and the reversal in the Chinese equity market helped underpin some of Wednesday's buying interest.

Economic data

  • Japan
    • June Retail Sales +0.9% year-over-year (expected +0.5%; prior +3.0%)
Equity Markets
  • Japan's Nikkei declined 0.1%, held back by losses in the industrials (-4.0%) and technology (-1.3%) sectors, which flowed out of profit warnings from Fanuc (-10.7%) and Tokyo Electron (-11.4%). Those two stocks were the worst-performing issues. NTT Data (+3.5%), Nippon Electric Glass (+3.5%), and Shiseido (+3.1%) paced the winners. Out of the 225 index members, 134 ended higher, 82 finished lower, and 9 were unchanged.
  • Hong Kong's Hang Seng increased 0.5%, pushing higher in its afternoon session in conjunction with a rebound in mainland markets. Index gains were led by Kunlun Energy (+4.1%), China Merchants Holdings International (+3.5%), and PetroChina (+2.8%). Top laggards included China Mengniu Dairy (-1.9%), Tencent Holdings (-1.4%), and Ping An Insurance (-1.1%). Out of the 50 index members, 28 ended higher, 18 finished lower, and 4 were unchanged.
  • China's Shanghai Composite increased 3.4%, capturing all of its gains in a closing rally that began with about 90 minutes left in its trading day. There was no specific news catalyst for the spike, which reports attributed mostly to the thinking among market participants that the government will continue to support equity prices. The CSI 300 Index for its part gained 3.1%.
  • India's Sensex increased 0.4%, holding on to modest gains throughout the trading day. The advance was led by the industrials (+1.7%), consumer discretionary (+1.2%), technology (+0.9%), and materials (+0.8%) sectors. Infosys (+2.1%), Lupin Ltd (+1.9%), and Bharti Airtel (+1.9%) topped the list of individual winners. ITC Ltd (-2.3%), State Bank of India (-2.2%), and GAIL India (-1.5%) led the laggards.
  • Australia's S&P/ASX 200 jumped 0.7%, aided by strength in the metals & mining (+1.8%), materials (+1.5%), and information technology (+1.5%) sectors. Fortescue Metals (+7.4%) was the best-performing stock while Nine Ent Fpo (-4.2%) brought up the rear. Out of the 200 index members, 138 ended higher, 50 finished lower, and 12 were unchanged.
  • Regional advancers: Indonesia +0.1%, Singapore +0.1%, Thailand +0.7%, Philippines +0.1%
  • Regional decliners: South Korea -0.1%, Taiwan -0.2%, Malaysia -0.04%, Vietnam -1.1%
FX
  • USD/CNY -0.01% at 6.2091
  • USD/INR -0.1% at 63.8475
  • USD/JPY +0.01% at 123.57

7:00 am Ignyta announces US FDA Clearance of its IND application for RXDX-107 (RXDX) : Under the IND, Co intends to initiate a new Phase 1/1b, multicenter, open-label clinical trial of RXDX-107 in adult patients. This dose-escalation study is designed to determine the maximum tolerated dose, recommended Phase 2 dose, tolerability, pharmacokinetics and preliminary clinical activity of RXDX-107 in patients with locally advanced or metastatic solid tumors.

6:51 am Nomura Holdings beats by JPY 2.88, beats on revs (NMR) : Reports Q1 (Jun) earnings of YEN19.11 per share, YEN2.88 better than the Capital IQ Consensus Estimate of YEN16.23; revenues rose 10.0% year/year to YEN508.45 bln vs the YEN402.56 bln consensus.

6:48 am CONSOL Energy confirms a lowered quarterly dividend to $0.01/share from $0.0625/share (CNX) : In its earnings release yesterday, the company said consistent with what it previously announced on December 10, 2014 and in connection with the initial public offering of CNX Coal Resources LP (CNXC), it intended to reduce its current regular dividend to $0.01 per share, per quarter, effective in the third quarter of 2015.

6:47 am CGI Group misses by $0.01, misses on revs (GIB) : Reports Q3 (Jun) earnings of CC$0.80 per share, CC$0.01 worse than the Capital IQ Consensus Estimate of CC$0.81; revenues fell 4.0% year/year to CC$2.56 bln vs the CC$2.65 bln consensus.

