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5:48 pm FX Energy announces pricing of 800k shares of 9.25% Series B Cumulative Convertible Preferred Stock at $25 per share (FXEN) : Co announced today that it has priced an underwritten public offering of 800,000 shares of its 9.25% Series B Cumulative Convertible Preferred Stock at a public offering price of $25.00 per share. Holders of Series B Preferred Stock may convert their shares, in whole or in part, into shares of the Company's common stock at a conversion price of $5.00 per share. The Company may cause conversion of the Series B Preferred Stock if the trading price of its common stock exceeds $6.00 for 20 trading days in any consecutive 30-trading-day period.

  • Gross proceeds to the Company are expected to be approximately $20 million before deducting the underwriting discount and other estimated offering expenses payable by the Company. The offering is expected to close on or about July 17, 2014, subject to the satisfaction of customary closing conditions.
  • The Company intends to use the net proceeds from the offering primarily to fund seismic and new drilling costs near its Tuchola prospect, which is located in the Edge license in north central Poland, where the Company holds 100% working interest in 730,000 acres.

5:43 pm Envision Healthcare Holdings prices secondary offering of 27.5 mln shares of common stock by certain selling stockholders at $34 per share (EVHC) : Co announced today the pricing of a secondary offering of 27.5 million shares of its common stock by certain stockholders of the Company at a public offering price of $34.00 per share. Investment funds sponsored by, or affiliated with, Clayton, Dubilier & Rice, LLC ("CD&R") and certain executive officers, directors and employees of the Company will be the selling stockholders. Goldman, Sachs & Co., Barclays, BofA Merrill Lynch and Citigroup are serving as lead joint book-running managers and as representatives of the underwriters for the secondary offering.

5:30 pm Orchid Island Capital announces June 30, 2014 estimated book value per share of $13.05 (ORC) : Co's estimated book value per share as of June 30, 2014 was $13.05. The Company computes book value per share by dividing total stockholders' equity by the total number of shares outstanding of the Company's Common Stock. At June 30, 2014, the Company's preliminary estimated total stockholders' equity was approximately $125.7 million with 9,632,108 Common shares outstanding.

5:23 pm Essent Group comments on impact of proposed private mortgage insurer eligibility requirements (ESNT) : Co reported that the Federal Housing Finance Agency ("FHFA") released today for public input the proposed Private Mortgage Insurer Eligibility Requirements ("PMIERs"). The PMIERs represent the standards by which private mortgage insurers are eligible to provide mortgage insurance on loans owned or guaranteed by Fannie Mae and Freddie Mac. Assuming the PMIERs are enacted as proposed, Essent's mortgage insurance subsidiary, Essent Guaranty, Inc., would be in compliance with the new capital adequacy requirements in the PMIERs based on financial information as of March 31, 2014.

  • "We commend FHFA, Fannie Mae and Freddie Mac for all of their work in revising the PMIERs," said Mark Casale, Chairman and Chief Executive Officer. "Updating the PMIERs is important to the health of the housing finance system in general, and the mortgage insurance industry in particular. We believe that the proposed risk-based capital adequacy framework in the PMIERs is fundamentally sound. The PMIERs will serve as animportant set of national standards that give industry counterparties added confidence in the claims paying capacity of private mortgage insurance companies, including Essent." 
  • "Based in part on Essent's strong capital levels and the exceptional credit quality of our portfolio," Casale added, "we believe that Essent is well positioned under the PMIERs to continue to serve the growing demand for private mortgage insurance."

5:10 pm Barracuda Networks sees Q2 revs of $66-67 mln vs $66.28 mln Capital IQ Consensus Estimate, adjusted EPS of $0.03-0.04 vs $0.03 Capital IQ Consensus Estimate; Slightly raises FY15 guidance (CUDA) : Co sees Q2 revs of $66-67 mln vs $66.28 mln Capital IQ Consensus Estimate, sees Q2 adjusted EPS of $0.03-0.04 vs $0.03 Capital IQ Consensus Estimate.

Co sees FY15 revs of $270-274 mln (raised from $269-273 mln) vs $270.28 mln Capital IQ Consensus Estimate, sees FY15 adjusted EPS of $0.14-0.18 (raised from $0.11-0.15) vs $0.14 Capital IQ Consensus Estimate.

5:03 pm Isle of Capri announces management changes: Position of Executive Chairman eliminated; Robert Goldstein named non-executive Chairman; Eric Hausler named CFO (ISLE) : Co announced the following management changes. The position of Executive Chairman of the Board of Directors, currently held by Jim Perry, has been eliminated. Mr. Perry continues to serve as a member of the Board of Directors. Robert Goldstein, currently the Vice Chairman of the Board of Directors, has been named (non-executive) Chairman of the Board of Directors. Additionally, the position of Chief Strategic Officer, currently held by Eric Hausler, has been eliminated and Mr. Hausler has been named the Company's Chief Financial Officer. Mr. Hausler succeeds Dale Black who served as Chief Financial Officer since 2007. Mr. Black is leaving the Company to pursue other interests. The appointments are subject to customary regulatory approvals.

5:02 pm Cosi hires Scott Carlock as CFO (COSI) : Co announced that it has hired Scott Carlock as Chief Financial Officer. Carlock, 46, joins Cosi from quick-service restaurant leader Yum! Brands (YUM) where he has been employed for the past 13 years. He has held several senior finance and accounting roles with Yum! Brands, including Senior Manager of Finance for KFC US, Business Unit Controller and Senior Manager of KFC and Long John Silver, Associate Manager of SEC Reporting, and most recently, Tax Controller and Director where he led global tax planning and reporting. Carlock will replace Bill Koziel, Cosi's current CFO.

5:01 pm Chevron issues interim update for Q2: earnings expected to be higher than prior quarter as a result of gains on asset sales and an absence of impairments in the prior quarter (CVX) : Co reported in its interim update that earnings for the second quarter 2014 are expected to be higher than first quarter 2014 (current Q2 Capital IQ Consensus Estimate is $2.75; Q1 EPS was $2.36) as a result of gains on asset sales and an absence of impairments in the prior quarter. Foreign exchange losses in the second quarter are expected to be higher than first quarter losses. The interim update contains industry and company operating data for the first two months of the second quarter. Readers are advised that the commentary below compares results for the first two months of the second quarter 2014 to full first quarter 2014 results, unless indicated otherwise.

  • Upstream: U.S. net oil-equivalent production was higher compared to the first quarter, primarily due to less maintenance activity in the Gulf of Mexico and increased production in the Permian Basin. International net oil-equivalent production was lower as a result of planned turnaround activity in Kazakhstan, in addition to the shutdown of the LNG facility in Angola.
  • Downstream: U.S. Downstream earnings for the full quarter are expected to be comparable to the prior quarter. Higher U.S. refining margins, particularly on the West Coast, were offset by lower volumes and higher operating expenses due to significant planned turnaround activity at the El Segundo refinery. International refinery crude-input volumes increased, primarily reflecting lower maintenance activities at multiple refineries.

4:53 pm Thompson Creek Metals announces Q2 operating results: Total concrete production for Mt. Milligan was 29.7 thousand dry tonnes (TC) : Co announced production results for the three and six months ended June 30, 2014 for its three operating mines, Mt. Milligan, Thompson Creek and Endako. Total concentrate production for Mt. Milligan for the quarter ended June 30, 2014 was 29.7 thousand dry tonnes, with 16.0 million pounds of payable copper and 37.0 thousand ounces of payable gold. Total concentrate production for Mt. Milligan for the six months ended June 30, 2014 was 57.9 thousand dry tonnes, with 30.3 million pounds of payable copper and 76.2 thousand ounces of payable gold. Molybdenum production was 7.5 million pounds for the second quarter of 2014 and 15.4 million pounds for the first six months of 2014.

4:47 pm TriNet Group improves interest rate on senior secured credit facilities (TNET) : Co announced that on July 9, 2014 it entered into an Amended and Restated Credit Agreement providing for $650 million of new senior secured credit facilities used to refinance TriNet's previously outstanding term loans. The new facilities include a $375 million term loan A maturing in 2019, a $200 million term loan B maturing in 2017, and a $75 million revolver maturing in 2019.

  • Pricing on the new term loan A, term loan B and the revolver was set at LIBOR plus 275 basis points with no LIBOR floor, subject, in the case of the term loan A and the revolver, to a total leverage-based pricing grid. The term loan B was issued with 0.5% of original issue discount. 
  • Based on the effective lower interest rate, TriNet estimates that it could save up to approximately $5 million in interest payments through the end of TriNet's current fiscal year ending December 31, 2014. However, the actual interest savings will vary in part due to actual debt levels as well as fluctuations in market conditions.

4:44 pm Rent-A-Center sees Q2 revs of $733 mln vs $785.3 mln Capital IQ Consensus estimate, adjusted EPS of $0.36-0.38 vs $0.48 Capital IQ Consensus Estimate; sees Q2 same store sales +0.6% (RCII) : Co expects the following financial results for the quarter ended June 30, 2014:

  • Total revenues are estimated to be approximately $773 million (vs $785.3 mln Capital IQ Consensus Estimate). 
  • Same store sales are estimated to have increased approximately 0.6%. 
  • Net earnings per diluted share are expected to be in the range of $0.31 to $0.33. 
  • Adjusted net earnings per diluted share are expected to be in the range of $0.36 to $0.38 (vs $0.48 Capital IQ Consensus Estimate), when excluding a pre-tax restructuring expense of approximately $4.4 million, or approximately $0.05 per diluted share, related to the consolidation of approximately 150 stores into existing Core U.S. stores.
"Macro-economic pressures continue to burden our financially constrained customers contributing to softer than expected demand in our U.S. business segments. Consequently, revenue and earnings for the second quarter 2014 will not meet expectations. We are not satisfied with our second quarter results and hold ourselves accountable for improving our performance. To that end, we are excited to announce a new product line in our domestic retail stores with our entrance into the burgeoning smartphone business," said Robert D. Davis, the Chief Executive Officer of Rent-A-Center, Inc.

Smartphone Rollout: "The Company's smartphone rollout offers consumers nationwide one-stop shopping for a variety of leading, name-brand smartphones and no-contract plans, a rent-to-own industry first...Launched this week, the smartphone rollout across Rent-A-Center's 2,800-plus Core U.S. stores is expected to be completed by month's end and was spurred by the success of a pilot program launched last summer."

4:41 pm Transmontaigne Partners: NGL Energy Partners (NGL) announces offer to acquire outstanding units of TransMontaigne Partners (TLP) : NGL Energy Partners (NGL) announced that it has submitted a non-binding proposal to the conflicts committee of the board of directors of TransMontaigne GP L.L.C., the general partner of TransMontaigne Partners (TLP), in which each outstanding common unit of TLP would be exchanged for one common unit of NGL. The proposed transaction is subject to the negotiation and execution of a definitive agreement, the approval of the TransMontaigne GP L.L.C. board of directors and its conflicts committee and any requisite unitholder approval under applicable law.

NGL disclosed it owns a 19.7% active stake in TLP in a 13D filing.

4:33 pm Kythera Biopharma announces FDA acceptance of ATX-101 New Drug Application; Advisory Committee meeting to be held (KYTH) : Co announced that its New Drug Application (:NDA) for ATX-101 (deoxycholic acid), has been accepted for filing by the FDA. The acceptance of the NDA reflects the FDA's determination that the application is sufficiently complete to permit a substantive review. The NDA will be subject to a standard review and will have a Prescription Drug User Fee Act (:PDUFA) action date of May 13, 2015. The PDUFA date is the goal date for the FDA to complete its review of the NDA.

  • In addition, the FDA has informed the company that the FDA's Division of Dermatology and Dental Products is currently planning to hold an Advisory Committee meeting on the ATX-101 application during the review.
  • ATX-101 is an injectable treatment currently in late-stage development for the reduction of submental fat, which commonly presents as a double chin. KYTHERA submitted the ATX-101 NDA to the FDA on May 12, 2014.

4:33 pm Fed's Stanley Fischer speech on Financial Sector (XLF) : Click here for speech.

4:31 pm Arotech announces public offering of common stock, size not disclosed (ARTX) : Co announced today that it intends to offer shares of its common stock in an underwritten public offering. All of the shares in the offering are to be sold by Arotech. In connection with the offering, B. Riley & Co., LLC is acting as sole book-running manager. Arotech expects to use the net proceeds from the offering for the repayment of certain outstanding indebtedness and other general corporate purposes, which may include increasing its working capital, reducing its bank line of credit, funding research, development and product manufacturing, acquisitions or investments in businesses, products or technologies that are complementary to its own, and capital expenditures.

4:26 pm Fifth Street Finance commences public offering of 13.25 mln shares of its common stock (FSC) : Co announced that it has commenced a public offering of 13,250,000 shares of its common stock. All shares will be offered by FSC. Morgan Stanley, UBS Investment Bank, Deutsche Bank Securities and RBC Capital Markets will act as lead book-running managers, and SMBC Nikko will act as joint book-running manager for the offering. FSC intends to use the net proceeds from this offering to repay debt outstanding under its credit facilities. However, through re-borrowing under its credit facilities, it intends to make investments in small and mid-sized companies in accordance with its investment objective and strategies described in the prospectus supplement and accompanying prospectus and may use such funds for general corporate purposes.

4:24 pm Chicopee Bancorp reports expected increase in its provision for loan losses (CBNK) : Co announced that it expects to record a provision for loan losses of approximately $2.8 million (pre-tax) and $5.0 million (pre-tax) for the three and six months ended June 30, 2014, respectively. As a result, the Company anticipates reporting a loss before taxes of $1.9 million and a net loss of $40,000 after recognizing the income tax benefit for the three months ended June 30, 2014. For the six months ended June 30, 2014, the Company anticipates reporting a loss of $3.4 million before taxes and net loss of $1.4 million after recognizing the income tax benefit. The tax benefit was the result of a change in the effective tax rate, projected loss due to the increase in the provision for loan losses, as well as the benefit of the tax-exempt investment income.

  • The $2.8 million expected provision for loan losses for the three months ended June 30, 2014 is the result of unrelated additional charge-offs for two previously disclosed problem loans and a $1.5 million charge-off related to a $4.7 million commercial real estate developer loan secured by commercial real estate.
  • The increased provision in the second quarter also reflects the effect of an additional charge-off of approximately $360,000 related to a previously disclosed $4.5 million commercial loan relationship suspected of fraud.
  • As a result of the above actions, nonperforming loans are expected to increase to approximately $10.9 million, or 2.12% of total loans, at June 30, 2014, compared to $10.3 million, or 2.10% of total loans, at March 31, 2014.

4:21 pm Radian Group provides comment on propsed GSE requirements for private mortgage insurer elibilitiy (RDN) : Radian Guaranty, the mortgage insurance subsidiary of Radian Group, commented on the proposed Private Mortgage Insurer Eligibility Requirements (PMIERs) developed by Fannie Mae and Freddie Mac (GSEs) and issued by the Federal Housing Finance Agency (:FHFA), which were released earlier today. The proposed PMIERs are intended to provide revised requirements that the GSEs will impose on private mortgage insurers (MIs), including Radian Guaranty, to remain eligible insurers of loans purchased by the GSEs. Highlights:

  • Extended transition period of more than two years to comply with PMIERs' financial requirements
  • Radian expects ability to comply within the transition period without a need to raise external capital
  • Company to address several aspects of draft requirements during public comment period, including those that could increase homebuyer costs and restrict credit access

4:18 pm Barracuda Networks beats by $0.04, beats on revs (CUDA) : Reports Q1 (May) earnings of $0.07 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.03; revenues rose 17.6% year/year to $66.2 mln vs the $64.37 mln consensus.

  • For the first quarter of fiscal 2015, gross billings grew 17% to $87.6 million, up from $74.9 million in the first quarter of fiscal 2014, and up 7% on a sequential basis.

  • Total active subscribers exceed 214,000. 

  • Adjusted EBITDA in the quarter was $19.4 million, or 29% of total revenue. On a trailing 12-month basis, adjusted free cash flow was $42.0 million, growing 28% year-over-year. Non-GAAP operating income was $5.3 million.

4:17 pm Penn Virginia announces acquisition of Eagle Ford Shale assets (PVA) : Co announced that it has entered into a definitive agreement to acquire ~13,125 (11,660 net) Eagle Ford Shale acres in Lavaca County, Texas for ~$45 mln, of which ~$34 mln will be paid at closing and the balance of ~$11 mln will be paid over time as a drilling carry. The sale is expected to close in August 2014 and is subject to customary closing conditions.

The transaction, combined with recent leasing, will bring our total Eagle Ford Shale acreage position to ~142,500 (101,800 net) acres. The acquired acreage is adjacent to our Shiner area and is estimated to contain ~150 gross potential drilling locations, most of which we expect will be prospective in the Upper Eagle Ford Shale.

4:16 pm Closing Market Summary: Stocks Retreat Amid Concerns About Earnings and Europe (:WRAPX) : The stock market stumbled on Thursday, but a daylong rebound off the opening lows helped the major averages erase the bulk of their losses. The Russell 2000 was the weakest performer, falling 1.1%, while the S&P 500 settled lower by 0.4% after being down as much as 1.0% at the open.

