InPlay from Briefing.com

July 27, 2016

8:24 pm Thinly traded Smart Tech confirmed shareholders approved plan of arrangement; application for a final order approving the Arrangement was commenced today (SMT) : Under the terms of the Arrangement, Shareholders will receive from AcquisitionCo a cash payment of US$4.50 per Common Share upon completion of the Arrangement. The Arrangement was approved by approximately 96.2% of the votes cast by Shareholders at the special meeting of Shareholders held on July 22, 2016. An application for a final order approving the Arrangement was commenced today at the Court of Queen's Bench of Alberta and will be completed on Thursday, July 28, 2016. SMART will provide a further update on the status of the final order when available.

7:34 pm Oil States beats by $0.05, reports revs in-line; backlog declined 12% sequentially (OIS) :

  • Reports Q2 (Jun) loss of $0.22 per share, excluding items, $0.05 better than the Capital IQ Consensus of ($0.27); revenues fell 34.7% year/year to $175.8 mln vs the $174.31 mln Capital IQ Consensus.
  • Backlog declined 12% sequentially, totaling $268 mln at June 30, 2016 compared to $306 mln reported at March 31, 2016 and $409 mln reported at June 30, 2015. Major backlog additions during the second quarter included orders for pipeline products destined for the Middle East and replacement equipment on a Gulf of Mexico production facility.
  • "Despite the 23% sequential quarterly decline in the average U.S. rig count, our well site services revenue was only down 7% and our consolidated revenue actually improved 4%. Starting later in the second quarter, we began to see some encouraging signs that activity was troughing for U.S. lower 48 drilling and completion work, and that activity could actually be starting to recover. Evidencing this trend, the average price per barrel of WTI improved 36% sequentially in the second quarter and the current U.S. rig count has increased 14% from its low point in May 2016. However, the WTI crude price has pulled back about 11% since the end of the quarter to its current level of approximately $43 per barrel. The impact of this recent decline in commodity prices on customer perception and spending will become apparent in the following months."

7:24 pm Ballard Power announces strategic collaboration and equity investment deal with Zhongshan Broad-Ocean; $28.3 mln equity investment yields 9.9% ownership position (BLDP) :

  • A strategic collaboration framework agreement between Ballard, Broad-Ocean and Synergy was signed, encompassing a number of collaboration activities conducted on commercial terms in China, including: market development activities and product development for hydrogen fuel cell vehicles; potential license and local assembly of Ballard fuel cell modules by Broad-Ocean in selected Chinese cities; integration of Ballard fuel cell modules with Broad-Ocean EV drive systems to provide customers with turnkey fuel cell engines; and leveraging of Broad-Ocean's global operations and supply chain infrastructure. Final collaboration agreements encompassing detailed terms and conditions are expected to be signed by the end of 2016.
  • The Broad-Ocean investment will be made through a subscription and purchase of 17,250,000 common shares issued from treasury at a price per share based on a 20-day volume weighted average price calculation (the calculated price per share is US$1.64), and representing ~9.9% of Ballard's outstanding common shares following the transaction.  This transaction is expected to close in Q3 2016, subject to customary closing conditions and regulatory approvals.
  • Broad-Ocean and Ballard have also entered into an Investor Rights Agreement under which Broad-Ocean has agreed to a two-year hold period on the 17,250,000 Ballard common shares that it purchases in the financing; has provided Ballard with a right of first refusal to sell Broad-Ocean additional treasury shares if Broad-Ocean wishes to increase its ownership position up to 20%; and has agreed to a two-year "standstill" under which it will not purchase more than 19.9% of Ballard's outstanding common shares without receiving Ballard board approval. Ballard has granted Broad-Ocean anti-dilution rights to maintain its 9.9% ownership interest. Finally, Broad-Ocean has no special right to appoint nominees to Ballard's board of directors.