6:44 am Wi-LAN beats by $0.04 (WILN) :

  • Reports Q2 (Jun) earnings of $0.21 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus of $0.17; revenues rose 36.2% year/year to $35 mln vs the $42.27 mln consensus, but above WiLAN's updated guidance provided on June 2, 2015 of ~$34 million. 
  • The increase in revenues is primarily attributable to the license WiLAN signed with Samsung during the quarter. 
  • As discussed in WiLAN's first quarter 2015 financial results press release and conference call, the Company will no longer provide revenue and earnings guidance. WiLAN's business is evolving in that an increasing portion of revenues are generated by one-time payments in each quarter. WiLAN is also now announcing quarterly results earlier each quarter before many quarterly running royalty reports have been received. These factors increasingly make guidance misleading since, virtually every time, actual quarterly revenues are higher than guidance. WiLAN will, however, continue to provide quarterly expense guidance.

6:41 am J. Sainsbury plc forms strategic partnership with Celesio AG (CAKFY), will sell its Sainsbury's pharmacy business for GBP 125 mln to Celesio's LloydsPharmacy unit (JSAIY.PK) : Under the terms of the transaction, LloydsPharmacy has agreed to acquire 281 pharmacies in total, including 277 in-store pharmacies and four located in hospitals, all of which will be rebranded as LloydsPharmacy.As part of the Partnership Agreement approximately up to 2,500 Sainsbury's pharmacy colleagues will transfer to LloydsPharmacy under TUPE. In addition, Sainsbury's will receive commercial annual rent payments from LloydsPharmacy for each location.

6:40 am SPX Corp beats by $0.30, beats on revs; narrows FY15 revs, lowers FY15 EBITDA; Flow spin on track (SPW) :

  • Reports Q2 (Jun) earnings of $1.05 per share, excluding non-recurring items, $0.30 better than the Capital IQ Consensus of $0.75; revenues fell 10.1% year/year to $1.07 bln vs the $1.04 bln consensus. 
    • The impact of the stronger U.S. Dollar on foreign currencies decreased revenues by 6.5%. Organic revenues* decreased 3.6%, due primarily to lower power and energy revenue in the Flow and Thermal segments, largely reflecting the impact of lower oil prices on customers' capital spending decisions and on-going weakness in power generation markets.
  • Co issues guidance for FY15, sees FY15 revs of (7)-(9%) to ~$4.30-4.39 bln (from -10 to -6%) vs. $4.3 bln Capital IQ Consensus; lowers FY15 EBITDA to $500-520 mln from $500-540 mln.
  • "We remain on track to complete the spin-off of our Flow business towards the end of the third quarter. We believe this is a unique opportunity to create value for our shareholders at both future companies, SPX FLOW, Inc. and the new SPX Corporation."

6:35 am Eaton beats by $0.03, misses on revs; guides Q3 EPS below consensus; guides FY15 EPS below consensus, revs below prior range (ETN) : Reports Q2 (Jun) earnings of $1.16 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $1.13; revenues fell 6.8% year/year to $5.37 bln vs the $5.5 bln consensus.

  • Co issues downside guidance for Q3, sees EPS of $1.00-1.10 vs. $1.30 Capital IQ Consensus Estimate. 
  • Co issues downside guidance for FY15, sees EPS of $4.40-4.60 vs. $4.74 Capital IQ Consensus Estimate; sees rev growth of 0-1% vs prior guidance of 2-3%.

6:35 am Carlyle beats by $0.01, misses on revs (CG) : Reports Q2 (Jun) economic net income of $0.55 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.54; revenues fell 26.3% year/year to $663 mln vs the $684.85 mln consensus. 

  • Distributable Earnings were $386 million for Q2 2015, or $1.18 per common unit on a post-tax basis. DE was $1.0 billion on an LTM basis, 1% lower than the prior rolling 12-month period.

6:34 am Strayer Education beats by $0.12, beats on revs (STRA) : Reports Q2 (Jun) earnings of $1.11 per share, excluding non-recurring items, $0.12 better than the Capital IQ Consensus Estimate of $0.99; revenues fell 2.6% year/year to $109.8 mln vs the $108.15 mln consensus. 

