InPlay from Briefing.com

Briefing.com

2:10 pm Stewardship Financial completes a private offering of $16.6 mln in 6.75% fixed rate subordinated notes due 2025 to institutional investors (SSFN) : Co plans to use the proceeds from the placement of the subordinated notes to redeem the $15.0 million of Series B preferred stock issued to the United States Treasury in connection with its participation in the Small Business Lending Fund and for general corporate purposes.

2:02 pm Signet Jewelers (+0.9%) hit new all time high after surging following better than expected Q2 yesterday (SIG) : Q2 comps rose 4.2%vs. ests just below 3%; many on the Street see further upside following last year's Zale acquisition.

2:00 pm Hancock Holding announces a 3.9 mln share common stock buyback program (HBHC) :  

1:36 pm Dow -101 and S&P -10 slip under midday range lows -- Nasdaq Comp -15 is probing a similar level (:TECHX) :  

1:13 pm Notable movers of interest (:SCANX) :

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

Large Cap Gainers

  • EC (10.34 +7.82%): Oil & gas names continuing to surge as WTI crude rally extends today, gaining an additional 7% (PXD, MRO, APA, HES, PAGP, CXO, DVN, CLR numerous other names higher).
  • UAL (57.01 +6.84%): Will replace Hospira (HSP) in the S&P 500.
  • ATVI (29.58 +5.89%): Will replace Pall Corp (PLL) in the S&P 500.

Large Cap Losers

  • ADSK (47.5 -5%): Beat Q2 consensus EPS estimates by $0.02, reported revs in-line; guided Q3 below consensus, announced the acquisition of San Francisco-based IoT developer; SeeControl; Price tgt lowered at UBS, Barclays, RBC Capital Mkts, others.
  • BSBR (4.11 -3.18%): Weakness in Brazilian names after the country officially entered into a recession (VIV, UGP, also lower).
  • WDAY (73.05 -3.08%): Beat Q2 consensus EPS estimates by $0.08, beat on revs; guided Q3 revs in-line; Price tgt lowered at RBC Capital Mkts, Needham, Northland Capital, others.

Mid Cap Gainers

  • BIG (48.36 +15.14%): Beat Q2 consensus EPS estimates by $0.06, beat on revs; guided Q3 EPS in-line.
  • GLNG (39.34 +8.08%): Upgraded to Buy from Hold at Stifel.
  • VEEV (25.83 +6.91%): Beat Q2 consensus EPS estimates by $0.02, beat on revs; guided OctQ EPS in-line, revs below consensus; guided FY16 EPS above consensus, revs in-line.

Mid Cap Losers

  • GME (43.02 -6.88%): Beat Q2 consensus EPS estimates by $0.07, beat on revs; guided Q3 EPS in-line; raised FY16 outlook; downgraded to Sell at The Benchmark Company.
  • SPIL (6 -4.91%): Announced the conclusion of its review regarding the tender offer conditions offered by ASE (ASX); recommend shareholders not to tender their shares and/or ADRs.
  • UNFI (48.42 -2.38%): Initiated with a Sell at Pivotal Research Group.

1:02 pm Midday Market Summary: Searching for Direction (:WRAPX) :

The major averages trade in mixed fashion at midday after spending some time on both sides of their flat lines. The S&P 500 holds a slim loss (-0.2%) while the Nasdaq Composite (+0.1%) outperforms.

Equity indices began the day on a cautious note after Thursday's surge left the S&P 500 up 0.8% for the week after the benchmark index lost 5.5% between Monday and Tuesday. Eight sectors began the day with losses while energy (+3.0%) spiked out of the gate amid continued strength in crude oil. The energy component was little changed in the early morning, but has been rallying throughout the day. WTI crude is currently higher by 6.8% at $45.47/bbl, which puts it on track to end the week higher by 11.0%.

The market spent the first two hours in a slow grind that placed the S&P 500 in the green, but the index slumped back to its session low after Federal Reserve Vice Chair Stanley Fischer appeared on CNBC and addressed the inevitable rate-hike question.

Mr. Fischer did not provide that much insight, indicating that a September rate hike remains a possibility and that it's still too early to make the call right now, but that was enough for the anxious market to slide back into negative territory while the Dollar Index (96.26, +0.52) jumped and Treasuries surrendered their intraday gains. The benchmark 10-yr yield is higher by two basis points at 2.18%.

Eight sectors remain in the red with utilities (-1.6%) pressured by the increase in yields while heavily-weighted financials (-0.6%) and health care (-0.8%) have kept the market under pressure. For its part, the top-weighted technology sector outperforms slightly, trading flat. High-beta chipmakers have done well, evidenced by a 0.7% jump in the PHLX Semiconductor Index. Only three components trade in the red while heavyweight Intel (INTC 28.52, +0.80) has climbed 2.9%.

On the earnings front, Autodesk (ADSK 47.55, -2.45) has given up 4.9% after cautious guidance spurred by changes to the company's business model overshadowed a bottom-line beat.

Economic data was limited to Personal Income/Spending data and Michigan Sentiment:

  • Personal income increased 0.4% for a fourth consecutive month in July while the Briefing.com Consensus expected an increase of 0.4%
    • Wages and salaries increased 0.5% in July after increasing 0.2% in June, which was slightly weaker than what was implied in the July employment report
    • Personal spending increased 0.3% for a second consecutive month in July, following an upward revision to June spending (from 0.2% to 0.3%) while the consensus expected an increase of 0.4%
    • Core PCE prices increased 0.1% for a fourth consecutive month in July
  • The University of Michigan Consumer Sentiment Index was revised down to 91.9 in the final July reading from a preliminary reading of 92.9 while the Briefing.com consensus expected a revision up to 93.0
    • The move in consumer sentiment was opposite of the trend in the Conference Board's Consumer Confidence Index, which spiked to 101.5, its highest level since January

1:01 pm Index Changes Reminder: Activision Blizzard (ATVI) will replace Pall Corp (PLL) in the S&P 500 after the close of trading (:INDXCH) :  

12:21 pm Stocks/ETFs that traded to new 52 week highs/lows this session - New lows (29) outpacing new highs (20) (:SCANX) : Stocks that traded to 52 week highs: ABCD, ABCW, ATVI, AXGN, CBNJ, CVGW, DLA, DY, ECACU, EVBS, FALC, FBNK, GB, MBTF, SCMP, SIG, SPWH, SRPT, SWHC, TANH,

Stocks that traded to 52 week lows: ARO, ASTI, BEBE, BGMD, BTH, BWEN, CSI, DCIX, DXM, EDE, ESCR, GSAT, HHS, IGI, INTX, LALT, LMBS, MDVX, MEIL, NIQ, OMEX, QUAD, RGS, SAFT, SGNL, UIHC, UNIS, VHI, VMEM,

ETFs that traded to 52 week highs: None

ETFs that traded to 52 week lows: None

12:11 pm Drew Industries announces hiring David Smith as Chief Financial Officer (DW) : Co announced that David M. Smith will be joining the Company as Chief Financial Officer, succeeding Joseph S. Giordano III, who served in that role since 2008. Giordano will continue with the Company for an interim period to ensure an orderly transition. Smith has served for the past ten years as Senior Vice President and Chief Financial Officer of Key Safety Systems

12:01 pm Interphase enters into a manufacturing agreement with VirTex Enterprises, whereby Interphase will outsource the production and fulfillment of its products to VirTex (INPH) : Under the terms of the multi-year agreement, anticipated to begin in September 2015, VirTex will perform all aspects of production for Interphase products, including procuring raw materials, production planning, manufacturing, quality control, packaging, and delivery.

