InPlay from Briefing.com

Briefing.com

5 Cool things you never knew about Elmer's Glue

Now watching

Next video starts in : 7 Play

5 Cool things you never knew about Elmer's Glue

5 Cool things you never knew about Elmer's Glue
Replay video
Up next

What the Brexit means for your retirement

What the Brexit means for your retirement Up next

What the Brexit means for your retirement

8:57 am S&P futures vs fair value: +4.50. Nasdaq futures vs fair value: +36.10. :

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

Equity indices across the Asia-Pacific region ended Wednesday on a mixed note. Japan's Nikkei (+1.7%) outperformed and the yen stumbled after Prime Minister Shinzo Abe revealed plans for a fiscal stimulus package in the amount of JPY28 trillion. The package is expected to be compiled next month, but it is unclear how much direct stimulus will be involved.

  • In economic data:
    • Australia's Q2 CPI +0.4% quarter-over-quarter, as expected (last -0.2%); +1.0% year-over-year (consensus 1.1%; last 1.3%). Q2 Trimmed Mean CPI +0.5% quarter-over-quarter (expected 0.4%; last 0.2%)
    • South Korea's July Consumer Confidence ticked up to 101 from 99

---Equity Markets---

  • Japan's Nikkei spiked 1.7%. Nine sectors registered gains with materials (+4.9%), industrials (+1.9%), and technology (+1.9%) showing relative strength while energy (-1.3%) lagged. Mitsumi Electric, Minebea, SUMCO, Nitto Denko, Alps Electric, TDK, Casio Computer, and Nissan Motor gained between 4.3% and 16.4%.
  • Hong Kong's Hang Seng added 0.4% with financials and select property names showing relative strength. Cheung Kong Porperty Holdings, Hang Lung Properties, Bank of East Asia, HSBC, and ICBC gained between 0.7% and 1.0%.
  • China's Shanghai Composite lost 1.9% amid reports hinting at the introduction of curbs on wealth management products, aimed at reducing leverage. Inner Mongolia Lantai Industrial, Shanghai Baosight Software, Grinm Advanced Materials, and Lucky Film lost between 9.8% and 10.0%.

Major European indices trade higher across the board with Italy's MIB (+1.8%) rebounding from recent underperformance. Other regional indices hold slimmer gains while the euro is little changed against the dollar at 1.1000. The rebound in Italian equities has taken place following reports indicating Banca Monte dei Paschi di Sienna is looking to raise EUR5 billion in capital by Friday.

  • In economic data:
    • Eurozone Private Sector Loans +1.7% year-over-year, as expected (previous 1.6%) and M3 Money Supply +5.0% year-over-year, as expected (last 4.9%)
    • Germany's August GfK Consumer Climate 10.0 (expected 9.9; last 10.1). June Import Price Index +0.5% month-over-month (expected 0.6%; last 0.9%); -4.6% year-over-year, as expected (last -5.5%)
    • UK's Q2 GDP +0.6% quarter-over-quarter (expected 0.4%; last 0.4%); +2.2% year-over-year (consensus 2.0%; last 2.0%). July CBI Distributive Trades Survey -14 (expected 1; last 4)
    • France's June PPI +0.4% month-over-month and July Consumer Confidence ticked down to 96 from 97, as expected
    • Swiss June Consumption Indicator 1.34 (last 1.24)
    • Spain's June Retail Sales +5.6% year-over-year (consensus 3.3%; last 2.3%)
    • Italy's July Consumer Confidence 111.3 (consensus 109.2; last 110.2) and Business Confidence 103.1 (expected 101.8; previous 102.9)

---Equity Markets---

  • UK's FTSE is higher by 0.7% amid strength in homebuilders. Taylor Wimpey, Persimmon, and Barratt Developments are up between 4.7% and 5.3%. Select consumer names also outperform with Dixons Carphone, Burberry, and Morrison Supermarkets up between 2.5% and 3.1%.
  • Germany's DAX has added 0.9% with exporters pacing the advance. Volkswagen, Daimler, and BMW are up between 2.1% and 3.8%. On the downside, Deutsche Bank has surrendered 4.1%.
  • France's CAC has climbed 1.7% with Peugeot surging 8.6% in reaction to better than expected results. LVMH has also responded positively to earnings, soaring 7.0%.
  • Italy's MIB is higher by 1.8% with Telecom Italia jumping 10.2% in reaction to strong results. Financials BMPS, Banca di Milano Scarl, Banco Popolare, and Intesa Sanpaolo are up between 1.5% and 4.1%.

8:51 am Caladrius Biosciences to conduct 1:10 reverse stock split effective tomorrow (CLBS) :  

8:49 am Hill International shareholder Bulldog Investors issues letter to co CEO (HIL) : Bulldog states, "In your July 22, 2016 letter to stockholders, you try to deflect attention from that issue with a multitude of distortions, half-truths, and outright lies starting with the allegation that we are attempting to "seize control" of Hill. That is plainly false since we are only seeking to elect three directors out of a total of nine."

8:47 am On The Wires (:WIRES) :

  • Steve Cohen, his venture capital arm Point72 Ventures, and Quantopian announced an agreement for Quantopian to manage up to $250 million of investment capital provided by Mr. Cohen. Quantopian offers a free platform where an online community of over 85,000 members from 180 countries can create institutional-quality investment algorithms. Investment algorithms created on Quantopian's platform by members will be used to manage the funds from Mr. Cohen. Each author of a selected algorithm will receive a royalty based on the performance of his or her strategy.
  • NHTSA confirmed Harley-Davidson (HOG) is recalling certain model year 2016 (Potential Number of Units Affected: 27,232) Electric Glide Ultra Classic, Electra Glide Ultra Classic Low, Ultra Limited Low, Ultra Limited, CVO Street Glide, Street Glide, Street Glide Special, Road Glide Special, Road Glide, Police Electra Glide, Road Glide Ultra, Fat Boy S, Softail Slim S, and CVO Softail Pro Street Breakout motorcycles. In the affected motorcycles, the clutch master cylinder may lose the ability to generate enough lift to disengage the clutch, especially if the motorcycle has been parked for an extended period of time.
  • Missouri Care, a subsidiary of WellCare Health Plans (WCG), announced today that it has signed agreements with BJC HealthCare and Washington University Physicians that give in-network coverage to Missouri Care's MO HealthNet Managed Care (Medicaid) members, financial terms not disclosed. 
  • The Federal Trade Commission confirmed yesterday that it is currently accepting public comments on an application by American Air Liquide Holdings (AIQUY) to sell to Aspen Air U.S. Corp. its assets. The divestiture is required by the FTC's May 2016 order settling charges that the $13.4 billion merger of industrial gas producers American Air Liquide Holdings and Airgas, ould likely harm competition in several U.S. and regional markets. The Commission will decide whether to approve the proposed divestiture after expiration of a 30-day public comment period, beginning today and continuing through August 25, 2016.
  • Ultragenyx Pharmaceutical (RARE), announces that it has completed patient enrollment in the Phase 3 study of aceneuramic acid extended release (Ace-ER) for the treatment of GNE myopathy. Data from the study are expected in 2017.

8:46 am Dataram regains compliance with the Nasdaq (DRAM) :  

8:36 am M/I Homes beats by $0.02, reports revs in-line (MHO) :

  • Reports Q2 (Jun) earnings of $0.52 per share, $0.02 better than the two analyst estimate of $0.50; revenues rose 24.2% year/year to $401.2 mln vs the $400.11 mln two analyst estimate.
    • The second quarter of 2016 includes a $2.8 million pre-tax charge ($0.06 per diluted share) for stucco-related repairs in certain of its Florida communities
  • New contracts for 2016's second quarter were 1,354, a second quarter record, and an increase of 23% over 2015's second quarter
  • For the first six months of 2016, new contracts increased 21% to 2,668 from 2,208 in 2015
  • M/I Homes had 174 active communities at June 30, 2016 compared to 155 at June 30, 2015
  • The co's cancellation rate was 14% in the second quarter of both 2016 and 2015
  • Homes in backlog increased 27% at June 30, 2016 to 2,281 units, with a sales value of $842 million (a 28% increase over last year's second quarter), and an average sales price of $369,000
  • At June 30, 2015, the sales value of homes in backlog was $657 million, with an average sales price of $366,000 and backlog units of 1,794
  • Homes delivered in 2016's second quarter were 1,042 compared to 919 deliveries in 2015's second quarter - a 13% increase
  • Homes delivered for the six months ended June 30, 2016 increased 17% to 1,918 from 2015's deliveries of 1,636

Co said, "With our strong backlog, along with the planned community openings in the second half of 2016, we are well positioned to have a very solid 2016. Our financial condition remains strong with shareholders' equity of $621 million and net debt to capital of less than 50%."

8:35 am SEI Investments misses by $0.01, reports revs in-line, avg AUM +7% to $189.1 bln y/y (SEIC) :

  • Reports Q2 (Jun) diluted earnings of $0.49 per share, $0.01 worse than the Capital IQ Consensus of $0.50; revenues rose 1.8% year/year to $343.83 mln vs the $346.47 mln Capital IQ Consensus.
    • Revenue growth in the quarter was primarily driven by higher Asset management, administration, and distribution fees from improved cash flows from new and existing clients. The market volatility occurring during the course of the preceding 12 months negatively impacted asset-based fee revenues and partially offset revenue growth.
    • The strengthening of the U.S. dollar against the British pound and Canadian dollar during 2016 negatively impacted revenues and operating income of our Private Banks and Institutional Investors segments. A prolonged period of a strengthening U.S. dollar against these currencies could have a further negative impact to revenues and operating profits of these segments.
  • Average assets under management, excluding LSV, increased $11.9 billion, or 7%, to $189.1 billion, as compared to $177.1 billion during the second-quarter 2015.

8:34 am Hemispherx Biopharma reaches an agreement with Avrio Biopharmaceuticals to serve as an additional contract manufacturer of its experimental drug, Ampligen (HEB) : Ampligen is also known by its generic name, rintatolimod.

8:33 am Con Edison subsidiary sells its retail electricity & natural gas biz to Exelon (EXC) subsidiary Constellation, financial terms were not disclosed (ED) :

  • The retail electricity & natural gas biz delivered ~14 TWh of electricity and 1 Bcf of natural gas in 2015. The purchase expands Exelon's (EXC) customer base to more than 2.5 mln residential & biz customers. 
  • Constellation will acquire ConEdison Solutions' retail electricity and natural gas customer contracts and associated supply contracts. ConEdison Solutions' retail electricity & natural gas biz will operate under the Constellation brand after a post-closing transition period that will be complete in 2017.
  • The companies expect to close the transaction in the third or fourth quarter 2016.

8:33 am S&P futures vs fair value: +4.00. Nasdaq futures vs fair value: +34.80. (:WRAPX) :

Equity futures have inched lower in recent trade as the S&P 500 futures trade four points above fair value. 

Just released, June durable goods orders decreased 4.0% while the Briefing.com consensus expected a downtick of 1.0%. This comes after the prior month's revised decline of 2.8% (from -2.3%). Excluding transportation, durable orders slipped 0.5% (Briefing.com consensus +0.2%) to follow the prior month's revised decline of 0.4% (from -0.3%).

The U.S. Dollar Index (97.23, +0.07) trades higher as the greenback gains ground against the pound and yen. Sterling has lost 0.2% against the buck (1.3110) while the dollar/yen pair jumps 0.9% to 105.60. Separately, the single currency has gained 0.2% against the dollar (1.1004). 

8:32 am Silver Spring Networks announces the US District Court for the Eastern District of Texas awarded them ~$615K in costs to be paid by EON Corp IP Holdings (SSNI) :

  • The order follows the decision of the US Court of Appeals for the Federal Circuit reversing a judgment from the District Court in Texas regarding patent claims covering wireless communication. Silver Spring Networks, as the prevailing party, is entitled to recovery of certain costs under the Federal Rules of Civil Procedure.

8:32 am Xinyuan Real Estate announces Xinqi Wang will no longer serve as CEO; co appoints Lizhou Zhang as new CEO effective immediately (XIN) : Since January 2014, Zhang served as GM at Wanda One UK

8:31 am Iteris Holdings enters into an agreement with Syngenta (SYT) to deliver ClearAg Mobile for use in biologicals research (ITI) :  

8:31 am Market View: Sep. E-mini stock-index futures hold a bid above fair values here following the 8:30 AM ET economic data points (:TECHX) :

  • ESu6 now +4.00

  • NQu6 now +37.00

  • YMu6 now +48

8:30 am Sino-Global Shipping signs a Strategic Cooperation Agreement with COSCO Logistics (Americas) in which both cos will mutually provide logistics services between China and the US (SINO) :

Sino-Global expects to work with COSCO Logistics to provide inland transportation services in US for shipments to and from China.

  • As part of the Agreement, the two cos will also assess locations in America to potentially establish warehouse/distribution facilities in the coming months and share pricing information for short-haul trucking across selected regions of the country.

8:29 am Entercom beats by $0.01, beats on revs (ETM) :

  • Reports Q2 (Jun) earnings of $0.26 per share, $0.01 better than the Capital IQ Consensus of $0.25; revenues rose 19.8% year/year to $120.48 mln vs the $119.19 mln Capital IQ Consensus.
    • Second quarter operating results include the impact of the transaction with Lincoln Financial Media and the station exchange with Bonneville International Corporation which started in July 2015.
  • The co's Board has declared a dividend of $0.075/share which will be payable on Sept 15, 2016 to shareholders of record as of the close of business on Aug 15, 2016.
  • As of June 30, 2016 the co had $465.5 mln of senior debt, capital leases and senior notes and $11.1 mln in cash. In addition, the co had $27.6 mln in perpetual cumulative convertible preferred stock.

8:21 am On The Wires (:WIRES) :

  • Fustibal, a targeted therapeutics biotechnology startup, announces that it has filed an inter partes review petition of United States Patent No. 8,637,553 owned by Bayer (BAYRY) with the Patent Trial and Appeal Board. The petitioner challenges the validity of the '553 patent and requests that all claims be found unpatentable and canceled. 
  • Payment Data Systems (PYDS) announces that it has established a fourth Originating Depository Financial Institution relationship, expanding its ACH processing network for merchant customers. 
  • IDEXX Laboratories (IDXX) announces the availability of Legiolert, the easiest culture method for the confirmed detection of Legionella pneumophila in drinking water. Legionella pneumophila is the most common Legionella species in water and the primary cause of Legionnaires' disease.
  • Sun Life Financial (SLF) is the first Canadian insurance company to partner with Plug and Play Tech Center, a U.S.-based global technology accelerator that connects top start-ups from around the world to corporations and investors. This new arrangement will help position Sun Life Financial at the helm of insurance industry innovation and closely follows a partnership struck with MaRS Discovery District, one of North America's largest urban innovation hubs.

8:11 am Coca-Cola FEMSA reports Q2 results, revenue rose 9.3% (KOF) :

  • Co reports Q2 (Jun) revenue increased 9.3% to Ps. 39,939 million, despite of the depreciation of the Venezuelan bolivar, the Argentine peso and the Colombian peso as compared to the Mexican peso.
  • Transactions: Reported total number of transactions grew 1.9% to 5,010.2 million in Q2.
  • Volume: Reported total sales volume declined 0.4% to 843.3 mln unit cases in Q2.
  • Operating income grew 6.6% to Ps. 6,004 mln and operating margin contracted 40 basis points to 15.0%.
  • Net income: Net controlling interest income decreased 25.0% to Ps. 2,001 mln in Q2, resulting in reported EPS of Ps. 0.97 (Ps. 9.65 per ADS).

8:10 am Biocept names Timothy C. Kennedy as CFO effective immediately (BIOC) : Kennedy succeeds Mark Foletta, who has served as Interim CFO since August 2015 and will remain as a consultant to the Company, beginning in September 2016. From 2013 to July 2016, Mr. Kennedy served as Chief Financial Officer of Millennium Health, a privately held leading urine drug testing and pharmacogenetics laboratory company.

8:10 am Golden Ocean announces its 1:5 reverse stock split will take effect on August 1 (GOGL) :  

8:09 am Mondelez Int'l beats by $0.04, reports revs in-line; lowers organic net rev growth (MDLZ) :

  • Reports Q2 (Jun) earnings of $0.44 per share, $0.04 better than the Capital IQ Consensus of $0.40; revenues fell 17.7% year/year to $6.3 bln vs the $6.35 bln Capital IQ Consensus, driven by the deconsolidation of the coffee business, currency headwinds and deconsolidation of the co's Venezuela operations.
    • Organic Net Revenue increased 1.5 percent, driven by pricing to recover currency-driven input costs in inflationary markets and continued improvement in overall volume/mix trends.
    • Adjusted Gross Profit1 margin was 40.1 percent, flat to prior year. Strong net productivity was offset by currency driven inflation in excess of pricing and a 60 basis-point impact from mark-to-market adjustments associated with commodity and currency hedging.. 
  • The co lowered Organic Net Revenue guidance (~2% from at least 2%), affirmed Adjusted Operating Income margin (~15-16%), double-digit adj. EPS growth on a constant-currency basis and FCF excluding items guidance, and updated its outlook for Adjusted EPS.
    • Given the solid operating results year-to-date, lower-than-expected interest expense and strong results from the coffee joint venture investments, the co now expects to deliver incremental EPS of $0.03 to $0.05 for the year, which will effectively offset the impact from a more challenging currency environment, including the impact of the United Kingdom's vote to exit the European Union.
    • Based on FX rates as of July 22, there would be a negative translation impact on 2016 net revenue growth of ~4 percentage points (from ~3 percentage points) and on Adjusted EPS of ~$0.083 (from ~$0.05). 