  • Total enrollments at Strayer University for the summer term 2015 increased 2% to 37,221 students compared to 36,403 students for the summer term 2014. New student enrollments increased by 4%, and continuing student enrollments increased by 2%.

6:33 am CBIZ misses by $0.01, misses on revs; reaffirms FY15 guidance (limited coverage) (CBZ) :

  • Reports Q2 (Jun) earnings of $0.13 per share, $0.01 worse than the Capital IQ two est avg of $0.14; revenues rose 4.2% year/year to $185 mln vs the $186.89 mln consensus.
  • "For the full year 2015, we continue to project revenue to increase by 5% - 7%. Assuming a constant share count, EPS is projected to increase by 12% - 15%."

6:32 am Littelfuse beats by $0.06, misses on revs; increases dividend; guides Q3 EPS below consensus, revs below consensus (LFUS) : Reports Q2 (Jun) earnings of $1.33 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus Estimate of $1.27; revenues rose 0.5% year/year to $222 mln vs the $225.79 mln consensus.

  • The Board has approved a 16% increase in the quarterly cash dividend from $0.25 to $0.29 per share. This dividend is payable on September 3, 2015 to shareholders of record at the close of business on August 20, 2015. 
  • Co issues downside guidance for Q3, sees EPS of $1.24-1.36 vs. $1.39 Capital IQ Consensus Estimate; sees Q3 revs of $211-221 mln vs. $224.99 mln Capital IQ Consensus Estimate.

6:32 am On The Wires (:WIRES) :

  • Samsung Electronics (SSNLF) announced the industry's first 1.0m-pixel-based 16 megapixel CMOS image sensor for use in advanced mobile devices.
  • CEMEX, S.A.B. de C.V. (CX) announced that it received an upgrade from Fitch Ratings to the Issuer Default Ratings to BB- from B+.
  • Nam Tai Property (NTP) announced that the latest land evaluation reports on two parcels of land under development have been uploaded to its website. The co notes that notwithstanding the valuation of the land given in these reports, the book value of the land will remain unadjusted in Company's financial statements in accordance with U.S.GAAP. 
  • GE (GE) Healthcare announced a plan to invest more than $1 billion over five years in the development of its educational offerings to reach more than two million healthcare professionals worldwide by 2020. As part of this training commitment, GE Healthcare will continue to work with healthcare providers to build strategic programs that may also include technology, finance and consultancy services to help improve healthcare delivery and drive transformational change in the industry. 

6:31 am Carter Holdings beats by $0.10, reports revs in-line (CRI) : Reports Q2 (Jun) earnings of $0.73 per share, $0.10 better than the Capital IQ Consensus Estimate of $0.63; revenues rose 6.7% year/year to $612.8 mln vs the $609.27 mln consensus.  

  • Co issues guidance for Q3, sees EPS up 12-15% Y/Y, equates to $1.40-1.46, vs. $1.47 Capital IQ Consensus Estimate. Sees Q3 net sales up 7% over 3Q14, in-line with consensus expectations.
  • Co issues guidance for FY15, sees EPS up 12-15% Y/Y, equates to EPS of $4.40-4.52, vs. $4.56 Capital IQ Consensus Estimate. Sees net sales to increase approximately 5% vs. consensus expectations for +6%.

6:30 am Recon Technology enters into an MOU to acquire oilfield service provider,Qinghai Huayou Downhole, for a combination of cash and stock; terms not disclosed (RCON) : Co stated: "We view Qinghai Huayou Downhole as a good fit to our long term vision as we actively seek accretive M&A opportunities to accelerate our growth and earning power."

6:20 am Starz misses by $0.08, misses on revs (STRZA) : Reports Q2 (Jun) earnings of $0.59 per share, $0.08 worse than the Capital IQ Consensus Estimate of $0.67; revenues rose 1.9% year/year to $417.7 mln vs the $451.6 mln consensus.

6:20 am Huntsman beats by $0.08, misses on revs (HUN) : Reports Q2 (Jun) earnings of $0.63 per share, $0.08 better than the Capital IQ Consensus Estimate of $0.55; revenues fell 8.3% year/year to $2.74 bln vs the $3.02 bln consensus.