11:58 am European Markets Closing Prices (:SUMRX) : European markets are now closed; stock markets across Europe performed as follows:

  • UK's FTSE:+0.9%
  • Germany's DAX:-0.2%
  • France's CAC:+0.4%
  • Spain's IBEX:+0.6%
  • Portugal's PSI:-0.4%
  • Italy's MIB Index:-0.9%
  • Irish Ovrl Index:-0.2%
  • Greece ASE General Index: +1.1%

11:57 am Stock indices extend push off morning highs -- Dow -62, S&P -7, Nasdaq Comp -14 (:TECHX) :  

11:52 am Advanced Semi urges SPIL to 'fully consider whether the Hon Hai Deal is in the best interests of SPIL and its shareholders'; continues to believe that the ASX bid represent compelling value for SPIL's shareholders (ASX) :

  • Advanced Semiconductor Engineering comments on Siliconware Precision Electronics (SPIL) response to ASE's tender offer of NT$45 per common share for up to 779,000,000 common shares of SPIL and the hasty announcement made by SPIL regarding the entering into a letter of intent between SPIL and Hon Hai Precision Industry (HNHAF) in connection with their strategic alliance. The Tender Offer will continue to proceed in Taiwan and in the U.S. pursuant to the applicable rules and regulations, and will not be affected by the Hon Hai Deal announcement.
  • "Based upon the extremely limited information contained in SPIL's announcement, SPIL has in a four day time period agreed a major transaction with Hon Hai. At no point after commencement of ASE's bid did SPIL make any effort to determine whether there were possible basis on which ASE's bid could be acceptable to SPIL. Instead, SPIL has crafted a substantially similar investment structure with Hon Hai, except that it offers zero cash to SPIL's shareholders, and appears to place an implied value for SPIL of NT$37.86 per common share, compared to ASE's cash offer price of NT$45 per common share. It is also a discount to SPIL's current market price. This is difficult to reconcile with the views of SPIL's certificated public accountant concerning the reasonable valuation range for SPIL's shares. Similarly, ASE is disappointed that SPIL's Independent Review Committee raised concerns regarding the reasonableness of the price and purposes of the Tender Offer and recommended SPIL shareholders to refrain from participating in the Tender Offer."
  • "Before making a decision on the proposed Share Exchange, ASE urges that the management, directors and shareholders of SPIL fully consider whether the Hon Hai Deal is in the best interests of SPIL and its shareholders."

11:46 am Dow -47 and S&P -1.6 slip back into the red after limited push above Thursday's rebound high -- Nasdaq Comp +4 (:TECHX) :  

11:21 am Currency Commentary: DXY Eyeing 96 (:SUMRX) :

  • The Dollar Index is grinding back towards the 96 level. The DXY saw some overnight selling that had it dip to 95.40 before finding support. It has been in a steady upward trend in the hours since and is now heading towards a test of 96 resistance. Economic data continued to run in line to slightly below expectations with Personal Income & Spending, PCE Prices and Michigan Sentiment being the latest numbers to fall into that category. Focus for FX traders will be on this weekend's Jackson Hole conference with the topics being inflation and monetary policy.
  • The euro is bouncing around in the 1.12-1.13 area today. This is shaping up to be a consolidation area for the single currency. German CPI numbers came in slightly higher than expected but remain extremely low. Consumer and Business surveys in the region were mixed to slightly better.
  • The pound remains offered as it has now given up approx 2% of value over the past four sessions. Sterling is now testing its 200 sma (1.5367). The Q2 GDP was revised on a y/y basis to 2.6% from 2.9% which was expected. But it is helping provide further selling pressure on cable at the moment.
  • The yen continues to bounce back from the rally earlier in the week. The yen saw a quick spike into the 116 level on wild Monday morning trading. But has decline nearly 5% to slip back into the 121 area. Overnight the country saw some positive economic news as Inflation, unemployment and Retail Sales all came in better than expected (FOREX, BONDX).


11:18 am Small-/Mid-Cap and Nasdaq Comp +8.5 edge to new session highs (:TECHX) :  

10:34 am Major averages vacillating near session highs -- S&P +0.3, Nasdaq Comp +0.5, Dow -29 (:TECHX) :  

10:23 am Stock indices holding in the red but losses and the early trade range have been relatively limited thus far -- Dow -82, S&P -6, Nasdaq Comp -17 (:TECHX) : Seeing relative sector strength in recent trade in Energy XLE, Oil Service OIH, Semi SMH (INTC), Materials XLB, Gold Miners GDX, Crude Oil USO, Steel SLX, Gold GLD, Silver SLV.

10:16 am WTI crude oil surging higher, Oct crude oil just hit a new HoD and is now +2.7% at $43.73/barrel (:COMDX) :  

10:03 am Boeing confirms it was awarded a $1.49 bln contract award from the Navy for 13 P-8A Poseidon maritime surveillance aircrafts (BA) : The order includes nine aircraft for the U.S. Navy and four Poseidon aircraft for the Royal Australian Air Force, a long-time partner to the U.S. Navy on P-8A development.

10:03 am Small-Mid/Caps and Nasdaq Comp flirt with flat line (:TECHX) :  

9:53 am Mobile TeleSystems and Google (GOOG) sign of a strategic marketing agreement to promote mobile Internet technologies and Google search services in Russia (MBT) : In accordance with this agreement, MTS will feature the "OK, Google" voice search in its advertising campaigns and retail stores. The Google app application that enables voice search will be pre-installed on the main screen of the Android smartphones sold in the MTS retail chain.

9:50 am Dow -95 and S&P -8 slips to minor new lows -- Nasdaq Comp -15 (:TECHX) :  

9:44 am Opening Market Summary: Market Opens on Cautious Note (:WRAPX) :

The major averages began the trading day on a modestly lower note with the S&P 500 (-0.2%) trading a bit behind the Nasdaq (-0.1%).

Eight of ten sectors display early weakness while energy (+0.9%) and materials (+0.3%) hold gains. The two growth-sensitive groups outperform thanks a second day of general strength in commodities. For instance, crude oil trades up 0.4% at $42.74/bbl on top of yesterday's 10.0% surge.

On the downside, the early losses have been held in check with financials (-0.6%) at the bottom of the leaderboard while the remaining sectors trade much closer to their flat lines. Notably, the top-weighted technology sector (-0.1%) is essentially unchanged so far today.