7:06 pm Cedar Realty Trust prices 5.0 mln share common stock offering in connection with forward sale agreement - will result in ~$39.3 mln of gross proceeds (CDR) :

  • The forward purchaser is expected to borrow from third parties and sell to the underwriter 5.0 million shares of common stock at the close of the public offering. If the option to purchase additional shares of common stock is exercised, the co will enter into one or more additional forward sale agreements with the forward purchaser in respect of the number of shares of common stock that are subject to exercise of the option to purchase additional shares.
  • Pursuant to the terms of the forward sale agreement, and subject to its right to elect cash or net share settlement, the Company intends to issue and sell, upon physical settlement of such forward sale agreement, 5.0 million shares of common stock to the forward purchaser (assuming no exercise of the option to purchase additional shares of common stock). Co expects to physically settle the forward sale agreement in full, which is expected to occur on one or more dates no later than approximately 12 months after the date of the prospectus supplement relating to the offering.

6:38 pm Pinnacle Foods reprices its existing $550 mln Term Loan I, issued in connection with the Boulder Brands acquisition earlier this year (PF) :

The transaction reduced the interest rate spread on the term loan by 25 basis points to LIBOR + 275 basis points. It also lowered the LIBOR floor to 0.0%, which was previously set at 0.75%.

  • As a result, the Company expects interest savings over the life of the loan, which matures in January of 2023, to total approximately $10 million. Expected interest savings in 2016 are estimated to be less than $1 million. The Company expects to incur approximately $1 million of one-time expenses related to this event, which will be treated as an item affecting comparability

6:38 pm PulteGroup prices $1 bln senior notes offering - says strong demand allowed it to upsize transaction (PHM) :

  • Co has priced $1.0 bln in aggregate principal amount of senior unsecured notes, consisting of $400 mln of existing 4.250% senior notes due March 1, 2021, and $600 mln 5.000% senior notes due January 15, 2027. The new senior notes due 2021 were offered at 103.500% with a yield to maturity of 3.419% and the senior notes due 2027 were offered to the public at par with a yield to maturity of 5.000%.
  • PulteGroup intends to use the net proceeds of the offering to repay the remaining $400 mln of borrowings outstanding under its term loan facility, to repay any borrowings outstanding under its revolving credit facility and for general corporate purposes, which may include share repurchases, repayment of other indebtedness and acquisition and development of land.

6:08 pm KC Southern has received 100% participation in its registered exchange offers for $2.088 bln of senior notes (KSU) : The Exchange Offers were conducted in order to satisfy certain obligations of KCS pursuant to a registration rights agreement entered into in connection with the private offerings. KCS received no proceeds from the Exchange Offers.

6:06 pm State Street announces foreign exchange settlement; previously established reserve will be sufficient to cover all costs associated with these agreements (STT) :

  • Co announced that State Street Bank and Trust Company has negotiated a series of agreements, which it expects, subject to final approval, to resolve all pending litigation and regulatory matters in the United States related to its indirect foreign exchange business.
  • State Street reached agreements with the Department of Justice, Department of Labor and the Massachusetts AG and, subject to court approval, a class of State Street's custody customers. State Street has also negotiated an agreement in principle with the SEC staff that is subject to approval by the SEC. Each agreement depends upon certification, for settlement purposes, of a class of State Street's custody customers that executed indirect foreign exchange transactions with State Street between 1998 and 2009, and final approval by the United States District Court for the District of Massachusetts of the settlement agreement between State Street and the class.
  • In total, State Street expects to pay $530 million to settle claims that had been asserted in the United States with respect to its indirect foreign exchange business, which will be fully covered by the previously established reserve.

5:48 pm Peabody Energy (BTUUQ) reaches agreement with states on financial assurances in support of coal mine restoration activities (BTU) :

  • Peabody Energy announced it reached agreements with three state regulatory agencies regarding financial assurances in support of coal mine restoration. Superpriority settlement agreements have been reached with Wyoming, New Mexico and Indiana, states in which Peabody has self-bonding obligations. These agreements, which are subject to bankruptcy court approval, would provide the relevant state authorities with the ability to receive cash first in priority as additional assurance for Peabody's performance before distribution to any lender or other pre-petition creditor, up to the full amount of the company's $200 mln bonding accommodation facility. Each state is entitled to a percentage of the company's $200 mln bonding accommodation facility based on a proportion of self-bonding relative to the company's total obligation as of April 12, 2016. Peabody's $800 mln Debtor-in-Possession financing facility, which includes the bonding accommodation facility, provides financing for up to 18 months during the Chapter 11 process as described further in the company's SEC filings on Form 8-K on April 13 and May 24, 2016.
  • Due to the conservative nature of bonding estimates, the total amount of required reclamation bonding in the United States for Peabody exceeds the related financial-statement liability by approximately $1 bln. Based on these estimates, the company's GAAP financial statements reflect U.S. asset retirement obligations of approximately $450 mln, with recent typical annual cash outlays of approximately $20 mln.