8:08 am Diana Containerships misses by $0.26, misses on revs; Suspends quarterly dividend (DCIX) :

  • Reports Q2 (Jun) loss of $0.88 per share, $0.26 worse than the two analyst estimate of ($0.62); revenues fell 53.9% year/year to $7.99 mln vs the $10.76 mln Capital IQ Consensus.
  • The Company's board of directors has determined that, based on the current container vessel charter market, it will suspend the quarterly cash dividend on its common shares effective with the quarter ended June 30, 2016. While the Company's historical annual cash dividend since the second quarter of 2014 has amounted to $0.01 per common share (or $0.08 per common share adjusted to give effect to the 1 for 8 reverse stock split that became effective on June 9, 2016), the decision to suspend the dividend reflects the board's determination that it is in the best long term interest of the Company and its shareholders to aggressively preserve liquidity to manage current market conditions and be in a position to benefit from an eventual sector recovery.

8:08 am S&P futures vs fair value: +4.80. Nasdaq futures vs fair value: +35.50. (:WRAPX) :

U.S. equity futures trade higher with the S&P 500 futures floating five points above fair value while Nasdaq futures outperform. Nasdaq futures jumped overnight as investors responded to better than expected bottom-line results from Apple (AAPL 103.60, +6.93). Additionally, the high-beta chipmakers continue to outperform, responding to news that Analog Devices (ADI 68.00, +5.12) will acquire Linear Technology (LLTC 61.45, -1.04) for approximately $14.8 billion.

Japan's Nikkei (+1.7%) led global bourses after Prime Minister Shinzo Abe revealed plans for a fiscal stimulus package totaling JPY28 trillion. This exceeds prior estimates that had fiscal stimulus measures pegged at JPY20 trillion. The package is expected to be compiled next month. On the home front, the Fed will release its latest policy statement at 14:00 ET. However, participants continue to be skeptical of potential rate hikes in 2016. Currently, the fed funds futures market estimates the implied probability of a rate hike at today's meeting at 2.4%. Additionally, the implied probability of a rate hike at the September and December meetings are 19.5% and 42.8%, respectively.

The Treasury complex trades on mixed note as the yield on the 10-yr note rises one basis point to 1.57%.

On the economic front, the weekly MBA Mortgage Index showed a seasonally adjusted decrease of 11.2% in mortgage applications. Separately, Durable Orders for June (Briefing.com consensus -1.0%) and Pending Home Sales for June (Briefing.com consensus +1.1%) will be released at 8:30 ET and 10:00 ET, respectively. The day's data will be capped off with the FOMC's July rate decision, which will cross the wires at 14:00 ET.

In U.S. corporate news of note:

  • Apple (AAPL 103.60, +6.93): +7.2% after topping bottom-line estimates for the quarter and raising Q4 revenue estimates
  • Twitter (TWTR 16.57, -1.88): -10.2% following the company lowering Q3 revenue guidance below analysts' estimates
  • Analog Devices (ADI 68.00, +5.12): +8.2% after announcing that it would acquire Linear Technology (LLTC 61.45, -1.04) for $60.00 per share or approximately $14.8 billion
  • Boeing (BA 137.16, +2.31): +1.7% following the company reporting a net quarterly loss that was in-line with previously announced write downs

Reviewing overnight developments: 

  • Asia-Pacific indices ended on a mixed note as Japan's Nikkei (+1.7%) outperformed Hong Kong's Hang Seng (+0.4%) and China's Shanghai Composite (-1.9%). 
    • In economic data:
      • Australia's Q2 CPI +0.4% quarter-over-quarter, as expected (last -0.2%); +1.0% year-over-year (consensus 1.1%; last 1.3%). Q2 Trimmed Mean CPI +0.5% quarter-over-quarter (expected 0.4%; last 0.2%)
      • South Korea's July Consumer Confidence ticked up to 101 from 99
    • In news:
      • In Japan, Prime Minister Shinzo Abe revealed plans for a fiscal stimulus package in the amount of JPY28 trillion.
      • The package is expected to be compiled next month, but it is unclear how much direct stimulus will be involved.
  • European indices trade higher as France's CAC (+1.7%) leads Germany's DAX (+1.0%) and the U.K.'s FTSE (+0.6%). Separately, Italy's MIB (+1.4%) rebounds from recent losses. 
    • In economic data:
      • Eurozone Private Sector Loans +1.7% year-over-year, as expected (previous 1.6%) and M3 Money Supply +5.0% year-over-year, as expected (last 4.9%)
      • Germany's August GfK Consumer Climate 10.0 (expected 9.9; last 10.1). June Import Price Index +0.5% month-over-month (expected 0.6%; last 0.9%); -4.6% year-over-year, as expected (last -5.5%)
      • UK's Q2 GDP +0.6% quarter-over-quarter (expected 0.4%; last 0.4%); +2.2% year-over-year (consensus 2.0%; last 2.0%). July CBI Distributive Trades Survey -14 (expected 1; last 4)
      • France's June PPI +0.4% month-over-month and July Consumer Confidence ticked down to 96 from 97, as expected
      • Swiss June Consumption Indicator 1.34 (last 1.24)
      • Spain's June Retail Sales +5.6% year-over-year (consensus 3.3%; last 2.3%)
      • Italy's July Consumer Confidence 111.3 (consensus 109.2; last 110.2) and Business Confidence 103.1 (expected 101.8; previous 102.9)
    • In news:
      • Italian equities outperform amid reports indicating Banca Monte dei Paschi di Sienna is looking to raise EUR5 billion in capital by Friday.
      • The euro is little changed against the dollar at 1.0991.

8:06 am European Yields (BONDX) :

European Debt Meets Modest Demand

  • Market participants have shown demand for sovereign debt this morning with yields slipping across the region. Concerns about Italian banks have been quickly relegated to the backburner after it was reported that Banca Monte dei Paschi di Sienna is looking to raise EUR5 billion by the end of this week. In other banking news, Deutsche Bank has slumped more than 3.0% after disappointing results.
  • Economic data:
    • Eurozone Private Sector Loans +1.7% year-over-year, as expected (previous 1.6%) and M3 Money Supply +5.0% year-over-year, as expected (last 4.9%)
    • Germany's August GfK Consumer Climate 10.0 (expected 9.9; last 10.1). June Import Price Index +0.5% month-over-month (expected 0.6%; last 0.9%); -4.6% year-over-year, as expected (last -5.5%)
    • UK's Q2 GDP +0.6% quarter-over-quarter (expected 0.4%; last 0.4%); +2.2% year-over-year (consensus 2.0%; last 2.0%). July CBI Distributive Trades Survey -14 (expected 1; last 4)
    • France's June PPI +0.4% month-over-month and July Consumer Confidence ticked down to 96 from 97, as expected
    • Swiss June Consumption Indicator 1.34 (last 1.24)
    • Spain's June Retail Sales +5.6% year-over-year (consensus 3.3%; last 2.3%)
    • Italy's July Consumer Confidence 111.3 (consensus 109.2; last 110.2) and Business Confidence 103.1 (expected 101.8; previous 102.9)
  • Yield Check:
    • France, 10-yr OAT: -2 bps to 0.18%
    • Germany, 10-yr Bund: -1 bp to -0.04%
    • Greece, 10-yr Note: +2 bps to 8.01%
    • Italy, 10-yr BTP: -1 bp to 1.25%
    • Portugal, 10-yr PGB: UNCH at 3.02%
    • Spain, 10-yr ODE: -1 bp to 1.11%
    • UK, 10-yr Gilt: -4 bps to 0.79%

8:05 am Valley National misses by $0.01, reports revs in-line, net interest margin +6 bps Q/Q (VLY) :

  • Reports Q2 (Jun) diluted earnings of $0.15 per share, $0.01 worse than the Capital IQ Consensus of $0.16; revenues rose 12.4% year/year to $175.72 mln vs the $177.37 mln Capital IQ Consensus.
    • The net interest margin on a tax equivalent basis of 3.14 percent for the second quarter of 2016 increased 6 basis points from the first quarter of 2016, and decreased 8 basis points as compared to the second quarter of 2015.

8:04 am Norfolk Southern beats by $0.01, reports revs in-line (NSC) :

  • Reports Q2 (Jun) earnings of $1.36 per share, $0.01 better than the Capital IQ Consensus of $1.35; revenues fell 9.5% year/year to $2.45 bln vs the $2.48 bln Capital IQ Consensus.
    • Railway operating revenues were $2.5 billion, down 10% compared with second-quarter 2015, due to reduced volumes and lower fuel surcharge revenues. Overall volume declined 7% to 1.8 million units for the quarter.
    • Merchandise revenues were $1.6 billion, 3% lower than the same period last year. Volume declined 3%, largely due to fewer chemicals shipments resulting from continued low oil prices.
  • The operating ratio, or operating expenses as a percentage of revenue, was 68.6%, a 140 basis point improvement compared with 70.0% in the second quarter of last year.

8:03 am Pershing Gold announces the start of its 2016 Drilling Program (PGLC) :

The 2016 Drilling Program is currently planned to have two phases:

  • Phase 1 is focused on increasing the resource at Relief Canyon and continuing to upgrade the project's pit economics. This phase is planned to include approximately 20 holes, consisting of a mix of HQ and PQ drill holes around the western and northern margin of the deposit. Phase 1 will be completed with one core-drilling rig. The Company has contracted with Titan Drilling, Ltd of Butte, Montana to initiate the Program.
  • Phase 2 of the Program is planned to start during the third quarter of this year. This phase will test targets currently being developed to the south and east of the existing pits. Pershing Gold is completing geophysical surveys at Relief Canyon to develop these targets, including an induced polarization and chargeability survey over an approximately two square mile area. Zonge International of Reno, Nevada is completing this survey.

The Company has budgeted approximately $2 million for the Program, with roughly $1 million allocated for each phase of drilling.

8:03 am BOK Financial beats by $0.01 (BOKF) :

  • Reports Q2 (Jun) earnings of $1.00 per share, $0.01 better than the Capital IQ Consensus of $0.99.
  • Net interest revenue totaled $182.6 mln for the second quarter of 2016, unchanged compared to the first quarter of 2016
  • Net interest margin was 2.63% for the second quarter of 2016, compared to 2.65% for the first quarter of 2016
  • Average earning assets increased $246 mln during the second quarter of 2016, primarily related to a $271 mln increase in average loan balances

8:02 am VCA beats by $0.05, beats on revs; guides FY16 EPS in-line, revs above consensus (WOOF) :

  • Reports Q2 (Jun) earnings of $0.87 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus of $0.82; revenues rose 19.1% year/year to $653.49 mln vs the $637.18 mln Capital IQ Consensus.
  • Co issues guidance for FY16, sees EPS of $2.87-2.97, excluding non-recurring items, vs. $2.91 Capital IQ Consensus Estimate; sees FY16 revs of $2.52-2.54 bln vs. $2.5 bln Capital IQ Consensus Estimate.

8:02 am Ryder System beats by $0.03, reports revs in-line; guides Q3 EPS below consensus; guides FY16 EPS below consensus (R) :

  • Reports Q2 (Jun) earnings of $1.56 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus of $1.53; revenues rose 2.5% year/year to $1.70 bln vs the $1.69 bln Capital IQ Consensus.
  • Co issues downside guidance for Q3, sees EPS of $1.65-1.72, excluding non-recurring items, vs. $1.75 Capital IQ Consensus Estimate.
  • Co issues downside guidance for FY16, sees EPS of $5.90-6.05, excluding non-recurring items, vs. $6.16 Capital IQ Consensus Estimate and vs prior guidance of $6.10-6.30.
  • "We modestly outperformed our second quarter forecast, despite a challenging freight transportation environment, primarily due to better full service lease results and lower overheads....This revenue growth, along with other items from our 2016 playbook, including overhead reductions and rental fleet right-sizing actions, largely offset weakness in the rental and used vehicle markets."
  • "Based on current conditions, we are lowering our expectations for rental demand and used vehicle volumes, particularly tractors. We expect used vehicle sales pricing to be consistent with recent trends. Used vehicle sales inventories peaked in the second quarter and are expected to decline to the high end of our target range by year end."

8:01 am Orthofix announces the publication of a 12-month study of Trinity Evolution in combination with a PEEK interbody spacer and supplemental anterior fixation in the European Spine Journal (OFIX) :

Co announced the print publication of a 12-month study of patients that have undergone single-level anterior cervical discectomy and fusionwith Trinity Evolution in combination with a PEEK interbody spacer and supplemental anterior fixation.

  • Data demonstrates the effectiveness of the bone graft with patient fusion rates of 78.6% at 6 months and 93.5% at 12 months.
  • The primary endpoint was radiographic fusion status based on independent review of CT scans and radiographic review of angular motion.
    • The criteria for fusion was the presence of bridging bone across the adjacent endplates as seen on thin cut CT scans in addition to angular motion from flexion/extension X-rays.
  • In addition, secondary endpoints were measured including function as assessed by the Neck Disability Index and neck and arm pain as assessed by individual Visual Analog Scales
    • Neck function and neck/arm pain were found to significantly improve at both 6 and 12 months.
    • There were no serious adverse events attributable to Trinity Evolution as determined by an independent consultant.

8:00 am Kohl's announced a new partnership with Under Armour (UA) (KSS) : Under Armour will be available at Kohl's stores nationwide and Kohls.com in early 2017 in women's, men's, kids, accessories, footwear and home.

8:00 am EPIQ Systems to be acquired by OMERS Private Equity and funds managed by Harvest Partners for $16.50/share in cash (shares halted) (EPIQ) :

The transaction, which represents a 42% premium to Epiq's unaffected closing share price of $11.63 as of February 19, 2016, the last trading day before a media report speculating about potential offers for the company, has a total value of approximately $1.0 billion including assumed debt obligations.

  • Upon completion of the transaction, Epiq will become a privately-held company and will be combined with DTI, a leading global legal process outsourcing (:LPO) company majority-owned by OMERS and managed by OMERS Private Equity.
  • The proposed transaction is expected to close in the fourth quarter of 2016, subject to customary closing conditions including receipt of shareholder and regulatory approvals.

7:59 am Dynex Capital misses by $0.01, reports revs in-line, book value per common share +2% to $7.69 Q/Q (DX) :

  • Reports Q2 (Jun) earnings of $0.21 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus of $0.22; revenues fell 12.0% year/year to $16.72 mln vs the $16.56 mln Capital IQ Consensus.
  • Announces net interest spread of 1.94% and adjusted net interest spread, a non-GAAP measure, of 1.87%
  • Book value per common share of $7.69 at June 30, 2016, an increase of $0.15, or 2%, from Mar 31, 2016 book value per common share of $7.54

7:59 am Southern guidance issued in Q2 earnings slide presentation; guides Q3 EPS above consensus, FY16 in-line (SO) :

  • Co issues upside guidance for Q3 (Sep), sees EPS of $1.16 vs. $1.10 Capital IQ Consensus Estimate.
  • Co issues in-line guidance for FY16 (Dec), sees EPS of $2.76-2.88 vs. $2.87 Capital IQ Consensus Estimate.
  • Sees FY16 total CapEx $10.2 bln

7:58 am On The Wires (:WIRES) :

  • Mondelez International (MDLZ) announces it will enter China's $2.8 billion chocolate market. The Milka brand will hit shelves in September with more than a dozen core products, alongside special editions created for seasonal occasions, as the company looks to capitalize on China's growing love for chocolate.
  • Jacobs Engineering Group (JEC) announces it was awarded a contract by Network Rail to continue its support for improving rail links from the Great Western main line to Heathrow Airport in the United Kingdom.