The early stumble was not brought upon by any specific headline, but rather a series of developments that caused investors to reduce their exposure to equities. In Asia, China reported below-consensus exports (7.2% versus expected 10.6%) and imports (5.5% versus expected 5.8%), while Japan's Core Machinery Orders tumbled 19.5% against the expectations of an uptick of 0.7%.

As the night continued, news from Europe caused an exodus from regional equities (mainly financials) amid worries about Portugal's banking system after the parent company of Banco Espirito Santo missed a bond payment. Portugal's PSI 20 fell 4.2%, while Germany's DAX and Spain's IBEX lost 1.5% and 2.0%, respectively.

Domestically, participants received a sliver of good news on the economic front as weekly initial claims decreased to 304,000 (Briefing.com consensus 311,000); however, headlines out of the corporate world were not nearly as upbeat.

With the second-quarter earnings season set to heat up next week, two consumer discretionary components primed the market for disappointing results. Shares of Potbelly (PBPB 10.97, -3.68) plunged 25.1% to a new record low after the company said it expects its revenue to come in below estimates, while also guiding for a 1.6% decline in comparable store sales.

Yesterday, the CEO of The Container Store (TCS 24.58, -0.22) provided some cautious comments about the retail environment as a whole, and today his remarks were echoed by Lumber Liquidators (LL 55.25, -15.17). The home improvement retailer said that customer traffic during the quarter was well below expectations, which will result in disappointing results. The stock sank 21.5%, while peers Home Depot (HD 79.40, -1.33) and Lowe's (LOW 47.20, -0.66) both lost near 1.5%.

The relative weakness of the discretionary sector (-0.9%) was not enough to scare dip-buyers away. After putting in a session low during the first 15 minutes of the action, the S&P 500 spent the trading day in a steady rally that allowed the index to reclaim more than half of its losses. A rebound in the heavily-weighted health care (unch) and technology (-0.3%) sectors contributed to the partial recovery, but energy (-1.0%) and financials (-0.6%) were reluctant participants in the bounce, which prevented the S&P 500 from turning positive.

Treasuries, meanwhile, rallied throughout the night, registered their highs shortly before the start of the session, and spent the remainder of the day in a retreat. The 10-yr note trimmed its gain to four ticks, while the benchmark yield slipped two basis points to 2.54%.

Participation was below average with 640 million shares changing hands at the NYSE floor.

Economic data was limited to weekly initial claims and the Wholesale Inventories report for May:

  • The initial claims level fell to 304,000 from an unrevised 315,000, while the Briefing.com consensus expected the claims level to fall to 311,000 
    • Over the past several weeks, claims have stabilized between 310,000 and 320,000. While claims came in below this level, it was likely due to normal volatility stemming from the Independence Day holiday and not a change in trend 
    • The continuing claims level increased to 2.584 million from a downwardly revised 2.574 million (from 2.579 million), while the consensus expected continuing claims to slip to 2.567 million 
  • Wholesale inventories increased 0.5% in May following a downwardly revised 1.0% (from 1.1%) in April. The Briefing.com consensus expected wholesale inventories to increase 0.5% 
    • The increase in inventories came predominantly from a 1.9% increase in automotive inventories and a 2.1% increase in metals 
Tomorrow, the June Treasury Budget (Briefing.com consensus $70.00 billion) will be reported at 14:00 ET.
  • S&P 500 +6.3% YTD 
  • Nasdaq Composite +5.3% YTD 
  • Dow Jones Industrial Average +2.0% YTD 
  • Russell 2000 -0.1% YTD

4:16 pm AmRIET confirms receipt of unsolicited proposal from Regency Centers (REG) (AMRE) : Co confirmed that it received an unsolicited, preliminary, non-binding proposal dated today's date from Regency Centers Corporation (REG) to acquire all the outstanding shares of the Company's common stock for $22.00 per share in cash and/or stock of Regency.

AmREIT stated that its Board of Directors met this morning to discuss the proposal and will evaluate the proposal carefully and respond in due course.

4:12 pm E2open beats by $0.01, reports revs in-line; guides Q2 EPS below consensus, revs below consensus; guides FY15 EPS below consensus, revs above consensus (EOPN) : Reports Q1 (May) loss of $0.14 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of ($0.15); non-GAAP revenues rose 21.7% year/year to $19.6 mln vs the $19.57 mln consensus.

  • Co issues downside guidance for Q2, sees EPS of $(0.20)-(0.18), excluding non-recurring items, vs. ($0.12) Capital IQ Consensus Estimate; sees Q2 non-GAAP revs of $20.2-21.0 vs. $21.42 mln Capital IQ Consensus Estimate.
  • Co issues guidance for FY15, sees EPS of $(0.54)-(0.51), excluding non-recurring items, vs. ($0.46) Capital IQ Consensus Estimate; sees FY15 non-GAAP revs of $89-91.5 mln vs. $87.89 mln Capital IQ Consensus Estimate.

4:10 pm Medivation announces that Dawn Svoronos (formerly Graham) has been appointed as its chief commercial officer (MDVN) : Co announces that Dawn Svoronos (formerly Graham) has been appointed as its chief commercial officer, reporting to David Hung, M.D., founder, CEO and president of Medivation. Ms. Svoronos currently is a member of Medivation's Board of Directors and is a former president of Europe and Canada for Merck (MRK), where she oversaw commercial operations in approximately 30 EU and EU accession countries. 

4:09 pm NASDAQ reports at end of settlement date of June 30, 2014, short interest in 2,220 NASDAQ Global Market securities totaled 8,308,590,157 shares vs 8,236,831,389 shares in 2,201 Global Market issues reported for the prior settlement date of June 13, 2014 (NDAQ) :  

4:09 pm Meritage to acquire the homebuilding assets and operations of Legendary Communities for a purchase price of ~$130 mln (MTH) : Legendary builds homes primarily for first and second move-up buyers with base home prices ranging from ~$120,000 to $550,000. The company closed ~500 homes and generated ~$156 million of revenue in 2013. As of June 30, 2014, Legendary owned or controlled ~4,000 home sites.

4:08 pm KEYW Holding subsidiaries and Oracle (ORCL) collaborate on advanced security solutions (KEYW) : Cos are working with Oracle's National Security Group on advanced solutions for certain mission applications and advanced analytic development for KEYW's U.S. Government customers.

  • By attaining Gold Level membership, Oracle has recognized KEYW for its commitment to establish Oracle related knowledge in delivering solutions and services for Oracle Engineered Systems.
  • With its Gold status, KEYW is able to develop Oracle specializations that will allow them to grow their business, increase their expertise, reach higher levels of customer retention, and create differentiation in the marketplace. 
  • Gold members are also eligible to resell Oracle Technology products.

4:08 pm AllianceBernstein announces Asset Under Management increased to $480 bln, +3% m/m (AB) : Co announced that preliminary assets under management increased to $480 billion during June 2014 from $466 billion at the end of May. The 3% increase was driven by both market appreciation and firmwide net flows, which were positive across all three distribution channels. Month-end assets under management also include approximately $3 billion in global core equity Retail and Institutional assets that were added when the firm completed its acquisition of CPH Capital.

4:07 pm Aviv REIT announces $94 mln acquisition consisting of one post-acute and long-term care skilled nursing facility and two parcels of land and the entitlements for the construction of two new ALFs and a 50 unit addition to one of the existing ALFs (AVIV) :  

4:07 pm Artisan Partners Asset Mgmt reports June 2014 AUM of $112.041 bln vs $109.26 bln in May 2014 (APAM) :  

4:05 pm ICF International awarded new $24 mln contract with major U.S. utility (ICFI) : Co has been awarded a new contract from a major U.S. utility to provide habitat restoration program management services following construction of a 500kV electrical transmission line. The contract has a value of $24 mln and a term of five years.

Under the terms of the contract, ICF will oversee restoration of environmentally sensitive lands that were disturbed during construction.

4:01 pm Invesco announces Assets Under Management of $802 bln, +1.6% m/m (IVZ) : Co reported preliminary month-end assets under management (AUM.TO) of $802.4 billion, an increase of 1.6% month over month. The increase was driven by favorable market returns, beneficial foreign exchange, and net long-term inflows. 

  • FX increased AUM by $2.8 billion during the month. 
  • Preliminary average total AUM for the quarter through June 30 were $786.6 billion, and preliminary average active AUM for the quarter through June 30 were $644.7 billion.

4:01 pm Verastem presents results and updated development plans at annual research and development day: 'Lead cancer stem cell inhibitor VS-6063 continues to show promise in the clinic' (VSTM) : Co hosted its annual Research and Development Day at the Hudson Theatre in the Millennium Broadway Hotel in New York City.

  • Lead cancer stem cell inhibitor VS-6063 continues to show promise in the clinic
  • An additional partial response reported since ASCO in the combination trial of VS-6063 and paclitaxel in ovarian cancer
  • 64% stable disease or better as best clinical response to date, including five objective responses, in the ongoing combination trial of VS-6063 and paclitaxel in ovarian cancer-

3:59 pm AmRIET And Joshua Schechter call for full exploration of strategic alternatives at AmREIT (AMRE) : JCP Investment Management and Joshua Schechter together are significant, long-term shareholders in AmREIT with collective ownership of approximately 1.7% of AmREIT. JCP Investment Management and Mr. Schechter announced today, that after review and consideration of the unsolicited proposal submitted today to the Board of Directors of AmREIT by Regency Centers Corporation (REG) in which Regency offers to acquire all of the outstanding shares of AmREIT for $22.00 per share in cash or stock, JCP Investment Management and Mr. Schechter have concluded that the Regency Proposal is deeply inadequate and significantly undervalues the Company.

  • We believe Regency's offer for $22 does not come close to fairly reflecting AmREIT's true value. AmREIT owns superior assets in in-fill locations that have significant NOI upside or redevelopment potential.

3:32 pm Earnings Calendar (:SUMRX) : Today after the close look for the following companies to report:

  • PSMT, VOXX, CUDA, EOPN
Tomorrow before the open look for the following companies to report:
  • WFC, INFY, FAST

3:15 pm Gulfport Energy names Aaron Gaydosik CFO (GPOR) : Most recently, Mr. Gaydosik served as Vice President of Finance at Kodiak Oil & Gas Corp. (KOG), and he served as a Director in the Oil and Gas Group at Credit Suisse (CS).

3:03 pm Halliburton received the American Petroleum Institute specification Q2 certification - an advanced industry certification standard for oil and natural gas service companies - for its work in the Gulf of Mexico (HAL) :  

2:55 pm NYMEX Energy Closing Prices (:COMDX) :

  • Aug crude oil rose $0.68 to $102.92/barrel 
    • Crude oil chopped around slightly below the unchanged line in morning action but lifted into positive territory later in the session despite strength in the dollar index. The energy component rose as high as $103.04 after brushing a session low of $101.86 moments after floor trade opened. It settled with a 0.7% gain. 
  • Aug natural gas fell 5 cents to $4.12/MMBtu 
    • Natural gas fell into negative territory from its session high of $4.19 following inventory data that showed a build of 93 bcf when a build of 90-92 bcf was anticipated. It eventually settled just above its session low of $4.11, booking a loss of 1.2%. 
  • Aug heating oil rose 2 cents to $2.89/gallon 
  • Aug RBOB rose 2 cents to $2.96/gallon

2:37 pm Minor pullback off rebound highs extended -- Dow -67, S&P -7.4, Nasdaq Comp -17 (:TECHX) : Relative weakness in recent trade includes: Internet FDN, Retail XRT, Housing XHB, Discretionary XLY, Casino, Gold Miners GDX, Materials XLB. 

2:24 pm CBOT Agriculture and Ethanol/ICE Sugar Closing Prices (:COMDX) :

  • Sep corn fell 5 cents to $3.86/bushel
  • Sep wheat fell 3 cents to $5.48/bushel
  • Aug soybeans fell 14 cents to $12.32/bushel
  • Sep ethanol fell 2 cents to $2.03/gallon
  • Sep sugar (#16 (U.S.)) rose 0.21 of a penny to 25.01 cents/lbs

2:19 pm Dollar Holds 80.00: 10-yr: +04/32..2.535%..USD/JPY: 101.32..EUR/USD: 1.3594 (:SUMRX) :

  • The Dollar Index trades near session highs as action flirts with the 80.15 mark. Click here to see a daily Dollar Index chart.
  • The Index hugged the 80.00 flat line early on in the overnight session before steady buying took hold for the remainder of the day. 
  • EURUSD is -40 pips @ 1.3600 as trade looks to put in its first loss in four days. The single currency has come under pressure during today's session as concerns over the health of the Portuguese banking system and the French industrial production miss weigh. A breakdown of minor support near 1.3600 sets up the test of the key 1.3500 level. 
  • GBPUSD is -25 pips @ 1.7130 as trade slips off its best levels since October 2008. Sterling saw early selling pressure after the UK announced a wider than expected trade deficit, and pressed to session lows at 1.7100 after the Bank of England kept both its key rate and asset purchase program unchanged. Support in the 1.7100 area has held throughout the month of July. 
  • USDCHF is +20 pips @ .8930 as trade has recovered all of yesterday's losses. Today's strength has run the pair back above the 50 dma, setting up another test of .8950 resistance that is defended by the 200 dma. 
  • USDJPY is -30 pips @ 101.35 as action looks likely to avoid its lowest close since February. Overnight weakness took hold in response to the plunge in Japan's core machinery orders, dropping trade onto the 102.25 level. However, trade ticked off the level as risk assets grinded higher throughout U.S. trade. 
  • AUDUSD is -20 pips @ .9385 amid a volatile session. The hard currency surged to session highs near .9460 after the employment change beat before reversing into the red. The .9350 support level remains under close watch. Australia's home loans are due out tonight. 
  • USDCAD is flat @ 1.0655 as trade continues to press support in the area. Some light buying developed after Canada's New Home Price Index (0.1% MoM actual v. 0.3% MoM expected) missed estimates, but trade has since given up those gains. Canada's employment change and unemployment rate are due out tomorrow.

2:02 pm Abbott Labs and Fonterra to form strategic alliance for dairy farming in China (ABT) :

  • Co and Fonterra Co-operative announced the signing of an agreement to develop a proposed dairy farm hub in China. The strategic alliance, which is subject to Chinese regulatory approval, will leverage Fonterra's expertise in dairy nutrition and farming in China and Abbott's continued commitment to business development in China.
  • If approved, Abbott and Fonterra will form a JV to invest a combined $300 million (NZ$342 million or 1.8 billion RMB) into the farm hub, which will contain up to five dairy farms and more than 16,000 dairy milking cattle in production, producing up to 160 million liters of milk annually. The herd for this hub will comprise animals either imported, or sourced from Fonterra's existing farm hubs. All dairy cattle will have genetics traceable to New Zealand, Australia, the United States and Europe..
  • Pending regulatory approval, the first farm is expected to be completed and producing milk in the first half of 2017 and the remaining farms will commence production in 2018.

2:01 pm China XD Plastics responds to Seeking Alpha article; 'article contains numerous errors of facts, misleading speculations and malicious interpretation of events' (CXDC) : Co responded to the allegations raised by an article posted on Seeking Alpha's website dated July 10, 2014 by Bleecker Street Research. China XD Plastics believes that Bleecker Street Research's article contains numerous errors of facts, misleading speculations and malicious interpretation of events.

  • China XD will consider and decide on the necessary and appropriate course of action in response to the allegations. 
  • China XD Plastics is committed to providing full and accurate disclosure to investors and to rebutting any false claims that attempt to undermine confidence in the co's business, management, operations and corporate structure.

1:51 pm COMEX Metals Closing Prices (:COMDX) :

  • Aug gold rose $15.10 to $1339.50/oz 
    • Gold extended yesterday's gains as it gained support on concerns over Portugal's banking system after the parent company of Banco Espirito Santo missed a bond payment. The precious metal touched a session high of $1346.80 in early morning action and settled with a 1.1% gain. 
  • Sep silver rose $0.44 to $21.51/oz 
    • Silver also traded in positive territory, advancing as high as $21.61. It eventually closed with a 2.1% gain. 
  • Sep copper rose 2 cents to $3.27/lbs

1:33 pm Fresh recovery highs across the board -- Dow -44, S&P -4.4, Nasdaq Comp -6.7 (:TECHX) : Relative sector strength on the recent recovery extension has been noted in: Biotech IBB, Health XLV, Transports IYT, Semi SMH, Bank KBE, Reg Bank KRE, Defense PPA, Crude Oil USO.

1:12 pm Agnico-Eagle Mines exercises 19.8 mln Pershimco Warrants (AEM) : Co announced that it has exercised the 19.8 mln warrants of Pershimco Resources Inc. that it acquired under a private placement on January 28, 2014. On July 10, 2014, Pershimco amended the exercise price of the Warrants to CAD$0.40 per Common Share until August 9, 2014, after which the exercise price reverts to the previous exercise price of CAD$0.54 per Common Share for the duration of the term of the Warrants.