Elsewhere, Treasuries remain just below their highs with the 10-yr yield at 2.13% (-3 bps).

9:42 am Relative sector strength (:TECHX) : Sectors that are on the plus side this morning include: Gold Miners GDX, Mining XME, Coal KOL, Energy XLE, Oil Service OIH, Silver SLV, Auto, Steel SLX, Social Media SOCL, Copper JJC, Semi SMH / XSD.

9:40 am Sector Watch (:TECHX) : Underperforming sectors that have posted only limited losses include: Finance XLF, Pharma PPH, Ag/Chem MOO, Restaurant, Insurance KIE. 

9:37 am Stock indices see limited early pressure -- Dow -78, S&P -5, Nasdaq Comp -4 (:TECHX) :  

9:36 am Nevada Gaming Board reports July gaming win -2.1% YoY to $525 mln on the Las Vegas Strip; -1.0% YoY to $923 mln statewide (MGM) : MGM, CZR, LVS, WYNN, BYD.

9:11 am S&P futures vs fair value: -11.50. Nasdaq futures vs fair value: -25.20. (:WRAPX) :

The stock market is on track for a lower open as S&P 500 futures trade 12 points below fair value after spending the entire night in negative territory.

Index futures retreated overnight even as most markets across Asia posted gains. That advance included China's Shanghai Composite, which spiked 4.8% amid continued reports of government involvement in the market. This time around, it was reported that a two-trillion yuan pension fund is expected to invest in equities. In addition, separate reports indicated China Securities Financing Corporation was preparing to borrow CNY1.4 trillion from the banking system in order to prop up stocks. Despite the Friday jump, the index fell 7.8% for the week.

Meanwhile in Europe, major indices trade with modest losses after climbing off their earlier lows. It is worth noting that a caretaker government has been appointed in Greece ahead of the snap election on September 20 with Vassiliki Thanou assuming the duties of prime minister. Ms. Thanou previously served as president of Greece's Supreme Court.

U.S. Treasuries have oscillated near their flat lines this morning and they currently sit on their highs with the 10-yr yield down three basis points at 2.13%. Treasuries advanced following today's personal income/spending data, which was essentially in-line with expectations. Specifically, July personal income rose an in-line 0.4%, personal spending increased 0.3% (Briefing.com consensus 0.4%), and core PCE prices rose 0.1%, as expected.

One more data point awaits as the final reading of the Michigan Sentiment index for August (expected 93.0) will be released at 10:00 ET.

9:11 am American Fincl issues a redemption call for all $132 mln of its 7% Senior Notes due September 2050 (AFG) :  

9:05 am Senomyx announces that the first commercialization of Sweetmyx S617 was achieved (SNMX) : On August 28, 2015, Senomyx announced the achievement of a $1,500,000 commercial milestone under its collaborative research, development, commercialization and license agreement with PepsiCo (PEP) dated August 16, 2010. The commercial milestone will be recognized as revenue in the third quarter of 2015. Senomyx has two partners on its Sweet Taste Program. PepsiCo has exclusive rights to use new flavor ingredients and natural high intensity sweeteners worldwide in non-alcoholic beverages and Firmenich has rights to commercialize new flavor ingredients for food product categories and alcoholic beverages, with exclusive rights to use Sweetmyx S617 until March 2018.

8:59 am On the Wires (:WIRES) :

  • NV5 Holdings (NVEE) announced that it was recently awarded a contract for more than $10 million for the siting and design of right-of-way green infrastructure practices throughout 1,561 acres of Bayside, Queens, New York
  • China Ming Yang Wind Power Group Limited (MY) announced that it entered into a framework agreement with certain parties, including CGN Wind Energy Limited and Shenzhen Energy Group Co, to jointly invest in a fund management company, namely Guangdong Oriental Millennium Renewable Energy Industry Fund Management Co. Ming Yang expects to make a limited partner capital commitment of up to RMB1 billion to the Fund, established and managed by Oriental Millennium. The primary objective of the Fund is to seek investment opportunities in projects or companies relating to renewable energies, such as wind, solar, hydropower and biomass, located in Guangdong Province
  • Reliance Steel & Aluminum Co. (RS) responded to the proposed penalties of $367,500 and related commentary issued by the United States Environmental Protection Agency ("EPA") against Reliance's Earle M. Jorgensen Company subsidiary. Co stated: "It is always Reliance's intention to comply with the law. Furthermore, EMJ's proactive cleanup efforts at the LDW Site for over a decade demonstrate our commitment to protecting the environment."

8:58 am S&P futures vs fair value: -8.50. Nasdaq futures vs fair value: -21.10. (:WRAPX) :

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

Markets in the Asia-Pacific region ended Friday mostly higher, following a familiar script from the day before that saw them advance on the heels of a strong showing from Wall Street and a late spike in China's market that was helped along by speculation the government was in the market buying stocks.

  • In economic data
    • China's July Industrial profits -2.9% year-over-year (prior -0.3%)
    • Japan's July Household Spending +0.6% month-over-month (expected +2.2%; prior -3.0%); -0.2% year-over-year (expected +1.3%; prior -2.0%), July Retail Sales +1.6% year-over-year (expected +1.1%; prior +0.9%), July Jobs/Applications Ratio 1.21 (expected 1.19; prior 1.19). Separately, July National CPI +0.2% year-over-year (expected +0.2%; prior +0.4%); National Core CPI 0.0% year-over-year (expected -0.2%; prior +0.1%), August Tokyo CPI +0.1% year-over-year (expected +0.1%; prior +0.2%); Tokyo Core CPI -0.1% year-over-year (expected -0.2%; prior -0.1%), and July Unemployment Rate 3.3% (expected 3.4%; prior 3.4%)

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  • Japan's Nikkei increased 3.0% and finished near its highs for the session following a batch of economic data that featured weaker than expected household spending, stronger than expected retail sales, and higher than expected core CPI data. Gains were led by the industrials (+4.1%), materials (+3.9%), and technology (+3.3%) sectors. Furukawa (+11.9%), Sumitomo Metal Mining (+9.3%), and Sharp Corp (+8.9%) topped the list of winners. Ana Holdings (-1.1%) and NTT Docomo (-0.7%) were the only two stocks to lose ground. Out of the 225 index members, 222 ended higher, 2 finished lower, and 1 was unchanged. For the week, the Nikkei declined 1.5%.
  • Hong Kong's Hang Seng declined 1.0% after falling 1.7% in the final hour of trading, failing to follow suit with the mainland market. Bank of Communications (-4.7%), Industrial & Commercial Bank of China (-4.1%), and China Construction Bank (-3.8%) were the worst-performing issues. Lenovo Group (+6.7%), Kunlun Energy (+3.2%), and China Shenhua Energy (-2.9%) were the biggest losers. Out of the 50 index members, 12 ended higher and 38 finished lower. For the week, the Hang Seng declined 3.6%.
  • China's Shanghai Composite increased 4.8%, aided by another late surge of buying interest that saw the Composite jump as much as 3.4% in the final 90 minutes of trading. Once again, it was believed that government buying played a large part in things. There was a separate report, too, that pension funds are getting ready to deploy over $300 billion in stocks and other assets. Friday's advance came despite a report that showed industrial profits declined 2.9% year-over-year in July. For the week, the Shanghai Composite declined 7.8%.