7:53 am GlaxoSmithKline beats by GBP 0.04, beats on revs; updates outlook, announces licence agreement with Johnson & Johnson (JNJ) (GSK) :

  • Reports Q2 (Jun) earnings of GBP0.25 per share, GBP0.04 better than the Capital IQ Consensus of GBP0.21; revenues rose 10.9% year/year to GBP6.53 bln vs the GBP6.34 bln Capital IQ Consensus.
  • As a result of the decline in Sterling this quarter, revised Sterling exchange rates have been applied to forecasts for sales and cash flows in the quarterly re-measurement of the liabilities associated with the majority owned Consumer Healthcare and HIV businesses. At these revised rates, increased earnings and cash flows would be expected from these businesses and therefore the businesses have increased in value. As a consequence, the forecast value of the associated liabilities (put options, preferential dividends and contingent consideration), which are attributable to the minority interests in these businesses, has also increased and is reflected in the balance sheet. This has resulted in charges of 1.8 billion in the quarter and is the primary driver for the difference in reported total and core results.
  • Outlook: GSK now expects 2016 core EPS percentage growth to be 11-12% (Previously saw 10-12%) on a CER basis. If exchange rates were to hold at the June closing rates (1/$1.33, 1/1.20 and 1/Yen 137) for the rest of 2016, the estimated positive impact on 2016 Sterling turnover growth would be around 9% and if exchange losses were recognised at the same level as in 2015, the estimated positive impact on 2016 Sterling core EPS growth would be around 19%.
  • The co also announced that it has entered into an exclusive, worldwidelicence agreement with Janssen Sciences Ireland UC (JNJ Unit)) for CNTO 7160, ananti-IL-33R monoclonal antibody currently in phase I clinical development. Theagreement covers all therapeutic fields. CNTO 7160 is a biological therapy that preventsinterleukin-33 from binding to the ST2 receptor (IL-33R) and could beapplicable to a broad spectrum of severe asthmatic populations. Under the terms of the agreement, GSK will assume all development,manufacturing and commercialisation activities worldwide with the exception ofthe ongoing phase I study, which Janssen will continue to run through tocompletion. Janssen will receive up to GBP 175 million comprising an upfront payment,and development and first commercial sales milestones, in addition to tieredroyalties on sales and further considerations contingenton future sales performance.

7:51 am Goodyear Tire beats by $0.14, misses on revs; Co reaffirmed its 2016 financial targets (GT) :

  • Reports Q2 (Jun) earnings of $1.16 per share, excluding non-recurring items, $0.14 better than the Capital IQ Consensus of $1.02; revenues fell 7.0% year/year to $3.88 bln vs the $3.92 bln Capital IQ Consensus.
    • The year/year decline in sales was largely attributable to the deconsolidation of the co's subsidiary in Venezuela, the sale of the North American motorcycle tire business and unfavorable currency translation
    • The co reported Q2 segment operating income of $531 mln in 2016, down from $550 mln a year ago. Segment operating income in 2016 was negatively impacted by a $24 mln out-of-period adjustment primarily attributable to 2012 and related to the elimination of intracompany profit in the Americas region
      • This amount is included as a significant item in adjusted net income. The decrease in segment operating income also reflects a $36 mln reduction resulting from the deconsolidation of Venezuela partially offset by cost reduction actions. Core segment operating income, which excludes Venezuela, was $514 mln in the year-ago quarter
  • Co reaffirmed its 2016 financial targets, which include: Core Segment Operating Income growth of between 10-15% (excludes Venezuela); Positive Free Cash Flow from Operations and An Adjusted Debt to EBITDAP ratio of 2.0x to 2.1x at year-end. Shareholder Return Program

7:50 am Penske Auto increases their quarterly dividend to $0.28/share from $0.27/share (PAG) :  

7:47 am Scorpio Bulkers beats by $0.05, misses on revs (SALT) :

  • Reports Q2 (Jun) loss of $0.48 per share, $0.05 better than the Capital IQ Consensus of ($0.53); revenues rose 35.9% year/year to $17.37 mln vs the $18.04 mln Capital IQ Consensus.

7:43 am Overnight Treasury Summary (BONDX) :

Treasuries Maintain Slim Ranges Ahead of Fed

  • U.S. Treasuries spent the overnight session inside narrow ranges, seeing some selling after reports from Japan indicated the country's government is preparing a JPY28 trillion fiscal stimulus package. However, that brief wave of selling has been retraced completely over the past few hours, leaving the 10-yr note just below its flat line. The long bond holds a slim gain while the 5-yr note hovers in the red ahead of the latest FOMC policy decision, which will be released at 14:00 ET.
  • Australia reported its latest inflation data overnight with Q2 CPI rising 0.4% quarter-over-quarter, as expected (last -0.2%); +1.0% year-over-year (consensus 1.1%; last 1.3%). Q2 Trimmed Mean CPI increased 0.5% quarter-over-quarter (expected 0.4%; last 0.2%)
  • The S&P 500 futures hold a modest gain while Nasdaq futures outperform thanks to better than expected earnings from Apple (AAPL). The Dollar Index has edged up 0.1% while crude oil is down 0.5% at $42.70/bbl. Gold futures are little changed at $1327.60/ozt.
  • Yield Check:
    • 2-yr: UNCH at 0.76%
    • 5-yr: +2 bps to 1.16%
    • 10-yr: UNCH at 1.57%
    • 30-yr: -1 bp to 2.28%
  • Economic data on Tap:
    • June Durable Orders (Briefing.com consensus -1.0%) and Durable Orders ex-transportation (Briefing.com consensus 0.2%) at 8:30 ET
    • June Pending Home Sales (Briefing.com consensus 1.1%) at 10:00 ET
    • Crude Inventories at 10:30 ET
    • July FOMC Rate Decision at 14:00 ET (no policy change expected)

7:42 am Boeing reports Q2 net loss including previously announced write downs, beats on revs; lowers FY16 EPS including charges, reaffirms FY16 revs guidance (BA) :

  • Reports Q2 (Jun) loss of $0.44 per share, including $3.23 in previously announced charges from the 787 R&D reclassification and 747 & Tanker charges, vs. the Capital IQ Consensus of $2.24; revenues rose 0.9% year/year to $24.75 bln vs the $24.17 bln Capital IQ Consensus on strong commercial deliveries and services growth.
  • Co issues guidance for FY16, lowers EPS to $6.10-6.30 from $8.15-8.35 vs. $8.50 Capital IQ Consensus; reaffirms FY16 revs of $93-95 bln vs. $93.84 bln Capital IQ Consensus; reaffirms 740-745 commercial airplane deliveries but lowers operating margin to 4.5-5% from 9%.
  • "The underlying operating performance of the co remains solid with our commercial and defense teams again delivering strong revenues and operating cash flow. Actions taken during the quarter that impacted our earnings were the right, proactive steps to reduce risk and strengthen our position for the future," said Chairman, President and Chief Executive Officer Dennis Muilenburg. "Our strong cash generation also supported our ongoing commitment to invest in product innovation and in our people, and return substantial cash to shareholders through stock repurchases and dividends." "As we look forward to the second half of the year, we anticipate continued strong operating performance across our production and services programs on generally healthy demand for our broad portfolio of market-leading offerings. Our commercial airplane development programs remain on track and we have successfully completed the flight testing required for customer approval of key KC-46 production milestones." 

7:40 am RTI Surgical misses by $0.03, beats on revs; lowers FY16 guidance, announces a strategic biz review of operations (RTIX) :

  • Reports Q2 (Jun) net of breakeven, excluding pre-tax charges for contested proxy expenses, pre-tax restructuring charges for closure of a French distribution and tissue procurement office, and pre-tax severance charges, $0.03 worse than the Capital IQ Consensus of $0.03; revenues fell 5.6% year/year to $67.62 mln vs the $66.42 mln Capital IQ Consensus.
    • Domestic revenues were $61 mln for the second quarter of 2016 compared to revenues of $66 mln for the second quarter of 2015.
    • International revenues were $6.6 mln for the second quarter of 2016, compared to revenues of $5.6 mln for the second quarter of 2015.
    • On a constant currency basis, international revenues for the second quarter of 2016 increased 16 percent compared to the second quarter of 2015.
  • Co lowers EPS & rev guidance for FY16, sees EPS of $0.09-0.12 (prior $0.18-0.21), excluding contested proxy expenses, restructuring charges, and severance charges, vs. $0.19 Capital IQ Consensus Estimate; sees FY16 revs of $274-280 mln (prior $282-290 mln), excluding non-recurring items, vs. $284.05 mln Capital IQ Consensus Estimate.
  • Strategic biz review:
    • The co also announced that its management and board of directors are launching a comprehensive strategic review of the company's business lines and operations to leverage the company's leading expertise, technology and products and identify additional opportunities to increase stockholder value. The company intends to engage a management consulting firm to assist with this review.

7:40 am NextEra Energy beats by $0.10, misses on revs; reaffirms FY16 EPS guidance, in-line (NEE) :

  • Reports Q2 (Jun) earnings of $1.67 per share, excluding non-recurring items, $0.10 better than the Capital IQ Consensus of $1.57; revenues fell 12.4% year/year to $3.82 bln vs the $4.35 bln Capital IQ Consensus.
  • Co reaffirms guidance for FY16, sees EPS of $5.85-6.35, excluding non-recurring items, vs. $6.18 Capital IQ Consensus Estimate
  • In 2018, co sees EPS in the range of $6.60-7.10, implying a compound annual growth rate of 6-8% per year through 2018, off a 2014 base

7:37 am On Assignment beats by $0.02, beats on revs; guides Q3 EPS below consensus, revs in-line (ASGN) :

  • Reports Q2 (Jun) earnings of $0.80 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.78; revenues rose 25.3% year/year to $608.1 mln vs the $600.36 mln Capital IQ Consensus.
  • Co issues guidance for Q3, sees EPS of $0.83-0.86, excluding non-recurring items, vs. $0.87 Capital IQ Consensus Estimate; sees Q3 revs of $618-628 mln vs. $625.29 mln Capital IQ Consensus Estimate.

7:36 am FirstService reports EPS in-line, revs in-line (FSV) :

  • Reports Q2 (Jun) earnings of $0.52 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.52; revenues rose 18.0% year/year to $385.1 mln vs the $382.95 mln Capital IQ Consensus.

7:35 am T-Mobile US beats by $0.04, beats on revs; raises customer outlook; narrows Adjusted EBITDA target for FY16 (TMUS) :

  • Reports Q2 (Jun) earnings of $0.25 per share, $0.04 better than the Capital IQ Consensus of $0.21; revenues rose 12.2% year/year to $9.2 bln vs the $9.03 bln Capital IQ Consensus.
    • 1.9 million total net adds - 13th consecutive quarter of over 1 million
    • 890,000 branded postpaid net adds
    • Record-low branded postpaid phone churn of 1.27% - down 6 bps QoQ and 5 bps YoY
  • Raising customer outlook and narrowing Adjusted EBITDA target for 2016:
    • Guidance range for branded postpaid net adds increased to 3.4-3.8 million from 3.2-3.6 million
    • Narrowing Adjusted EBITDA target to $9.8-10.1 billion from $9.7-$10.2 billion
    • Maintaining guidance of $4.5 to $4.8 billion of cash capital expenditures

7:35 am LabStyle Innovations changes name to DarioHealth Corp, effective July 28 (DRIO) :  

7:35 am Hess beats by $0.14, beats on revs (HES) :

  • Reports Q2 (Jun) loss of $1.10 per share, excluding non-recurring items, $0.14 better than the Capital IQ Consensus of ($1.24); revenues fell 34.4% year/year to $1.27 bln vs the $1.01 bln two analyst estimate.
  • Average realized crude oil selling price was $41.95 per barrel in Q2, down 25% YoY, including the effect of hedging. The average realized natural gas liquids selling price was $9.03 per barrel vs $11.06 in the prior-year quarter.
  • Lower production and realized selling prices reduced after-tax results by approximately $365 mln compared to 2Q15.
  • "We remain confident in our ability to manage through the current environment and deliver strong production and cash flow growth as oil prices recover...During the quarter, we continued to pursue further cost reductions and now project our full-year 2016 E&P capital and exploratory expenditures to be about 48% below 2015 levels."
  • "Our resilient portfolio provides an attractive mix of growth options including an unparalleled position in the Bakken, two significant offshore developments that will come online in 2017 and 2018, and the recent world-class oil discovery in Guyana."
  • 2016 Revised Outlook: E&P capital and exploratory expenditures are projected to be $2.1 bln, net production is forecast to be in the range of 315,000 to 325,000 boepd, excluding Libya.

7:34 am Karyopharm Therapeutics announces publication of data from its Phase 1b clinical trial evaluating KPT-330 in patients with advanced refractory bone or soft tissue sarcoma in the Journal of Clinical Oncology (KPTI) :

  • The published data demonstrated evidence of anti-cancer activity with single-agent oral selinexor, which was determined to be safe and well tolerated at 60mg twice per week on an intermittent (3 weeks on, 1 week off) dosing schedule. Of the 52 evaluable patients, 30 (58%) showed a best response of stable disease (:SD), with 17 (33%) experiencing durable SD (=4 months). Thirteen (30%) of 43 patients with quantifiable tumor measurements showed a reduction in target lesion size from baseline. Antitumor activity was particularly noted in patients with dedifferentiated liposarcoma (DDLPS; n=15), with 6 (40%) patients showing a reduction in target lesion size from baseline, and 7 (47%) patients showing durable SD (=4 months). Immunohistochemical analysis of paired tumor biopsies revealed increased nuclear accumulation of tumor suppressor proteins (TSPs), decreased cell proliferation, and increased tumor cell apoptosis after treatment. Single-agent oral selinexor is currently being evaluated in the SEAL study, a multi-center, randomized, double-blind, placebo-controlled Phase 2/3 clinical trial in patients with advanced unresectable DDLPS.
  • Topline data from the Phase 2 portion of the SEAL study are expected in mid-2017.
  • Karyopharm also announced that selinexor has received Orphan Drug Designation from the FDA for the treatment of soft tissue sarcoma (STS).

7:34 am Angie's List beats by $0.12, misses on revs (ANGI) :

  • Reports Q2 (Jun) earnings of $0.08 per share, $0.12 better than the Capital IQ Consensus of ($0.04); revenues fell 4.9% year/year to $83.06 mln vs the $86.2 mln Capital IQ Consensus.
  • Comparison of last week's results to the same period in 2015 show:
    • New member signups increased 411%
    • Unique new member visits increased 219%
    • Unique new members searching Angie's List increased 197%
    • Unique new members viewing profiles increased 182%
  • Total memberships were 3,300,152 vs. 3,172,066 a year ago
  • "Since dropping the reviews paywall, we have added approximately 700,000 new members as of yesterday, fueling year on year growth in new member engagement and service provider profile views. That said, while we are confident that these increases will create incremental revenue, we have more work to do to drive revenue growth from these changes and are just beginning to realize the potential of our new business model."
  • Outlook:
    • Although the transition to a new business model is showing new members and user engagement re-accelerating at exponential rates, the Company will withhold financial guidance until it can more precisely determine when this will translate into revenue growth and adjusted EBITDA.
    • Because the Company is principally a subscription-based business, its revenue is relatively resilient. The Company's revenue growth remained nearly flat in the first half of 2016 despite changing from a paid to a freemium business model; the adverse revenue impact from migrating to a new technology platform; and the many other changes simultaneously made to turn around the business. While the Company's subscription-based business model has provided stability, it necessarily follows that it will take time for revenue to re-accelerate as it now more than ever depends on the origination and renewal of longer term contracts with service providers.
    • Moreover, the Company recently began pursuing other new revenue initiatives to further monetize participating and especially non-participating service providers. The Company also sees opportunities to generate incremental revenue by expanding targeted advertising to monetize more traffic and upselling free members to paid tiers. These initiatives could yield incremental revenue in the next six months, but there is no firm basis yet on which to forecast their timing and magnitude.

7:34 am pSivida announces that its first Phase 3 trial of Medidur for the treatment of posterior uveitis continued to meet its primary endpoint with high statistical significance through 12 months follow-up (PSDV) :

Through 12 months of follow up and through the last follow-up visit including the following:

  • 22.9% of Medidur-treated eyes and 11.9% of control eyes showed improvement in visual acuity, gaining 15 or more letters from baseline on the Early Treatment Diabetic Retinopathy Study (:ETDRS) Eye Chart through 12 months. The improvement in visual acuity in Medidur-treated eyes seen at six months was maintained at 12 months. This percentage improvement was twice that of control eyes through 12 months, despite the improvement in visual acuity for control eyes.
  • Of the 65 patients receiving systemic therapy (steroids, immune suppressants and biologics) at baseline, 52.4% of control patients compared to 18.2% of Medidur treated patients were still being administered systemic treatment at 12 months. These percentages are unchanged from six months.
  • Of the study eyes with a natural lens at baseline, 45.2% of Medidur-treated eyes compared to 9.5% of control eyes required cataract surgery through the last follow-up visit. Cataracts are both a side effect of treatment with steroids and a natural consequence of posterior uveitis. 51.7% of Medidur-treated eyes and 50.0% of control eyes had already received cataract surgery before enrolling in the study.

In the first Phase 3 trial, a 129-patient, multi-center, randomized and double-blinded trial evaluating the safety and efficacy of Medidur for the treatment of chronic noninfectious uveitis affecting the posterior of the eye (posterior uveitis), 87 eyes were injected with Medidur, and 42 eyes were randomized to control and received a sham injection. The primary endpoint of the trial was prevention of recurrence of disease at six months, which the study achieved with high statistical significance (p less than 0.00000001; intent to treat analysis). Patients will be followed for three years from injection at six-month intervals.