Agnico Eagle is acquiring the Common Shares for investment purposes. Depending on market conditions, Agnico Eagle may, from time to time, acquire additional securities of Pershimco or dispose of some or all of the Common Shares.

1:11 pm Minor new recovery highs for Nasdaq Comp -14 and small-/mid-caps (:TECHX) :  

1:00 pm Midday Market Summary: Stocks Battling Back From Opening Losses (:WRAPX) : At midday, the major averages hover in the red, but they are well off their opening lows. The S&P 500 trades lower by 0.4% after being down as much as 1.0% at the start of the trading day.

The early slump occurred amid a series of negative headlines from all around the world. In Asia, China's exports (7.2% versus expected 10.6%) and imports (5.5% versus expected 5.8%) missed estimates, while Japan's Core Machinery Orders tumbled 19.5% against the expectations of a 0.7% uptick.

News from Europe added insult to injury as indices across the old continent retreated amid worries about Portugal's banking system after the parent company of Banco Espirito Santo missed a bond payment. Portugal's PSI 20 fell 4.2%, while Germany's DAX and Spain's IBEX lost 1.5% and 2.0%, respectively.

Domestically, participants received a little bit of good news on the economic front as weekly initial claims decreased to 304,000 (Briefing.com consensus 311,000); however, headlines out of the corporate world were not nearly as upbeat.

After showing relative strength yesterday, restaurant and retail names are on the defensive following a pair of warnings. Quick-service restaurants have slumped after Potbelly (PBPB 11.38, -3.27) lowered its Q2 guidance below consensus, while retailers have been pressured by a warning from Lumber Liquidators (LL 55.84, -14.58). The two stocks hold respective losses of 22.3% and 20.7% with Potbelly dropping to a record low. As a result, the consumer discretionary sector (-0.8%) is the second-weakest performer, trailing the energy space (-1.0%).

Similar to the discretionary sector, financials (-0.7%) also trail the broader market, while health care (-0.2%) and technology (-0.3%) have wiped out the bulk of their losses. The four top-weighted sectors (especially) warrant close attention into the afternoon as their performance could make or break the rebound effort.

Also of note, the weakness among cyclical sectors has given a boost to defensively-oriented telecom services (+0.3%) and utilities (+0.4%).

Treasuries, meanwhile, rallied into the opening bell, but have been slipping since. The 10-yr note remains higher by eight ticks with its yield down three basis points at 2.53%.

Economic data was limited to weekly initial claims and the Wholesale Inventories report for May:

  • The initial claims level fell to 304,000 from an unrevised 315,000, while the Briefing.com consensus expected the claims level to fall to 311,000 
    • Over the past several weeks, claims have stabilized between 310,000 and 320,000. While claims came in below this level, it was likely due to normal volatility stemming from the Independence Day holiday and not a change in trend 
    • The continuing claims level increased to 2.584 million from a downwardly revised 2.574 million (from 2.579 million), while the consensus expected continuing claims to slip to 2.567 million 
  • Wholesale inventories increased 0.5% in May following a downwardly revised 1.0% (from 1.1%) in April. The Briefing.com consensus expected wholesale inventories to increase 0.5% 
    • The increase in inventories came predominantly from a 1.9% increase in automotive inventories and a 2.1% increase in metals

12:47 pm TRW Automotive confirms it received a preliminary, non-binding proposal to acquire the co (shares halted) (TRW) :

  • Co confirmed that it received a preliminary, non-binding proposal to acquire the co. The co is evaluating the proposal as well as other strategic alternatives which may enhance stockholder value. The co will continue to execute its existing business plan while it conducts this analysis. 
  • The co has not made a decision to pursue any specific strategic transaction or any other strategic alternative, and there is no set timetable for the strategic review process. 
  • The co has retained Goldman, Sachs & Co. as its financial advisor.

12:30 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

  • UAL (43.63 +8.88%): Reported June 2014 consolidated traffic (RPM) was flat y/y, consolidated capacity (ASM) increased 0.8% vs June 2013, consolidated load factor decreased 0.6 points compared to June 2013; CRT Capital's Top Pick.
  • TRW (97.71 +6.91%): Bloomberg.com reported ZF Friedrichshafen interest - in prelim talks; currently halted for news pending.
  • AAL (42.59 +1.43%): Tgt raised to $51 from $45 at CRT Capital; Top Pick.
Large Cap Losers
  • CBS (61.87 -3.23%): Co set final exchange ratio of 2.1689 for CBS Outdoor (CBSO) exchange offer.
  • TROW (81.59 -2.88%): Downgraded to Equal Weight from Overweight at Evercore.
  • PGR (24.62 -2.26%): Beat on EPS by $0.01, reported revs in-line.
Mid Cap Gainers
  • SFUN (10.3 +8.42%): Co signed strategic cooperation agreements with China's No.1 and No.4 new home agency companies.
  • MDRX (16.03 +3.75%): Upgraded to Strong Buy from Buy at ISI Group; tgt raised to $19 from $17.50.
  • CWH (26.58 +2.59%): Co sold its 22 mln shares of Select Income REIT (SIR) for $31.51 per share; total consideration is ~$705 mln; upgraded to Buy at Stifel; tgt $28.50.
Mid Cap Losers
  • KOS (9.98 -6.07%): Co priced 17 mln common shares at $9.92 per share; all of which were offered by funds affiliated with The Blackstone Group (BX) and Warburg Pincus.
  • NTI (25.8 -3.33%): Downgraded to Neutral from Outperform at Macquarie.
  • WDR (58.99 -3.03%): Downgraded to Neutral from Buy at Citigroup.

12:20 pm S&P -8.9 and Nasdaq Comp -23 able to set new rebound highs -- Dow -90 (:TECHX) : The S&P continues to probe intraday resistance in the 1963/1965 zone (11:08).

12:13 pm Brookdale Senior Living stockholders approve merger with Emeritus Corporation (ESC) (BKD) : Co announced the results of its special meeting of stockholders held earlier this morning. Pursuant to Brookdale's previously announced merger agreement with Emeritus Corporation (ESC), Brookdale stockholders voted to approve an amendment to its certificate of incorporation and the issuance of Brookdale common stock to Emeritus stockholders in the merger.

  • Emeritus' special meeting of stockholders to approve the merger agreement will be held on July 10, 2014, at 2:00 p.m., Pacific Time. The transaction is expected to close in the third quarter of 2014.

12:13 pm Cliffs Natural Resources: Casablanca Capital condemns compensation practices at Cliffs Natural Resources (CLF) : Casablanca Capital the beneficial owner of ~5.2% of Cliffs Natural Resources, issued a letter to shareholders in connection with Casablanca's campaign for fundamental change at Cliffs and its nomination of six director candidates for election to the Board of Directors at the Company's upcoming 2014 Annual Meeting of Shareholders on July 29, 2014.

Letter highlights:

  • Management compensation is unacceptable
  • No transparency in compensation practices
  • Continually tweaking standards to maximize bonuses
  • Burying details of executive chairman's compensation

12:08 pm European Markets Closing Prices (:SUMRX) : European markets are now closed; stock markets across Europe performed as follows:

  • UK's FTSE:-0.7%
  • Germany's DAX:-1.5%
  • France's CAC:-1.3%
  • Spain's IBEX:-2.0%
  • Portugal's PSI:-4.2%
  • Italy's MIB Index:-1.9%
  • Irish Ovrl Index:-0.6%
  • Greece ASE General Index: -1.8%

12:04 pm Concur Tech announced a partnership with United Airlines (UAL) to develop and enable corporate direct travel bookings on united.com and on United apps by leveraging Concur's TripLink product (CNQR) :  

11:49 am Current Commentary: EU Debt Concerns Rattle Markets (:SUMRX) :

  • The Dollar Index has climbed off 80 support this morning to push to the 80.15 level. The move comes following the release of the latest Fed minutes which repeated the commentary from the Fed that tapering will continue but it continues to closely watch economic data to make sure that the recovery remained on track. Helping the U.S. dollar this morning is a parade of negative global economic data and worries of debt issues in the EU as a Portuguese co missed a coupon payment. The U.S. in the mean time saw Initial Claims beat expectations. All of this is leading to small buying in the dollar as it is viewed as one of the safer currencies in the market. 
  • The euro ended a three day rally as news of a missed debt payment by Portugal's Banco Espoirito Santo parent co made the rounds. Weak industrial production data from France and Italy. The euro is attempting to hold the 1.36 level in the face of the negative news. 
  • The pound slipped back to the 1.71 level as it was impacted by the European woes. The Bank of England left rates unchanged this morning as was widely expected. Market participants will be more interested in the release of minutes to see if the vote was unanimous. The general belief is that there is a growing call for rate hikes as the economy recovers. A move away from the unanimous votes we have seen over the past meetings would point to an uptick in that debate. Also of interest, Burberry, the country's largest luxury goods maker, warned that the strong pound was hurting its Q2 results. 
  • The yen was able to harness the global unrest to move higher and push to 101.04, its lowest level since May 21. Weak data around the world, including a poor Machinery Orders number from Japan itself, is keeping market participants cautious. Thus the yen safe haven status is coming into play and helping increase demand (FOREX, BONDX). 

11:45 am Stocks/ETFs that traded to new 52 week highs/lows this session - New lows (81) outpacing new highs (49) (:SCANX) : Stocks that traded to 52 week highs: AA, ADM, AEM, AIV, AMRE, AMT, ASA, AVB, BAX, BWA, CBEY, CCK, CMSB, CORR, DDR, DIS, DOC, EQR, ESS, EXK, FNV, FRT, FSM, GA, GLUU, GOLD, GPL, HOT, JLL, LEA, LSG, MAYS, NNN, PAAS, PAM, PPC, PPP, PPS, RGLD, RPAI, SBAC, TEN, TGS, TPX, TRP, TRW, UGI, WLDN, WRI

Stocks that traded to 52 week lows: ACXM, AEGR, ALLY, AMBI, ARO, ASCMA, ATNY, AVD, BAA, BAXS, BCS, BEBE, BECN, BLOX, BODY, BSDM, CA, CAS, CGG, CLRX, CNHI, CPWR, DB, DCTH, DEST, DRIV, DWA, ECT, EGLE, EGOV, ESI, GFIG, GHL, GIMO, GKNT, GRVY, HIVE, INFA, ITI, KELYA, KIOR, KITE, KKD, LAYN, LL, LPTN, MBI, MCP, MELA, MGT, MKTX, NEWL, NICK, NILE, NNA, NPTN, NVGN, OIBR, PBPB, PGEM, PGTI, PIKE, PLX, PSTI, PT, QKLS, QNST, QRM, RUBI, RXII, SALE, SODA, SPAR, TCCO, TLYS, TSCO, VII, VOLC, VPRT, XXIA, ZFGN

ETFs that traded to 52 week highs: none

ETFs that traded to 52 week lows: JJG

11:32 am Lions Gate Entertainment acquires Domestic Digital, vod and television distribution rights to faith-based box office hit 'God's Not Dead' (LGF) : Co entered into an agreement with Pure Flix Entertainment for the home entertainment distribution of the theatrical box office hit God's Not Dead, the two companies announced today. Under the agreement, Lionsgate has secured electronic sell-through, VOD, SVOD, pay-per-view and television distribution rights in the U.S.

The deal was negotiated for Lionsgate by Marc Danon, Senior Vice President, Acquisitions & Business Development, and for Pure Flix by David A. R. White and Thomas H. Vidal of Abrams Margolis Bergson LLP.

11:30 am Dominion using research vessel to collect data for offshore wind turbines (D) : A 110-foot long lift vessel will periodically be located off the shore of Camp Pendleton during July to obtain core samples needed for Dominion Virginia Power to move ahead with its proposal to build wind turbines 27 miles off the coast.

11:29 am Arrow Elec signs distribution agreement with Nutanix: bringing web-scale converged infrastructure to resellers (ARW) : Co has signed a distribution agreement with Nutanix, a leading provider of next-generation data center infrastructure solutions. Under the agreement, Arrow will distribute the Nutanix Virtual Computing Platform to its broad community of solution providers in North America.

11:21 am Floor Talk (:TALKX) : There hasn't been anything "uninteresting" about the stock market today. The major indices got hit hard at the open, but soon thereafter started to lick their wounds and are now well off their lows of the morning, which were -180 for the Dow, -68 for the Nasdaq, and -20 for the S&P 500.

The basis for the opening selloff was clear. There were multiple headlines with negative connotations:

  • The parent company of Portuguese bank Banco Espirito Santo missed some short-term debt payments, provoking concerns about systemic risk
  • Following in the footsteps of Germany and the UK, Italy and France reported declines in industrial production in May of 1.2% and 1.7%, respectively
  • Exports from China rose 7.2% in June, which was well below estimates calling for 10.6% growth; imports were up 5.5% versus estimates of 5.8%
  • Machinery orders in Japan plunged 19.5% month-over-month in May
  • Lumber Liquidators (LL 54.70, -15.72) issued a nasty warning for the second quarter, noting customer traffic was significantly weaker than expected
What has been less clear is the basis for the recovery effort.  There hasn't been a specific news catalyst to explain it.  Basically, it has been another tried-and-true buy-the-dip effort.  We suspect that inclination has been fueled by the following factors:
  • Ongoing faith in the Fed put (which was laid out yet again in the FOMC Minutes on Wednesday)
  • The ingrained belief that worst-case scenarios won't come to fruition
  • The recognition that the financial sector (-0.7%) has held in reasonably well despite the headlines coming out of Portugal
  • Technical support holding in the 1954/1952 area for the S&P 500
  • Some possible short-covering activity; and
  • The idea that the US is again looking good compared to other parts of the world
The 10-yr note (+9/32, yielding 2.52%) has simultaneously backed off its best levels of the day as the stock market has rebounded.  

There is still a long way to go in today's session.  Another pullback remains a possibility, yet things at this juncture don't look as bad as the premarket headlines suggested they might be at this juncture.

11:08 am S&P -9 cuts the slide off yesterday's high in half (SPY) : The 50% retrace off yesterday's high and intraday chart resistance is in the 1963/1965 zone.

11:03 am Amazon.com Web Services introduces Amazon Zocalo a fully managed, secure enterprise storage and sharing service limited preview starting today (AMZN) : In addition, co announced several new capabilities to make it easier for developers to build, deploy, and scale mobile applications. Amazon Cognito is a new service that provides simple user identity and data synchronization that lets developers create apps that authenticate users through popular public login providers, and then keep app data such as user preferences and game state synced between devices. With AWS Mobile Services, developers can: 

  • Securely store, manage, and sync user identities and data (Amazon Cognito)
  • Quickly access and understand app usage data (Amazon Mobile Analytics)
  • Easily connect apps to AWS services (AWS Mobile SDK)
  • Send notifications, updates, and promotions across platforms (Amazon SNS)

11:02 am Wi-LAN and Sony (SNE) enter license agreement (WILN) : Co announced that it and Sony Corporation (SNE) have entered into a multi-year license agreement related to WiLAN's portfolio of television technologies. WiLAN's display and television patent portfolio includes patents covering various technologies including V-Chip parental control, display conversion and closed captioning technologies. The agreement also includes certain 3D television technology developed by SENSIO Technologies. SENSIO's S2D Switch technology is exclusively available from WiLAN. All remaining terms of the license agreement are confidential.

10:56 am iShares DJ Real Estate notches new session high of 72.40, nearing its Mid-June reaction high (IYR) : Highlighted the IYR yesterday as it worked up toward its early July high at 72.17. The follow through today leaves it slightly under the Mid-June reaction high at 72.49 and as mentioned, its 52-wk close/intraday highs from early June are at 72.90/73.16 -- PSA, HCN, HCP, CCI, EQR, VNO, PLD.

10:50 am Major averages extend morning rebound -- Dow -104, S&P -11, Nasdaq Comp -35 (:TECHX) :  

10:28 am Additional minor recovery -- Dow -125, S&P -13, Nasdaq Comp -42 (:TECHX) : The S&P has rebounded back to the 50% retrace of today's range near 1960 and paused.

10:11 am Enterprise Products announced before the open that it increased quarterly dividend to $0.72 from $0.71/share (EPD) :  

10:07 am Stock indices slightly extend push off morning lows -- Dow -134, S&P -14, Nasdaq Comp -48 (:TECHX) : The Nasdaq Comp did not confirm the new S&P/Dow lows at 9:50 with some modest recovery developing thereafter.

10:04 am Roche Hldg'S Ventana Medical Systems, Inc. and Merck KGaA (MKGAY.PK) to develop companion diagnostic test for cancer treatment (RHHBY) : Co announced it has entered into an agreement with Merck KGaA, Darmstadt, Germany, which operates as EMD Serono in the United States and Canada, to collaborate with Merck KGaA's biopharmaceutical division on the development and commercialization of a companion diagnostic for an undisclosed target using Ventana's proprietary diagnostic assays.