Major European indices trade lower across the board with Italy's MIB (-1.3%) showing the largest decline. On a separate note, a caretaker government has been appointed in Greece ahead of the snap election on September 20 with Vassiliki Thanou assuming the duties of prime minister. Ms. Thanou previously served as president of Greece's Supreme Court.

  • Participants received several data points:
    • Eurozone August Business and Consumer Survey ticked up to 104.2 from 104.0 (expected 103.8)
    • UK's preliminary Q2 GDP +0.7% quarter-over-quarter; +2.6% year-over-year, as expected. Separately, preliminary Q2 Business Investment +2.9% quarter-over-quarter (expected 1.7%; last 2.0%)
    • France's July PPI -0.1% month-over-month (prior -0.2%)
    • Italy's July Wage Inflation +0.1% month-over-month (prior 0.1%); +1.2% year-over-year (prior 1.1%). Separately, August Consumer Confidence rose to 109.0 from 106.7 (consensus 107.5) while Business Confidence ticked down to 102.5 from 103.5 (expected 103.7)
    • Spain's July Retail Sales +4.1% year-over-year (consensus 0.9%; prior 2.4%) while August CPI -0.3% month-over-month (prior -0.9%); -0.4% year-over-year (consensus -0.1%; last 0.1%)
    • Swiss Q2 GDP +0.2% quarter-over-quarter (expected -0.1%; prior -0.2%); +1.2% year-over-year (consensus 0.9%; last 1.2%)

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  • UK's FTSE is lower by 0.3% with consumer names among the laggards. Coca-Cola HBC, Marks & Spencer, WM Morrison Supermarkets, and Tesco are down between 1.4% and 2.1%. On the upside, energy names outperform with BG Group and Royal Dutch Shell up 1.9% and 1.2%, respectively.
  • In France, the CAC trades down 0.4% with more than 2/3 of the index in negative territory. Renault, Peugeot, and Michelin are both down near 1.5% while Vivendi is the weakest performer, down 2.1%.
  • Germany's DAX has given up 0.6% amid losses in most components. Exporters BMW, Daimler, and Volkswagen are down between 0.8% and 1.2%. On the flip side, K+S outperforms, trading higher by 0.7%.

8:41 am Gapping down (:SCANX) :

Gapping down
In reaction to disappointing earnings/guidance
: VMEM -13.6%, BEBE -12.8%, (announces entry into Greater China, via a partnership with Longgoal LLC to open 60 to 150 stores), ADSK -5.5%, ZOES -4.9%, CLCT -3.3%, ARO -3.2%, OVTI -2.3%, GME -1%

M&A news: HAL -1.4% (Bloomberg's Real M&A column profiles a positive view on BHI given the large arbitrage in its pending merger with Halliburton)

Select EU financial related names showing weakness: NBG -11.3%, BCS -2.2%, CS -1.7%, HSBC -1.6%, DB -1%

Select EU notable heavyweights trading lower: SAP -1.6%, ALU -1.2%, NOK -1.1%, UN -1.1%, ABB -1.1%

Select large pharma names trading lower: SHPG -2.5%, GSK -1.7%, NVO -1.3%, MRK -1.0%

Other news: BTU -9.2% (following 50% move higher yesterday), QIHU -3.5% (WSJ reports that the investor group who offered to take QIHU private is considering lowering its offer amid valuation concerns), CRK -3% (after spiking higher on volume in late trade), SYT -2% (cont weakness after Monsanto (MON) walked away from its efforts to acquire Syngenta), NFLX -1.8% (pulling back following recent strength), STXS -1.3% (following 120%+ move higher yesterday), BBRY -1.3% (still checking)

Analyst comments: N/A

8:31 am S&P futures vs fair value: -9.80. Nasdaq futures vs fair value: -23.20. (:WRAPX) :

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

July personal income rose 0.4%, which is what the Briefing.com consensus expected. Meanwhile, personal spending rose 0.3% while the consensus expected a reading of 0.4%.

Core PCE prices rose 0.1%, which is what the consensus expected.

8:31 am Market View: Front-month Sep. eMini stock-index futures continue to trade with modest declines below fair values here following the 8:30 am ET economic data points (:TECHX) :

  • ESu5 now -14.25
  • YMu5 now -119
  • NQu5 now -28.75

8:31 am Cooper-Standard appoints Jonathan Banas as the firm's Chief Accounting Officer, effective September 14 (CPS) : Most recently, Banas was director of financial reporting for the company, where he was responsible for worldwide financial reporting, including SEC, consolidation and technical accounting processes. 

8:30 am Gapping up (:SCANX) : Gapping up
In reaction to strong earnings/guidance
: BIG +10.2%, SWHC +6.4%, SPLK +4.3%, VEEV +1.4%, ULTA +1.1%

M&A news: AHP +4.1% (will explore strategic alternatives to increase shareholder value, including a possible sale of the company),MU +3.8% (Tsinghua Unigroup's Chairman is said to be meeting with Micron Board members this week to revive its takeover bid, according to reports),SPIL +1.4% (rejects ASX's bid; co and and Hon Hai Precision form strategic alliance through a share exchange),PRGO +1% (Mylan Labs (MYL) announces that shareholders have approved its proposed acquisition of Perrigo; Perrigo comments on Mylan's (MYL) shareholder vote, reaffirms its belief that the offer substantially undervalues it)

Other news: CYTX +20.7% ( lifting premarket on insider transaction),FCX +15.8% ( Carl Icahn discloses 8.46% active stake in 13D; intends to have discussions with management ),HK +11.7% (reduces its long-term debt by ~$548 mln),UAL +6.2% (to replace HSP in the S&P 500),NVTA +5.9% (Baker Bros filed 13D, switching classification from a passive investor to active investor; maintained 20.6% stake),ATVI +5.6% (to replace PLL in the S&P 500),ISNS +4.8% (still checking),AMGN +1.6% (confirmed FDA approval of Repatha (evolocumab) Injection for the treatment of high cholesterol)

Analyst comments: LOGM +1.3% (upgraded to Overweight at Pacific Crest),ASML +0.6% (upgraded to Buy at Berenberg)

8:24 am European Markets Update: FTSE -0.4%, CAC -0.4%, DAX -0.5% (:SUMRX) :

Major European indices trade lower across the board with Italy's MIB (-1.3%) showing the largest decline. On a separate note, a caretaker government has been appointed in Greece ahead of the snap election on September 20 with Vassiliki Thanou assuming the duties of prime minister. Ms. Thanou previously served as president of Greece's Supreme Court.