7:34 am Federal-Mogul misses by $0.04, misses on revs (FDML) :

  • Reports Q2 (Jun) earnings of $0.28 per share, excluding non-recurring items, $0.04 worse than the two analyst estimate of $0.32; revenues fell 1.9% year/year to $1.92 bln vs the $2 bln two analyst estimate.
  • Proposal from Majority Shareholder as previously announced, on June 20, 2016, the Company announced that it had received a revised proposal from IEP to purchase shares of the Company's common stock not owned by IEP for $8.00 per share, an increase from IEP's previous offer of $7.00 in cash per share. The transaction process remains ongoing.

7:33 am Rollins misses by $0.01, misses on revs (ROL) :

  • Reports Q2 (Jun) earnings of $0.22 per share, $0.01 worse than the Capital IQ Consensus of $0.23; revenues rose 4.8% year/year to $411.1 mln vs the $415.6 mln Capital IQ Consensus.
  • "We are pleased to have reported solid financial results for both the quarter and first half of 2016. These results reflect our team's ongoing commitment to continuous improvements in all areas of our business: customer service, sales, productivity initiatives, marketing, and other programs. We completed the conversion of our new CRM and operating system (BOSSY), to over 95% of the Orkin branches this quarter. Our expenses were negatively impacted this quarter by the acceleration of this roll-out."

7:33 am Gapping down (SCANX) :

Gapping down
In reaction to disappointing earnings/guidance
: NANO -11.7%, TWTR -10.8%, RHI -10.3%, GMED -9.2% (also Globus Medical to acquire the international operations and distribution channels of Alphatec Holdings (ATEC) for $80.0 mln in cash; expects the impact to be marginally accretive in 2017), RSYS -6.8%, AKAM -5.9%, MTCH -5%, DB -4.4%, FCAU -4.3%,   HLT -4.1%, MTSI -4%, STO -4%, ULTI -3.2%, UHS -3.2%, ILMN -3%, HUN -2.8%, LL -2.8%,  HUN -2.8%, BJRI -2.7%, (also expands buyback by $100 mln to $350 mln ), CHRW -2.6%, ASH -1.7%, SLAB -1.5%, JNPR -1.3%, KO -1.3%, (also updates on its North American Refranchising initiative; announces new letters of intent involving two bottlers for territories in two states), WYN -1.2%, BOOT -1.1%, SIX -0.8%, RNR -0.6%, ARMH -0.6%, AMP -0.2%, TSS -0.2%.

M&A news:

  • LLTC -1.8% (Linear Tech confirms deal with Analog Devices, agrees to be acquired for ~$60.00/share, or ~$14.8 bln )
  • CTXS -1.5% (LogMeIn confirms it will merge with Citrix's GoTo family of products in a $1.8 bln deal ; also reported earnings). 

Select metals/mining stocks trading lower: GOLD -0.9%, VALE -0.7%, SLW -0.2%, AU -0.2%, ABX -0.3%.

Other news:

  • JUNO -1.7% (modestly pulling back)
  • WBA -1.5% (Walgreens Boot Alliance announces 15 mln share secondary offering on behalf of selling shareholders)
  • RDY -0.6% (continued weakness following earnings)
  • GIL -0.5% ( announces agreement to acquire Peds Legwear for $55 mln in cash)
  • HAL -1.1% and RDS.A -0.3% (still checking)

7:33 am Cytokinetics and Astellas (ALPMY) announce an option right for Tirasemtiv & expansion of their collaboration for CK-2127107 in Amyotrophic Lateral Sclerosis (CYTK) :

  • Cytokinetics has granted Astellas (ALPMY) an option right for the development and commercialization of tirasemtiv, an investigational skeletal muscle activator. The companies have also agreed to amend their collaboration agreement to enable the development of CK-2127107 for the potential treatment of ALS and to extend their joint research focused on the discovery of additional next-generation skeletal muscle activators through 2017.
  • Cytokinetics will receive $65 million in committed capital from Astellas which includes upfront payments for Astellas' option right exercisable for tirasemtiv and amended terms of the companies' collaboration agreement to include ALS for CK-2127107.
  • If Astellas exercises its option, the parties will enter into a global partnership in which Cytokinetics will continue to develop and commercialize tirasemtiv in North America, Europe, and other select countries, and Astellas will develop and commercialize tirasemtiv in other countries.
  • Cytokinetics may receive over $100 million in payments associated with the exercise of the option plus additional milestone payments and escalating double-digit royalties on Astellas' sales of tirasemtiv in its territory.
  • Cytokinetics will receive ~$30 million in additional sponsored research and development funding through 2017 which includes Astellas' sponsorship of Cytokinetics' conduct of the Phase 2 clinical development of CK-2127107 in ALS as well as the continuing research collaboration.
  • Cytokinetics will host a conference call on July 27, 2016 at 8:30 am ET.

7:32 am General Dynamics beats by $0.13, misses on revs; guides FY16 EPS in-line (GD) :

  • Reports Q2 (Jun) earnings of $2.44 per share, $0.13 better than the Capital IQ Consensus of $2.31; revenues fell 2.8% year/year to $7.67 bln vs the $7.86 bln Capital IQ Consensus.
  • Co issues in-line guidance for FY16, sees EPS of $9.20-9.70 vs. $9.52 Capital IQ Consensus Estimate.
  • Backlog
    • General Dynamics' total backlog at the end of second-quarter 2016 was $63.2 billion. There was order activity across the Gulfstream product portfolio and continued demand for defense products, including another quarter of a book-to-bill ratio (orders divided by revenue) greater than one-to-one in the Information Systems and Technology group. The estimated potential contract value, representing management's estimate of value in unfunded indefinite delivery, indefinite quantity (:IDIQ) contracts and unexercised options, was $25.8 billion. Marine Systems' estimated potential contract value more than doubled from the prior quarter to $4.2 billion, with the contract for the U.S. Navy's next generation of oilers. Total potential contract value, the sum of all backlog components, was $89.1 billion at the end of the quarter.

7:32 am Southern beats by $0.04, reports revs in-line (SO) :

  • Reports Q2 (Jun) earnings of $0.74 per share, $0.04 better than the Capital IQ Consensus of $0.70; revenues rose 2.7% year/year to $4.45 bln vs the $4.45 bln Capital IQ Consensus.

7:32 am Rollins misses by $0.01, misses on revs (ROL) :

  • Reports Q2 (Jun) earnings of $0.22 per share, $0.01 worse than the Capital IQ Consensus of $0.23; revenues rose 4.8% year/year to $411.1 mln vs the $415.6 mln Capital IQ Consensus.

7:31 am Qualcomm and Lear (LEA) enter into a Wireless Electric Vehicle Charging license agreement (QCOM) :

Lear will be including Qualcomm Halo WEVC technology in its product portfolio to commercialize WEVC systems for Plug-In Hybrid and Electric Vehicles manufacturers, as well as wireless charging infrastructure companies.

  • Under the terms of the agreement, Qualcomm has granted Lear a royalty bearing license to develop, make and supply WEVC systems based on Qualcomm Halo technology.

7:31 am Derma Sciences to sell its First Aid Division, including inventory, to Dukal for ~$9.5 mln in cash and ~$2.7 mln of notes and also discloses it sold 925K shares of Comvita common stock in May (DSCI) :

  • Terms of the agreement call for an immediate payment at closing to co of $9.5 mln in cash.
    • In addition, co will hold a note payable of ~$2.7 mln, subject to adjustment based on final inventory figures.
    • The FAD had 2015 revenue of $16.7 mln.
    • Dukal will also assume third-party supply agreements, the lease obligation at its warehouse in Houston and related personnel expense.
    • The transaction is expected to close within two weeks of the announcement.
  • Co also announces the sale on May 12, 2016 of 925K shares of Comvita Limited common stock for gross proceeds of ~$7.6 mln, resulting in a realized gain of $4.7 mln.
    • Co continues to hold 1,877,277 shares of Comvita common stock, valued at ~$15.8 mln as of June 30, 2016.

7:27 am European Markets Update: FTSE +0.6%, DAX +0.8%, CAC +1.5% (:SUMRX) :

Major European indices trade higher across the board with Italy's MIB (+1.2%) rebounding from recent underperformance. Other regional indices hold slimmer gains while the euro is little changed against the dollar at 1.0995. The rebound in Italian equities has taken place following reports indicating Banca Monte dei Paschi di Sienna is looking to raise EUR5 billion in capital by Friday.

  • In economic data:
    • Eurozone Private Sector Loans +1.7% year-over-year, as expected (previous 1.6%) and M3 Money Supply +5.0% year-over-year, as expected (last 4.9%)
    • Germany's August GfK Consumer Climate 10.0 (expected 9.9; last 10.1). June Import Price Index +0.5% month-over-month (expected 0.6%; last 0.9%); -4.6% year-over-year, as expected (last -5.5%)
    • UK's Q2 GDP +0.6% quarter-over-quarter (expected 0.4%; last 0.4%); +2.2% year-over-year (consensus 2.0%; last 2.0%). July CBI Distributive Trades Survey -14 (expected 1; last 4)
    • France's June PPI +0.4% month-over-month and July Consumer Confidence ticked down to 96 from 97, as expected
    • Swiss June Consumption Indicator 1.34 (last 1.24)
    • Spain's June Retail Sales +5.6% year-over-year (consensus 3.3%; last 2.3%)
    • Italy's July Consumer Confidence 111.3 (consensus 109.2; last 110.2) and Business Confidence 103.1 (expected 101.8; previous 102.9)

---Equity Markets---

  • UK's FTSE is higher by 0.6% amid strength in homebuilders. Taylor Wimpey, Persimmon, and Barratt Developments are up between 4.7% and 5.3%. Select consumer names also outperform with Dixons Carphone, Burberry, and Morrison Supermarkets up between 2.5% and 3.1%.
  • Germany's DAX has added 0.8% with exporters pacing the advance. Volkswagen, Daimler, and BMW are up between 2.1% and 3.8%. On the downside, Deutsche Bank has surrendered 4.1%.
  • Italy's MIB is higher by 1.2% with Telecom Italia jumping 10.2% in reaction to strong results. Financials BMPS, Banca di Milano Scarl, Banco Popolare, and Intesa Sanpaolo are up between 1.5% and 4.1%.
  • France's CAC has climbed 1.5% with Peugeot surging 8.6% in reaction to better than expected results. LVMH has also responded positively to earnings, soaring 7.0%.

7:26 am Owens Corning beats by $0.44, beats on revs (OC) :

  • Reports Q2 (Jun) earnings of $1.29 per share, $0.44 better than the Capital IQ Consensus of $0.85; revenues rose 10.1% year/year to $1.54 bln vs the $1.46 bln Capital IQ Consensus.
  • For the full-year 2016, the company expects adjusted EBIT of $700 million or more.
  • "Owens Corning posted a record quarter and continues to perform at a very high level. The Composites business continues its momentum. The Roofing business executed well in favorable market conditions and delivered an outstanding quarter. The Insulation business achieved another quarter of EBIT growth. The strength of our portfolio and strong execution delivered outstanding profitability and cash performance in the quarter."

7:26 am Fiat Chrysler misses by EUR 0.02, misses on revs; raises FY16 guidance (FCAU) :

  • Reports Q2 (Jun) earnings of 0.45 per share, excluding non-recurring items, 0.02 worse than the Capital IQ Consensus of 0.47; revenues fell 2.3% year/year to 27.89 bln vs the 29.25 bln Capital IQ Consensus. 
  • Worldwide consolidated shipments of 1,175 thousand units, down 1% driven by APAC due to transition to local Jeep production in China. Worldwide combined shipments (including JVs) were 1,233 thousand units, up 1%, LATAM reduction more than offset by EMEA increase.
  • Adjusted EBIT increased 16% to 1,628 million, with EMEA more than doubled and improved margins for all regions and Components. EBIT decreased 14% to 1,060 million primarily due to charges for Takata airbag inflator recalls of 414 million
  • Co issues guidance for FY16, raises FY16 revs to > EUR 112 bln from > EUR 110 bln vs. 113.37 bln Capital IQ Consensus. Adjusted EBIT raised to > 5.5 billion from > 5.0 billion; Adjusted net profit raised to > 2.0 billion from > 1.9 billion; Net industrial debt

7:25 am On The Wires (:WIRES) :

  • Imperva (IMPV) announces the availability of Imperva ThreatRadar IP Reputation for Imperva Skyfence, a new threat intelligence offering that helps Imperva customers detect threats to enterprise data in SaaS applications from known bad actors.
  • Apricus Biosciences (APRI) announced that the Republic of Lebanon Ministry of Public Health has granted market approval to Vitaros. 
  • Cubic (CUB) announced an award of more than $10 million for new orders of its Instrumentable-Multiple Integrated Laser Engagement System Individual Weapon Systems 2 from the U.S. Army's Program Executive Office for Simulation, Training and Instrumentation and Army Contracting Command-Orlando.

7:24 am Cynosure target raised to $66 rom $60 at Maxim Group (CYNO) : Maxim Group raises their CYNO tgt to $66. Firm notes they would continue to bebuyers of CYNO following its significantly better-than-expected 2Q16 results.Topline strength was mainly driven by the full U.S. rollout of SculpSure, aswell as significant contributions from MonaLisa Touch, PicoSure, and ICONsystems. In our opinion, the receipt of regulatory clearances in both Canadaand South Korea to market SculpSure for non-invasive lipolysis of the abdomenand flanks are major steps in CYNO's international growth strategy, as theseregions present large market opportunities.

7:20 am Flotek Industries announces a ~2.46 mln share private placement of common stock at $12.52/share for gross proceeds of ~$30 mln in connection with the previously announced acquisition of International Polymetrics - see 7:14 comment (FTK) :

  • Flotek will use the proceeds of the private placement to fund the acquisition also announced this morning of International Polymerics, to repay indebtedness under the company's secured credit facility, and for general corporate purposes.
  • Closing and funding of the private placement is scheduled to occur on or about July 27, 2016.

7:20 am FirstMerit Corp will sell 13 branches within Stark and Ashtabula counties, in connection w/ its previously announced merger with Huntington Banchsares (HBAN) to First Commonwealth Bank (FCF) (FMER) :

  • Branches total ~$735 million in total deposits and $115 million in total loans as of May 31, 2016.
  • The sale is in connection with an agreement reached with the U.S. Department of Justice in order to resolve its competitive concerns about Huntington's proposed acquisition of FirstMerit.
  • Cos will be providing additional information to customers of the branches slated for divestiture about the divestiture, although branch conversions are not anticipated to be completed until the fourth quarter of 2016.
  • Approval of the merger of FirstMerit into Huntington is anticipated in the third quarter.
  • See 7:01 post for more details on the sale

7:16 am Rockwell Automation beats by $0.08, misses on revs; guides FY16 EPS in-line, reaffirms FY16 revs guidance (ROK) :

  • Reports Q3 (Jun) earnings of $1.55 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus of $1.47; revenues fell 6.4% year/year to $1.47 bln vs the $1.49 bln Capital IQ Consensus.
  • Co issues guidance for FY16, sees EPS of $5.80-6.00, excluding non-recurring items, vs. $5.92 Capital IQ Consensus Estimate and vs prior guidance of $5.75-6.15; co says it expects FY16 revenue to decline approximately 7%, which we compute as approximately $5.9 bln vs. $5.91 bln Capital IQ Consensus Estimate.
  • "Sales and earnings trends were broadly in line with our expectations. Sales were down about a point more than we anticipated, as our U.S. and Canada solutions and services businesses experienced some delays in larger projects, particularly in heavy industry end markets."
  • Outlook: "In mixed market conditions, we expect continued improvement in our product sales. However, the weaker-than-expected orders and sales performance in our solutions and services businesses in the third quarter has caused us to reduce our sales outlook for the balance of the year. We still believe we will see sequential sales improvement in the second half of the fiscal year, but not as much as we anticipated in April."

7:15 am State Street beats by $0.20, misses on revs (STT) :

  • Reports Q2 (Jun) earnings of $1.46 per share, excluding non-recurring items, $0.20 better than the Capital IQ Consensus of $1.26; revenues fell 1.3% year/year to $2.57 bln vs the $2.65 bln Capital IQ Consensus.
  • "... Although it is still early days following the Brexit vote, we view the diverse and complex $30 trillion European investment market as a significant opportunity that we are well positioned for, given the scope and footprint of our European operations. Therefore, our long-term outlook for our European operations has not been materially impacted by the referendum, other than the impact of anticipated persistence of lower market interest rates."

7:15 am New York Community misses by $0.02 (NYCB) :

  • Reports Q2 (Jun) earnings of $0.26 per share, $0.02 worse than the Capital IQ Consensus of $0.28.
  • Net Interest Margin: The Company's margin rose five basis points sequentially and 35 bps year-over-year to 2.99%.
  • Loan originations totaled $4.0 billion in the current second quarter, far exceeding the pipeline reported in the Company's April release.
  • Efficiency: The Company's efficiency ratio was 43.82% in 2Q 2016.
  • Capital:
    • At 6/30/2016, stockholders' equity represented 12.32% of total assets.
    • Tangible stockholders' equity represented 7.73% of tangible assets at that date

7:15 am Corning beats by $0.05, reports revs in-line; Announces $2 bln accelerated share repurchase (GLW) :

  • Reports Q2 (Jun) earnings of $0.37 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus of $0.32; revenues rose 0.7% year/year to $2.36 bln vs the $2.38 bln Capital IQ Consensus.
  • Sales and EPS expected to grow both sequentially and on year-over-year basis in Q3.
  • Corning increased the cash it expects to distribute to shareholders through 2019 to more than $12.5 billion via a newly announced $2 billion accelerated stock repurchase. This also includes increasing the dividend by a double-digit percentage annually.