  • In alignment with Merck KGaA's strategic approach in personalized medicine, the aim is to develop a patient stratifying diagnostic test that can be used in multiple cancer indications. 
  • Merck KGaA, which is actively investing in innovation in the CDx field through a number of partnerships, will leverage Ventana's global leadership position in cancer diagnostics and vast expertise in CDx to achieve new levels of diagnostic clarity for the investigated target. 
  • As part of the agreement, Ventana will develop and validate the CDx and ensure its readiness, availability, and adherence to FDA and other health authority standards for future clinical trials.

10:03 am Domtar: UPM to become exclusive distributor of Domtar's BioChoice lignin in Europe (UFS) : Co announced that the companies have entered into an agreement for UPM to become the exclusive distributor of Domtar's BioChoice lignin in Europe. The agreement takes effect on August 1st, 2014.

BioChoice lignin is produced at Domtar's biorefinery in Plymouth, North Carolina. A by-product of the kraft pulping process, BioChoice is a 100% bio-based sustainable alternative to fossil-based products, and also holds the USDA Certified Biobased product label.

9:53 am Minor new lows for Dow -176 and S&P -19, Nasdaq Comp -65 still vacillating slightly above (:TECHX) :  

9:46 am Opening Market Summary: Stocks Slump Out of the Gate (:WRAPX) : As expected, the stock market began the session on a sharply lower note with small-cap stocks bearing the brunt of the selling pressure. The Russell 2000 is lower by 1.8%, while the S&P 500 holds a loss of 0.9% with eight of ten sectors holding losses.

Fittingly, with macroeconomic worries taking center stage, cyclical sectors are bunched up at the bottom of the leaderboard with consumer discretionary (-1.2%), energy (-1.1%), and financials (-1.0%) leading the retreat. Meanwhile, the countercyclical side looks a bit better with telecom services (+0.3%) and utilities (+0.3%) holding modest gains, while consumer staples (-0.4%) and health care (-0.9%) hover in the red.

Treasuries have erased some of their gains, but the 10-yr note remains higher by 12 ticks with its yield down four basis points at 2.51%.

The Wholesale Inventories report for May will cross the wires at 10:00 ET (consensus 0.5%).

9:45 am Relative sector strength (:TECHX) : Sectors posting gains this morning have been led by: Gold Miners GDX, Silver SLV, Gold GLD, Utility XLU, and REITs IYR.

9:44 am Neonode issued US Patent for light-based touch controls on a steering wheel and dashboard (NEON) : Co announced that the USPTO has recently issued Neonode patent #8,775,023 for Light-Based Touch Controls on a Steering Wheel and Dashboard.

  • The '023 patent covers controlling in-car entertainment and navigation systems via hand gestures performed on a touch-sensitive steering wheel. This patent expands Neonode's family of sweep gesture patents, which include US Patent Nos. 8,095,879 and 8,650,510. This is Neonode's 17th issued US patent and its 42nd issued patent worldwide.
  • It is anticipated that this new technology will be seen in production car models during 2016.

9:43 am Stock indices attempting to stabilize after aggressive opening slide -- Nasdaq Comp -52, S&P -16, Dow -150 (:TECHX) : The Nasdaq Comp and S&P probed second level supports from The Technical Take at 4354/4347 (session low 4351) and 1955/1954 (session low 1953.57), respectively, and have stabilized. Only a minor recovery has developed thus far with the S&P underperforming on the bounce.

9:35 am Russell 2000 -20 closes early June gap at 1153 -- session low 1153 (IWM) : The 50% retrace of the May-July run and it 50 sma are both at 1148.

9:34 am Aggressive slide off the open with small-caps pacing the way -1.6% -- Dow -157, S&P -18, Nasdaq Comp -64 (:TECHX) :  

9:31 am Sabre signs a comprehensive technology agreement with China-based HNA Hotels & Resorts (SABR) : Sabre Hospitality will serve as HNA's primary technology provider for its critical operations and marketing systems, including the Sabre SynXis central reservations system and Sabre Guest Connect Booking Engine. HNA also will leverage Sabre's full complement of distribution channels.

9:31 am Moneygram announced a five-year renewal of its agreement with Pennsylvania-based Members 1st Federal Credit Union to provide check services through its PrimeLink Official Check outsourcing program. (MGI) :  

9:27 am On The Wires (:WIRES) :

  • MetLife (MET) will develop a new large-scale industrial distribution park on 183 acres near Atlanta with Panattoni Development. MetLife will be the majority partner and Panattoni will be the managing member. 
  • Parker Hannifin (PH) is developing more than 100 potential medical advancements with Cleveland Clinic. Several medical solutions have been submitted for regulatory approval in Europe and the U.S., and are anticipated to be ready for commercial launch as early as 2015.
  • Interval International, an operating business of Interval Leisure (IILG), Arabian Falcon Holidays and Royal Club Dubai announced a multi-year extension of the affiliation agreement for Royal Club at Palm Jumeirah. 
  • CenturyLink (CTL) won a colocation contract from the National Institutes of Health that could be worth nearly $63 mln over the next 10 years. CenturyLink will provide colocation, network connectivity and disaster recovery services to the NIH National Library of Medicine and the NIH Center for Information Technology.
  • NF Energy Saving (NFEC) signed a $0.28 mln contract with Guangxi Baise Baikuang Power to supply its valve products to the supercritical thermal power generation unit located in Xinshan Aluminum Industrial Park. 
  • Tyler Technologies (TYL) has signed a contract with the city of Wichita Falls, Texas, to implement Tyler's Munis enterprise resource planning and Incode court case management software solutions.
  • MetTel announced that Addus HomeCare (ADUS) has selected MetTel as one of its wireless service providers.
  • ZAGG (ZAGG) introduced their ZAGG Folio wireless Bluetooth keyboard for the Samsung (SSNLF) Galaxy Tab 4 line.
  • Quantum Fuel Systems (QTWW) has received its first storage system order from a large Kenworth dealership network with offices in the US and Canada. 
  • InterDigital (IDCC) announced licensing and litigation industry veteran, Marie H. MacNichol, has joined the co as Chief Licensing Counsel and Chief Licensing Officer. 
  • BSD Medical (BSDM) has signed an agreement with Comed Medical Specialties for the sales and distribution of the MicroThermX Microwave Ablation line of products.

9:19 am Installed Building Products announces new $100 mln senior secured credit facility (IBP) : Co announced that it has entered into a new five year, $100 mln senior secured credit facility. The credit facility consists of a $75 mln revolving line of credit and a $25 mln term loan. Borrowings under the senior credit facility will bear interest at a rate of LIBOR plus a spread of 1.25% to 2.25%, depending on IBP's leverage ratio. The new credit facility will be available for working capital needs, general corporate purposes and growth initiatives. This new credit facility replaces the co's prior $50 mln revolving credit facility, which was scheduled to mature in May 2016.

The credit facility was led by a syndicate of financial institutions including KeyBank National Association as lead arranger, sole book runner and administrative agent, Suntrust Bank as syndication agent, Royal Bank of Canada, Associated Bank, Branch Banking & Trust Company and The Huntington National Bank.

9:17 am S&P futures vs fair value: -18.10. Nasdaq futures vs fair value: -46.50. (:WRAPX) : The stock market is on track for a notably lower start as futures on the S&P 500 trade 18 points below fair value. Index futures spent the entire overnight session in the red with the bulk of the retreat occurring after European markets opened for action. This was fitting, considering Europe is the source of the worries that have weighed on sentiment.

Specifically, shares of Portugal's Banco Espirito Santo have tumbled 17.4% after its parent company failed to make a bond payment. Banco de Portugal attempted to calm investors, but the attempts have been unsuccessful. Portugal's PSI 20 index is lower by 4.1%, while markets in France, Germany, Italy, and Spain hold losses between 1.8% and 2.9%.

The concerns have also shown up in the foreign exchange market with investors reducing their exposure to the euro, while boosting the dollar and the yen. The euro/yen pair trades near 137.61 after starting the session at 138.61. Meanwhile, the euro/dollar pair hovers near 1.3610 after notching a high at 1.3652.

Outside of the macroeconomic worries, investors have also had to deal with a handful of negative preannouncements. Potbelly (PBPB 11.90, -2.75) holds a pre-market loss of 18.8% and Lumber Liquidators (LL 54.20, -16.22) is indicated to open lower by 23.0% after both primed the market for disappointing quarterly reports.

Treasuries have rallied throughout the night and the 10-yr note is currently higher by 13 ticks with its yield down almost five basis points at 2.51%

9:14 am Banco Espirito Santo Default Fears Weigh on Global Markets (PGAL) : We just wanted to post a follow up to yesterday's developments in Portugal. Worries of a potential default by Portugal's second largest bank, Banco Espirito Santo, are weighing on markets around the world this morning. 

At the epicenter is Portugal's benchmark equity index, PSI20, which is lower by 4.3%. The weakness is weighing on other peripheral bourses as Italy's MIB and Spain's IBEX are both off by 2.8%. Even the core is seeing significant selling pressure as Germany's DAX and France's CAC are nearing losses of 2.0%.  
 
Notable is the action occurring in the sovereign debt markets as the Portuguese 10y spiked above 4.00%. Action has backed off the level, but remains elevated, currently +13.6bps @ 3.775%. Selling across the rest of the periphery has the Italian and Spanish 10y both above 2.800%, and at one-month highs. Meanwhile, investors are looking for safety in German Bunds with the 10y pressing to 1.180%, where it holds near lifetime lows.  

Portugal ETF PGAL is not trading yet in the pre-mkt, but is likely to see weakness this morning...Portuguese telecom PT is lower by 5% in early trade.

(See yesterday's 10:43 PGAL comment for initial details)

9:13 am ConocoPhillips increases quarterly dividend by 5.8% to $0.73 per share (COP) :  

9:10 am SouFun Holdings signed strategic cooperation agreements with China's No.1 and No.4 new home agency companies (SFUN) : Co announced that it has entered into strategic cooperation agreements respectively with China's No.1 and No.4 new home agency companies, Shenzhen World Union Properties Consultancy listed on the Shenzhen Stock Exchange and Hopefluent listed on the Hong Kong Stock Exchange.

  • The World Union strategic cooperation agreement's aggregate cash consideration amounts to ~ $120 million. 
  • The Hopefluent strategic cooperation agreement's aggregate cash consideration amounts to ~ $ 91 million.

9:09 am Memorial Production Partners prices offering of 8.6 mln common units representing limited partner interests in MEMP for total gross proceeds of ~ $193.5 mln (MEMP) :  

9:07 am Kosmos Energy prices 17 mln common shares at $9.92 per share; all of which were offered by funds affiliated with The Blackstone Group (BX) and Warburg Pincus (KOS) :  

9:03 am Cray awarded $174 million supercomputer contract from the National Nuclear Security Administration (CRAY) : Co announced the Company has been awarded one of the largest contracts in Cray's history -- a $174 million deal to provide the National Nuclear Security Administration (:NNSA) with a next generation Cray XC supercomputer and a Cray Sonexion storage system.

9:03 am Rosetta Genomics receives notice of allowance for U.S. Patent for the treatment of ovarian cancer; the patent relates to inhibition of miR-210 (ROSG) :  

9:01 am Golub Capital announces $155.7 mln in new middle-market originations for its Q3 (GBDC) :

  • Co announced that it originated $155.7 mln in new middle-market investment commitments during the three months ended June 30, 2014.
  • Approximately 19% of the new middle-market investment commitments were senior secured loans, 80% were one stop loans and 1% were equity securities.
  • Of the new middle-market investment commitments, $140.2 mln funded at close.
  • In addition, during the three months ended June 30, 2014, Golub Capital BDC invested $3.0 mln in Senior Loan Fund LLC, an unconsolidated Delaware limited liability company that invests in senior secured loans and is co-managed by Golub Capital BDC and United Insurance Co.

8:59 am S&P futures vs fair value: -19.30. Nasdaq futures vs fair value: -45.50. (:WRAPX) : The S&P 500 futures trade 19 points below fair value.

Asian markets ended the Thursday session on a mixed note. The Bank of Korea held its key rate unchanged at 2.50%; Bank Indonesia held its key interest rate unchanged at 7.5%; and Malaysia's central bank hiked its benchmark rate 25 basis points to 3.25%. All three were expected.

  • In economic data: 
    • China's trade surplus narrowed to $31.60 billion from $35.92 billion (expected surplus of $34.99 billion) as imports rose 5.5% year-over-year (expected 5.8%, previous -1.6%) and exports increased 7.2% (consensus 10.6%, prior 7.0%) 
    • Japan's Household Confidence rose to 41.1 from 39.3 (expected 40.7), while Tertiary Industry Activity Index increased 0.9% month-over-month (consensus 1.9%, previous -5.7%). Also of note, Core Machinery Orders plunged 19.5% month-over-month (expected 0.7%, previous -9.1%) 
    • Australia's MI Inflation Expectations ticked down to 3.8% from 4.0%. Separately, the employment count rose 15,900 (expected 12,000, previous -5,100), but the unemployment rate ticked up to 6.0% from 5.9% (expected 5.9%) 
------
  • Japan's Nikkei lost 0.6%, closing at its lowest level of the month. The strengthening yen continued to pressure exporters as Toyota Motor fell 1.0% and Komatsu lost 1.9% 
  • Hong Kong's Hang Seng added 0.3%, climbing off two-week lows. Utilities outperformed as China Resources Power and Datang International Power surged 3.2% and 4.8%, respectively 
  • China's Shanghai Composite ended flat on the 50-day moving average after surrendering its early gains. Energy companies were bid following reports Beijing was looking to upgrade the country's power grid. Huadian Power jumped 4.0%. 
European indices trade lower across the board with peripheral markets leading the slide. The region-wide retreat, which has weighed on U.S. futures, was sparked by worries about Portugal's banking system after the parent company of Banco Espirito Santo failed to make a bond payment. Portugal's central bank tried to assure investors as to the bank's solvency, but the attempts have proven futile.
  • Participants received several data points: 
    • French CPI was unchanged month-over-month (expected 0.2%, previous 0.0%), while Industrial Production fell 1.7% month-over-month (consensus 0.2%, prior 0.3%) 
    • Italy's Industrial Production fell 1.2% month-over-month (expected 0.2%, prior 0.5%), while the year-over-year reading fell 1.8% (consensus 1.1%, previous 1.4%) 
    • Great Britain's trade deficit widened to GBP9.20 billion from GBP8.81 billion (expected deficit of GBP8.75 billion). Also of note, the Bank of England kept its key interest rate and purchasing program unchanged at their respective 0.5% and GBP375 billion 
------
  • Great Britain's FTSE trades lower by 0.9% with financials leading the retreat. Barclays, Hargreaves Lansdown, and Royal Bank of Scotland hold losses between 2.1% and 4.6%. On the upside, consumer names J Sainsbury, Burberry Group, and Next outperform with gains between 1.5% and 2.6%. 
  • In France, the CAC holds a loss of 1.7% with BNP Paribas, Credit Agricole, and Societe Generale fueling the weakness. The three banks are down between 2.7% and 3.0%. On the upside, defense contractor Safran trades up 0.7%. 
  • Germany's DAX trades down 1.7%. Commerzbank and Deutsche Bank are both down near 3.2%, while Fresenius SE represents the lone advancer. The health care stock is higher by 0.3%. 
  • Portugal's PSI underperforms with a loss of 4.1% as all 20 components trade in negative territory. Banco Espirito Santo is down 17.4% and its shares are currently halted with an announcement pending.

8:47 am KBR wins contract for base support for Isa Air Base, Bahrain (KBR) :

  • Co announced that it has been awarded a contract by the U.S. Navy Facilities Engineering Command, Atlantic for the base operating support services for Isa Air Base, Kingdom of Bahrain. 
  • The contract is for a one year base period with four option years. Included in our second quarter of 2014 backlog will be the undisclosed funded portion of the base year contract. The total value of the five-year contract, including options, will be $113,824,554 for the Infrastructure, Government and Power segment.

8:45 am Virtus Investment Partners reports Q2 long-term, open-end mutual fund flows and assets; AUM at end of Q2 were $39.8 bln vs $37.3 bln at beginning of period (VRTS) : Co reported preliminary flows and assets under management for its long-term, open-end mutual funds for the second quarter of 2014:

Long-Term Open-End Mutual Funds, in millions: AUM at the beginning of the period, $37,347.0; AUM at the end of the period $39,819.1. AUM increased 6.61% through the quarter.

8:42 am AmRIET: Regency Centers (REG) announces proposal to acquire AMRE for $22/share in cash and/or stock (AMRE) : Regency Centers (REG) announced that it has offered to acquire AmREIT for $22/share, payable in cash and/or stock. Regency's proposal, which follows previous efforts to obtain the information that would be necessary to proceed with a potential transaction, was reflected in a letter to H. Kerr Taylor, AmREIT's chairman and CEO.

  • Regency's offer represents a 20% premium based on the average closing price of AmREIT's common stock over the last 30 days, and also exceeds AmREIT's all-time high stock price by more than $2 share.
  • Regency believes this offer is particularly compelling to AmREIT's investors in light of the structural obstacles their company faces on account of its relatively small size in relation to other public REITs-namely, more limited and costly access to capital and a more pronounced exposure to market and project concentration risk.
  • The proposal has the unanimous support of the members of Regency's Board of Directors. In addition, Regency has the capacity to finance this transaction from its existing credit facility.