  • Participants received several data points:
    • Eurozone August Business and Consumer Survey ticked up to 104.2 from 104.0 (expected 103.8)
    • UK's preliminary Q2 GDP +0.7% quarter-over-quarter; +2.6% year-over-year, as expected. Separately, preliminary Q2 Business Investment +2.9% quarter-over-quarter (expected 1.7%; last 2.0%)
    • France's July PPI -0.1% month-over-month (prior -0.2%)
    • Italy's July Wage Inflation +0.1% month-over-month (prior 0.1%); +1.2% year-over-year (prior 1.1%). Separately, August Consumer Confidence rose to 109.0 from 106.7 (consensus 107.5) while Business Confidence ticked down to 102.5 from 103.5 (expected 103.7)
    • Spain's July Retail Sales +4.1% year-over-year (consensus 0.9%; prior 2.4%) while August CPI -0.3% month-over-month (prior -0.9%); -0.4% year-over-year (consensus -0.1%; last 0.1%)
    • Swiss Q2 GDP +0.2% quarter-over-quarter (expected -0.1%; prior -0.2%); +1.2% year-over-year (consensus 0.9%; last 1.2%)

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  • UK's FTSE is lower by 0.4% with consumer names among the laggards. Coca-Cola HBC, Marks & Spencer, WM Morrison Supermarkets, and Tesco are down between 1.4% and 2.1%. On the upside, energy names outperform with BG Group and Royal Dutch Shell up 1.9% and 1.2%, respectively.
  • In France, the CAC trades down 0.4% with more than 2/3 of the index in negative territory. Renault, Peugeot, and Michelin are both down near 1.5% while Vivendi is the weakest performer, down 2.1%.
  • Germany's DAX has given up 0.5% amid losses in most components. Exporters BMW, Daimler, and Volkswagen are down between 0.8% and 1.2%. On the flip side, K+S outperforms, trading higher by 0.7%.

8:16 am European Yields (BONDX) :

Sovereign Debt Rallies

  • European government bonds are mostly green this morning, capping off a week that has not been friendly to sovereign debt from the European core. Investors received a raft of data this morning which showed that German inflation was higher than expected, Spanish inflation was lower than expected, and GDP in the U.K. grew in line with estimates during the second quarter
  • Eurozone Consumer Confidence was -7.0 in August, in line with estimates and unchanged from July
    • The Economic Sentiment Indicator (which surveys consumers and businesses) rose to 104.2 for August from 104.0 in July. On a national level, France and Spain improved while Germany, the Netherlands, and Italy all declined
  • Germany's Consumer Price Index was flat month-on-month in August. Forecasters had been looking for a decline and the CPI rose 0.2% in July
    • The German Harmonized Index of Consumer Prices was also flat m/m, defying expectations of deflation
  • In the U.K., GDP grew 0.7% q/q in the second quarter (and 2.6% y/y), as expected
    • Business Investment jumped a better-than-expected 2.9% q/q in Q2 versus 2.0% growth in Q1
  • Spain's Consumer Price Index fell 0.4% y/y in August, more than expected. Consumer prices increased by 0.1% in July
    • The Harmonized Index of Consumer Prices fell a greater-than-expected 0.5% versus no change in July
  • Yield Check:
    • France, 10-yr OAT: -3 bps to 1.07%
    • Germany, 10-yr Bund: -3 bps to 0.71%
    • Greece, 10-yr note: -2 bps to 8.97%
    • Italy, 10-yr BTP: -1 bp to 1.91%
    • Portugal, 10-yr note: -1 bp to 2.61%
    • Spain, 10-yr ODE: unch at 2.06%
    • U.K., 10-yr Gilt: -5 bps to 1.82%

8:04 am Perrigo comments on Mylan's (MYL) shareholder vote; reaffirms its belief that the offer substantially undervalues it, saying it is positioned to create superior value as stand-alone company (PRGO) :

Co stated:

  • "Following extensive discussions with our shareholders, we are confident that most of them believe that Mylan's (MYL) offer substantially undervalues Perrigo and would dilute our growth profile and superior valuation. The offer also would subject Perrigo shareholders to Mylan's highly troubling governance approach and serious risks related to Mylan's lowered 50%+ acceptance condition.Investors, rating agencies, and leading proxy advisory services have noted that the lowered threshold would make any synergy targets more difficult to achieve, raise integration and execution risk and add additional downward pressure on Mylan's credit rating.
  • The entire Perrigo Board and management team are confident that, through continued successful execution of our growth strategy, and considering other opportunities that may be available to us over time, we will continue to create superior value well in excess of Mylan's offer, and with less risk. We are confident that the majority of Perrigo shareholders will not tender their shares to Mylan."

8:01 am Werner Enterprises announces that CEO Greg Werner will retire (WERN) : Accordingly, the Board of Directors elected founder and Chairman C.L. Werner as Chief Executive Officer. Going forward, C.L. plans to groom existing President and Chief Operating Officer, Derek Leathers, for an even larger role in the company

8:00 am Ashford Hospitality Prime announces it will explore strategic alternatives to increase shareholder value, including a possible sale of the company (AHP) : Co announced that the Independent Directors of the Board have decided to explore a full range of strategic alternatives, including a possible sale of the Company. The Independent Directors have retained Deutsche Bank Securities Inc. as their financial advisor to assist in the process. Co does not intend to make any further public comment regarding the review until it has been completed.

7:59 am S&P futures vs fair value: -10.80. Nasdaq futures vs fair value: -26.80. (:WRAPX) :

U.S. equity futures trade near their lows after spending the night in a steady retreat. The S&P 500 futures have notched pre-market lows within the past hour and they currently hover 11 points below fair value.

Meanwhile, Treasuries have inched up with the 10-yr yield down a basis point at 2.15%.

On the economic front, July Personal Income (Briefing.com consensus 0.4%), Spending (expected 0.4%), and core PCE Prices (expected 0.1%) will be reported at 8:30 ET while the final reading of the Michigan Sentiment index for August (expected 93.0) will cross the wires at 10:00 ET.

In U.S. corporate news of note:

  • Autodesk (ADSK 47.46, -2.54): -5.1% after cautious guidance spurred by changes to the company's business model overshadowed a bottom-line beat.
  • Gamestop (GME 46.15, -0.05): -0.1% despite beating earnings/revenue estimates and raising its outlook.
  • Smith & Wesson (SWHC 17.29, +1.07): +6.6% in reaction to better than expected results and above-consensus guidance.
  • Ulta Salon (ULTA 116.00, +5.76): +3.6% in reaction to better than expected earnings and in-line guidance. 