5:42 pm Kadmon Holdings (:NYSE) prices 6.25 mln share IPO at $12.00, in-line with today's reduced deal terms (KDMN) :  

5:39 pm Pernix Therapeutics discloses reorganization of senior management team (PTX) :

As part of the management change, John Sedor will assume the role of Chief Executive Officer on a permanent basis and Dr. Graham Miao, who has served as a senior advisor to Pernix's Board of Directors since May, has been appointed as President and Chief Financial Officer. Dr. Miao will report directly to Mr. Sedor and will have responsibility for all functions related to finance, operations, regulatory and scientific affairs.

  • In addition, Sanjay Patel, Chief Financial Officer, Terence Novak, Chief Operating Officer, and Barry Siegel, Senior Vice President and General Counsel, are no longer employed by Pernix.
  • Pernix intends to regain compliance with NASDAQ listing qualifications within the required time frame.

5:32 pm Assoc Banc-Corp to call for redemption all of its outstanding depositary shares representing a 1/40th interest in a share of Associated's 8.00% Perpetual Preferred Stock, Series B (ASB) :  

5:31 pm Gulfmark Offshore misses by $0.02, misses on revs (GLF) :

  • Reports Q2 (Jun) loss of $0.57 per share, excluding non-recurring items, $0.02 worse than the Capital IQ Consensus of ($0.55); revenues fell 59.1% year/year to $30.5 mln vs the $31.93 mln Capital IQ Consensus. Consolidated revenue fell due to a 16% sequential decrease in average day rate to $10,939 from $12,982 in the previous quarter offset somewhat by an increase in utilization to 41% from 38% in the first quarter. Marketed utilization, which is the utilization on vessels that the Company actively markets to customers, was 85.7%.
  • "Overall we are seeing early signs of encouragement, however leading edge day rates and utilization are still well below sustainable levels for the industry."

5:28 pm BIND Therapeutics confirms Pfizer's (PFE) $40 mln bid is highest and best in 363 auction for substantially all of BIND's assets (BIND) :

  • The winning bid of $40 million, subject to U.S. Bankruptcy Court approval for which a hearing is scheduled to take place on July 27, 2016, was selected as the highest and best bid. NanoCarrier Co., Ltd. has been selected as the back-up bidder. The Company plans to disclose additional terms of its agreement with Pfizer upon Court approval. BIND initiated voluntary Chapter 11 bankruptcy protection on May 1, 2016 and conducted a sale of assets, pursuant to Section 363 of the Bankruptcy Code, during an auction held on July 25 and 26, 2016.

5:22 pm Boston Properties beats by $0.05, beats on revs; guides Q3 FFO below consensus; raises FY16 FFO (BXP) :

  • Reports Q2 (Jun) funds from operations of $1.44 per share, $0.05 better than the Capital IQ Consensus of $1.39; revenues rose 0.9% year/year to $623.5 mln vs the $616.18 mln Capital IQ Consensus.
  • Co issues downside guidance for Q3, sees FFO of $1.40-1.42 vs. $1.45 Capital IQ Consensus Estimate.
  • Co issues guidance for FY16, raises FFO to $5.92-5.99 from $5.85-5.95 vs. $5.92 Capital IQ Consensus Estimate.

5:17 pm Viper Energy Partners prices 7 mln common units representing limited partner interests at $16.00/unit (VNOM) : In the public offering, Diamondback (FANG) has agreed to purchase from the underwriters 2,000,000 common units at the price per common unit paid by the underwriters to Viper.