7:14 am Flotek Industries to acquire International Polymerics for consideration consisting of $7.9 mln in cash and 248K shares of common stock (FTK) : The acquisition will be treated as an asset purchase for income taxation purposes. Included in the assets will be approximately $1.2 million in working capital.

7:14 am The Medicines Co beats by $0.35, beats on revs (MDCO) :

  • Reports Q2 (Jun) loss of $0.62 per share, excluding a gain of $288.3 mln on the sale of the Company's non-core cardiovascular products, $0.35 better than the Capital IQ Consensus of ($0.97); revenues fell 26.5% year/year to $54.73 mln vs the $42.26 mln Capital IQ Consensus.

7:13 am NASDAQ beats by $0.03, beats on revs (NDAQ) :

  • Reports Q2 (Jun) earnings of $0.91 per share, $0.03 better than the Capital IQ Consensus of $0.88; revenues rose 7.9% year/year to $559 mln vs the $547.55 mln Capital IQ Consensus.

7:12 am Monotype Imaging beats by $0.03, reports revs in-line; guides Q3 below consensus, lowers FY16 guidance as a result of post-Brexit FX (TYPE) :

  • Reports Q2 (Jun) earnings of $0.27 per share, $0.03 better than the Capital IQ Consensus of $0.24; revenues rose 5.0% year/year to $48.7 mln vs the $48.9 mln Capital IQ Consensus.
  • Co issues downside guidance for Q3, sees EPS of $0.24-0.28 vs. $0.30 Capital IQ Consensus Estimate; sees Q3 revs of $49.0-52.0 mln vs. $52.32 mln Capital IQ Consensus Estimate.
  • Monotype has analyzed the impact of FX changes following Brexit, and as a result, is lowering its previously issued, full year 2016 guidance to reflect the expected impact of exchange rates on revenue and earnings, which is expected to have a $2.5 million dollar full-year impact on revenue and $1.0 million dollar impact on non-GAAP net adjusted EBITDA.
    • Now sees EPS of $1.05-1.13 vs. $1.07 Capital IQ Consensus Estimate; sees FY16 revs of $199.5-205.5 mln vs. $207.58 mln Capital IQ Consensus Estimate.

7:11 am Dr Pepper Snapple beats by $0.05, reports revs in-line; guides FY16 EPS below consensus, reaffirms FY16 revs guidance (DPS) :

  • Reports Q2 (Jun) earnings of $1.25 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus of $1.20; revenues rose 2.4% year/year to $1.7 bln vs the $1.68 bln Capital IQ Consensus.
  • Co issues guidance for FY16, sees EPS of $4.27-4.35, excluding non-recurring items, vs. $4.36 Capital IQ Consensus Estimate; reaffirms FY16 revs up +2% (approximately $6.40 bln) vs. $6.4 bln Capital IQ Consensus Estimate.

7:11 am IMS Health Holdings beats by $0.03, beats on revs; reaffirms FY16 & Q3 rev guidance on a constant currency basis (IMS) :

  • Reports Q2 (Jun) earnings of $0.41 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus of $0.38; revenues rose 112.4% year/year to $1.58 bln vs the $0.8 bln Capital IQ Consensus.
  • 1Q16 & FY16 guidance:
    • For the 2016 full year on a reported basis, IMS Health is increasing its revenue growth guidance by 1% to 10 to 12%.
    • Adjusted EBITDA growth by 1 %age point to 8.5 to 10.5%.
    • Adjusted Net Income growth by 3% to between 5 to 7%.
    • Adjusted Diluted Earnings per Share growth by percentage points to 7 to 9%.
    • On a constant currency basis, IMS Health reaffirms full-year 2016 guidance for revenue to grow 10 to 12%.
    • Adjusted EBITDA to grow 7.5 to 9.5%, and raises guidance on Adjusted Net Income and Adjusted Diluted Earnings per Share growth by 1.5% to 8 to 10 % and 10 to 12 %, respectively.
    • For the third quarter on a reported basis, IMS Health expects revenue and Adjusted EBITDA to grow by 8 to 9%, while Adjusted Net Income will decline 1 to 2% and Adjusted EPS will decline 0.5 to 1.5%.
    • On a constant currency basis, the company expects third-quarter revenue to grow by 7.5 to 8.5% to $798-805 mln
      • Adjusted EBITDA to grow by 4 to 5%.
      • Adjusted Net Income to grow by 0 to 1%.
    •     Adjusted Diluted EPS to grow by 1.5 to 2.5%.
  • All reported guidance assumes that current foreign currency exchange rates hold constant through the end of 2016.

7:11 am Comcast beats by $0.02, beats on revs (CMCSA) :

  • Reports Q2 (Jun) earnings of $0.83 per share, $0.02 better than the Capital IQ Consensus of $0.81; revenues rose 2.8% year/year to $19.27 bln vs the $19 bln Capital IQ Consensus. 
  • Operating Income decreased 1.0% to $4.1 billion. Consolidated Operating Cash Flow increased 3.0% to $6.5 billion.
  • Revenue for Cable Communications increased 6.0% to $12.4 billion in the second quarter of 2016, driven primarily by increases in high-speed Internet, business services, and video revenue. High-speed Internet revenue increased 8.6%, reflecting an increase in the number of residential high-speed Internet customers, rate adjustments and an increase in the number of customers receiving higher levels of service.
  • Customer Relationships increased by 115,000 to 28.1 million in the second quarter of 2016, an 83,000 improvement compared to the increase in the second quarter of 2015, primarily reflecting increases in double and triple product relationships.
  • Revenue for NBCUniversal decreased 1.8% to $7.1 billion in the second quarter of 2016 and Operating Cash Flow remained stable at $1.7 billion. Pro Forma Revenue for NBCUniversal decreased 5.1%. Pro Forma Operating Cash Flow decreased 6.4%, reflecting a decline in Filmed Entertainment, partially offset by results at Broadcast Television, Cable Networks and Theme Parks.
  • Cable Networks revenue increased 4.7% to $2.6 billion in the second quarter of 2016, reflecting higher distribution revenue and content licensing and other revenue. Distribution revenue increased 6.9%, driven by contractual rate increases and contract renewals, partially offset by a decline in subscribers at our cable networks. Content licensing and other revenue increased 13.0%, primarily due to the timing of content provided under licensing agreements.
  • Advertising revenue was stable compared to the second quarter of 2015, due to higher rates, offset by audience ratings declines. Broadcast Television revenue increased 17.3% to $2.1 billion in the second quarter of 2016, reflecting higher content licensing, distribution and other, and advertising revenue.

7:11 am Inventure Foods misses by $0.02, misses on revs; will commence a strategic and financial review see 7:04 comment (SNAK) :

  • Reports Q2 (Jun) loss of $0.01 per share, $0.02 worse than the Capital IQ Consensus of $0.01; revenues rose 4.4% year/year to $69.3 mln vs the $72.26 mln Capital IQ Consensus.

7:10 am Six Flags misses by $0.05, reports revs in-line (SIX) :

  • Reports Q2 (Jun) earnings of $0.64 per share, $0.05 worse than the Capital IQ Consensus of $0.69; revenues rose 5.4% year/year to $407.07 mln vs the $409.3 mln Capital IQ Consensus.
  • Deferred revenue of $175 million increased by $26 million or 17 percent over June 30, 2015 primarily due to incremental sales of season passes, memberships and all-season dining passes.
  • In the first half of 2016 the company invested $81 million in new capital projects, paid $107 million in dividends, or $0.58 per common share per quarter, and repurchased $44 million of its common stock. Net Debt as of June 30, 2016, calculated as total reported debt of $1,652 less cash and cash equivalents of $164 million, was $1,488 million, which translates to a 3.0 times net leverage ratio.

7:09 am First Commonwealth misses by $0.02 (FCF) :

  • Reports Q2 (Jun) earnings of $0.14 per share, $0.02 worse than the Capital IQ Consensus of $0.16.
  • The efficiency ratio improved to 57.1%, driven by lower operational expenses and higher revenue
  • Loans experienced solid growth from the prior quarter of 4.2% on an annualized basis
  • Deposits grew from the prior quarter at an annualized rate of 8.6%
  • The net interest margin remained relatively stable at 3.27%
  • Noninterest income grew by 13.2% from the prior quarter

7:08 am Silicon Labs beats by $0.11, beats on revs; guides Q3 EPS in-line, revs in-line (SLAB) :

  • Reports Q2 (Jun) earnings of $0.75 per share, excluding non-recurring items, $0.11 better than the Capital IQ Consensus of $0.64; revenues rose 6.1% year/year to $174.91 mln vs the $170.55 mln Capital IQ Consensus.
  • Co issues in-line guidance for Q3, sees EPS of $0.61-0.67, excluding non-recurring items, vs. $0.63 Capital IQ Consensus Estimate; sees Q3 revs of $171-176 mln vs. $173.0 mln Capital IQ Consensus Estimate.
  • Non-GAAP operating margin was 20.5% in Q2.
  • "We are pleased to report exceptional second quarter financial performance, including record revenue in all of our strategic growth products."

7:08 am Garmin beats by $0.18, beats on revs; raises FY16 EPS above consensus, revs above consensus (GRMN) :

  • Reports Q2 (Jun) earnings of $0.87 per share, $0.18 better than the Capital IQ Consensus of $0.69; revenues rose 4.9% year/year to $811.6 mln vs the $763.93 mln Capital IQ Consensus.
  • Co raises guidance for FY16, sees EPS of ~$2.50 vs. $2.30 Capital IQ Consensus Estimate, up from prior guidance of ~$2.25; sees FY16 revs of ~$2.9 bln vs. $2.84 bln Capital IQ Consensus Estimate, up from ~$2.82 bln prior

7:07 am Waste Mgmt beats by $0.03, reports revs in-line; raises FY16 EPS guidance (WM) :

  • Reports Q2 (Jun) earnings of $0.74 per share, $0.03 better than the Capital IQ Consensus of $0.71; revenues rose 3.3% year/year to $3.42 bln vs the $3.4 bln Capital IQ Consensus.
  • Core price, which consists of price increases net of rollbacks and fees, other than the Company's fuel surcharge, was 4.9%, up from 4.1% in the second quarter of 2015.
  • Co raises guidance for FY16, sees EPS of $2.83-2.86 (Prior $2.74-2.79) vs. $2.81 Capital IQ Consensus Estimate; now sees FCF of $1.6-1.7 bln (Prior $1.5-1.6 bln)

7:07 am VolitionRx announces that the USPTO has issued patent supporting its first three granted patents in the US (VNRX) : The new U.S. patent, issued on July 26, 2016 and expiring on August 31, 2032, relates to VolitionRx's Nucleosomics platform for the detection of fragments of chromosomes, called nucleosomes, circulating in the blood.

7:06 am Entegris beats by $0.08, beats on revs; guides Q3 EPS above consensus, revs in-line (ENTG) :

  • Reports Q2 (Jun) earnings of $0.28 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus of $0.20; revenues rose 8.0% year/year to $303.05 mln vs the $278.93 mln Capital IQ Consensus.
  • Co issues guidance for Q3, sees EPS of $0.23-0.26, excluding non-recurring items, vs. $0.23 Capital IQ Consensus Estimate; sees Q3 revs of $285-300 mln vs. $287.38 mln Capital IQ Consensus Estimate.

7:06 am Sonus Networks beats by $0.05, beats on revs; issues mixed guidance, announces restructuring (SONS) :

  • Reports Q2 (Jun) earnings of $0.08 per share, $0.05 better than the Capital IQ Consensus of $0.03; revenues rose 11.3% year/year to $60.9 mln vs the $59.67 mln Capital IQ Consensus.
  • Co issues guidance for Q3, sees EPS of $0.08-0.09 vs. $0.09 Capital IQ Consensus Estimate; sees Q3 revs of $63-65 mln vs. $67.11 mln Capital IQ Consensus Estimate.
  • Co issues guidance for FY16, sees EPS of $0.35-0.39 vs. $0.32 Capital IQ Consensus Estimate; sees FY16 revs of $257-263 mln vs. $261.53 mln Capital IQ Consensus Estimate.
  • The company is announcing a restructuring program to further accelerate its investment in new technologies as the communications industry migrates to a Cloud-based architecture.
    • The Company expects to record between $3 million and $4 million of restructuring expense over the next twelve months in connection with this action, resulting in expected annual savings of approximately $6 million to $8 million.
    • The Company intends to utilize the entire savings to shift headcount towards new strategic initiatives (e.g., new products, expanded go-to-market footprint in selected geographies and discrete vertical markets).
    • The Company plans to provide additional information regarding this program when it reports its third quarter of 2016 results.

7:05 am Coca-Cola beats by $0.02, reports revs in-line; guides FY16 EPS below consensus; lowers organic rev guidance (KO) :

  • Reports Q2 (Jun) earnings of $0.60 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.58; revenues fell 5.1% year/year to $11.54 bln vs the $11.63 bln Capital IQ Consensus.
  • Global volume grew 1% year to date and was even in the quarter. Concentrate sales growth was in line with unit case volume growth in the quarter. Global price/mix grew 3% in the quarter, reflecting continued effective pricing and packaging initiatives across key markets. Reported operating margin expanded more than 390 basis points and comparable currency neutral operating margin expanded more than 140 basis points. Gained global value share in nonalcoholic ready-to-drink beverages
    Co issues downside guidance for FY16, sees EPS down 4-7% to ~$1.86-1.92 vs. $1.94 Capital IQ Consensus Estimate. The Company now expects organic revenues to be up 3% in 2016 (down from +4-5%). The net impact of acquisitions, divestitures and structural items on net revenues is expected to be a 6 to 7 point headwind, and based on the current spot rates, currency is expected to be a 2 to 3 point headwind, including the impact of hedged positions for the full year. The Company continues to expect comparable currency neutral income before taxes (structurally adjusted) to grow 6% to 8% in 2016, in line with our long-term target. The net impact of structural items is expected to be a 4 point headwind, and based on the current spot rates, currency is expected to be an 8 to 9 point headwind, including the impact of hedged positions for the full year.

7:04 am Inventure Foods will commence a strategic and financial review with the objective to increase shareholder value (SNAK) :

  • This review will include a thorough evaluation of the Company's current operating plan and may result in the Company continuing to pursue value-enhancing initiatives as a standalone company, capital structure optimization, a sale of the Company, a sale of certain assets of the Company or other business combination. A committee of three independent directors has been established to oversee the review and the Company has retained Rothschild as its financial advisor and DLA Piper LLP (:US) as its legal advisor to assist in this process.
  • The Company does not intend to comment further regarding the strategic and financial review until the Board of Directors approves a specific action or concludes its review.

7:04 am FLIR Systems misses by $0.01, reports revs in-line; guides FY16 EPS in-line, reaffirms FY16 revs guidance; initiates plan to reduce costs in 2H16 (FLIR) :

  • Reports Q2 (Jun) earnings of $0.34 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus of $0.35; revenues rose 2.5% year/year to $402.73 mln vs the $402.77 mln Capital IQ Consensus.
  • Co issues guidance for FY16, sees EPS of $1.60-1.65, excluding non-recurring items, vs. $1.62 Capital IQ Consensus Estimate and vs prior guidance of $1.60-1.70; reaffirms prior FY16 revenue guidance of $1.60-1.65 bln vs. $1.64 bln Capital IQ Consensus Estimate.
  • "We are encouraged by the growth we saw in our bookings and backlog during the second quarter, and our initiatives to improve working capital utilization resulted in strong cash flow...As we anticipated, profitability during the second quarter was lower than our historic trend given an unusual product mix in our Surveillance segment as well as higher costs in our Instruments and Security segments. While we expect product mix to return to normal levels in the second half of the year, we have initiated a plan to reduce our costs which we expect to improve our overall profitability in the second half."

7:04 am Altria beats by $0.01, beats on revs; guides FY16 EPS in-line (MO) :

  • Reports Q2 (Jun) earnings of $0.81 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.80; revenues fell 1.4% year/year to $6.52 bln vs the $5.01 bln Capital IQ Consensus.
  • Co issues in-line guidance for FY16, sees EPS of $3.01-3.07 (Prior $3.00-3.05) vs. $3.05 Capital IQ Consensus Estimate.
  • SAB Miller Update
  • From an accounting perspective, Altria currently records results for its SABMiller investment concurrent with Altria's reporting calendar. Upon closing of the transaction, because NewCo's results will not be available in time to record them in the concurrent period, Altria expects to report its share of NewCo's results using a one-quarter lag. For example, Altria's share of NewCo's results in the quarter in which the transaction closes will be recorded in the subsequent quarter. This timing lag will not affect Altria's cash flows or quarterly dividends per share, but Altria does expect it to impact year-over-year comparability of Altria's reported and adjusted diluted EPS in the short-term and could also affect 2016 full-year adjusted diluted EPS guidance. The precise periods affected will depend on when the transaction closes.