Reviewing overnight developments:

  • Asian markets ended mixed. China's Shanghai Composite +4.8%, Japan's Nikkei +3.0%, and Hong Kong's Hang Seng -1.0%
    • In economic data:
      • China's July Industrial profits -2.9% year-over-year (prior -0.3%)
      • Japan's July Household Spending +0.6% month-over-month (expected +2.2%; prior -3.0%); -0.2% year-over-year (expected +1.3%; prior -2.0%), July Retail Sales +1.6% year-over-year (expected +1.1%; prior +0.9%), July Jobs/Applications Ratio 1.21 (expected 1.19; prior 1.19). Separately, July National CPI +0.2% year-over-year (expected +0.2%; prior +0.4%); National Core CPI 0.0% year-over-year (expected -0.2%; prior +0.1%), August Tokyo CPI +0.1% year-over-year (expected +0.1%; prior +0.2%); Tokyo Core CPI -0.1% year-over-year (expected -0.2%; prior -0.1%), and July Unemployment Rate 3.3% (expected 3.4%; prior 3.4%)
    • In news:
      • A two trillion yuan Chinese pension fund is expected to invest in the stock market as officials continue trying to contain the decline in equities
  • Major European indices trade lower across the board. UK's FTSE -0.6%, Germany's DAX -0.7%, and France's CAC -0.5%. Elsewhere, Italy's MIB -1.2% and Spain's IBEX -0.2%
    • Participants received several data points:
      • Eurozone August Business and Consumer Survey ticked up to 104.2 from 104.0 (expected 103.8)
      • UK's preliminary Q2 GDP +0.7% quarter-over-quarter; +2.6% year-over-year, as expected. Separately, preliminary Q2 Business Investment +2.9% quarter-over-quarter (expected 1.7%; last 2.0%)
      • France's July PPI -0.1% month-over-month (prior -0.2%)
      • Italy's July Wage Inflation +0.1% month-over-month (prior 0.1%); +1.2% year-over-year (prior 1.1%). Separately, August Consumer Confidence rose to 109.0 from 106.7 (consensus 107.5) while Business Confidence ticked down to 102.5 from 103.5 (expected 103.7)
      • Spain's July Retail Sales +4.1% year-over-year (consensus 0.9%; prior 2.4%) while August CPI -0.3% month-over-month (prior -0.9%); -0.4% year-over-year (consensus -0.1%; last 0.1%)
      • Swiss Q2 GDP +0.2% quarter-over-quarter (expected -0.1%; prior -0.2%); +1.2% year-over-year (consensus 0.9%; last 1.2%)
    • Among news of note:
      • A caretaker government has been appointed in Greece ahead of the snap election on September 20 with Vassiliki Thanou assuming the duties of prime minister. Ms. Thanou previously served as president of Greece's Supreme Court.

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

  • Bacanora Minerals and Rare Earth Minerals plc, the owners of the Sonora Lithium Project in Northern Mexico have finalised a conditional long-term lithium hydroxide supply agreement with Tesla Motors (TSLA)
  • Vestas Wind Systems (VWDRY) announced that it has received a firm and unconditional order in Finland, comprising 22 V117-3.3 MW turbines, with a total capacity of 73 MW.

7:57 am Bob Evans' Board names Director Douglas N. Benham to the new position of Executive Chair (BOBE) :

The co further announced that Mark Hood, Chief Financial Officer, Mike Townsley, President of BEF Foods, John Fisher, Executive Vice President and Chief Concept Officer, and Colin Daly, General Counsel and Secretary, would comprise an Office of the Chair, reporting to Mr. Benham.

  • This new leadership structure, which became effective August 27, 2015, replaces the Office of the Interim CEO, which was established in December 2014, and will continue until a new CEO is named. The Transition Committee of the Board will also be dissolved when the new structure takes effect. Mary Kay Haben, who has served as Non-Executive Chair since October 2014, will become Lead Independent Director, as Mr. Benham assumes the role of Executive Chair. Mr. Benham will continue to serve as Executive Chair until the new CEO has completed a transition period, at which point the company will revert to a structure led by a Non-Executive Chair and a CEO in separate roles. 

7:36 am Overnight Treasury Summary (BONDX) :

Treasuries Find Relief Rally Overnight

  • U.S. Treasuries rallied overnight but are giving back some gains at the moment following a week of significant rises in yields. The yield curve is flattening and equities are slipping back somewhat from Thursday's massive rally. The U.S. Dollar Index is unchanged
  • Yield Check:
    • 2-year: unch at 0.70%
    • 5-year: -1 bp to 1.49%
    • 10-year: -2 bps to 2.16%
    • 30-year: -4 bps to 2.89%
  • International News:
    • Spain's Consumer Price Index fell 0.4% y/y in August, more than expected. Consumer prices increased by 0.1% in July
      • The Harmonized Index of Consumer Prices fell a greater-than-expected 0.5% versus no change in July
    • In the U.K., GDP grew 0.7% q/q in the second quarter (and 2.6% y/y), as expected
      • Business Investment jumped a better-than-expected 2.9% q/q in Q2 versus 2.0% growth in Q1
      • Output per head has finally gotten back to its previous high from Q1 2008
    • In Japan, Household Spending grew 0.6% m/m in July, much worse than expected but better than the -3.0% from June
      • The National Core Consumer Price Index was flat y/y in July, better than expected but worse than the 0.1% rise in June
      • Tokyo's Core CPI fell 0.1% in July, better than expected and the same decline as was seen in June
      • Japanese Retail Sales grew a better-than-expected 1.6% y/y in July versus 0.9% growth in June
  • Data Out Today:
    • July Personal Income, Personal Spending, and PCE Prices -- Core (08:30 ET)
    • August Michigan Sentiment -- Final (10:00 ET)

7:32 am Brookfield Asset Mgmt and Core Infrastructure India Fund acquire nine project companies from Gammon Infrastructure Projects (BAM) :

Gammon Infrastructure Projects announced the signing of a Share Purchase Agreement divesting nine of its project companies (6 road and 3 power) to the consortium comprising funds managed by Brookfield Asset Management and its affiliates and Core Infrastructure India Fund Pte Ltd under the name BIF India Holdings Pte Ltd. Out of the project companies to be acquired by the Consortium, six are operational, one is under expansion and two are under development.

  • The total project cost at completion of the asset basket is estimated to be approx. Rs. 6,750 crore (Rs. 2,935 crore of 6 operational projects and Rs. 3,815 crore for remaining 3 projects) of which Rs. 3,097 crore has been capitalized till March 31, 2015. The outstanding debt as at March 31, 2015 for these projects is Rs. 1,718 crore and the net exposure of GIPL in the asset basket is Rs. 415
  • The consideration towards equity comprises of cash consideration of approx. Rs. 192 crore and a waiver of advances to GIPL of Rs. 285 crore

7:30 am Automatic Data intends to initiate a $2 Bln debt offering at a future date, and authorizes the potential purchase an additional 25 million shares of its common stock (ADP) : Co announced its intention to initiate a public offering of $2.0 billion in debt securities at a future date. Contingent upon the offering's completion, the board of directors of ADP has authorized the purchase of an additional 25 million shares of its common stock.