8:41 am Gapping down (:SCANX) : Briefing note: With the S&P Futures currently -0.8%, many names are trading lower with the market that are NOT listed.

Gapping down

In reaction to disappointing earnings/guidance/SSS
: LL -19.8%, PBPB -18.8%, CATO -8.1%, HELE -6.1%, LB -5.5%, TSCO -5.4%, WDFC -5.2%, LQDT -4.6%, HELI -4.3%, FDO -2.5%, SMRT -0.5%, .

Select financial related names showing weakness: NBG -5.2%, BCS -3.6%, DB -3.5%, ING -3.2%, HSBC -2.1%, UBS -2%, LYG -1.8%.

Other news: KOS -8.7% (announced that funds affiliated with The Blackstone Group L.P. and Warburg Pincus agreed to sell an aggregate of 17 mln of Kosmos's common shares in a registered underwritten public offering), RGDO -6.3% (announces clinical hold of REGULATE-PCI trial following voluntary halt of trial by Regado), MEMP -6.3% (announces public offering of 8.6 mln common units), EROS -5% (prices 7 mln ordinary shares at a price of $14.50 by co and selling shareholders), AXLL -3.6% (announced that its PHH vinyl chloride monomer manufacturing facility in Lake Charles, Louisiana, has been repaired and the facility has returned to full operating rates; sees Q2 adjusted EBITDA of $125-130 mln), OCRX -3.4% (announces proposed public offering pursuant to an effective shelf registration), MBUU -2.9% (prices 4.8 mln shares of common stock at $18.50 per share by co and selling shareholders), WBAI -2.7% (announced that Anthony Liu will resign from his post as Chief Risk Officer), LOW -2.5% (following LL results), TKMR -2.5% (receives $1.5 mln milestone payment), ZQK -2.4% (announces additional licensing agreements), VRTX -2% (announces that Peter Mueller Executive VP of Global R&D and Chief Scientific Officer will retire), HD -1.8% (following LL results), SDRL -1.3% (refinances three high specification ultra-deepwater units), BAC -1.3% (reports indicate settlement talks have stalled).

Analyst comments: ISBC -2.1% (downgraded to Neutral from Buy at Guggenheim), QGEN -1.9% (initiated with a Market Perform at Wells Fargo), NTI -1.6% (downgraded to Neutral from Outperform at Macquarie).

8:41 am European Markets Update: FTSE -0.9%, CAC -1.6%, DAX -1.6%, PSI -4.2% (:SUMRX) : European indices trade lower across the board with peripheral markets leading the slide. The region-wide retreat, which has weighed on U.S. futures, was sparked by worries about Portugal's banking system after the parent company of Banco Espirito Santo failed to make a bond payment. Portugal's central bank tried to assure investors as to the bank's solvency, but the attempts have proven futile.

  • Participants received several data points: 
    • French CPI was unchanged month-over-month (expected 0.2%, previous 0.0%), while Industrial Production fell 1.7% month-over-month (consensus 0.2%, prior 0.3%) 
    • Italy's Industrial Production fell 1.2% month-over-month (expected 0.2%, prior 0.5%), while the year-over-year reading fell 1.8% (consensus 1.1%, previous 1.4%) 
    • Great Britain's trade deficit widened to GBP9.20 billion from GBP8.81 billion (expected deficit of GBP8.75 billion). Also of note, the Bank of England kept its key interest rate and purchasing program unchanged at their respective 0.5% and GBP375 billion 
------
  • Great Britain's FTSE trades lower by 0.9% with financials leading the retreat. Barclays, Hargreaves Lansdown, and Royal Bank of Scotland hold losses between 2.1% and 4.6%. On the upside, consumer names J Sainsbury, Burberry Group, and Next outperform with gains between 1.5% and 2.6%. 
  • In France, the CAC holds a loss of 1.6% with BNP Paribas, Credit Agricole, and Societe Generale fueling the weakness. The three banks are down between 2.7% and 3.0%. On the upside, defense contractor Safran trades up 0.7%. 
  • Germany's DAX trades down 1.6%. Commerzbank and Deutsche Bank are both down near 3.2%, while Fresenius SE represents the lone advancer. The health care stock is higher by 0.3%. 
  • Portugal's PSI underperforms with a loss of 4.2% as all 20 components trade in negative territory. Banco Espirito Santo is down 17.4% and its shares are currently halted with an announcement pending.

8:37 am Gapping up (:SCANX) : Gapping up
In reaction to earnings/guidance/SSS
: DRWI +6.7%, BURBY +5.4%, ZUMZ +5.1%, .

M&A news: IGT +5.9% (renewed GTech (GTKYY) bid speculation).

Select metals/mining stocks trading higher: KGC +3%, AG +2.9%, IAG +2.2%, SLW +2%, GG +1.9%, AU +1.8%, SLV +1.7%, ABX +1.7%, GDX +1.7%, GFI +1.2%, GLD +1.1%, GOLD +1% 

Other news: UAL +4.8% (reports June 2014 consolidated traffic (RPM) was flat y/y and consolidated capacity (ASM) increased 0.8% vs June 2013),NG +2.6% ( reports major progress in advancing Donlin Gold up the Value Chain),SIR +1.2% (CommonWealth REIT sells its 22 mln shares of Select Income REIT for $31.51 per share),APP +1.2% (entered into a Nomination, Standstill and Support Agreement with Standard General and Dov Charney),SSE +0.9% (Carl Icahn disclosed 9.98% stake in 13D filing),REGN +0.9% (co and Sanofi (SNY) announced positive results from Phase 2b study of dupilumab in patients with moderate-to-severe atopic dermatitis),PAYX +0.7% (increases quarterly dividend),.

Analyst comments: MRC +2.1% (upgraded to Neutral from Underperform at BofA/Merrill)

8:36 am Briggs & Stratton sees Q4 revs $495 mln vs $511.67 mln Capital IQ Consensus; co plans to narrow its assortment of lower-priced Snapper consumer lawn and garden equipment and consolidate its manufacturing facilities to reduce costs (BGG) : Co anticipates reporting Q4 consolidated net sales of $495 mln [vs. the $511.7 mln Consensus], a 4% YoY increase.

  • Beginning in the 2016 lawn & garden season, it will narrow its assortment of lower-priced Snapper consumer lawn and garden equipment and consolidate its products manufacturing facilities in order to further reduce costs. The Company will continue to focus on premium residential products to customers through its Snapper and Simplicity brands and commercial products through its Snapper Pro and Ferris brands. The Company will close its McDonough, Georgia location and consolidate production into existing facilities in Wisconsin and New York. Production of pressure washers, snow throwers and lawn tractors will move to its Wauwatosa, Wisconsin manufacturing facility, and production of zero-turn lawnmowers will be moved to its Munnsville, New York facility. 
  • The co anticipates total restructuring charges related to these actions of approximately $30 to $37 million, including non-cash write-downs of ~$15 to $20 million, to be recorded during fiscal 2015.

8:36 am Endurance Specialty sends letter urging fellow Aspen (AHL) shareholders to make their voices heard: 'Tell Aspen it's time to put entrenched interests aside and focus on the clear benefits of Endurance's offer' (ENH) : Co is urging fellow shareholders of Aspen Insurance (AHL) to make their voices heard and tell Aspen's board and management it's time to put entrenched interests aside and focus on the clear benefits of Endurance's offer.  

  • In a letter being sent to Aspen shareholders, Endurance requests that Aspen shareholders vote for its proposals to requisition a special general meeting of shareholders in connection with Endurance's proposal to increase the size of Aspen's board of directors from 12 to 19 directors and to authorize support for the proposal of a Scheme of Arrangement by Endurance. By voting for Endurance's two proposals on the white card, Aspen shareholders would be taking concrete action towards realizing the significant upfront premium and opportunity for long-term value of Endurance's offer. 
  • In its letter, Endurance reminds Aspen shareholders that it has set July 25, 2014 as the target date for voting on its two proposals.

8:35 am Ocera Therapeutics priced 4,200,000 shares of common stock at an offering price of $6.00 per share (OCRX) :  

8:32 am S&P futures vs fair value: -15.20. Nasdaq futures vs fair value: -34.50. (:WRAPX) : The S&P 500 futures trade 15 points below fair value.

The latest weekly initial jobless claims count totaled 304,000, while the Briefing.com consensus expected a reading of 311,000. Today's tally was below the unrevised prior week count of 315,000. As for continuing claims, they rose to 2.584 million from 2.574 million.

8:32 am Great Panther Silver Q2 Ore processed increased 20% to a record 80,964 tonnes; Metal production rose 6% to 718,794 silver equivalent ounces (GPL) : Co today announced second quarter production results at its two wholly-owned Mexican silver mining operations, Guanajuato and Topia, and provided an update on its exploration and development activities. 

Ore processed increased 20% to a record 80,964 tonnes;

  • Metal production rose 6% to 718,794 silver equivalent ounces ("Ag eq oz")
  • Silver production was up 6% to 420,001 silver ounces ("Ag oz")
  • Gold production decreased 6% to 3,773 gold ounces ("Au oz")
  • San Ignacio started commercial production in June.
"We anticipate that production growth will continue, especially as we ramp up production at San Ignacio." 

8:31 am Sarepta Therapeutics reports long-term outcomes through 144 weeks from Phase IIb study of eteplirsen in duchenne muscular dystrophy; results on the 6-minute walk test showed a decline in walking ability at a rate slower than would be expected based on available DMD natural history data (SRPT) : Co announced data through Week 144 from Study 202, a Phase IIb open-label extension study of eteplirsen in patients with Duchenne muscular dystrophy. After nearly three years of follow up, results on the 6-minute walk test showed a decline in walking ability at a rate slower than would be expected based on available DMD natural history data. In addition, a continued stabilization of respiratory muscle function was observed, as assessed by pulmonary function tests. As previously reported, Study 202 met its primary endpoint of increased novel dystrophin as assessed by muscle biopsy at Week 48 and is now in the long-term extension phase in which patients continue to be followed for safety and clinical outcomes.

  • Summary of Additional Exploratory Efficacy Endpoints
    • These endpoints are less well characterized in DMD patients than the 6MWT and pulmonary function tests and have more inter- and intra-patient variability, although they may be predictors of decline at various stages of this disease. All patients evaluable on measures of ambulation are still able to perform these tests including the 10 meter run/walk and 4-step test, with the exception of two patients who are no longer able to perform the Gowers' maneuver.
  • About the 6MWT Statistical Methodology and the Modified Intent-to-Treat (mITT) Population
    • The mITT population used in the 6MWT analyses consisted of 10 of the 12 enrolled patients, including 4 patients in the 50 mg/kg cohort, 2 patients in the 30 mg/kg cohort and 4 patients in the placebo/delayed-treatment cohort. Two patients in the 30 mg/kg cohort showed rapid disease progression upon enrollment and lost ambulation by Week 24, and thus were excluded since they were no longer evaluable for the 6MWT. All other data were analyzed for all 12 patients.

8:31 am Market View: Sep. equity index futures see little reaction, continue to trade well below fair values following the 8:30 a.m. ET Initial & Continuing Claims data- (:TECHX) :

  • ESu4 now @ 1951.00 -16.25

  • YMu4 now @ 16777 -136

  • NQu4 now @ 3851.50 -34.00

8:30 am Immersion and Huawei enter into multi-year license agreement (IMMR) : Co announced that it has entered into a multi-year worldwide license agreement with Huawei Device the third largest global supplier of smartphones according to IDC. This first direct license agreement with Huawei for Immersion's haptic software, TouchSense 3000, enables Huawei to add tactile feedback to certain Huawei branded mobile devices to create rich, multi-dimensional user experiences.

8:28 am Digital Ally receives VuLink Patent and begins shipping new product to law enforcement customers (DGLY) : Co announced that it has been notified by the USPTO that its initial patent on its VuLink connectivity system has been approved and will issue on July 15, 2014. The co also announced that it has begun shipping the new product to law enforcement customers.

  • The VuLink is the first product on the market that enables body cameras and in-car video systems to be automatically or manually activated simultaneously.
  • The recordings from both systems can later be linked together to provide a seamless record of the same incident from different perspectives utilizing the co's VuVault software.

8:20 am On The Wires (:WIRES) :

  • Regency Centers (REG) announced that Whole Foods Market (WFM) has signed on to anchor the new retail development, Belmont Chase, in Ashburn, VA.
  • VMware (VMW) and Box announced a partnership to enhance secure enterprise collaboration across mobile devices for next generation enterprise mobile management.
  • NCR (NCR) announced that Independent Solutions, an Australian point of sale solution provider owned by Metcash, has selected NCR POS technology solutions to help its independent retail customers offer enhanced services in their stores. 
  • Level 3 Communications (LVLT) announced an agreement with Fototica, an eye care provider in Brazil. Level 3's virtual hosting, colocation and redundancy services will support Fototica's business operations in the Brazilian states of Sao Paulo, Bahia, Pernambuco and Sergipe. 
  • Arena Pharma (ARNA) reported that Eisai (ESALY) has completed its planned increase of more than 200 new contract sales representatives in its Metabolic Business Unit, increasing the sales force for BELVIQ by 50% to ~ 600. Eisai expects this expansion of the sales force will enable them to increase their reach to ~ 92,000 physicians in the U.S.
  • Trulia (TRLA) has signed an agreement with the Greater Tulsa Association of REALTORS) to enhance data quality and provide valuable exposure for its members.
  • Glu Mobile (GLUU) announced the availability of Dino Hunter: Deadly Shores on the App Store, Google Play, and Facebook. Inspired by Deer Hunter 2014, the game introduces players to an island where dinosaurs still walk the earth.

8:16 am Progressive beats by $0.01, reports revs in-line (PGR) : Reports Q2 (Jun) earnings of $0.49 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.48; net premiums written rose 5.5% year/year to $4.63 bln vs the $4.64 bln consensus.

8:15 am Sparton Corporation acquires Electronic Manufacturing Technology; co expects acquisition to be accretive to earnings within the first twelve months (SPA) : Co announced that its wholly owned subsidiary, Sparton eMT has acquired Electronic Manufacturing Technology, a $25 mln revenue business located in Irvine, CA, in an all-cash transaction.

  • "We are pleased to have eMT join the Sparton family and expect it to be accretive to earnings within the first twelve months," Mr. Wood, President and Chief Executive Officer of Sparton, concluded. 
  • The transaction was funded through Sparton's borrowings under the credit facility currently in place with BMO Harris Bank.

8:07 am OFS Capital appoints Bilal Rashid as Chairman and CEO (OFS) : Co announced that Bilal Rashid has been appointed as Chairman of the Board of Directors and Chief Executive Officer. Mr. Rashid has served on the Company's Board of Directors since 2010 and has been a member of the Investment Committee of OFS Capital Management, LLC, the external advisor to OFS Capital, since 2010. Mr. Rashid replaces Glenn Pittson, who will remain on the Board of Directors of OFS Capital.

8:05 am MELA Sciences begins insurance reimbursement process with application for new CPT code for the MelaFind system (MELA) :

  • Co announced that it has taken the first step in the process of seeking insurance reimbursement for its Multi-Spectral Digital Skin Lesion Analysis (:MSDSLA) procedure that is performed by dermatologists utilizing the MelaFind system as an aid in the detection of melanoma.
  • The co has submitted an application for a Current Procedural Terminology code, which is necessary for Medicare Part B reimbursement by the Centers for Medicare and Medicaid Services (CMS).
  • MSDSLA could be eligible for payment under Part B as early as January 1, 2016. The co will also commence efforts to obtain reimbursement from private insurance companies as the CMS review process proceeds

8:04 am Smith & Nephew enters commercial agreement to bring robotic navigation to the JOURNEY UNI Knee procedure (SNN) :

  • Co announced a new commercial agreement with Blue Belt Technologies, makers of the Navio Orthopaedic Surgical System. 
  • Under this agreement, surgeons using the Navio system will be able to implant Smith & Nephew's JOURNEY UNI partial knee.

8:04 am GeoPark announces New Tigana Norte 1 oil discovery and Tigana Field extension in Block Llanos 34 in Colombia (GPRK) : Co announces the discovery of the Tigana Norte 1 oil well on its Llanos 34 Block in Colombia. 

  • GeoPark is the Operator of and has a 45% working interest in the Llanos 34 Block.
  • GeoPark drilled and completed the Tigana Norte 1 well to a total depth of 12,141 feet. A test conducted with an electrical submersible pump in the Guadalupe formation, at approximately 11,557 feet, resulted in a production rate of approximately 1,061 barrels of oil per day of 14.6 degrees API, with a 0.49% water cut, through a choke of 24/64 inches and well head pressure of 235 pounds per square inch. 
  • Further production history will be required to determine stabilized flow rates of the well. Production and reservoir analyses from the Tigana 1, 2 and 3, Tigana Sur 1 and Tigana Norte 1 wells on the Llanos 34 Block now indicate that three previously delineated fields and prospects form part of a single larger combined (structural and stratigraphic) trap and field, productive from the Cretaceous Guadalupe and Tertiary Mirador formations. The field is currently producing over 8,500 bopd gross from the 5 wells drilled and completed to date.