  •  "Our Performance Products and Advanced Materials businesses continue to demonstrate remarkable earnings. Combined, these businesses represent approximately 50% of our adjusted EBITDA; they have EBITDA margins of approximately 20% and low earnings volatility. Their EBITDA grew approximately 20% compared to the prior year and we have growth projects in place for these businesses that are expected to deliver an additional $100 million over the next couple of years."

6:19 am Hilton Hotels beats by $0.02, beats on revs; guides Q3 EPS in-line; raises FY15 EPS in-line (HLT) : Reports Q2 (Jun) earnings of $0.25 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.23; revenues rose 12.2% year/year to $2.99 bln vs the $2.89 bln consensus.

  • Co issues in-line guidance for Q3, sees EPS of $0.21-0.23, excluding non-recurring items, vs. $0.23 Capital IQ Consensus Estimate. System-wide RevPAR is expected to increase between 4.5-6.5% on a comparable and currency neutral basis compared to the third quarter of 2014. Adjusted EBITDA is expected to be between $730 million and $750 million.
  • Co issues raised guidance for FY15, raises EPS to $0.80-0.84 from $0.79-0.83, excluding non-recurring items, vs. $0.82 Capital IQ Consensus Estimate. System-wide RevPAR is expected to increase between 5-7% on a comparable and currency neutral basis. Adjusted EBITDA is projected to be between $2,820 million and $2,870 million,
  • Dividend: Co initiated a regular quarterly cash dividend with the announcement on July 29, 2015 of a dividend of $0.07 per share on shares of its common stock to be paid on or before September 25, 2015.

6:18 am Praxair reports EPS in-line, misses on revs; guides Q3 EPS below consensus; lowers FY15 EPS below consensus (PX) :

  • Reports Q2 (Jun) earnings of $1.45 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $1.45; revenues fell 12.0% year/year to $2.74 bln vs the $2.85 bln consensus, primarily due to the impact of negative currency translation of 9% and lower cost pass-through of 2%. Organic sales were 1% lower than the prior-year quarter as positive price and new project contribution were offset by weaker underlying industrial activity in Brazil and China and from weaker metals, energy and manufacturing in the United States. 
  • Co issues downside guidance for Q3, sees EPS of $1.42-1.49, excluding non-recurring items, vs. $1.57 Capital IQ Consensus Estimate. 
  • Co issues downside guidance for FY15, lowers EPS to $5.80-5.95, excluding non-recurring items, from $5.90-6.15 vs. $5.99 Capital IQ Consensus Estimate.

6:18 am Mecox Lane's Board establishes a special committee to evaluate the previously announced 'going private' proposal (MCOX) :  

6:16 am Resolute Energy receives notice of non-compliance from NYSE (REN) : The NYSE requires that the average closing price of a listed company's common stock be above $1.00 per share over a consecutive 30 trading-day period. Under NYSE rules, the Company can avoid delisting if, during the six month period following receipt of the NYSE notice, Resolute's common stock price per share and 30 trading-day average share price rises above $1.00.

  • At the Company's annual meeting of stockholders held on June 8, 2015, the Company's stockholders approved a resolution authorizing the Board of Directors to implement a reverse stock split of its common stock at any time prior to December 31, 2015, at one of seven reverse split ratios: 1-for-2, 1-for-5, 1-for-10, 1-for-15, 1-for-20, 1-for-25 or 1-for-30, as determined by Resolute's Board in its sole discretion. If it becomes necessary to do so in order to maintain compliance with the NYSE listing standards, the Company's Board will implement a reverse stock split prior to the end of the NYSE cure period, and may do so in advance of such date. 

6:16 am Anthem reports Q2 EPS in-line with upside preannouncement; reaffirms FY15 EPS guidance (raised last week) (ANTM) :

  • Reports Q2 (Jun) earnings of $3.10 per share, excluding non-recurring items, $0.35 better than the Capital IQ Consensus Estimate of $2.75; revenues rose 8.4% year/year to $19.76 bln vs the $19.65 bln consensus. The growth in revenue reflected premium increases to cover overall cost trends and higher enrollment in the Medicaid and Commercial self-funded businesses. These increases were partially offset by a decline in Local Group fully insured and Individual enrollment.
  • Co reaffirms guidance for FY15, sees EPS of greater than $10.00, excluding non-recurring items, vs. $10.08 Capital IQ Consensus Estimate. 
  • Co preannounced Q2 EPS of $3.10 (consensus $2.69) and raised FY15 EPS to at least $10.00 from at least $9.90 on July 24 when it acquired Cigna (CI). 