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

  • Ritchie Bros. (RBA) announced that it has sold more than $45 million of equipment and trucks at its unreserved public auction in Houston, Texas on August 26 -- 27, 2015.
  • Hercules Technology Growth Capital, Inc. (HTGC) announced that it has year-to-date net realized gains of ~$8.7 million from its portfolio company investments. Through the first half of 2015, Hercules has recorded net realized gains of ~$2.1 million comprised primarily from the sale of investments in four portfolio companies
  • Cliffs Natural Resources Inc. (CLF) announced the expiration of and final results for its offer to purchase for cash up to $123,694,000 of its outstanding 3.95% Senior Notes due 2018. The Tender Offer expired at midnight, New York City time, on August 27, 2015. The total tendered amount of notes from the offer was $124,839,000
  • U.S. Concrete, Inc. (USCR) announced that it acquired select assets of E&A Materials and Pitts Sand & Gravel, headquartered in Wichita Falls, TX. The acquisition includes two sand and gravel operations near Vernon, TX and Waurika, OK

7:23 am Mylan Labs announces that shareholders have approved its proposed acquisition of Perrigo Company plc (PRGO); intends to launch a formal offer to Perrigo shareholders in the coming weeks (MYL) :  

7:10 am Asian Markets Close: Japan's Nikkei +3.0%; Hong Kong's Hang Seng -1.0%; China's Shanghai Composite +4.8% (:SUMRX) :

Markets in the Asia-Pacific region ended Friday mostly higher, following a familiar script from the day before that saw them advance on the heels of a strong showing from Wall Street and a late spike in China's market that was helped along by speculation the government was in the market buying stocks.

Economic data

  • China
    • July Industrial profits -2.9% year-over-year (prior -0.3%)
  • Japan
    • July Household Spending +0.6% month-over-month (expected +2.2%; prior -3.0%); -0.2% year-over-year (expected +1.3%; prior -2.0%)
    • July Retail Sales +1.6% year-over-year (expected +1.1%; prior +0.9%)
    • July Jobs/Applications Ratio 1.21 (expected 1.19; prior 1.19)
    • July National CPI +0.2% year-over-year (expected +0.2%; prior +0.4%); National Core CPI 0.0% year-over-year (expected -0.2%; prior +0.1%)
    • August Tokyo CPI +0.1% year-over-year (expected +0.1%; prior +0.2%); Tokyo Core CPI -0.1% year-over-year (expected -0.2%; prior -0.1%)
    • July Unemployment Rate 3.3% (expected 3.4%; prior 3.4%)

Equity Markets

  • Japan's Nikkei increased 3.0% and finished near its highs for the session following a batch of economic data that featured weaker than expected household spending, stronger than expected retail sales, and higher than expected core CPI data. Gains were led by the industrials (+4.1%), materials (+3.9%), and technology (+3.3%) sectors. Furukawa (+11.9%), Sumitomo Metal Mining (+9.3%), and Sharp Corp (+8.9%) topped the list of winners. Ana Holdings (-1.1%) and NTT Docomo (-0.7%) were the only two stocks to lose ground. Out of the 225 index members, 222 ended higher, 2 finished lower, and 1 was unchanged. For the week, the Nikkei declined 1.5%.
  • Hong Kong's Hang Seng declined 1.0% after falling 1.7% in the final hour of trading, failing to follow suit with the mainland market. Bank of Communications (-4.7%), Industrial & Commercial Bank of China (-4.1%), and China Construction Bank (-3.8%) were the worst-performing issues. Lenovo Group (+6.7%), Kunlun Energy (+3.2%), and China Shenhua Energy (-2.9%) were the biggest losers. Out of the 50 index members, 12 ended higher and 38 finished lower. For the week, the Hang Seng declined 3.6%.
  • China's Shanghai Composite increased 4.8%, aided by another late surge of buying interest that saw the Composite jump as much as 3.4% in the final 90 minutes of trading. Once again, it was believed that government buying played a large part in things. There was a separate report, too, that pension funds are getting ready to deploy over $300 billion in stocks and other assets. Friday's advance came despite a report that showed industrial profits declined 2.9% year-over-year in July. For the week, the Shanghai Composite declined 7.8%.
  • India's Sensex increased 0.6% but ended the day in a pullback mode that resulted in the Sensex coughing up a good portion of an early 1.7% gain. The utilities (+2.6%), materials (+2.2%), and consumer discretionary (+1.2%) sectors provided underlying support. Vedanta (+5.9%), Oil & Natural Gas Co (+5.8%), and Bharti Airtel (+4.4%) were upside leaders. Lupin (-2.1%), Sun Pharmaceutical (-1.7%), and Coal India (-1.2%) were the biggest laggards. Out of the 30 index members, 21 ended higher and 9 finished lower. For the week, the Sensex declined 3.6%.
  • Australia's S&P/ASX 200 increased 0.6%, supported by big gains in the metals & mining (+5.0%), resources (+4.7%), and materials (+3.7%) sectors. Out of the 200 index members, 105 ended higher, 86 finished lower, and 9 were unchanged. For the week, the S&P/ASX 200 declined 7.6%.
  • Regional advancers: South Korea +1.6%, Taiwan +2.5%, Malaysia +0.7%, Indonesia +0.4%, Singapore +0.4%, Thailand +0.9%, Vietnam +2.7%, Philippines +1.1%
  • Regional decliners: None

FX

  • USD/CNY -0.3% at 6.3896
  • USD/INR +0.1% at 66.1200
  • USD/JPY -0.1% at 120.88

7:01 am Kratos Defense and Security's RT Logic subsidiary receives a $49 mln firm fixed price, IDIQ, single contract award from a U.S. Government Agency for Satellite and Communication System hardware, equipment and products (KTOS) :  

7:00 am Symmetry Surgical acquires Vesocclude Medical for $4 mln; increases 2015 revenue guidance to $83 to $85 million (SSRG) :

Co has acquired key assets of Vesocclude Medical, including its product portfolio of titanium ligation clips and appliers, customer relationships and intellectual property for $4.0 million. The agreement also includes $2.2 million in potential payments based on the achievement of milestones related to new product commercialization, as well as distribution rights for the new products and additional rights for a future acquisition.

  • In the Last Twelve Months, Vesocclude generated $3.2 million in proforma revenue and $0.5 million in proforma EBITDA. The Company is increasing its 2015 financial guidance to reflect the acquisition of Vesocclude.
  • For the full year 2015, the Company expects revenue to be in the range of $83 to $85 million (to reflect acquisition), a $1 million increase from $82 to $84 million previously. The company is not updating EBITDA guidance at this time until the impact of non-cash purchase accounting adjustments are known.
  • Co stated: "We are pleased to be able to fund this acquisition out of our strong Free Cash Flow performance in the first half of 2015. As of August 28, Symmetry Surgical has closed this acquisition with no borrowings on its $20 million revolver."