5:15 pm Nevsun Resources announces that 60%-owned subsidiary Bisha Mining Share Co will be increasing its total land package of exploration licenses to 814 square kilometers (NSU) :

  • Announces that its 60%-owned subsidiary Bisha Mining Share Company will be increasing its total land package of exploration licenses to 814 square kilometers, up 1,891% from 41 square kilometers in Eritrea's Bisha Volcanogenic Massive Sulfide District.
  • The increased exploration license area consists of two highly prospective land packages:
    • 184 square kilometers surrounding the existing BMSC mining licenses, providing continuous coverage for 15 kilometers over the Bisha mine favourable stratigraphy
    • 630 square kilometers in the vicinity of the Bisha mine over highly prospective geology, combining new and previously relinquished property and the current Mogoraib River exploration license that hosts the Hambok, Asheli and Aderat deposits
  • 184 square kilometers surrounding the existing BMSC mining licenses, providing continuous coverage for 15 kilometers over the Bisha mine favourable stratigraphy
  • 630 square kilometers in the vicinity of the Bisha mine over highly prospective geology, combining new and previously relinquished property and the current Mogoraib River exploration license that hosts the Hambok, Asheli and Aderat deposits
  • This transaction, in addition to $12.5 million collected during Q2 2016, has reduced the amount receivable from ENAMCO to $10 million at June 30, 2016. ENAMCO has agreed to pay the remaining amount in two installments of $5 million, in each of Oct 2016 and March 2017. In exchange for this commitment, Nevsun will no longer be charging interest on the receivable.

5:14 pm Broadridge Financial signed an agreement with SEI (SEIC) that will provide SEI private banking clients access to Broadridge's global securities class action services (BR) : Through the new strategic partnership, SEI private banking clients can elect to utilize Broadridge's services, which will monitor securities class action lawsuit settlements worldwide to spot opportunities to help recover funds for SEI clients and their customers.

5:10 pm Ashland misses by $0.08 (ASH) :

  • Reports Q3 (Jun) earnings of $1.95 per share, $0.08 worse than the Capital IQ Consensus of $2.03. 
  • Looking ahead to ASI's fiscal fourth quarter, we have forecast continued weakness in emerging regions. Sales are expected to be in the range of ~$520-$540 million. Growth of our high-value-add categories of products sold into higher-margin core growth end markets should lead to another strong margin performance, with expected EBITDA margins of 24-24.5 percent.
  • For the fourth quarter, we expect APM's sales to be in the range of $220-$240 million, roughly in line with normal seasonality trends. We expect another quarter of solid margin performance within Composites to be offset by I&S pricing and volumes that remain well below prior-year levels. In addition, due to lower demand, APM has decided to pull forward a planned manufacturing plant turnaround that was previously scheduled for the first quarter of fiscal 2017. We expect APM's EBITDA margin to be in the range of ~9-10 percent for the fourth quarter.
  • Co is not providing a fourth-quarter outlook for the Valvoline business segment ahead of the spin off.

5:07 pm PS Business Parks beats by $0.04, reports revs in-line (PSB) :

  • Reports Q2 (Jun) funds from operations of $1.36 per share, $0.04 better than the Capital IQ Consensus of $1.32; revenues rose 4.5% year/year to $96.09 mln vs the $95.7 mln two analyst estimate.

5:04 pm DDR beats by $0.02, reports revs in-line; raises FY16 FFO guidance (DDR) :

  • Reports Q2 (Jun) operating FFO of $0.33 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.31; revenues fell 1.2% year/year to $245.86 mln vs the $247.38 mln Capital IQ Consensus.
  • Co issues upside guidance for FY16, sees operating FFO of $1.23-1.26, excluding non-recurring items, vs. $1.24 Capital IQ Consensus Estimate and vs prior guidance of $1.20-1.25.

5:03 pm UMB Financial Corporation beats by $0.06, beats on revs (UMBF) :

  • Reports Q2 (Jun) earnings of $0.80 per share, $0.06 better than the Capital IQ Consensus of $0.74; revenues rose 11.9% year/year to $242.7 mln vs the $239.93 mln Capital IQ Consensus. 
  • "Second quarter results were driven by increased loan volume and balance sheet growth, improved net interest margin and continued progress toward our efficiency initiative," said Mariner Kemper, chairman and chief executive officer. "We have a history of solid, top-tier loan growth and this quarter was no exception, with loans surpassing $10 billion for the first time in the company's history. In addition, we saw net interest income expansion of 24.5 percent, or $23.9 million compared to June 30, 2015, driven by Marquette's higher-yielding loans and changes in our earning asset mix." 
  • Co names Ram Shankar as chief financial officer.
  • Co appoints Tim Murphy to the UMB Financial Corporation Board of Directors.