8:03 am Stein Mart reports June same store sales of +2.6% vs +2.7% Retail Metrics consensus (SMRT) :

  • Geographically, Florida, the Carolinas and California had the strongest sales in June, while the Gulf States and Texas were more challenged.
  • The Co operated 265 stores at the end of June this year compared to 262 stores last year.

8:02 am Accretive Health names Emad Rizk as President and CEO; Steve Schuckenbrock to resign as President and CEO effective July 21, 2014 (ACHI) : Board of Directors has appointed Emad Rizk, M.D., president of McKesson Health Solutions (MCK), as Chief Executive Officer, President, and a member of the Board of Directors, effective July 21, 2014. Steve Schuckenbrock, current CEO of Accretive Health, who accelerated his resignation from the position of CEO to be effective July 21, 2014 but will continue to assist with the transition through October 2, 2014, as well as continue to serve on the Company's Board of Directors.

8:02 am Avino Silver & Gold announces Q2 production including substantial y/y production increases; Silver production increased 27% to 223,183 oz; Gold production increased 47% to 1,157 oz; Silver equivalent production increased 32% to 295,531 oz (ASM) : Co reported its Q2 2014 production results from its Avino property, located 80km northeast of Durango, Mexico.

Production Highlights for Second Quarter, 2014 (Compared to Second Quarter, 2013)

  • Silver production increased 27% to 223,183 oz
  • Gold production increased 47% to 1,157 oz
  • Silver equivalent production increased 32% to 295,531 oz
Q2 2014 Highlights
  • Gold and silver feed grades were 53.0% and 19.2% higher than those of Q2 2013. The higher feed grades were expected as feed for the quarter came from mining on the 5th level.
  • The higher feed grades also provided better gold and silver recoveries to those of the second quarter 2013 by 5.3% and 0.7% respectively.
  • Concentrate grades were also better than those of Q2 2013 but fewer tonnes were produced as a result of the higher quality.
  • The above resulted in silver and gold production increases of 22.7% and 63.7% respectively.
  • Tonnage processed in the quarter was higher than in Q2 2013 by 20.7%. The improvement was due to better mill availability and the fact that in Q2 2013 the Circuit was undergoing commissioning and testing.
  • Silver production was higher by 54.0% due to the higher tonnage processed, higher feed grade and better silver recovery relative to Q2 2013.
  • Gold production was higher by 2.9% as a result of higher tonnage processed and higher recoveries, although this was partially offset by the lower gold feed grade of 0.53 g/t compared with 0.78 g/t in Q2 2013.

8:02 am Full Circle Capital provides update on 4Q2014 portfolio activity; investments totaled $44.2 mln (FULL) :

  • Co released an update of its investment portfolio activity for the fourth fiscal quarter of 2014 ended June 30, 2014.
  • For the fourth fiscal quarter, Full Circle Capital invested ~$44.2 mln, including new loan originations to 5 new portfolio companies totaling $35.3 mln and follow on investments in existing portfolio companies totaling ~$8.9 mln.
  • For the full year ended June 30, 2014, portfolio origination activity totaled $92 mln consisting of loans to 14 new portfolio companies and expanded investments in certain existing portfolio companies.

8:01 am Tandy Leather Factory reports June sales +1%, Retail Leathercraft segment reports 8% same store sales gain for Q2 (TLF) : Co reports that sales in June were $5.9 mln, up 1% YoY (total sales, not not same store sales). Retail Leathercraft's sales rose 5% YoY to $3.7 mln. The 76 comparable stores' sales were up 4% for June.

  • "Our June sales were respectable and we are pleased with our sales for the quarter overall. The sales in our international stores continue to grow as we increase customer awareness due to our participation in trade shows throughout Europe. We are bringing in our new products earlier this year, with some arriving in Q2 and the remainder arriving in Q3. That will increase our total inventory investment earlier than usual as we prepare for the Christmas season, but it is strictly a timing issue."
  • "Our Q2 sales were solid with all three segments reporting same store sales gains. The Wholesale and International Leathercraft segments each reported a 2% same store sales gain and our Retail Leathercraft segment reported an 8% same store sales gain. The economic environment is tough right now for many retailers and for those of us who are selling non-essentials, it's even tougher. We believe we are having good success convincing our customers to spend some of their discretionary dollars with us."

8:01 am CryoLifeCryoLife appoints Pat Mackin as CEO (CRY) : Co announced that its Board of Directors has appointed James Patrick (Pat) Mackin, as President and Chief Executive Officer, effective September 2, 2014. Mr. Mackin is expected to be appointed to the Company's Board of Directors after his employment begins.

8:01 am Vertex Pharma announces that Peter Mueller Executive VP of Global R&D and Chief Scientific Officer will retire (VRTX) : Co announces that Peter Mueller, Ph.D., Executive VP of Global R&D and Chief Scientific Officer, will retire after more than 10 years with the company. Dr. Mueller's retirement will be effective October 31, 2014, following a planned transition period. Vertex expects to appoint a Head of Global Research to oversee the co's drug discovery efforts following Dr. Mueller's retirement.

8:01 am Energous signs joint development agreement with one of Asia's fastest-growing providers of mobile devices and accessories; Anymode develops WattUp-enabled mobile accessories (WATT) :  

7:58 am S&P futures vs fair value: -16.20. Nasdaq futures vs fair value: -35.00. (:WRAPX) : U.S. equity futures trade near their pre-market lows amid worries about Portugal's banking sector. The concerns have pressured European markets, while the S&P 500 futures hover 16 points below fair value.

Reviewing overnight developments:

  • Asian markets ended mixed. Japan's Nikkei -0.6%, Hong Kong's Hang Seng +0.3%, and China's Shanghai Composite ended flat 
    • In economic data: 
      • China's trade surplus narrowed to $31.60 billion from $35.92 billion (expected surplus of $34.99 billion) as imports rose 5.5% year-over-year (expected 5.8%, previous -1.6%) and exports increased 7.2% (consensus 10.6%, prior 7.0%) 
      • Japan's Household Confidence rose to 41.1 from 39.3 (expected 40.7), while Tertiary Industry Activity Index increased 0.9% month-over-month (consensus 1.9%, previous -5.7%). Also of note, Core Machinery Orders plunged 19.5% month-over-month (expected 0.7%, previous -9.1%) 
      • Bank Indonesia held its key interest rate unchanged at 7.5%, as expected 
      • Australia's MI Inflation Expectations ticked down to 3.8% from 4.0%. Separately, the employment count rose 15,900 (expected 12,000, previous -5,100), but the unemployment rate ticked up to 6.0% from 5.9% (expected 5.9%) 
      • Bank of Korea made no changes to its policy, keeping its key rate at 2.5%, as expected 
    • In news: 
      • The head of Japan's largest pension fund said the fund will seek to limit the impact of bond prices when reducing its holdings as part of a shift towards greater exposure to equities.
  • Major European indices trade lower across the board. Great Britain's FTSE -0.9%, Germany's DAX -1.5%, and France's CAC -1.5%. Elsewhere, Italy's MIB -2.1%, Spain's IBEX -2.5%, and Portugal's PSI -4.4% 
    • Participants received several data points: 
      • French CPI was unchanged month-over-month (expected 0.2%, previous 0.0%), while Industrial Production fell 1.7% month-over-month (consensus 0.2%, prior 0.3%) 
      • Italy's Industrial Production fell 1.2% month-over-month (expected 0.2%, prior 0.5%), while the year-over-year reading fell 1.8% (consensus 1.1%, previous 1.4%) 
      • Great Britain's trade deficit widened to GBP9.20 billion from GBP8.81 billion (expected deficit of GBP8.75 billion). Also of note, the Bank of England kept its key interest rate and purchasing program unchanged at their respective 0.5% and GBP375 billion 
    • Among news of note: 
      • The region-wide retreat, which has weighed on U.S. futures, was sparked by worries about Portugal's banking system after the parent company of Banco Espirito Santo failed to make a bond payment. Portugal's central bank tried to assure investors as to the bank's solvency, but the attempts have proven futile. Banco Espirito Santo shares (-17.4%) are currently halted with an announcement pending. 
In U.S. corporate news:
  • DragonWave (DRWI 2.40, +0.16): +7.1% after beating earnings and revenue estimates. 
  • Family Dollar (FDO 63.80, -0.44): -0.7% following its earnings miss on above-consensus revenue. The discount retailer reaffirmed its Q4 earnings forecast, but lowered its Q4 comparable store sales guidance. 
  • Lumber Liquidators (LL 56.00, -14.42): -20.5% after announcing its Q2 results will be well below consensus. The company also issued guided its fiscal-year results below analyst estimates. 
Weekly initial claims will be reported at 8:30 ET (Briefing.com consensus 311K), while the Wholesale Inventories report for May will cross the wires at 10:00 ET (consensus 0.5%).

7:56 am On The Wires (:WIRES) :

  • Alliance Data Systems (ADS) provided an update on its European-based business BrandLoyalty. BrandLoyalty launched its first program with new client SPAR Shandong Jiajiayue, which operates large hypermarket- or supermarket-style retailers with more than 400 stores within the Shandong province. The current 18-week program operates in 232 locations and offers premium German Arzberg porcelain dinnerware and tableware products for redemption. 
  • HP (HPQ) announced that the United States Air Force has issued a Quantum Enterprise Buy procurement for select HP business PCs and Workstations. 
  • QIWI (QIWI) and Ural Bank for Reconstruction and Development announced today launch of a large-scale project aimed at attracting new high-quality borrowers to the bank. On July 10, 2014 QIWI and UBRD signed an agreement under which QIWI Advertising will bring more than 20 thousands new retail borrowers to the bank in 10 months.

7:53 am Quiksilver announces additional licensing agreements (ZQK) :

  • Co announced that it has entered into licensing agreements for several product categories, including Roxy young girls and children's apparel, watches and socks/legwear, as well as other product categories including luggage, beach towels and surfboards.
  • "Our product licensing team has done an excellent job of partnering with industry leaders that have the size, scale and expertise to help us grow these businesses," said Andy Mooney, chief executive officer of Quiksilver, Inc. "These agreements cover large geographic markets and, importantly, dovetail with our profit improvement plan by significantly reducing product styles for our design team and supply chain. We expect our license agreements to lower operating costs and inventory levels."

7:53 am Asian Markets Close: Nikkei -0.6%, Hang Seng +0.3%, Shanghai UNCH (:SUMRX) :

  • Markets finished mixed across Asia. 
  • Japan's core machinery orders cratered -19.5% MoM (0.9% MoM expected) and tertiary industry activity (0.9% MoM actual v. 1.9% MoM expected) also fell short of expectations.
  • China's posted a narrower than anticipated trade surplus ($31.6 bln actual v. $37.3 bln expected, $35.9 bln previous) as exports climbed 7.2% YoY and imports jumped 5.5% YoY. 
  • Australia's unemployment rate ticked up to 6.0% (5.9% expected, 5.9% previous) despite following the better than expected employment change (15.9K actual v. 12.3K expected) as all of the jobs added were part-time. 
  • The Bank of Korea held its key rate unchanged at 2.50% while Malaysia's central bank hiked its benchmark rate 25bps to 3.25%. Both were expected. 
  • Japan's Nikkei (-0.6%) closed at its lowest level of July. The strengthening yen continued to pressure exports as Toyota Motor fell 1.0% and Komatsu shed 1.9%. 
  • Hong Kong's Hang Seng (+0.3%) climbed off two-week lows. Utilities outperformed as China Resources Power and Datang International Power surged 3.2% and 4.8%, respectively. 
  • China's Shanghai Composite (UNCHF) closed on the 50 dma after surrendering its early gains. Energy companies were bid following reports Beijing was looking to upgrade the country's power grid. Huadian Power jumped 4.0%.
  • India's Sensex (-0.3%) fell for a third session as traders digested today's budget release. While lacking specific details the budget provided a framework for the future. Software service providers and automakers lagged with Tata Consultancy Services off 1.9% and Mahindra & Mahindra down 1.1%, leading their respective sectors lower. 
  • Australia's ASX (+0.2%) ticked higher amid a quiet trade. Miners outperformed with BHP Billiton and Rio Tinto both adding 0.4%. 
  • Indonesia's Jakarta Composite (+1.5%) was the top performer in the region as Jakarta governor Joko Widodo declared victory in the country's presidential election. 
  • Regional Decliners: Vietnam -1.1%...Singapore -0.2% 
  • Regional Advancers: South Korea +0.1%...Malaysia +0.1%...Philippines +0.5%...Thailand +0.7%...Taiwan +0.8% 
  • Fx: USDCNY ticked up to 6.2028...USDINR climbed to 60.19...USDJPY -30 pips @ 101.35...AUDUSD -40 pips @ .9365

7:43 am Paychex increases quarterly dividend; increased to $0.38/share from $0.35/share; payable August 15, 2014 to shareholders of record August 1, 2014 (PAYX) :  

7:33 am Cytokinetics announced additional results relating to Tirasemtiv from pre-specificed subgroup analyses of BENEFIT-ALS; effects of Tirasemtiv on slow vital capacity during 12 weeks of double-blind treatment were observed consistently across patient subgroups (CYTK) : Co announced that additional results from BENEFIT-ALS were presented today during a poster presentation at the 13th International Congress on Neuromuscular Diseases in Nice, France. The results from pre-specified subgroup analyses of BENEFIT-ALS were presented by Andrew A. Wolff, M.D., F.A.C.C., Senior Vice President, Clinical Research and Development, and CMO of Cytokinetics. These results indicate that the reduced decline in Slow Vital Capacity on tirasemtiv versus placebo in BENEFIT-ALS were observed consistently across all subgroups of patients with amyotrophic lateral sclerosis.

  • The authors concluded that tirasemtiv may have both immediate and longer term pharmacologic effects, especially on SVC, and that the potentially beneficial effects of tirasemtiv on measures of respiratory function and other assessments of skeletal muscle performance observed in BENEFIT-ALS merit further investigation.
  • Conversely, the only subgroup in which the reduction of SNIP on tirasemtiv versus placebo was statistically significant was in patients less than 65 years old. In these subgroup analyses, tirasemtiv had no effect on the changes in muscle strength and in handgrip fatigue from baseline to the average after 8 and 12 weeks, neither overall nor within any of the subgroups.

7:33 am Alliqua's CEO issues midyear corporate update for shareholders; says 'we have exceeded each goal we set' (ALQA) : Alliqua has achieved one more milestone in its corporate history by exceeding $1 million of revenue for the second quarter. Co launched Biovance, it's human amniotic membrane allograft, in April of this year at the Symposium on Advanced Wound Care (:SAWC). Co is very pleased with the initial results, as it has principally targeted hospitals where Diagnosis Related Group-reimbursed procedures are performed, and of course the VA.

7:33 am Gain Capital June avg. daily retail trading volume -3% MoM +2.2% YoY; Total institutional trading volume of $479.9 billion, an increase of 4.8% from May 2014 and an increase of 30.7% from June 2013. (GCAP) :

  • Retail OTC trading volume of $166.1 billion, a decrease of 7.4% from May 2014 and an increase of 7.3% from June 2013.
  • Active retail OTC accounts of 94,261, a decrease of 1.0% from May 2014 and an increase of 47.0% from June 2013
  • Futures contracts of 518,637, a decrease of 5.8% from May 2014 and an increase of 11.1% from June 2013.

7:31 am MacQuarie Infrastructure prices public offering of 10 mln LLC interests, or shares, at $66.50 per share; priced upsized $305.0 mln of convertible senior notes due July 2019 at a conversion premium of 27.5% over the public offering price of the shares of $66.50 (MIC) : The convertible senior notes will yield 2.875% and will be convertible solely into shares of MIC. The size of the offering has been increased from $250.0 million to $305.0 million.

7:31 am Forest Oil announces agreement with Sabine Oil & Gas to amend previously announced merger agreement; revised transaction structure does not change the economic terms (FST) : FST announces agreement with Sabine Oil & Gas to amend previously announced merger agreement. The revised transaction structure does not change the economic terms of the transaction. Upon completion, current Forest shareholders will own approximately 26.5% of the economic interest in the combined businesses of Forest and Sabine Oil & Gas, the same as under the original merger agreement.