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

  • Nokia (NOK) and China Huaxin Post & Telecommunication Economy Development Center have signed a memorandum of understanding confirming their intention to combine Nokia's telecommunications infrastructure businesses in China and Alcatel-Lucent Shanghai Bell into a new joint venture. As agreed under the MoU, Nokia expects to hold 50% plus one share in the new joint venture, with China Huaxin holding the remaining shares. The new joint venture is planned to operate under the English name of Nokia Shanghai Bell and would be registered in the China Pilot Free Trade Zone
  • ReneSola Ltd (SOL) announced that it has sold its 34.6 MW Port Farms utility scale project in the United Kingdom to Foresight Solar Fund Limited

6:13 am Scotiabank reports EPS in-line, misses on revs; raises quarterly div by CAD0.02 to CAD0.70 per share (BNS) :

Reports Q3 (Jul) earnings of CAD1.45 per share, in-line with the Capital IQ Consensus Estimate of CAD1.45; revenues fell 8.5% year/year to CAD5.94 bln vs the CAD6.22 bln consensus.

  • ROE of 14.7%, compared to 20.6% in Q3 of 2014
  • Co raises Quarterly dividend by CAD0.02 per common share to CAD0.70
  • Capital Ratios - The Bank's Common Equity Tier 1 ratio decreased by ~20 basis points this quarter to 10.4% primarily due to the impact of the acquisitions of Cencosud's financial services business in Chile and the operations of Citibank Peru.

6:07 am Big Lots beats by $0.06, beats on revs; guides Q3 EPS in-line (BIG) :

Reports Q2 (Jul) earnings of $0.40 per share, $0.06 better than the Capital IQ Consensus Estimate of $0.34; revenues rose 1.2% year/year to $1.21 bln vs the $1.2 bln consensus.

  • Comparable store sales for stores open at least fifteen months increased 2.8% for the second quarter of fiscal 2015, compared to guidance of +2% to +3%.

Guidance

Co issues in-line guidance for Q3, sees EPS of ($0.04)-$0.01 vs. $0.00 Capital IQ Consensus Estimate.

  • Provides initial Q3 guidance for comparable store sales increase in the range of 2% to 3%

6:07 am S&P futures vs fair value: -8.40. Nasdaq futures vs fair value: -18.70. :

6:07 am European Markets : FTSE...6193.95...+1.90...+0.00%.  DAX...10257.14...-53.60...-0.50%.

6:07 am Asian Markets : Nikkei...19136.32...+561.90...+3.00%.  Hang Seng...21612.39...-226.20...-1.00%.

6:04 am Siliconware Precision and Hon Hai Precision form strategic alliance through a share exchange (SPIL) : After the exchange of Hon Hai and SPIL shares, Hon Hai will hold 840,600,000 SPIL shares, accounting for 21.24% shares of SPIL, post capital increase; and SPIL will hold 359,230,769 Hon Hai shares, accounting for 2.20% shares of Hon Hai, post capital increase.

6:03 am Regis misses by $0.09, misses on revs (RGS) :

Reports Q4 (Jun) earnings of $0.01 per share, $0.09 worse than the Capital IQ Consensus Estimate of $0.10; revenues fell 4.3% year/year to $462.9 mln vs the $475.93 mln consensus.

  • Same-store sales decreased 0.8%
  • Same-store service and product sales decreased 0.6% and 1.8%, respectively

5:58 am Bunge's Brazil subsidiary acquires wheat producer Moinho Pacfico; terms not disclosed (BG) :  

5:53 am On The Wires (:WIRES) :

  • Big Lots (BIG) announced the executive promotion of Lisa Bachmann,promoted to Executive Vice President, Chief Merchandising and Operating Officer with primary responsibility for the Merchandising, Planning and Allocation, and Global Sourcing teams. Additionally, she will maintain responsibility for the Information Technology strategy and team.
  • Toshiba (TOSBF) Semiconductor & Storage Products Company announced the addition of 4 new products to its line-up of the "TL1L4 series" of high power white LEDs, that achieve high luminous flux of 140lm(min.). Shipment of the new products starts from today.
  • iQIYI, an independently operated subsidiary of Baidu (BIDU) announced that according to a recent report published by App Annie, iQIYI's mobile app, iQIYI Video HD, surged upwards on the worldwide charts in July 2015, gaining 10 spots by downloads and 9 spots by revenue.

4:14 am Siliconware Precision concludes its review regarding the tender offer conditions offered by ASE (ASX); recommend shareholders not to tender their shares and/or ADRs (SPIL) :

Siliconware Precision Industries (SPIL) held both a Review Committee meeting and a Board of Directors meeting to discuss and review the tender offer by Advanced Semiconductor Engineering (ASX) to purchase the Company's common shares and/or American depositary receipts.

The conclusions of the Review Committee and the Board of Directors are consistent. They both recommend shareholders not to tender their shares and/or ADRs. The reasons are as followings:

  • ASE proposed to offer NTD 45 cash per common share (US dollar equivalent of NTD 225 cash per ADR (each representing 5 of the Company's common shares), collectively the "Proposed Cash Considerations") to acquire the common shares and ADRs of the Company, with a maximum number of 779,000,000 shares (including common shares represented by ADRs) and a minimum number of 155,818,056 shares (not including common shares represented by ADRs).
  • If using the average closing price of NTD 44.87 within the last 90 trading days prior to August 21, 2015 as the calculation basis, the tender offer price premium is only 0.29%. Considering the Company's operations, market price of shares, earning per share, book value per share, future development, distributed earnings in recent years and an independent expert's opinion to the reasonableness of the tender offer price, the reasonableness of the tender offer price is questionable.
  • Considering the Company's operations, market price of shares, earning per share, book value per share, future development, distributed earnings in recent years and an independent expert's opinion to the reasonableness of the tender offer price, the reasonableness of the tender offer price is questionable.

2:00 am On The Wires (:WIRES) :

  • Toshiba (TOSBF) announced the launch of "TB9081FG", a brushless motor pre-driver IC enhanced to achieve functional safety, for use in electric power steering systems
  • CEMEX, S.A.B. de C.V. (CX) announced that its subsidiary CEMEX Latam Holdings, S.A. has completed the construction of the first phase of a new cement grinding plant in Ciudad Sandino, Managua. CLH invested ~$30 million for infrastructure procurement and the installation of the first cement grinding mill, with an annual production capacity of approximately 220,000 metric tons.
  • JD.com (JD) announced partnerships with Australian brands Blackmores, an Australian natural health company, and Sanger Australia, the Australian meat sales and marketing business of the Bindaree Beef Group.

1:41 am Brasil Foods S.A. approves share buy back of up to 14.5 mln shares (BRFS) :  

1:32 am Halcon Resources reduces its long-term debt by ~$548 mln (HK) :

Co announced that it has entered into privately negotiated exchange agreements with certain holders of its outstanding unsecured debt securities as part of its efforts to deleverage the Company's balance sheet.

  • Halcn has agreed to issue approximately $1.02 billion aggregate principal amount of new 13.00% Third Lien Senior Secured Notes due 2022 (the "New Notes") in exchange for approximately $1.57 billion aggregate principal amount of its outstanding unsecured debt securities (the "Existing Notes") as follows:
    • $497.2 million of its 9.75% Senior Unsecured Notes due 2020
    • $774.7 million of its 8.875% Senior Unsecured Notes due 2021
    • $294.3 million of its 9.25% Senior Unsecured Notes due 2022
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