7:04 am NeuroDerm announces the USPTO has issued a patent related to its ND0701 program (NDRM) :

  • ND0701's formulation, containing concentrated apomorphine-base, is intended for chronic therapy of Parkinson's disease and is developed for continuous subcutaneous administration by a small, low-volume, disposable patch-pump.
  • ND0701 has been shown in pre-clinical studies to have better local tolerability than commercially available, continuous, subcutaneously administered apomorphine-HCl. NeuroDerm is currently conducting a bioequivalence trial in the EU (Trial 101) comparing ND0701 with commercially available continuous, subcutaneously delivered apomorphine-HCl in its pursuit of a regulatory development route in the EU based on bioequivalence.
  • The patent has an expiration date of 2033.

7:03 am Silgan Holdings beats by $0.04, misses on revs; guides Q3 EPS below consensus; lowers FY16 EPS outlook (SLGN) :

  • Reports Q2 (Jun) earnings of $0.60 per share, $0.04 better than the Capital IQ Consensus of $0.56; revenues fell 4.3% year/year to $874.6 mln vs the $892.86 mln Capital IQ Consensus.
  • Co issues downside guidance for Q3, sees EPS of $1.20-1.30 vs. $1.34 Capital IQ Consensus Estimate. As in prior years, given the uncertainties around the timing of the fruit and vegetable harvest in the U.S. and the late start of the pack in Europe, the results of the back half of the year could shift between the third and fourth quarters.
  • Co lowers guidance for FY16, sees EPS of $2.70-2.90 (Prior $2.80-3.00) vs. $2.88 Capital IQ Consensus Estimate. This estimate reflects current indications of lower demand from certain U.S. pack customers, a cool and wet start to the European growing season and a somewhat more measured pace of equipment relocations associated with the footprint optimization program in the plastic container business.

7:02 am Medigus announces that Johns Hopkins Hospital has provided an initial purchase order for the MUSE system (MDGS) : The purchase order covers the cost of a MUSE system console and endoscopic device, which will be available for use on eligible patients suffering from GERD.

7:02 am Laboratory Corp beats by $0.01, beats on revs; raises FY16 guidance (LH) :

  • Reports Q2 (Jun) earnings of $2.31 per share, $0.01 better than the Capital IQ Consensus of $2.30; revenues rose 7.4% year/year to $2.38 bln vs the $2.33 bln Capital IQ Consensus.
  • Co issues raises guidance for FY16, sees EPS of $8.60-8.95 vs. $8.78 Capital IQ Consensus Estimate, versus prior guidance of $8.55 to $8.95; sees FY16 revs up 9.5-10.5%, which equates to roughly $9.3-9.4 bln vs. $9.36 bln Capital IQ Consensus Estimate; rev outlook includes the impact from approximately 50 basis points of negative currency. This is an increase from prior guidance of 8.5% to 10.5%, which included approximately 40 basis points of negative currency.

7:01 am First Commonwealth to acquire 13 branches in Canton and Ashtabula, Ohio and announces its remaining capacity under its common stock repurchase program is not expected to be utilized, as the acquisition 'represents a more strategic and accretive use of the bank's capital' (FCF) :

  • Upon closing, First Commonwealth will immediately hold the third largest deposit market share in the Canton, Ohio market. Eleven of the acquired branches with $676 million of deposits are in Canton, while two branches with $59 million of deposits are in Ashtabula.
  • The acquisition provides First Commonwealth with the opportunity to expand its Ohio footprint by adding approximately 34,000 retail and small business households.
  • First Commonwealth will pay a 4.5% premium on deposits acquired at close. First Commonwealth intends to apply the cash received at closing to repay wholesale borrowings, which is expected to reduce First Commonwealth's loan to deposit ratio below 100% and improve its net interest margin.

7:01 am Pluristem Therapeutics intends to conduct a Phase III trial assessing its PLX-PAD cells in recovery following surgery for femoral neck fracture (PSTI) :

Co is planning to meet with the FDA later this year to discuss the Phase III protocol.

  • Co has already submitted this protocol to the EMA following consultation with the Adaptive Pathways Project Group.
  • The Phase III study design builds upon 'positive' data from a Phase II trial which showed that PLX-PAD cells induced significant muscle regeneration in patients who had undergone total hip replacement surgery.
    • Patients treated with PLX-PAD at the time of surgery showed a 500% improvement in muscle force and a 300% improvement in muscle volume six months after surgery, as compared to the placebo group.

7:00 am Sequenom to be acquired by Laboratory Corporation of America Holdings (LH) in a cash tender offer for $2.40/share, representing a total enterprise value of ~$371 mln (SQNM) :

Under the terms of the agreement and plan of merger, LabCorp has formed an acquisition subsidiary, Savoy Acquisition Corp., that will commence a tender offer to purchase all outstanding shares of Sequenom for $2.40 per share.

  • Following the completion of the tender offer, LabCorp expects to consummate a merger of Savoy Acquisition Corp. and Sequenom in which shares of Sequenom that have not been purchased in the tender offer will be converted into the right to receive the same cash price per share as paid in the tender offer.
  • The closing of the acquisition is expected by year end.
  • Sequenom's Board has recommended shareholders approve the agreement.

6:59 am Asian Markets Close: Nikkei +1.7%, Hang Seng +0.4%, Shanghai -1.9% (:SUMRX) :

Equity indices across the Asia-Pacific region ended Wednesday on a mixed note. Japan's Nikkei (+1.7%) outperformed and the yen stumbled after Prime Minister Shinzo Abe revealed plans for a fiscal stimulus package in the amount of JPY28 trillion. The package is expected to be compiled next month, but it is unclear how much direct stimulus will be involved.

  • In economic data:
    • Australia's Q2 CPI +0.4% quarter-over-quarter, as expected (last -0.2%); +1.0% year-over-year (consensus 1.1%; last 1.3%). Q2 Trimmed Mean CPI +0.5% quarter-over-quarter (expected 0.4%; last 0.2%)
    • South Korea's July Consumer Confidence ticked up to 101 from 99

---Equity Markets---

  • Japan's Nikkei spiked 1.7%. Nine sectors registered gains with materials (+4.9%), industrials (+1.9%), and technology (+1.9%) showing relative strength while energy (-1.3%) lagged. Mitsumi Electric, Minebea, SUMCO, Nitto Denko, Alps Electric, TDK, Casio Computer, and Nissan Motor gained between 4.3% and 16.4%.
  • Hong Kong's Hang Seng added 0.4% with financials and select property names showing relative strength. Cheung Kong Porperty Holdings, Hang Lung Properties, Bank of East Asia, HSBC, and ICBC gained between 0.7% and 1.0%.
  • China's Shanghai Composite lost 1.9% amid reports hinting at the introduction of curbs on wealth management products, aimed at reducing leverage. Inner Mongolia Lantai Industrial, Shanghai Baosight Software, Grinm Advanced Materials, and Lucky Film lost between 9.8% and 10.0%.
  • India's Sensex added 0.2%. ICICI Bank, Maruti Suzuki, and Housing Development Finance gained between 1.5% and 3.0% while Dr. Reddy's Labs tumbled 10.0% in response to disappointing results.

---FX---

  • USDJPY +0.8% to 105.50
  • USDCNY UNCH at 6.6716
  • USDINR -0.1% to 67.190

6:57 am WEX beats by $0.07, beats on revs; guides Q3 EPS below consensus, revs in-line; raises FY16 guidance (WEX) :

  • Reports Q2 (Jun) earnings of $1.08 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus of $1.01; revenues rose 9.5% year/year to $233.9 mln vs the $223.25 mln Capital IQ Consensus.
    • During the quarter, fuel prices and foreign currency translations negatively impacted revenue by $13.6 million and $2.2 million, respectively, when compared to the prior year period.
  • Co issues guidance for Q3, sees EPS of $1.07-1.14, excluding non-recurring items, vs. $1.25 Capital IQ Consensus Estimate; sees Q3 revs of $272-282 mln vs. $279.86 mln Capital IQ Consensus Estimate.
    • The Company's guidance assumes that third quarter 2016 fleet credit loss will range between 9 and 14 basis points
  • Co raises guidance for FY16, sees EPS of $4.17-4.37 (prior $4.07-4.37), excluding non-recurring items, vs. $4.33 Capital IQ Consensus Estimate; sees FY16 revs of $975 mln to $1 bln (prior $879-909 mln), excluding non-recurring items, vs. $966.61 mln Capital IQ Consensus Estimate.
    • Full-year 2016 guidance is based on an assumed average U.S. retail fuel price of $2.16 per gallon, also excluding EFS.

6:57 am WCI Communities beats by $0.05, beats on revs (WCIC) :

  • Reports Q2 (Jun) earnings of $0.35 per share, $0.05 better than the Capital IQ Consensus of $0.30; revenues rose 11.1% year/year to $167.4 mln vs the $158.74 mln Capital IQ Consensus.
    • Deliveries of 307, up 26.3%
    • Homebuilding revenues of $132.0 million, up 14.2%
    • Debt to capital of 34.2%
    • Net debt to net capitalization of 25.7%
    • Average selling price per new order of $454,000, up 5.8%
    • Contract value of new orders of $121.8 million, down 5.3%
    • New orders of 268, down 10.7%
    • Backlog contract value of $304.6 million, up 3.6%
    • Backlog units totaling 586, down 6.5%
    • Gross margin from homes delivered of 24.8%
    • Adjusted gross margin from homes delivered of 27.5%
    • Land portfolio totals 14,229 owned or controlled home sites, up 5.7%

6:56 am Chembio Diagnostics announces that it has obtained a CE mark for its DPP Zika IgM/IgG Assay (CEMI) :

  • The Chembio DPP Zika IgM/IgG System are now cleared for commercialization and for sale in 17 European countries 
  • The DPP Zika IgM/IgG Assay is the first POC Zika test to obtain CE mark, and the Company expects to launch sales of the product in the eligible European and Caribbean nations during the second half on 2016.

6:55 am Gildan Activewear misses by $0.01, misses on revs; lowers FY16 EPS below consensus, sees revs in-line (GIL) :

  • Reports Q2 (Jun) earnings of $0.41 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus of $0.42; revenues fell 3.5% year/year to $688.9 mln vs the $702.61 mln Capital IQ Consensus, reflecting sales decreases of 1.4% in the Printwear segment and 7.9% in Branded Apparel.
    • The decline in consolidated net sales compared to the same quarter last year was mainly due to anticipated unfavourable impacts from the Company's decision to exit certain non-core retailer private label programs, lower net selling prices, the impact of distributor inventory destocking, together with the negative impact of foreign currency exchange related to a stronger U.S. dollar compared to last year. These factors more than offset the benefit of positive sell-through in U.S. and international printwear markets and the impact on sales of approximately $19.5 million from the acquisition of Alstyle.
    • Consolidated gross margins in the second quarter of 2016 increased to 27.4%, up 70 basis points compared to the second calendar quarter last year. The increase in gross margins was primarily due to lower raw material and other input costs, and manufacturing cost savings, which more than offset lower net selling prices, the near term dilutive impact of the acquisition of Alstyle and the negative impact of foreign exchange.
  • Co issues guidance for FY16, lowers EPS to $1.50-1.55 from $1.50-1.60, excluding non-recurring items, vs. $1.58 Capital IQ Consensus; sees FY16 revs of ~$2.65 bln vs. $2.67 bln Capital IQ Consensus. This compares to the Company's prior sales guidance of consolidated net sales in excess of $2.6 billion consisting of Printwear sales in excess of $1.6 billion, and Branded Apparel sales in excess of $1.0 billion.
    • The Company's updated 2016 full year guidance reflects its sales performance in the second quarter, tempered sales expectations for the balance of the year and the impact of the acquisitions of Alstyle and Peds. The Company has lowered its assumption for Printwear fleece sales in the third quarter as a result of lower than anticipated pre-order bookings to date. In addition, the Company is projecting a continuation of the current softness in the retail environment.
    • The acquisitions of Alstyle and Peds are projected to contribute aggregate sales of ~$115 million in 2016, while the impact from the acquisitions on the Company's net earnings is expected to be minimal in 2016. The Company expects strong integration synergies from these transactions to flow through in 2017 and 2018, with EPS accretion projected to reach an exit run rate in excess of $0.13 by the end of 2018. Despite current market conditions, the Company continues to believe it is well-positioned to deliver strong organic sales growth in Branded Apparel in the second half of the year. This business is expected to start to benefit from increased shelf space gains and new retail programs secured for 2016 while the impact from the exit of private label programs is expected to subside in the second half of the year. 

6:54 am Level 3 beats by $0.08, misses on revs; reaffirms 2016 guidance (LVLT) :

  • Reports Q2 (Jun) earnings of $0.53 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus of $0.45; revenues rose 0.9% year/year to $2.06 bln vs the $2.08 bln Capital IQ Consensus.
  • Reaffirms 2016 guidance of Adjusted EBITDA growth of 10-12% and Free Cash Flow of $1.0-1.1 billion.

6:53 am RPC reports EPS in-line, misses on revs (RES) :

  • Reports Q2 (Jun) loss of $0.23 per share, in-line with the Capital IQ Consensus of ($0.23); revenues fell 51.9% year/year to $143 mln vs the $151.4 mln Capital IQ Consensus.
  • "During the latter part of the second quarter into the beginning of the third quarter, the U.S. domestic rig count increased for several consecutive weeks. In addition, during June, activity levels in several of our service lines began to increase. As we begin the third quarter, we are submitting more customer proposals and preparing for higher activity levels. A lack of a clear, positive trend in oil prices reduces our confidence in the strength of a near-term recovery; however, we believe that the domestic oil and gas industry has finally reached a cyclical trough."

6:49 am Booz Allen Hamilton beats by $0.02, beats on revs; reaffirms FY17 guidance (BAH) :

  • Reports Q1 (Jun) earnings of $0.46 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.44; revenues rose 5.3% year/year to $1.42 bln vs the $1.4 bln Capital IQ Consensus.
  • Co reaffirms guidance for FY17, sees EPS of $1.65-1.75 vs. $1.71 Capital IQ Consensus Estimate; sees FY17 revs of $5.52-5.68 bln vs. $5.62 bln Capital IQ Consensus Estimate.

6:48 am Simon Properties beats by $0.01, misses on revs; guides FY16 FFO slightly below consensus; increases quarterly dividend 6.5% to $1.65 per share (SPG) :

  • Reports Q2 (Jun) funds from operations of $2.63 per share, $0.01 better than the Capital IQ Consensus of $2.62; revenues fell 2.5% year/year to $1.32 bln vs the $1.35 bln Capital IQ Consensus.
  • Co issues downside guidance for FY16, sees FFO of $10.77-10.85 vs. $10.86 Capital IQ Consensus Estimate.
  • Board of Directors declared a quarterly common stock dividend of $1.65 per share, a 6.5% increase year-over-year.

6:48 am Coca-Cola updates on its North American Refranchising initiative; announces new letters of intent involving two bottlers for territories in two states (KO) :

So far, co has reached definitive agreements or signed letters of intent to refranchise territories that account for ~65% of total U.S. bottler-delivered distribution volume, which equates to 71% of total Coca-Cola Refreshments volume.

  • Co has also reached definitive agreements or signed letters of intent for 43 of the 51 cold-fill production facilities in the United States.
  • The new letters of intent involve:
    • Coca-Cola Bottling Company of Yakima, Wash., expects to add territory in Moses Lake, Wash.
    • Durham Coca-Cola Bottling Company of North Carolina expects to add territory in Sanford, N.C.
  • Co also confirmed progress on these previously announced letters of intent:
    • Viking Coca-Cola Bottling Co. of St. Cloud, Minn., has reached a definitive agreement for territories in parts of Minnesota, Wisconsin and Michigan.
    • Great Lakes Coca-Cola Distribution has reached a definitive agreement to acquire production facilities in Alsip and Niles, Ill., Eagan, Minn. and Milwaukee. Great Lakes has also closed deals for seven distribution centers in the Midwest.

6:47 am Gildan Activewear announces agreement to acquire Peds Legwear for $55 mln in cash (GIL) : The acquisition is expected to create revenue growth opportunities by leveraging Gildan's existing customer relationships to broaden the channels of distribution for the Peds and MediPeds brands and by extending these brands into Gildan's other product categories. In addition, Peds current distribution into the footwear channel provides broader access in this channel for Gildan's brands and product portfolio.

6:46 am Eli Lilly Chairman and CEO John C. Lechleiter, Ph.D. will retire on December 31, 2016; co has elected David A. Ricks to fill both Lechleiter's roles (LLY) :

Co's Board elects David A. Ricks, currently SVP and president, Lilly Bio-Medicines, to assume the role of president and CEO and to join the board on January 1, 2017, and to become chairman of the board on June 1, 2017.