6:10 am EverBank Financial reports EPS in-line (EVER) : Reports Q2 (Jun) earnings of $0.35 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate of $0.35. 

  • Net interest margin increased to 3.11% for the second quarter of 2015 from 3.09% in the first quarter of 2015.

6:10 am Triumph Group misses by $0.04, reports revs in-line; guides FY16 below consensus; co begins cost reduction measures (TGI) :

  • Reports Q1 (Jun) earnings of $1.31 per share, excluding non-recurring items, $0.04 worse than the Capital IQ Consensus of $1.35; revenues rose 7.0% year/year to $959.6 mln vs the $963.21 mln consensus. 
    • Organic sales for the quarter decreased ten percent compared to the fiscal first quarter 2015 primarily due to production rate reductions on key Aerostructures programs.
  • Co issues downside guidance for FY16, sees EPS of $5.50-5.75 vs. $5.97 Capital IQ Consensus; sees FY16 revs of $3.9-4.0 bln vs. $4.01 bln Capital IQ Consensus.
  • "Triumph has begun to identify and implement cost reduction measures that will benefit results in the near-term. Savings and efficiencies will come from areas including optimizing internal supply chain, enhancing sourcing practices, and reducing discretionary spending and personnel. Beyond these near-term tactical measures, we are also conducting a comprehensive review across all of our businesses, and the Aerostructures segment in particular, to identify opportunities for sustainable growth and enhanced shareholder value. The review takes a holistic look at the portfolio and is focused on improving execution, increasing profitability, expanding margins, generating strong cash flow and leveraging the strength of our portfolio.

6:07 am W.R. Grace beats by $0.02, misses on revs; narrows constant currency guidance for FY15 (GRA) : Reports Q2 (Jun) earnings of $1.19 per share, $0.02 better than the Capital IQ Consensus Estimate of $1.17; revenues fell 6.7% year/year to $782.1 mln vs the $815.49 mln consensus.

  • Co issues guidance for FY15, sees EPS of $5.15-5.25 constant currency (prior guidance $5.05-5.45), may not be comparable to $4.67 Capital IQ Consensus Estimate. 
  • Co reported Q2 Adjusted EBIT of $156.8 mln up 5% at constant currency.
  • Outlook Details: 2015 Adjusted EBIT is now expected to be in the range of $675 mln to $685 mln on a constant currency basis, an increase of 8% to 9% compared with 2014. The company expects 2015 Adjusted EBITDA to be in the range of $815 mln to $825 mln on a constant currency basis, an increase of approximately 7% to 8% compared with 2014.

6:06 am Quintiles Transnational beats by $0.08, beats on revs; raises FY15 guidance (Q) :

  • Reports Q2 (Jun) earnings of $0.78 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus of $0.70; revenues rose 3.8% year/year to $1.07 bln vs the $1.05 bln consensus. 
    • Company's growth in service revenues, excluding the impact of foreign currency fluctuations, was 9.8% with 22.9% growth in the Integrated Healthcare Services segment and 5.5% growth in the Product Development segment. 
  • Co issues guidance for FY15, raises EPS to $3.09-3.19, excluding non-recurring items, from $3.02-3.13 vs. $3.10 Capital IQ Consensus; service rev ex-FX to +8.5-9.5% from +7-8%.

6:03 am Bellerophon Therapeutics expands its license agreement with INO Therapeutics, allowing Bellerophon to develop INOpulse (BLPH) : Co announced that it has expanded its license agreement with INO Therapeutics, a division of Mallinckrodt plc (MNK), allowing Bellerophon to develop INOpulse for the treatment of three additional cardiopulmonary diseases, including chronic thromboembolic pulmonary hypertension (:CTEPH), pulmonary hypertension associated with sarcoidosis and pulmonary hypertension associated with pulmonary edema from high altitude sickness. Terms of the expanded license agreement include a 5% royalty on net sales for the three additional indications.