  • Under the terms of the amended merger agreement, Forest and Sabine Oil & Gas will combine their businesses through a revised transaction structure, where Sabine Investor Holdings, LLC and a related investment entity, the owners of Sabine Oil & Gas, will contribute their interests in Sabine Oil & Gas to Forest, in exchange for the issuance to the Sabine Investor Entities of common and preferred stock in Forest. As a result of the contribution and stock issuance, Sabine Oil & Gas will become a wholly owned subsidiary of Forest, the Sabine Investor Entities will hold common and preferred shares representing an aggregate 73.5% economic interest in Forest and the existing Forest common shareholders will hold an aggregate 26.5% economic interest in Forest. The 73.5% / 26.5% economic interest allocation is the same as under the original merger agreement. 
  • Co also announced a shareholder rights plan adopted to protect interest of Forest shareholders

7:31 am Equal Energy announces receipt of final order (EQU) :

  • Co announced that the Court of Queen's Bench of Alberta has granted its Final Order approving the previously announced plan of Arrangement under the Business Corporations Act (Alberta), involving Equal, the holders of common shares, Petroflow Energy and Petroflow Canada Acquisition, a wholly-owned subsidiary of Petroflow, pursuant to which Petroflow Sub will acquire all of the issued and outstanding Common Shares of Equal. 
  • Co anticipates that the Arrangement will be completed on or before July 31, 2014. 
  • Following the completion of the Arrangement, it is expected that the Common Shares will be delisted from the Toronto Stock Exchange and the New York Stock Exchange. Co's convertible debentures are expected to remain listed on the Toronto Stock Exchange following the completion of the Arrangement. 
  • As previously disclosed, under the Arrangement Petroflow Sub will acquire all of the outstanding Common Shares for $5.43 in cash per share. Upon completion of the Arrangement, Equal Shareholders will also receive a cash dividend of $0.05 per share.

7:30 am Bristol-Myers announces plans for third quarter submission of a Biologics License Application for Opdivo (nivolumab), an investigational PD-1 Immune Checkpoint Inhibitor, for previously treated advanced melanoma (BMY) : Co announced that, following discussions with the FDA, the co is planning a third quarter submission of a Biologics Licensing Application for Opdivo (nivolumab) for previously treated advanced melanoma. This will mark the second tumor type for which Bristol-Myers Squibb has a regulatory submission underway for Opdivo in the U.S.

  • The advanced melanoma BLA is based on data from Checkmate -037, a multinational, multicenter, randomized open-label Phase 3 trial evaluating Opdivo compared to dacarbazine or carboplatin/paclitaxel in patients with unresectable or metastatic melanoma who have been previously treated with Yervoy and, if BRAF-mutation positive, a BRAF inhibitor regimen.
  • Bristol-Myers Squibb has proposed the name Opdivo, which, if approved by health authorities, will serve as the trade name for nivolumab.

7:30 am USDJPY Threatens Lowest Close Since February: (:SUMRX) :

  • The Dollar Index trades on session highs near 80.10. 
  • Overnight action saw the Index press the 80.00 level, but the bulls held their own and have lifted trade off key support. 
  • EURUSD is -25 pips @ 1.3615 as sellers regain control for the first time in four sessions. The single currency was hovering near session highs ahead of the French industrial production (-1.7% MoM actual v. 0.5% MoM expected) miss before sellers finally emerged. Also contributing to today's weakness are continued worries out of Portugal where fears of a default by the country's second largest bank, Banco Espirito Santo, linger. A breakdown of minor support in the 1.3600 area puts the more important 1.3500 in the crosshairs.
  • GBPUSD is -45 pips @ 1.7110 as trade holds on the lows after the Bank of England held both its Official Bank Rate and asset purchase program unchanged at their respective 0.50% and GBP375 bln. The recent spell of disappointing data out of the UK continued this morning when the country's trade balance posted a wider than expected GBP9.2 bln deficit (GBP9.0 bln expected). Minor support near 1.7100 has held up for much of the past two weeks, but is beginning to look vulnerable. 
  • USDCHF is +10 pips @ .8920 as action presses session highs. A quiet day for news and data out of Switzerland means action remains at the mercy of the euro. Resistance in the .8925 area is guarded by both the 50 and 200 dma. 
  • USDJPY is -35 pips @ 101.30 as trade threatens its lowest close since the beginning of February. Today's weakness comes as core machinery orders cratered -19.5% MoM (0.9% MoM expected) and tertiary industry activity (0.9% MoM actual v. 1.9% MoM expected) fell short of expectations. Support at these levels remains critical with a breakdown putting parity in play. Click here to see a daily USDJPY chart.
  • AUDUSD is -40 pips @ .9370 as trade presses lower for the first time in five days. The hard currency saw early buying develop following the better than expected employment change (15.9K actual v. 12.3K expected) even though the unemployment rate ticked up to 6.0% (5.9% expected, 5.9% previous) However, action has seen a sharp reversal to the lows amid the flight to safety. Support in the .9350 area is aided by the 50 dma. USDCNY ticked up to 6.2031 after China posted a narrower than anticipated trade surplus ($31.6 bln actual v. $37.3 bln expected, $35.9 bln previous) as exports climbed 7.2% YoY and imports jumped 5.5% YoY.
  • USDCAD is +15 pips @ 1.0665 as trade continues to press support in the area. Canada's New Home Price Index is due out later this morning.

7:29 am Genesis Energy, L.P. increases quarterly dividend to $0.565 from $0.55/share (GEL) :  

7:20 am On The Wires (:WIRES) :

  • GlobalSCAPE (GSB) announced that Toshiba's (TOSBF) Digital Products Division, a division of Toshiba America Information Systems, has integrated Globalscape's TappIn Pro solution into its new Storage Place service. 
  • AECOM Technology (ACM) announced that Madrid-based ACE International Consultants S.L. has joined its international development business. Terms of the transaction were not disclosed. 
  • Rentrak (RENT) and Consumer Orbit announced a major integration of a large well-known CPG advertiser's customer segmentation system merged with Rentrak's local market and national television ratings. Consumer Orbit will use Rentrak ratings with its targeted segments to plan the advertiser's local and national television campaigns for the coming year.
  • 500.com (WBAI) announced that Mr. Anthony Liu will resign from his post as Chief Risk Officer and Investor Relations Director effective July 14, 2014. Mr. Liu will pursue other professional opportunities.

7:16 am Liquidity Services lowers Q3 profit guidance; reaffirms GMV; announces cessation in sale of selected US Defense Logistics Agency surplus property items (LQDT) : Co issues downside guidance for Q3 (Jun), sees EPS of 10-20% below $0.28-0.34 guidance vs. $0.30 Capital IQ Consensus.

  • Adjusted EBITDA is expected to be ~10-20% below its guidance range of $18.0 million to $21.0 million; 
  • Total Gross Merchandise Volume (GMV.V) is expected to be within its guidance range of $225 million to $250 million. 
  • Sales of selected rolling stock and other assets under its Surplus Contract with the U.S. Defense Logistics Agency (DLA) have ceased at the request of DLA pending further review of the impact of regulatory rules, unrelated to the Company's performance or conduct, on the DLA rolling stock property stream. This action has resulted in the cancellation of selected sales during the June quarter as well as future sales of selected assets. Liquidity Services anticipates these developments will adversely impact its financial results for its fiscal third quarter ended June 30, 2014 and for its fiscal year 2014. The Company's preliminary third quarter results are subject to change as the Company is still in the process of finalizing the financial results for the quarter. The Company plans to report its unaudited financial results for the third quarter on August 7, 2014.

7:13 am Family Dollar misses by $0.04, beats on revs; reaffirms Q4 EPS guidance, lowers Q4 comp guidance (FDO) : Reports Q3 (May) adj. earnings of $0.85 per share, $0.04 worse than the Capital IQ Consensus Estimate of $0.89; revenues rose 3.3% year/year to $2.66 bln vs the $2.61 bln consensus.

  • Comparable store sales for the 13-week period decreased 1.8% as a result of fewer customer transactions, partially offset by an increase in the average customer transaction value. Sales in the third quarter of fiscal 2014 were strongest in the Consumables category, driven primarily by strong growth in refrigerated/frozen food and tobacco. 
  • June comps ~flat
  • Excluding the inventory write-down, adjusted third quarter fiscal 2014 gross profit increased 2.2% to $912.3 million, or 34.3% of net sales, compared to $892.5 million, or 34.7% of net sales, in the third quarter of fiscal 2013. As a percentage of sales, the impact on gross profit of stronger sales of lower-margin consumables, lower markups and higher markdowns was partially offset by lower inventory shrinkage.
Co reaffirms Q4 EPS guidance of $0.75-0.85 vs. $0.78 Capital IQ Consensus, lowers Q4 comp guidance to flat from flat to slightly up.

"Our recent investment to permanently lower prices is resonating with customers; we are seeing savings from our workforce optimization efforts; and we are on track to close approximately 370 underperforming stores by the end of the fiscal year. We remain confident that these steps will position the Company to improve our financial performance and deliver higher long-term shareholder returns."

7:10 am Kyocera files suit against Hanwha Q CELLS Japan for infringement of Japanese Patent relating to solar modules (KYO) : Co filed a complaint in Tokyo District Court today against Hanwha Q CELLS Japan for infringement of a Kyocera patent relating to solar modules.

  • The complaint was filed after extensive negotiations regarding Kyocera's Japanese patent for a "three-bus-bar electrode structure" that increases energy conversion efficiency in solar modules.
  • Kyocera is negotiating with other parties regarding the patent.

7:09 am Can-Fite BioPharma's CF102 approved for compassionate use in Israel for liver cancer patient (CANF) :

  • Co announced that the Israeli Ministry of Health has approved the use of its drug CF102 for a patient with hepatocellular carcinoma, the most common form of liver cancer, under the country's Compassionate Use Program.
  • The program allows doctor-initiated single-patient access to investigational treatments for innovative or investigational products not yet registered in any country worldwide.
  • Can-Fite has also previously received Orphan Drug Designation from the U.S. Food and Drug Administration for CF102 in the treatment of advanced hepatocellular carcinoma.
  • Patient was previously enrolled in Can-Fite's Phase I/II liver cancer study and has survived for about 5-years using the Co's cancer drug; The global liver cancer drug market is expected to exceed $2 bln by 2015

7:09 am EveryWare confirmed minor molten glass leak in Ohio facility; co expects to be running in the next week with minimal related costs (EVRY) :

  • Co provided an update on its Lancaster, Ohio manufacturing plant. On July 8, 2014, there was a minor molten glass leak in the throat of its Tank 1 glass furnace in the Company's Lancaster, Ohio facility. The leak was contained quickly and no injuries were reported. Repairs have been initiated on the damaged tank, and the Company expects Tank 1 to be back up and running in the next week, with minimal related costs. 
  • Additionally, the Company has begun the process of re-starting its Tank 3 furnace, also at its Lancaster, Ohio facility. The Company expects Tank 3 to be up and running within a week. Separately, the Company's Monaca, Pennsylvania facility, which was partially reopened on June 2, 2014, was temporarily closed for planned maintenance over the July 4th holiday weekend. The Monaca facility has not been reopened following the planned maintenance shut down, and no decision has been made with regard to timing for resuming production.

7:07 am PetroLogistics announces extension and amendment of consent solicitation relating to its 6.25% senior notes due 2020 (PDH) : Co announced that it and PetroLogistics Finance Corp. have extended the expiration time of the previously announced solicitation of consents  from holders of the Issuers' outstanding 6.25% Senior Notes due 2020 to approve amendments to the indenture relating to the Notes to 5:00 p.m., New York City time, on July 23, 2014. As set forth in the Consent Solicitation Statement dated June 24, 2014, as of 5:00 p.m., New York City time, on July 2, 2014 Holders of the Notes are no longer able to withdraw their consents, whether given before or after that time. The Consent Solicitation is being extended pursuant to a Consent Solicitation Statement Supplement dated July 10, 2014, which amends and supplements the Consent Solicitation Statement, the Consent Solicitation Statement Supplement dated July 2, 2014 and the press release dated July 7, 2014.

7:07 am 500.Com announced that Anthony Liu will resign from his post as Chief Risk Officer to pursue other professional opportunities; has begun a search for Liu's replacement (WBAI) :  

7:07 am Zafgen granted Orphan Drug Designation in the European Union for Beloranib, a first-in-class MetAP2 Inhibitor for the treatment of Prader-Willi Syndrome (ZFGN) : Co announced that the European Commission has granted orphan drug designation for beloranib for the treatment of Prader-Willi syndrome, a rare disease.

In January 2013, the FDA granted Zafgen orphan designation to treat PWS with beloranib. Initial results from our Phase 2 study of beloranib in patients with PWS demonstrated improvements in hunger-related behaviors and body composition, including reductions in body fat content and preserved lean body mass.

7:05 am Southcross Energy Partners announces during Q2, co's processed gas volumes and natural gas liquids sales volumes in South Texas increased over 1Q2014 volumes by ~ 10% and 14%, respectively; issues Adjusted EBITDA guidance range of $22 to $28 mln for 4Q2014 (SXE) : Co announced financial and operating updates as part of its recently announced transaction to acquire TexStar Midstream Services' Rich Gas System.

  • During the second quarter of 2014, Southcross' processed gas volumes and natural gas liquids sales volumes in South Texas continued to grow, with increases over the first quarter of 2014 volumes of ~ 10% and 14%, respectively. Downtime at certain of co's facilities due to upgrades and maintenance activities partially offset those increases and negatively affected Adjusted EBITDA during the quarter by ~ $1 million. 
  • Co is also issuing an Adjusted EBITDA guidance range of $22 to $28 million for the fourth quarter of 2014. This guidance reflects the addition of TexStar's Rich Gas System upon the expected closing of its acquisition in the third quarter of 2014, the initiation of contracted processed gas volumes upon commissioning of Southcross' Webb Pipeline, and increased processed gas volumes.

7:04 am Enservco sees Q2 operating loss of ~$1 mln versus operating income of $550,000 in the same quarter last year; sees rev $7.3 mln vs $9.9 mln Capital IQ Consensus Est; $7 mln added to 2014 capex budget; full-year budget totals $16 mln (ENSV) :

  • Co provided an update on its 2014 capital expenditure plan and recent operational developments.
  • Co has added $7 mln to its previously announced $9 mln capital expenditures plan for 2014. The additional investments will go toward the fabrication of eight frac water "mega" heaters, six hot oiling units and two acidizing units. Annual revenue potential from the additional equipment is estimated to be at least $15 mln bringing the estimated annual revenue potential for the entire $16 mln 2014 capex plan to more than $35 mln.
  • New frac water heating units designed by ENSERVCO during the past year (being referenced to as mega heaters by the Co), double the capacity of ENSERVCO's legacy frac water heating units (previously referred to as "boxes").
  • In summary, the total capex plan should result in a 2014 year-end equipment fleet of (i) the equivalent of 80 legacy frac water heating units, up from 42 at the end of 2013; (ii) 41 hot oiling units, up from 27; and (iii) seven acidizing units, up from three. Six additional hot oil units from the 2014 plan are scheduled for delivery in Q1 of 2015.
  • The second quarter has historically been one of the Co's two slowest due to the wind down of the seasonal frac water heating work.
  • The co indicated that despite an almost $1 mln increase in Q2 hot oiling revenues versus last year's Q2, total revenue is expected to be ~$600,000 below the $7.9 mln reported in its 2013 Q2. The anticipated decline is principally due to a three-week halt in frac water heating for a large customer in the DJ Basin.
  • Kasch said the co expects to report a second quarter operating loss of ~$1 mln versus operating income of $550,000 in the same quarter last year.
  • The anticipated decline is due to (i) the reduction in revenue mentioned above; (ii) the addition of safety coordinators during 2013 at each of the Co's locations as a part its commitment to high safety standards; (iii) higher maintenance and repair costs associated with the Co's expanded service fleet; and (iv) the labor costs incurred in retaining the crews waiting for the re-start of activity with the aforementioned large DJ Basin customer.

7:01 am Fortuna Silver Mines reports production of 1.6 mln ounces of silver and 8,519 ounces of gold for 2Q2014 (FSM) : Co announced second quarter production figures from its two 100 percent owned operating mines in Latin America, the San Jose Mine in Mexico and the Caylloma Mine in Peru.

  • The co produced 1.6 mln ounces of silver, 8,519 ounces of gold and significant base metal by-products. Silver and gold productions for the first six months of the year totaled 3.2 mln and 16,669 ounces respectively; reflecting 53 and 52 percent of the co's annual guidance.
  • Fortuna is on schedule to produce 6 mln ounces of silver and 32,300 ounces of gold or 7.9 million ounces of Ag Eq in 2014.

6:58 am S&P futures vs fair value: -17.50. Nasdaq futures vs fair value: -37.00. :

6:58 am European Markets : FTSE...6659.44...-58.60...-0.90%.  DAX...9644.50...-164.40...-1.70%.

6:58 am Asian Markets : Nikkei...15216.47...-86.20...-0.60%.  Hang Seng...23238.99...+62.90...+0.30%.

6:56 am Liquidity Services announces cessation in sale of selected U.S. Defense logistics agency surplus property items (LQDT) : Co announced that its sales of selected rolling stock and other assets under its Surplus Contract with the U.S. Defense Logistics Agency have ceased at the request of DLA pending further review of the impact of regulatory rules, unrelated to the co's performance or conduct, on the DLA rolling stock property stream.

  • This action has resulted in the cancellation of selected sales during the June quarter as well as future sales of selected assets. 
  • Liquidity Services anticipates these developments will adversely impact its financial results for its fiscal third quarter ended June 30, 2014 and for its fiscal year 2014.