  • Lechleiter will continue on Lilly's board of directors until May 31, 2017, serving as non-executive chairman, at which time he will leave the board.

6:46 am Tullow Oil plc up 2% in London following 1H16 results (TUWLF) :

  • First half 2016 profit after tax of $30 million and pre-tax operating cash flow of $256 million
  • TEN Project remains on budget and is on schedule for first oil in early August
  • Kenya exploration and appraisal campaign to re-commence in the fourth quarter of 2016

6:45 am On The Wires (:WIRES) :

  • On July 26, 2016, Bank of the Ozarks (OZRK) announced that it had received the unexpected resignation of Trevor Burgess, former CEO of C1 Bank, effective as of the close of business on July 26, 2016. Mr. Burgess had been expected to be the Chief Innovation Officer of the Company and its wholly-owned bank subsidiary, Bank of the Ozarks
  • On July 25, 2016, SK Telecom (SKM) announced that the merger agreement relating to the proposed merger between SK Broadband and CJ HelloVision was terminated by SK Broadband for failure to meet the required closing conditions as the Korea Fair Trade Commission denied approval of the proposed merger on July 18, 2016.
  • OncoCyte Corporation (OCX) announces that research results for a lung cancer diagnostic test being developed by The Wistar Institute and OncoCyte under a license from Wistar have been accepted for an Original Investigation Slide Presentation at the prestigious American College of Chest Physician's CHEST 2016 annual meeting, which will be held in Los Angeles this October.

6:43 am Wyndham Worldwide beats by $0.03, misses on revs; raises FY16 EPS guidance & lowers rev guidance (WYN) :

  • Reports Q2 (Jun) adj earnings of $1.40 per share, $0.03 better than the Capital IQ Consensus of $1.37; revs rose 0.4% year/year to $1.4 bln vs the $1.44 bln Capital IQ Consensus.
    • Net income was impacted by higher interest expense and depreciation, as well as a higher tax rate, which offset growth in EBITDA.
    • Hotel Group revs were $334 mln in the second quarter of 2016, flat compared with the second quarter 2015. revs reflected growth in royalties and the Company's Wyndham Rewards credit card program, offset by the absence of pass-through revs associated with the Company's franchisee conference in the second quarter of 2015.
    • Second quarter domestic RevPAR increased 2.0%. In constant currency, total system-wide RevPAR declined by 0.6% compared with the second quarter of 2015, which reflects continued weakness in domestic and Canadian oil markets and higher unit growth in lower RevPAR countries such as China.
    • Destination Network revs were $384 mln in the second quarter of 2016, flat compared with the second quarter of 2015.
    • In constant currency and excluding acquisitions, revs increased 1%.
    • Vacation revs were $705 mln in the second quarter of 2016, a 1% increase over the second quarter of 2015.
  • Co raises guidance for FY16, sees adj EPS of $5.68-5.82 (prior $5.61-5.75) vs. $5.70 Capital IQ Consensus Estimate; sees FY16 revs of $5.65-5.80 bln (prior $5.8-5.95 bln) vs. $5.78 bln Capital IQ Consensus Estimate.
    • The guidance excludes possible future share repurchases, while analysts' estimates often include share repurchases. This results in discrepancies between Company guidance and database consensus forecasts according to the co.

6:42 am ITV plc up 10% in London following 1H16 results (ITVPY) :

  • Adjusted EPS up 10% to 8.5p (2015: 7.7p); Adjusted EBITA up 10% to 438m (2015: 400m)
  • Total external revenue up 11% to 1,503m (2015: 1,356m)
  • Outlook for 2016 and beyond:
    • ITV Studios on track to deliver double-digit total revenue and adjusted EBITA growth over the full year, primarily driven by acquisitions we have made
    • Confident in delivering continued double-digit revenue growth in Online, Pay & Interactive
    • ITV Family NAR expected to be down around 1% for the 9 months to the end of September and we expect to outperform the market again in 2016
    • Targeting 25m of overhead cost savings for 2017

6:38 am Ingersoll-Rand beats by $0.08, reports revs in-line; guides Q3 EPS in-line, revs in-line; raises bottom end of FY16 guidance (IR) :

  • Reports Q2 (Jun) earnings of $1.38 per share, $0.08 better than the Capital IQ Consensus of $1.30; revenues rose 2.4% year/year to $3.69 bln vs the $3.69 bln Capital IQ Consensus.
  • Operating margin was up 1.1 percentage points with adjusted operating margin up 0.8 percentage points. Margin improvement was driven largely by volume, mix improvement, productivity, pricing and material deflation, partially offset by business investment, foreign exchange and other inflation.
  • Co issues in-line guidance for Q3, sees EPS of $1.25-1.30 vs. $1.29 Capital IQ Consensus Estimate; sees Q3 revs of $3.56 bln (+~2%) vs. $3.54 bln Capital IQ Consensus Estimate.
  • Co updates guidance for FY16, sees EPS of $4.00-4.10 (Prior $3.95-4.10) vs. $4.09 Capital IQ Consensus Estimate; sees FY16 revs of $13.43-13.57 bln (+1-2%) (Prior was for flat to +2%; Now sees organic revs +2-3% vs. prior guidance for +2-4%) vs. $13.55 bln Capital IQ Consensus Estimate.

6:38 am PolyOne beats by $0.02, misses on revs (POL) :

  • Reports Q2 (Jun) earnings of $0.63 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.61; revenues fell 2.9% year/year to $861.5 mln vs the $878.15 mln Capital IQ Consensus.
  • Underlying organic sales growth plus the addition of Magenta's fiber colorant business and Kraton's TPE business was more than offset by lower year-over-year selling prices in Distribution, PP&S, and Designed Structures and Solutions (DSS), due to lower hydro-carbon based raw material costs.

6:35 am Supervalu misses by $0.03, misses on revs (SVU) :

  • Reports Q1 (May) earnings of $0.19 per share, excluding non-recurring items, $0.03 worse than the Capital IQ Consensus of $0.22; revenues fell 3.9% year/year to $5.2 bln vs the $5.3 bln Capital IQ Consensus. Total net sales within the Wholesale segment decreased 7.6 percent. Retail identical store sales were negative 4.5 percent. Save-A-Lot network identical store sales were negative 1.4 percent. Identical store sales for corporate stores within the Save-A-Lot network were negative 1.0 percent.
  • Gross profit for the first quarter was $779 million, or 15.0 percent of net sales. Last year's first quarter gross profit was $810 million, or 15.0 percent of net sales. The gross profit rate is flat to last year and includes the impact of lower product margin rates from investments to lower prices to customers, including higher promotional activities, offset by a favorable business segment sales mix from new corporate Save-A-Lot stores.

6:34 am Carlyle beats by $0.05, beats on revs (CG) :

  • Reports Q2 (Jun) earnings of $0.35 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus of $0.30; revenues fell 19.6% year/year to $533 mln vs the $501 mln Capital IQ Consensus.

6:34 am Strayer Education misses by $0.34, reports revs in-line (STRA) :

  • Reports Q2 (Jun) earnings of $0.72 per share, $0.34 worse than the Capital IQ Consensus of $1.06; revenues fell 1.2% year/year to $108.5 mln vs the $109.18 mln Capital IQ Consensus.
  • Student Enrollment for Summer Term
    • Total enrollments at Strayer University for the summer term that started July 5, 2016 increased 4% to 38,813 students compared to 37,221 students for the summer term in 2015.
    • New student enrollments increased 6% and continuing student enrollments increased 4%.

6:33 am CGI Group beats by $0.01, reports revs in-line (GIB) :

  • Reports Q3 (Jun) earnings of CC$0.89 per share, CC$0.01 better than the Capital IQ Consensus of CC$0.88; revenues rose 4.2% year/year to CC$2.67 bln vs the CC$2.66 bln Capital IQ Consensus.

6:32 am LINE Corp: Japanese messaging app (recent IPO) discloses 1H16 results (LN) : 1H16 EPS 13.10 yen vs. (30.23) last year; rev +20% to 67.31 bln yen

6:32 am Hecla Mining formally terminates its take-over offer of Dolly Varden Silver after receiving private placement of ~1.86 mln shares of Dolly Varden (HL) :

As of July 26, 2016, pursuant to the ancillary rights agreement between Hecla Canada and the Issuer made September 4, 2012, co acquired from the Issuer, in a private placement, an additional 1,857,796 Shares and 101,762 warrants entitling co to acquire upon exercise one Share at an exercise price of $0.70/Share for a period of two years from the date of issuance.

  • The Shares that were acquired were purchased at a price of $0.62 each for an aggregate purchase price of $1,151,833.52.
  • The warrants that were acquired were purchased at a price of $0.43 each for an aggregate purchase price of $43,757.66.
  • Therefore, the total purchase price for all of the securities acquired was $1,195,591.18.
  • As a consequence, Hecla, through Hecla Canada, now controls 4,478,087 Shares, 1.25 mln warrants entitling the holder to acquire upon exercise one Share at an exercise price of $0.30/Share, and 101,762 warrants entitling the holder to acquire upon exercise one Share at an exercise price of $0.70/Share.
    • Assuming exercise of only the warrants held by Hecla Canada, Hecla owns and controls an aggregate of 5,829,849 Shares, or ~18.5% of the Shares on a partially diluted basis.
  • As a result of the termination of the Offer, the support agreements made between co and each of Robert Gipson and Nellie Gipson, who are registered and beneficial holders of in aggregate 2.5 mln Shares and 1.25 mln warrants, have also been terminated.
    • Co and its affiliates intend to hold their Shares and warrants for investment purposes.

6:22 am Carter Holdings beats by $0.06, reports revs in-line; guides Q3 EPS below consensus, revs in-line; lowers FY16 guidance below consensus (CRI) :

  • Reports Q2 (Jun) earnings of $0.72 per share, $0.06 better than the Capital IQ Consensus of $0.66; revenues rose 4.4% year/year to $639.5 mln vs the $636.92 mln Capital IQ Consensus, reflecting growth in the Company's U.S. Carter's and OshKosh retail businesses as well as in its international segment. Changes in foreign currency exchange rates in the second quarter of fiscal 2016 compared to the second quarter of fiscal 2015 negatively impacted consolidated net sales in the second quarter of fiscal 2016 by $2.5 million, or 0.4%.
  • Co issues guidance for Q3, sees EPS +6-10% to ~$1.61-1.67 vs. $1.78 Capital IQ Consensus Estimate; sees Q3 revs +6-7% to ~$900.8-909.3 mln vs. $908.26 mln Capital IQ Consensus Estimate.
  • Co issues downside guidance for FY16, lowers EPS to +10% (from +10-12%) to ~$5.07 vs. $5.14 Capital IQ Consensus Estimate; lowers FY16 revs to +5-6% (from +6-7%) to ~$3.16-3.19 bln vs. $3.2 bln Capital IQ Consensus Estimate.

6:16 am Prosperity Bancshares beats by $0.01 (PB) :

  • Reports Q2 (Jun) diluted earnings of $0.98 per share, $0.01 better than the Capital IQ Consensus of $0.97.
  • The net interest margin on a tax equivalent basis was 3.37% for the three months ended June 30, 2016, compared with 3.39% for the same period in 2015.
  • At June 30, 2016, Prosperity had $21.796 bln in total assets, an increase of $110.023 mln or 0.5%, compared with $21.686 bln at June 30, 2015.
  • Loans at June 30, 2016 were $9.650 bln, an increase of $535.673 mln or 5.9%, compared with $9.114 bln at June 30, 2015.
    • Linked quarter loans decreased $4.400 mln from $9.654 bln at March 31, 2016.

6:14 am On The Wires (:WIRES) :

  • Daimler (DDAIF) Trucks presented the Mercedes-Benz Urban eTruck in Stuttgart, as the first fully electric truck with an admissible total weight of up to 26 tonnes. Series production for urban short-radius distribution conceivable at the beginning of the next decade
  • Delta Lloyd (DLLLF) Leven has purchased a portfolio of Dutch mortgages from Rabobank. The portfolio consists of individual residential mortgages with a total outstanding amount of 500 million and with an average loan to value of 80%. The transaction fits within Delta Lloyd's strategic asset allocation. Buying the portfolio complements Delta Lloyd Bank's own origination of mortgages.
  • Toyota Motor (TM) and Aioi Nissay Dowa Insurance Co., Ltd. will launch a discounted insurance fee service on August 1, 2016. This will be targeted at fleet contractors with 10 vehicles or more, and who implement the Accident Reduction Program1 that utilizes the TransLog telematics service
  • Rentokil Initial plc (RTOKY) announced a collaboration with Google and PA Consulting Group which will lead to the global deployment of its innovative digital pest control products and, in the future, to the development of 'next generation' services to offer customers new levels of proactive risk management against the threat of pest infestation. The collaboration brings together Rentokil's proprietary connected products and global pest control expertise; Google's core infrastructure, data analytics and machine learning; and PA's digital and Agile expertise as one of Google's leading global partners in the use of the Internet of Things and the Cloud Platform. 

6:14 am Northrop Grumman beats by $0.32, beats on revs; raises FY16 EPS above consensus, reaffirms FY16 revs guidance (NOC) :

  • Reports Q2 (Jun) earnings of $2.85 per share, $0.32 better than the Capital IQ Consensus of $2.53; revenues rose 1.8% year/year to $6 bln vs the $5.92 bln Capital IQ Consensus. 
    • Q2 operating income declined 2 percent due to lower segment operating income and lower net FAS/CAS pension adjustment, partially offset by lower corporate unallocated expenses. Second quarter segment operating income was $11 million lower than the prior year period. Segment operating margin rate declined to 12.2 percent due to lower margin rates at Aerospace Systems and Mission Systems, partially offset by a higher margin rate at Technology Services.
    • Aerospace +4%; Mission +2.4%; Technology -2%.
  • Co issues guidance for FY16, raises EPS to $10.75-11.00 from $10.40-10.70 vs. $10.70 Capital IQ Consensus; reaffirms FY16 revs of $23.5-24.0 bln vs. $23.78 bln Capital IQ Consensus Estimate.

6:14 am KCG Holdings to acquire Neonet Securities AB; terms not disclosed (KCG) : Neonet Securities AB is an independent agency broker and execution specialist based in Stockholm, Sweden. The transaction, which is subject to customary regulatory and other approvals, is expected to close later this year. KCG expects the acquisition will be slightly accretive to earnings in 2017.

6:12 am Huntsman reports EPS in-line, misses on revs (HUN) :

  • Reports Q2 (Jun) earnings of $0.53 per share, in-line with the Capital IQ Consensus of $0.53; revenues fell 7.2% year/year to $2.54 bln vs the $2.59 bln Capital IQ Consensus.
  • "We are actively working toward a separation of our TiO2 business with a target of year-end or first quarter 2017. TiO2 selling prices are rising and other business conditions are improving for our Pigments and Additives business. In time, it should be well positioned for our planned separation."
  • As of June 30, 2016, the co had $1,213 million of combined cash and unused borrowing capacity compared to $1,023 million on December 31, 2015.
  • Co expects to spend approximately $450 million annually on capital expenditures in 2016 and 2017.

6:09 am Care.com misses by $0.01, reports revs in-line; guides Q3 EPS above consensus, revs below consensus; updates FY16 guidance (CRCM) :

  • Reports Q2 (Jun) loss of $0.03 per share, $0.01 worse than the Capital IQ Consensus of ($0.02); revenues rose 16.0% year/year to $38.18 mln vs the $37.97 mln Capital IQ Consensus.
  • Our total members grew 29% to 20.7 million at the end of the second quarter of 2016, compared to 16.1 million at the end of the second quarter 2015.
  • Total families grew to 11.6 million at the end of the second quarter of 2016, an increase of 30% over the second quarter of 2015, and total caregivers grew to 9.1 million at the end of the second quarter of 2016, an increase of 27% over the second quarter of 2015.
  • Co issues mixed guidance for Q3, sees EPS of ($0.03-0.01) vs. ($0.04) Capital IQ Consensus Estimate; sees Q3 revs of $39.50-40.50 mln vs. $40.52 mln Capital IQ Consensus Estimate.
  • Co updates guidance for FY16, sees EPS of $0.12-0.18 (Prior $0.09-0.19) vs. $0.14 Capital IQ Consensus Estimate; sees FY16 revs of $158-162 mln (Unch from prior) vs. $160.72 mln Capital IQ Consensus Estimate. The increase in weighted average diluted shares resulting from the investment in the Company by Google Capital decreased full-year non-GAAP EPS guidance by $0.01 at both ends of the range. Excluding this impact, guidance would have been $0.13 to $0.19.