6:02 am CONSOL Energy lowers its FY16 and FY16 E&P Capex planned expenditures; forecasts 2015 E&P capex at $800 mln (CNX) : Co lowered its planned exploration and production (E&P) capital expenditures (capex) for 2015 and 2016 to meet its cash flow goals. Co now forecasts 2015 E&P capex at $800 million, compared with its January forecast of $1 billion for the year.

6:00 am Praxair authorizes a new share repurchase program for up to $1.5 billion of common stock (PX) : Added with its remaining repurchase authority, the co now has $2 billion available for stock repurchases. 

5:48 am S&P futures vs fair value: +5.70. Nasdaq futures vs fair value: +15.10. :

5:48 am European Markets : FTSE...6591.57...+36.30...+0.60%.  DAX...11222.59...+48.70...+0.40%.

5:48 am Asian Markets : Nikkei...20302.91...-26.00...-0.10%.  Hang Seng...24619.45...+115.50...+0.50%.

5:45 am On The Wires (:WIRES) :

  • SunPower (SPWR) announced at PV Japan 2015 that the company is making its X-Series Solar Panels available in Japan in early 2016. 
  • Yara (YARIY) announced it is investing $263 million in Sluiskil, Netherlands to increase granulation capacity enabling increased production of granular urea with sulphur, and nitrates. 
  • Enphase Energy (ENPH) has been chosen by Euro Energy Services, a major U.K. solar energy firm, as the primary inverter technology partner for its solar photovoltaics projects.
  • TowerJazz (TSEM) announced it is ramping high volume production of a touch screen controller developed by N-trig, an Israeli company.

5:41 am United Micro beats by NT$0.09, reports revs in-line (UMC) : Reports Q2 (Jun) earnings of NT$0.37 per share, NT$0.09 better than the Capital IQ Consensus Estimate of $0.28; revenues rose 6.0% year/year to NT$38.01 bln vs the NT$38.14 bln consensus.
Quarter-over-Quarter Guidance:

  • Foundry Segment Wafer Shipments - To decrease by less than 5%; Foundry Segment ASP in US$-  To decrease by ~3%; Foundry Segment Profitability- Gross profit margin will be in the mid-teens % range; Foundry Segment Capacity Utilization-  ~high 80% range 
  • 2015 CAPEX for Foundry Segment: $1.8 bln

5:38 am CTC Media reschedules its Q2 earnings release and call to allow additional time to finalize financial statements (CTCM) : The Company anticipates releasing its second quarter earnings announcement and holding its second quarter conference call for analysts and investors in early August 2015.

4:50 am Alibaba to invest $1 bln to accelerate growth in its cloud computing arm (BABA) : Co announced that it will invest an additional $1 billion to fuel further growth at Aliyun, its cloud computing arm, a testament to cloud computing as an important growth area for Alibaba.

  • The additional funding will be used to expand Aliyun's international presence, extend and support an alliance-based global cloud computing ecosystem, and for the development of new cloud and big data solutions that enable customers to increase productivity, lower costs and scale quickly as their businesses grow.

4:39 am Cytec: Solvay (SVYZY) to acquire Cytec for $75.25 per share in cash (CYT) : Solvay (SVYZY) has entered into a definitive merger agreement with Cytec to acquire 100% of its share capital for $75.25 per share in cash.

  • The total cash consideration will amount to $5.5 billion, corresponding to an enterprise value of $6.4 billion and representing a 2015 estimated EBITDA multiple of 14.7x and of 11.7x when considering synergies potential linked to the transaction. 
  • The transaction price per share represents a premium of 28.9% compared to the closing price of Cytec on 28th July 2015 and a premium of 26.9% compared to the volume weighted average closing share price over the last three months. 
  • Cytec's and Solvay's boards of directors have unanimously recommended the transaction.

3:47 am Global Sources announces preliminary results of its cash tender offer to purchase up to 6,666,666 shares of its issued and outstanding common shares at a price of $7.50 per share (GSOL) :  

3:27 am British Amrcn Tobacco beats on top and bottom lines (BTI) : Reports H1 EPS GBP1.42 vs GBP0.97 Capital IQ consenus; revs declined 6% YoY to GBP6.398 bln vs GBP6.351 bln consensus.