6:47 am IDC reported that worldwide PC shipments totaled 74.4 mln units in 2Q14, a y/y decline of -1.7% (XLK) :

  • Worldwide PC shipments totaled 74.4 mln units in the second quarter of 2014 (2Q14), a year-on-year decline of -1.7%, according to the IDC Worldwide Quarterly PC Tracker. The results reflect the smallest decline in global PC shipments since the second quarter of 2012 when declining shipments of mini notebooks combined with a surge in tablet sales to disrupt the PC market. 
  • Buoyed by both continued business PC replacements and returning consumer interest, the preliminary results for 2Q14 are markedly better than the projected decline of -7.1% for the quarter. Despite the end of Windows XP support in early April, it appears many Windows XP migrations continue to take place. Most major vendors saw solid growth, and early indications also point to desktop shipments being stronger than expected in some areas, signaling continued business buying. The consumer side also appears stronger than expected, with growing activity among the lower-priced models as well as Chromebooks. 
  • On a geographic basis, Europe, the United States, and Canada showed the strongest growth, reflecting more stable conditions. Japan would have joined list but for the dramatic surge last quarter and new taxes that limited second quarter growth. In contrast, emerging regions continue to see declining PC volumes as weaker economies and political issues combine to depress growth.
  • "The recent strength in mature regions is a positive sign. However, an important part of this strength is driven by the rebound from weaker demand last year and to potentially short-term replacement activity. We can look for some recovery in emerging regions going forward, but it may coincide with slower growth in mature regions. We do not see the recent gains as a motive to raise the long-term outlook although 2014 growth could get closer to flat, rather than the May projection of -6%." 
  • Related tickers: LNVGY, HPQ, MSFT, AAPL, TOSBF, IBM

6:31 am Mattson announces equipment refurbishment agreements with ESL Elektronik and Ascenx Technologies (MTSN) : Co has entered into agreements with ESL Elektronik GmbH of Germany and Ascenx Technologies of California to refurbish and sell direct to customers certain of Mattson's legacy products. Mattson's RTP 2800 and RTP 2900 products will be supported by ESL and Mattson's Aspen II Strip product will be supported by Ascenx.

Mattson and ESL have previously enjoyed a successful partnership in the refurbishment of legacy systems, and look forward to the expansion of this partnership to provide the highest level of sales and support for the RTP 2800 and RTP 2900 series systems. Installation, warranty, and after sales support will be provided by ESL.

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

  • Cloudian is partnering with Amazon Web Services, an Amazon.com (AMZN) co, in a major leap forward in giving enterprise customers data tiering flexibility to Amazon S3 and Glacier. 
  • Commercial Vehicle (CVGI) announced Ulf Lindqwister will join CVG, effective Aug 4, in the capacity of Chief Administrative Officer. Lindqwister comes to CVG from Caterpillar (CAT), where he served most recently as the Manager of Growth, M & A, and External Relationships for CAT Electronics. 
  • Geomerics, an ARM (ARMH) co, has won backing from the UK's Technology Strategy Board to bring its real-time graphics rendering techniques from the gaming world to the big screen. The award is worth GBP1 mln. 
  • NextGen Healthcare Information Systems, a subsidiary of Quality Systems (QSII), has forged an agreement with HMC/CAH Consolidated. NextGen's solutions will be deployed at five of HMC's wholly owned Critical Access Hospitals; bringing 10 of HMC's 12 rural community-based hospitals onto the NextGen Healthcare platform.

6:18 am Home Federal Bancorp Inc of Louisiana announced the appointment of Glen Brown as Senior Vice President and Chief Financial Officer (HFBL) : Co announced the appointment of Glen Brown as Senior Vice President and Chief Financial Officer of the co and Home Federal. Most recently, he served 17 years as Vice President and Controller for Teche Federal Bank in New Iberia, Louisiana, the wholly owned subsidiary of Teche (TSH).

6:08 am IBM announces $3 bln research initiative to tackle chip grand challenges for cloud and big data systems (IBM) : Co announces it is investing $3 billion over the next 5 years in two broad research and early stage development programs to push the limits of chip technology needed to meet the emerging demands of cloud computing and Big Data systems. These investments will push IBM's semiconductor innovations from today's breakthroughs into the advanced technology leadership required for the future. 

  • The first research program is aimed at so-called "7 nanometer and beyond" silicon technology that will address serious physical challenges that are threatening current semiconductor scaling techniques and will impede the ability to manufacture such chips. The second is focused on developing alternative technologies for post-silicon era chips using entirely different approaches, which IBM scientists and other experts say are required because of the physical limitations of silicon based semiconductors.
  • Cloud and big data applications are placing new challenges on systems, just as the underlying chip technology is facing numerous significant physical scaling limits.  Bandwidth to memory, high speed communication and device power consumption are becoming increasingly challenging and critical.

6:04 am Clean Energy Fuels to double CNG capacity for Saddle Creek heavy-duty truck station and opens two more America's Natural Gas Highway Stations (CLNE) : Co announced plans to double the CNG station capacity at Saddle Creek Transportation's natural gas station in Lakeland, Fla., where an additional 25 heavy-duty natural gas trucks are expected to fuel. Additional fueling agreements recently signed have resulted in the construction of new natural gas stations to support Clean Energy's growing portfolio of natural gas fuel customers in the heavy-duty trucking, ready-mix and transit market segments.

  • Co will double Saddle Creek's existing CNG station capacity in Lakeland, Fla., with two additional 300-Horsepower compressors and 55 additional new time-fill fueling points.
  • Saddle Creek plans to add 25 heavy-duty CNG Freightliner 12-Liter Cascadia tractors to its existing fleet of 150 to meet increased customer demand for CNG-fueled logistics. The additional vehicles are forecasted to consume ~ 400,000 DGEs of CNG annually and are scheduled to be deployed in Oct 2014 once the station capacity has been increased. 
  • Co will continue to operate and maintain the station, which it initially built for Saddle Creek in 2011.
  • Under previously-announced fueling agreements, Raven Transport has begun fueling at the Walton, Ky., station, and NFI hauling for Lowe's has begun fueling at the Sulphur Springs, Texas, station.

6:03 am Timmins Gold reports preliminary production of 32,932 gold ounces for 2Q2014, up 17.5% y/y (TGD) :

  • Co reported preliminary production results for its second quarter ended June 30, 2014. The co achieved gold production of 32,932 ounces for the quarter for an increase of 17.5% over the prior year period.
  • "The Company is continuing its positive operational trend. The San Francisco Mine is now operating at designed capacity, with crusher throughput improving, ore stockpiling declining and the processed grade approaching reserve grade as per our mine plan. We continue to look for ways to decrease costs and increase production. The exploration drill program on our high potential regional targets has commenced and we expect to provide initial drill results over the next few weeks."

6:01 am Nord Anglia Education announces acquisition of Northbridge International School Cambodia, effective today (NORD) : Co announced the acquisition of Northbridge International School Cambodia, effective today. It is situated in the Cambodian capital, Phnom Penh. The school was founded in 1996 and teaches the International Baccalaureate curriculum to students between the ages of three and 18 years old. At the end of the 2014 academic year, the school had ~ 500 full time equivalent students.

5:53 am Boeing forecasts demand for 36,770 new airplanes valued at $5.2 trln (BA) : Co projects a demand for 36,770 new airplanes over the next 20 years, an increase of 4.2% from last year's forecast. The company released its annual Current Market Outlook in London, estimating the total value of those new airplanes at $5.2 trillion. 

  • Fueling this year's forecast is the single-aisle market, which is projected to be the fastest growing and most dynamic segment due to the continued emergence of low-cost carriers. 25,680 new airplanes will be needed in this segment, making up 70 percent of the total units in the forecast. 
  • Boeing forecasts that 8,600 new airplanes will be needed in the twin-aisle segment, led by small widebody airplanes in the 200 to 300 seat range such as the 787-8 and 787-9 Dreamliner. This year's forecast reflects a continued shift in demand from very large airplanes to efficient new twin-engine products such as the 787-10 and new 777X.

5:01 am Orion Marine provides update to investors; encouraged about the second half of 2014 (ORN) : Co provides its investors an update on the Company's outlook and end markets.

Market Outlook

  • The Company remains encouraged about the second half of 2014 and beyond, as positive developments in its various end markets continue. As expected, utilization of some of the Company's assets declined sequentially in the second quarter due to the accelerated completion of projects in the first quarter, as well as project starts that pushed out into the third quarter. The Company also experienced slightly more than expected idle labor and idle equipment costs due to delays in project start dates. However, these jobs have now begun and, as previously discussed, the Company expects to see a strong second half leading to positive results for the full year 2014.
  • During the second quarter, the Company bid on approximately $429 million worth of opportunities and was successful on approximately $113 million, representing a win rate of approximately 26%. Additionally, the Company currently has approximately $110 million worth of bids outstanding, of which it is the apparent low bidder on approximately $10 million. The Company reminds investors that the timing and size of awards can and does affect the win rate in any particular quarter. 
Federal Update
  • The Water Resources Development Act (:WRDA) of 2014 was signed into law by the President early last month, representing the first water bill passed by Congress and signed into law in seven years. This Act authorizes several large scale water infrastructure projects across the Company's market areas to be funded through the annual appropriations process, and we expect these to be let out for bid over the next several years. 
  • The Company may see more of a near term impact in the form of increased maintenance dredging opportunities as a result of the law's modification of how collected taxes are expended from the Harbor Maintenance Trust Fund (HMTF). Traditionally only approximately half of all annual receipts into the HMTF are allocated for their intended purposes: maintenance dredging of our nation's waterways. The new WRDA law will gradually fix this funding disparity by allocating 67% of the HMTF's receipts to maintenance dredging beginning Fiscal Year 2015 and increasing thereafter to 100% over the next ten years.       

3:59 am Seadrill refinances three high specification ultra-deepwater units (SDRL) : Co announces has received commitments from 17 banks for a $1.35 billion credit facility with a 5 year term and 10 year amortization profile to refinance the credit facilities secured by the West Pegasus, West Gemini, and West Orion. The transaction was initially launched as a $900 million facility secured by two ultra-deepwater units.  However, due to strong interest from the Company's banking group, the facility was upsized to $1.35 billion by including one additional ultra-deepwater unit in the collateral package. The new loan will be priced at a margin of Libor plus 2% and was substantially oversubscribed, demonstrating the strength of Seadrill's credit in the banking market. This refinancing will provide Seadrill with $350 million in additional cash.

By concluding this transaction the Company will be left with one ultra-deepwater and four jack-up units to be refinanced in 2015 and one ultra-deepwater and four jack-up units in 2016, totalling US$1.2 billion to be refinanced.

3:03 am BGC Partners issues statement regarding FINRA Arbitration Panel (BGCP) : Co released the following statement.

"The Financial Industry Regulatory Authority ("FINRA") Arbitration Panel in the matter involving Tullett Prebon plc ("Tullett"),  BGC and certain others has issued its award. Tullett was found to have breached its contract with the people who sold it Chapdelaine Corporate Securities & Co (many of whom now work for BGC) and is ordered to pay them over $6 million in damages. Tullett has also been found to have wrongly refused to pay expenses to one of its employees, who was awarded over $222,000.

BGC was found solely liable for approximately $13 million.  Certain desk heads that moved to BGC have been found liable for a total of approximately $20 million.  BGC expects the awards against these desk heads will be paid for by BGC.  Tullett's Management Reports show it has paid over $40 million in attorneys' fees in this matter and a related New Jersey matter over the last two years."

The FINRA award will not have a material financial effect on BGC, which had appropriately reserved for it. 

2:41 am On The Wires (:WIRES) :

  • HGST, a Western Digital company (WDC), announced that it is now shipping the world's highest capacity and highest performing 10K RPM hard disk drive -- the Ultrasta C10K1800. 
  • California American Water, a subsidiary of American Water Works Company (AWK), has proposed subsurface intakes wells that are to be drilled close to the coastline at a diagonal angle and will collect sufficient ocean water to produce nearly 10 million gallons of potable water a day to supply to the Monterey Peninsula. 
  • IBM (IBM) announced it is investing $3 billion over the next 5 years in two broad research and early stage development programs to push the limits of chip technology needed to meet the emerging demands of cloud computing and Big Data systems. 
  • Technip (TKPPY), in a consortium with PT Wijaya Karya Tbk, was awarded an onshore lumpsum contract by PT Pertamina EP for the Matindok Gas Development project located in Central Sulawesi, Indonesia. 
  • AVG Technologies N.V. (AVG) announced the release of AVG Cleaner for Android 2.1 on the Google Play store. 

2:21 am Publicis expands its digital expertise in the Latin American and African markets with key moves (PUBGY) : Publicis Groupe announces the expansion of the Publicis Worldwide network and strengthening of its digital expertise in the African and LatAm regions with two key acquisitions and an investment. In Africa, Publicis Groupe has acquired Prima Integrated Marketing, South African below-the-line digital agency and has taken a stake in AG Partners, a pan-African network of communications agencies. Each of these entities will work directly with the multi-door Publicis Worldwide operation in Africa. In LatAm, Publicis Groupe has acquired Lead2Action, one of Mexico's leading digital agency, to be integrated into Publicis Mexico.

2:11 am Silver Standard provides Q2 2014 production results; exceeded gold production schedule at Marigold (SSRI) : Co provides its second quarter 2014 operational update for the Pirquitas mine in Jujuy, Argentina and the Marigold mine in Nevada, U.S. 
Second Quarter 2014 Operating Highlights: 

  • Completed Marigold mine acquisition:  Purchase of the Marigold mine completed on April 4, 2014. Mine operations are now fully integrated into Silver Standard.
  • Delivered strong silver and zinc production at Pirquitas: Produced 2.0 million ounces of silver and 9.3 million pounds of zinc, on track to deliver full year guidance.
  • Exceeded gold production schedule at Marigold:  Produced 22,060 ounces of gold, 10% higher than the second quarter guidance of 20,000 ounces. 
  • The Pirquitas mine produced 2.0 million ounces of silver during the second quarter of 2014, higher than the 1.9 million ounces produced in the first quarter of 2014. The mine also produced 9.3 million pounds of zinc in zinc concentrate in the second quarter. The quarter-on-quarter increase in metal production is due to an increase in head grade as a result of specific locations mined in accordance with our mine plan. During the second quarter, we recognized sales of 1.9 million ounces of silver and 5.3 million pounds of zinc. The decrease in zinc sales reflects unusually high first quarter sales and timing of deliveries. 
  • Approximately 402,000 tonnes of ore were milled during the second quarter of 2014, compared to 406,000 tonnes in the first quarter.  Ore was milled at an average rate of 4,423 tonnes per day, 11% above the mill's nominal design.  This compares to an average milling rate of 4,514 tonnes per day in the first quarter. 
  • Ore milled during the second quarter contained an average silver grade of 213 g/t, higher than the 204 g/t reported in the first quarter. The average recovery rate for silver increased to 74.3% from 72.1% in the previous quarter, due to accessing 

2:05 am Tekmira Pharma receives $1.5 mln milestone payment (TKMR) : Co announces that it has received a $1.5 million milestone payment from Monsanto (MON) following completion of specified program developments. The development milestone is part of the research program under the Option Agreement Tekmira signed with the agriculture company, which we announced on January 13, 2014. The Option Agreement relates to Tekmira's proprietary delivery technology and intellectual property for use in agricultural applications. The potential value of the transaction could reach up to $86.2 million, following the successful completion of all program milestones.

1:55 am Malibu Boats prices 4.8 mln shares of common stock at $18.50 per share by co and selling shareholders (MBUU) : The offering consists of 3,833,641 shares of Class A Common Stock sold by the Company and 966,359 shares of Class A Common Stock sold by certain selling stockholders. The offering is expected to close on or about July 15, 2014, subject to customary conditions.

1:51 am Teekay LNG Partners declares a cash distribution of $0.6918 per unit for the quarter ended June 30, 2014 (TGP) : The cash distribution for the quarter ended June 30, 2014 is payable on August 8, 2014 to all unitholders of record on July 25, 2014. 

1:49 am Teekay Offshore declares cash distribution of $0.5384 per unit for the quarter ended June 30, 2014 (TOO) : The cash distribution for the quarter ended June 30, 2014 is payable on August 8, 2014 to all unitholders of record on July 25, 2014. 

1:44 am Gulf Island Fab announces project award (GIFI) : Co announces that, through its subsidiary Gulf Island Marine Fabricators, it has signed a contract for the fabrication of two 8,000 bhp Twin Screw Diesel River Towboats.

  • Revenue backlog and man-hours associated with this project will be reported in connection with the Company's announcement of financial results for the quarter ending June 30, 2014. 
  • The Contract includes an option for a third 8,000 bhp Twin Screw Diesel River Towboat that would be included in backlog upon exercise of the option, should the customer elect to do so. The customer's ability to exercise the option expires March 15, 2015. 

1:35 am Eros International prices 7 mln ordinary shares at a price of $14.50 by co and selling shareholders (EROS) : The offering consists of 7,000,000 A ordinary shares offered by Eros and certain existing shareholders, which consists of 6,675,000 shares offered by Eros and 325,000 shares offered by the selling shareholders.

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