6:08 am Quintiles Transnational beats by $0.03, beats on revs; raises FY16 EPS above consensus (Q) :

  • Reports Q2 (Jun) earnings of $0.93 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus of $0.90; revenues rose 8.6% year/year to $1.17 bln vs the $1.15 bln Capital IQ Consensus, including a favorable foreign currency impact of $7.0 million compared to the same period last year. The Company's growth in service revenues, excluding the impact of foreign currency fluctuations, was 7.9% with 13.1% growth in the Product Development segment and a decline of 5.9% in the Integrated Healthcare Services segment. 
  • Net new business grew 24.4% compared to the same period last year to $1.64 billion, representing a book-to-bill ratio of 1.41 in the quarter ended June 30, 2016. Second quarter net new business contributed to an ending backlog of $12.5 billion at June 30, 2016.
  • Co issues upside guidance for FY16, raises EPS to $3.78-3.88 from $3.70-3.85, excluding non-recurring items, vs. $3.78 Capital IQ Consensus Estimate. The Company is adjusting its full year 2016 constant currency service revenue growth guidance to a range of between 6.0% and 7.0% compared to full year 2015, reaffirming its full year 2016 Product Development constant currency service revenue growth guidance of ~10%, and updating its full year 2016 Integrated Healthcare Services constant currency service revenue guidance to a 3.0% to 6.0% decline compared to full year 2015.

6:05 am Anthem beats by $0.10, beats on revs; reaffirms FY16 EPS guidance (ANTM) :

  • Reports Q2 (Jun) earnings of $3.33 per share, net negative adjustment items, of $0.42 per share, $0.10 better than the Capital IQ Consensus of $3.23; revenues rose 7.7% year/year to $21.27 bln vs the $20.51 bln Capital IQ Consensus.
    • Medical enrollment has increased by approximately 1.2 million members in 2016, or 3.0 percent, totaling approximately 39.8 million members as of June 30, 2016.
  • Co reaffirms guidance for FY16, sees EPS of expected to be >$10.80 vs. $10.95 Capital IQ Consensus Estimate.
    • Company now expects medical enrollment to grow by 1.0 - 1.2 million members for full year 2016.

6:05 am TRI Pointe Homes beats by $0.17, beats on revs; offers Q3 guidance, reaffirms FY16 outlook (TPH) :

  • Reports Q2 (Jun) earnings of $0.46 per share, $0.17 better than the Capital IQ Consensus of $0.29; revenues rose 30.4% year/year to $556.93 mln vs the $548.75 mln Capital IQ Consensus.
  • Backlog units of 1,798 homes compared to 1,998, a decline of 10%; Dollar value of backlog of $1.0 billion compared to $1.2 billion, a decrease of 14%
  • For the third quarter of 2016, the Company anticipates delivering approximately 55% of its 1,798 units in backlog as of June 30, 2016. In addition, the Company expects to open 16 new communities, and close out of 12, resulting in 121 active selling communities as of September 30, 2016.
  • For the full year 2016, the Company is reiterating its original guidance of growing communities by 20%, delivering between 4,200 and 4,400 homes at an average sales price of $550,000, a SG&A expense ratio in the range of 10.3% to 10.5% and homebuilding gross margin in a range of 20.5% to 21.5%.

6:03 am Evercore beats by $0.12, beats on revs (EVR) :

  • Reports Q2 (Jun) earnings of $1.04 per share, $0.12 better than the Capital IQ Consensus of $0.92; revenues rose 29.7% year/year to $348.27 mln vs the $325.06 mln Capital IQ Consensus.
  • During the quarter, Investment Banking earned advisory fees from 201 client transactions (vs. 179 in Q2 2015) and fees in excess of $1 million from 58 client transactions (vs. 42 in Q2 2015).
  • As of June 30, 2016, Investment Management reported $8.5 billion of AUM, an increase of 1% from March 31, 2016.

6:02 am Lumber Liquidators misses by $0.21, reports revs in-line (LL) :

  • Reports Q2 (Jun) loss of $0.45 per share, $0.21 worse than the Capital IQ Consensus of ($0.24); revenues fell 4.0% year/year to $238.1 mln vs the $240.37 mln Capital IQ Consensus. 
  • This includes a comparable store net sales decline of 7.2%, reflecting a 0.7% increase in the average sale which was more than fully offset by a 7.9% decrease in the number of customers invoiced. The Company believes the number of customers invoiced was impacted by its change in strategy from a very promotional period in the prior year to a more strategic pricing approach during the current year period. Additionally, the Company believes demand for certain product categories decreased as our assortment of products did not match changes in customer trends. Non-comparable store net sales increased $8.1 million over the comparable prior year period. The Company opened four new stores during the second quarter of 2016.
  • Gross margin was 29.7% in the second quarter of 2016, compared with 25.1% in the prior year period. The change in gross margin was primarily attributable to the items highlighted in the attached supplemental schedule as well as changes in the Company's promotional strategy and increases in the sales mix of laminates and vinyl, which generally have lower retail price points and above average gross margins.

6:02 am Sprague Resources announces distribution of $0.5475/unit up from $0.4875/unit (SRLP) :  

6:00 am Western Refining Logistics increases quarterly dividend to $0.4125/unit from $0.4025/unit (WNRL) :  

5:59 am Shanghai...-1.91% (FXI) :  

5:59 am S&P futures vs fair value: +3.50. Nasdaq futures vs fair value: +28.50. :

5:59 am European Markets : FTSE...6744.90...+20.90...+0.30%.  DAX...10322.92...+75.20...+0.70%.

5:59 am Asian Markets : Nikkei...16665...+281.80...+1.70%.  Hang Seng...22219...+89.30...+0.40%.

5:38 am Retail Opportunity Investments agrees to sell $200 mln 3.95% Senior Unsecured Notes due 2026 in a private placement (ROIC) :  

5:37 am United Comm Banks raises quarterly div by $0.01 to $0.08 per share (UCBI) :

  • The dividend is payable October 5, 2016, to shareholders of record on September 15

5:28 am United Micro beats by $0.02; beats on revs (UMC) :

Reports Q2 EPS per ADR of $0.03 vs $0.01 Capital IQ consensus; revs increased 7.5% YoY to $1.15 bln vs 1.14 bln consensus

  • Third Quarter of 2016 Outlook & Guidance
    • Quarter-over-Quarter Guidance:
    • Wafer Shipments: To increase by 2-3%
    • ASP in NTD: To remain flat
    • Profitability: Gross profit margin will be approximately 20%
    • Foundry Segment Capacity Utilization: Approximately mid-80% range
    • 2016 CAPEX for Foundry Segment: $2.2bn

5:03 am Unicredit, Banco Santander (SAN) and Sherbrooke Acquisition Corp discontinue merger talks for Pioneer Santander (UNCFF) :

UniCredit announced that it has agreed with Banco Santander (SAN) and Sherbrooke Acquisition Corp SPC to terminate the agreements entered into on November 11, 2015, relating to the business combination of Pioneer Investments and Santander Asset Management

  • The parties held detailed discussions to identify viable solutions to meet all regulatory requirements to complete the transaction, but in the absence of any workable solution within a reasonable time horizon, the parties have concluded that ending the talks was the most appropriate course of action.
  • Further to UniCredit's announcement on 11 July 2016 of a Group-wide strategic review, the results of which will be communicated to the market before the end of 2016, Pioneer will now be included in the scope of the strategic review to explore the best alternatives for all Pioneer stakeholders including a potential IPO. This is to ensure the company has the adequate resources to accelerate growth and continue to further develop best-in-class solutions and products to offer its clients and partners

5:01 am Boeing and Malaysia Airlines announce order for 25 - 737 MAX 8 airplanes, valued at $2.75 bln (BA) :

Boeing [and Malaysia Airlines Berhad (Malaysia Airlines) announced an order for 25 737 MAX 8 airplanes, valued at $2.75 bln dollars at current list prices.

  • The order, previously attributed to an unidentified customer on the Boeing Orders & Deliveries website, also includes purchase rights for additional 737 MAX 8 and 737 MAX 9 airplanes.

4:48 am Siliconware Precision beats by NT$0.11, beats on revs (SPIL) :

  • Reports Q2 (Jun) earnings of NT$0.90 per share, NT$0.11 better than the Capital IQ Consensus of $0.79; revenues rose 2.1% year/year to NT$21.68 bln vs the NT$21.37 bln Capital IQ Consensus.

4:38 am On The Wires (:WIRES) :

  • NTT Communications, the ICT solutions and international communications business within the NTT (NTT) Group, announced that it has expanded the geographic availability and service menu of its Enterprise Cloud service for hosted-private and multi-tenant clouds. The three new service areas - West Japan, Hong Kong and Germany - are available immediately.
  • Veolia (VEOEY), through its subsidiary Veolia Energy Hungary Co, has acquired DBM Zrt, the company that owns the Szakoly biomass power plant. With this acquisition, Veolia now owns and operates the fifth largest power plant in Hungary producing electricity purely from biomass, which generates an annual revenue of 16.7 million. Following the power plants of Pcs and Dorog, the Group pursues its development in the production of renewable energy in Hungary.
  • PSA Group (PEUGF) announced it has acquired an interest in Autobutler, an online quote platform for automotive aftermarket services. The PSA Group is enhancing its multi-brand aftermarket offering, one of the pillars of its Push to Pass strategic plan. The PSA Group is acquiring a controlling interest in the company, which will remain independent.
  • Jive Software (JIVE) announced that UNIQA Insurance Group AG, a European insurance group, launched a new Jive-powered Interactive Intranet to strengthen strategic alignment and employee engagement across its global workforce.
  • Enphase Energy (ENPH) announced it has entered into strategic partnerships with four key distribution partners which will further strengthen Enphase's operations and influence in Benelux. The companies will distribute the world-leading Enphase microinverter system to key installers across Belgium, The Netherlands, and Luxembourg.
  • GSK (GSK) announced 275million of new investments at three of its manufacturing sites in the UK toboost production and support delivery of its latest innovative respiratory andlarge molecule biological medicines. The vast majority of these products willbe for export to global markets.
  • IMF Bentham refers to its previous announcement of 26 July 2016 in the matter of Paciocco v ANZ Banking (ANZBY). The High Court has delivered its judgment in the appeal by the class action Representative against the decision of the Full Court of the Federal Court in respect of credit card late fees. IMF advises that:the Appeal has been dismissed; IMF is in the process of considering the judgment and its implications;the intangible asset in respect of the ANZ Bank Fees Case was previously written off in its entirety in the 2015 financial year following the Full Court of the Federal Court allowing the appeal by ANZ

3:10 am ARM Holdings beats by GBP0.01, misses on revs; raises interim div by 20% (ARMH) :

  • Reports Q2 (Jun) earnings of GBP0.09 per share, GBP0.01 better than the Capital IQ Consensus of GBP0.08; revenues rose 17.1% year/year to GBP267.6 mln vs the GBP279.75 mln Capital IQ Consensus.
  • Processor licensing revenues in $ up 14% year-on-year ( revenues up 24%)
    • Processor royalty revenues in $ up 11% year-on-year, outperforming the industry by 14 pp1 ( revenues up 19%)
    • Normalised PBT up 5% year-on-year (IFRS up 1%). Normalised EPS up 18% (IFRS up 17%)
  • Interim dividend increased by 20% 
    • In respect of the year to 31 December 2016, the directors are declaring an interim dividend of 3.78 pence per share, an increase of 20% over the 2015 interim dividend of 3.15 pence per share
  • Outlook - Given the restrictions placed on forward-looking statements as a result of the recommended offer by SoftBank (SFTBY) for ARM, co feels it is not appropriate to provide the usual full-year 2016 revenue guidance.

3:02 am AU Optronics beats by NT$0.16, beats on revs (AUO) :

  • Reports Q2 (Jun) loss of NT$0.06 per share, NT$0.16 better than the Capital IQ Consensus of ($0.22); revenues fell 13.2% year/year to NT$80.09 bln vs the NT$77.49 bln Capital IQ Consensus.
    • In the second quarter of 2016, large-sized panel shipments exceeded 28.46 million units, an increase of 16.5% quarter-over-quarter.
    • Shipments of small-and-medium-sized panels in the same quarter were around 42.50 million units, up by 12.6% quarter-over-quarter.
    • Looking back to the second quarter, the end demand for TV sets was strong.
    • Panel prices also increased steadily in the second quarter. These factors led to a 12.6% growth of the Company's revenues over the previous quarter.
  • Outlook: - With the coming of the higher season in the second half of 2016, the Company expects to maintain its utilization rate at a high level.

2:24 am STMicroelectronics reports EPS in-line, revs in-line; guides Q3 revs above consensus (STM) :

  • Reports Q2 (Jun) earnings of $0.03 per share, in-line with the Capital IQ Consensus of $0.03; revenues fell 3.2% year/year to $1.7 bln vs the $1.71 bln Capital IQ Consensus.
    • Gross Margin: 33.9% vs 33.8% in 2Q15
  • Co issues upside guidance for Q3, sees Q3 revs of +5.5% sequentially to ~$1.80 bln vs. $1.77 bln Capital IQ Consensus Estimate.
    • Gross margin in the third quarter is expected to be about 35.5% plus or minus 2.0 percentage points

2:05 am Wix.com beats by $0.03, beats on revs; guides Q3 revs above consensus; raises and guides FY16 revs above consensus (WIX) :

  • Reports Q2 (Jun) loss of $0.09 per share, $0.03 better than the Capital IQ Consensus of ($0.12); revenues rose 41.4% year/year to $68.7 mln vs the $66.69 mln Capital IQ Consensus.
    • Added a record 183,000 net premium subscriptions in the period to reach 2.12 mln as of June 30, 2016, a 41% increase over the second quarter of 2015
    • Added 5.1 mln registered users in the second quarter. Registered users as of June 30, 2016 were 87 mln, representing a 29% increase compared to the second quarter of 2015
  • Co issues upside guidance for Q3, sees Q3 revs of $72-73 mln vs. $71.61 mln Capital IQ Consensus Estimate.
  • Co issues upside guidance for FY16, sees FY16 revs of $278-280 mln vs. $275.93 mln Capital IQ Consensus Estimate, up from $274 - $277 mln prior
    • FY16 Adjusted EBITDA raised to $34 - $36 mln from $30 - $32 mln prior

1:56 am On The Wires (:WIRES) :

  • Avnet (AVT) unveiled a solutions specialist approach worldwide to accelerate growth in software-driven technologies. Avnet has dedicated more than 450 solutions specialists to empower the channel to capitalize on cloud, cognitive computing, data analytics, the internet of things, mobility, security and enterprise networking.
  • Lantronix (LTRX) announced the launch of a new Lantronix subsidiary and IoT software lab in Hyderabad, India. 
  • Technip (TKPPY) has been awarded a large subsea contract by Woodside (WOPEY) to support the development of the Greater Enfield Project offshore Western Australia, at a water depth comprised between 340 and 850 meters. The contract covers project management, design, engineering, procurement, installation and pre-commissioning

1:48 am Xerium Tech prices $480 mln of 9.500% Senior Secured Notes due 2021 (XRM) :  

1:44 am On The Wires (:WIRES) :

  • Mitsubishi Electric (MIELY) announced the launch of a newly branded lineup, D-SMiree - Diamond-Smart Medium Voltage Direct Current Distribution Network System for Innovative Reliable Economical Ecology - for medium- and low-voltage direct-current distribution systems of voltages 1,500V DC and below.
  • On June 13th, Criteo (CRTO), filed a complaint for damages and injunctive relief against Steelhouse in the Central District of California. Steelhouse filed its response to Criteo's complaint on July 25. Steelhouse's response, along with its alleged counterclaims, are utterly baseless and nothing more than an attempt by Steelhouse to deflect attention away from its own misconduct. Criteo will continue to vigorously prosecute its claims against Steelhouse. 
  • JD.com (JD) and Lenovo (LNVGY) announced an expansion of their existing relationship to address growing consumer and business demand for Lenovo products throughout China.
  • Cenkos Securities notes the recent press speculation that it is subject to an investigation by the Financial Conduct Authority into its work advising Quindell plc (now known as Watchstone Group plc) on its planned move to the main market of the LSE in 2014. The Company can confirm that there is an FCA investigation in progress but no further details can be provided until the FCA have concluded their investigation.
  • Companhia Brasileira de Distribuio , in addition to the notices disclosed to the market on December 18, 2015, January 12, 2016 and February 25, 2016, hereby makes public the press release disclosed on July 22, 2016 by its controlled company Cnova N.V. (CNV) regarding the conclusion of the internal investigation conducted at its Brazilian subsidiary, Cnova Comrcio Eletrnico S.A.
  • Samsonite International announced that, at the Company's Extraordinary General Meeting held on Tuesday, July 26, 2016, the proposed acquisition by Samsonite of Tumi Holdings (TUMI) was duly approved by Samsonite's shareholders. The transaction is expected to close in early August 2016, subject to the satisfaction of remaining customary closing conditions. The combined company will continue to be listed on the Main Board of The Stock Exchange of Hong Kong Limited.

1:40 am Ballard Power reports in-line results; misses on revs (BLDP) :

 Reports Q2 EPS of (-$0.04) vs (-$0.04) Capital IQ consensus; revs increased 58% YoY to $17.6 mln vs $18.3 mln consensus

  • Gross margin was 29% in Q2, an improvement of 19-points due to a shift in product mix toward higher margin Heavy Duty Motive, Portable Power and Technology Solutions products.
View Comments (2939)