  • Group cigarette volume was 322 billion, a decline of 2.9% against an estimated industry decline of approximately 3.5%.
  • The Group's cigarette market share in its Key Markets continued to grow strongly, driven by the Global Drive Brands which increased volume by 6.0%
  • The Board has declared an interim dividend of 49.4p, being one third of the 2014 dividend, a 4.0% increase on last year. This will be paid on 30 September 2015.

2:47 am Sanofi-Aventis and Zealand reports that the LixiLan GLP-1/basal insulin Phase 3 trial met its primiary endpoint (SNY) : Zealand announced that Sanofi reported the successful completion of LixiLan-O, one of two trials comprising the pivotal Phase III development program for LixiLan as a novel treatment for patients with Type 2 diabetes. LixiLan is a new once-daily single injection of the fixed-ratio combination of lixisenatide (Lyxumia), a Zealand-invented once-daily prandial GLP-1 receptor agonist, and Sanofi's insulin glargine (Lantus), the worldwide most prescribed basal insulin.

2:37 am Siliconware Precision beats by NT$0.15, misses on revs (SPIL) : Reports Q2 (Jun) earnings of NT$1.18 per share, NT$0.15 better than the Capital IQ Consensus Estimate of NT$1.03; revenues fell 3.1% year/year to NT$21.24 bln vs the NT$21.71 bln consensus.

  • Gross profit was NT$ 5,781 million for the second quarter of 2015, representing a gross margin of 27.2%, which increased from a gross margin of 26.2% for the first quarter of 2015 and was up from 25.8% for the second quarter of 2014.

2:23 am Koninklijke DSM concludes repurchase plan; repurchased 204,254 of its own shares in the period from July 24- 28 at an average price of 52.44 (RDSMY) :  

2:04 am Microsoft announces Windows 10 is now available in 190 countries as a free upgrade (MSFT) : Co announced that Windows 10 will become available Wednesday as a free upgrade or with new PCs and tablets.

2:03 am Exterran increases quarterly cash by $0.005 to $0.5675 (EXLP) : The distribution is payable on August 14, 2015 to unitholders of record at the close of business on August 10, 2015. The second-quarter 2015 distribution covers the period from April 1, 2015 through June 30, 2015.

2:01 am On The Wires (:WIRES) :

  • A10 Networks (ATEN) announced that telecommunications operator KDDI Corporation has selected its virtual application delivery controller appliance, the A10 vThunder ADC, as the preferred application delivery controller for its corporate cloud infrastructure KDDI Cloud Platform Service 
  • Nokia (NOK) announced OZO, the first commercially available virtual reality camera designed and built for professional content creators and the first in a planned portfolio of digital media solutions from Nokia Technologies, the company's advanced technology and licensing business.

2:00 am Nippon Telegr acquires PT. Cyber CSF; terms not disclosed (NTT) : Co announced that it signed an agreement recently to wholly acquire PT. Cyber CSF, a data center service provider headquartered in Jakarta, Indonesia.

  • Cyber CSF is Indonesia's largest data center service provider. It operates a high-quality facility equipped for 24 MVA of power and 2,800 racks in 7,700 square meters of space in the heart of Jakarta. 
  • The acquisition further strengthens NTT Com's Nexcenter data center capabilities in the Asia-Pacific region, where it serves major local and multinational customers, especially in the fields of finance, IT and manufacturing. NTT Com plans to rename Cyber CSF as NTT Indonesia Nexcenter. 
  • Financial terms were not disclosed

1:57 am Ballard Power reports EPS in-line, beats on revs (BLDP) : Reports Q2 (Jun) loss of $0.06 per share, in-line with the Capital IQ Consensus Estimate of ($0.06); revenues fell 39.5% year/year to $11.2 mln vs the $10.93 mln consensus.

  • Gross margin of 10%, a decrease resulting primarily from the reduction in high margin Technology Solutions revenue due to the previously-announced termination of contracts with Azure in China and a shift in cadence of revenue from the engineering services contract with Volkswagen AG. 
  • Gross margin was lower than the prior quarter, by one percentage point, as had been anticipated and pre-announced in the Company's July 1 press release.

1:56 am Alexander & Baldwin promotes President/COO Christopher Benjamin to CEO, effective January 1, 2016 (ALEX) : Stanley Kuriyama will retire as chief executive officer on December 31, 2015, and will continue to serve as A&B's executive chairman of the board.

1:54 am U.S. Steel misses by $0.19, misses on revs (X) : Reports Q2 (Jun) loss of $0.79 per share, $0.19 worse than the Capital IQ Consensus Estimate of ($0.60); revenues fell 34.1% year/year to $2.9 bln vs the $3.01 bln consensus.

  • Segment loss before interest and income taxes was $104 million, or $27 per ton, for the second quarter of 2015 compared to segment loss before interest and income taxes of $21 million, or $5 per ton, in the first quarter of 2015 and segment earnings before interest and income taxes of $132 million, or $26 per ton, in the second quarter of 2014.
2015 Outlook
  • Co currently expects commercial conditions to improve in the second half of 2015 from the conditions we experienced in the first half, as supply chain inventories continue to rebalance, primarily in our flat-rolled markets. 
  • Based on increasing benefits from Carnegie Way transformation and our aggressive efforts to reduce operating costs to align them with our utilization levels, co currently expects to be within our full-year adjusted EBIT of $115 million to $315 million, or full-year adjusted earnings before interest, income taxes, depreciation and amortization (:EBITDA) of $700 million to $900 million, guidance range for 2015. 
    • While co continues to find additional short term cost reductions and generate additional Carnegie Way benefits, if the current pace of commercial improvement in our markets does not increase, co would expect to be near the low end of the range.

1:50 am Sanchez Energy adopts a net operating loss carryforwards rights plan (SN) : Co announced that its Board of Directors has adopted a net operating loss carryforwards rights plan in an effort to prevent the imposition of significant limitations under Section 382 of the Internal Revenue Code on its ability to utilize its current NOLs to reduce its future tax liabilities.

  • The Company had federal NOLs totaling approximately $645.1 million as of March 31, 2015. The Company's use of its NOLs could be substantially limited if the Company experiences an "ownership change"

1:48 am Pennsylvania R.E.I.T. enters into an Agreement of Sale for three malls to an institutional buyer (PEI) : Co announces that it has entered into an Agreement of Sale for three malls to an institutional buyer. The assets under agreement of sale, which are subject to customary closing conditions, are: Gadsden Mall in Gadsden, AL, Wiregrass Commons Mall in Dothan, AL and New River Valley Mall in Christiansburg, VA.

  • The three assets are expected to be sold in one transaction for $95.4 million. 
  • This would constitute a total of 10 malls sold under the Company's disposition program. Total funds raised through assets sales including malls, power centers and various parcels would total over $560 million.

1:46 am Wave Systems initiates corporate restructuring; reduces operating costs and position company to pursue strategic alternatives (WAVX) : Co announced that its Board of Directors and Senior Management have initiated a global restructuring of the Company's business in conjunction with a review of Wave's options for raising capital and pursuing customer transactions and other strategic alternatives.

  • Wave's restructuring involves immediate steps to reduce the Company's global workforce by approximately 60% from 133 full time employees and contractors to a core team of approximately 54 employees spread across all functional areas. 
  • The staffing reductions will include a combination of terminations and furloughs, which will provide some flexibility to recall employees if circumstances require. 
  • The Company is also exploring potential financing alternatives to bolster its working capital position. 
  • In the face of difficulties in completing large enterprise sales engagements for Wave's hardware-rooted security solutions, management and the Board determined that Wave could no longer avoid deep staffing cuts which are estimated to reduce quarterly operating expenses by 50% to approximately $3.5 million per quarter from approximately $7.0 million. 

1:41 am Oil States beats by $0.13, misses on revs (OIS) : Reports Q2 (Jun) earnings of $0.15 per share, excluding non-recurring items, $0.13 better than the Capital IQ Consensus Estimate of $0.02; revenues fell 41.4% year/year to $269.3 mln vs the $274.84 mln consensus.

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