5:02 pm PolyOne acquires 2 specialty businesses from Gordon Holdings for $85.5 mln, expects earnings accretion in 2017 (POL) :

  • Gordon Composites develops high strength profiles and laminates for use in vertical and crossbow archery, sports and recreation equipment, prosthetics, and office furniture systems.
  • Polystrand operates with continuous reinforced thermoplastic composite technology, a next generation material science that delivers the strength and lightweight characteristics of composites, further enhanced with the design flexibility to form more complex shapes according to the co.
  • The purchase price for both businesses was $85.5 million. The price includes all assets related to the businesses, including intellectual property, trademarks and production assets.
  • PolyOne expects the acquisitions to add $40 million to revenues and be accretive to earnings in 2017.

5:01 pm Lindblad Expeditions names Craig Felenstein as CFO (LIND) : Felenstein most recently served as the Senior Vice President of Investor Relations and Strategic Finance at Shutterstock (SSTK), since March 2015, where he oversaw all interaction with the investment community while leading the financial planning and analysis and corporate development functions.

5:01 pm Walgreens Boot Alliance announces 15 mln share secondary offering on behalf of selling shareholders (WBA) : Co previously issued to the selling stockholders an aggregate of 52.46 mln shares of common stock in connection with the strategic combination with Alliance Boots GmbH. The company is not selling any shares and will not receive any proceeds from the proposed offering.

5:00 pm UMB Financial Corporation appoints Ram Shankar as CFO (UMBF) : Prior to joining UMB, Shankar spent five years as managing director of First Niagara Financial Group, where he headed financial planning and analysis and investor relations.

4:59 pm Landec beats by $0.02, beats on revs; guides Q1 EPS in-line, revs below consensus; guides FY17 EPS below consensus, revs in-line (LNDC) :

Reports Q4 (May) earnings of $0.17 per share, $0.02 better than the Capital IQ Consensus of $0.15; revenues rose 0.6% year/year to $135.31 mln vs the $130.09 mln Capital IQ Consensus.

  • "As we enter fiscal 2017, based on current weather patterns, we believe these sourcing issues should be behind us and we look forward to stronger overall Apio results in fiscal 2017."
  • Co issues guidance for Q1, sees EPS of $0.09-0.11 vs. $0.11 Capital IQ Consensus Estimate; sees Q1 revs of $129-133 mln vs. $140.49 mln Capital IQ Consensus Estimate.
  • Co issues guidance for FY17, sees EPS of $0.53-0.60 vs. $0.61 Capital IQ Consensus Estimate; sees FY17 revs of $557-574 mln (+3-6%) vs. $573.94 mln Capital IQ Consensus Estimate.
  • "We see considerable tailwinds in both of our businesses. In our Apio business, we now have El Nino behind us and the market categories in which we operate are growing. For the twelve months ended May 29, 2016, the North America category for retail, excluding club stores and in consumer retail dollars, grew 6% for packaged fresh vegetables bags and trays and grew 28% for salad kits. Eat Smart salad kits grew faster than category at 36%. At Lifecore, the ophthalmic and orthopedic markets we have historically served with our HA products continue to grow in the mid-single digits and we expect this growth to continue as the worldwide use of HA increases with the aging population. Beyond HA, the accelerated growth at Lifecore is being generated from its emerging product development partnerships focused on the recently expanded capabilities in novel formulation and aseptic filling services. We are very well positioned for future growth in both of our businesses after expanding our Hanover, PA plant and Lifecore facilities in anticipation of growth in demand from our increasing product offerings and increasing innovation efforts during fiscal 2016."

4:57 pm American Assets Trust reports Q2 funds from operations of $0.45 vs $0.46 Capital IQ Consensus Estimate; revs +7% YoY to $71.8 mln vs $71.39 mln Capital IQ Consensus Estimate; reaffirms FY16 FFO guidance (AAT) :

  • Co reaffirms FY16 FFO guidance of $1.82-1.88 vs $1.87 FFO Capital IQ consensus
  • Q2 Same-store cash NOI increased 5% and 6%, respectively, for the three and six months ended June 30, 2016 compared to the same periods in 2015.

4:56 pm U.S. Steel beats by $0.22, misses on revs (X) :

  • Reports Q2 (Jun) loss of $0.32 per share, $0.22 better than the Capital IQ Consensus of ($0.54); revenues fell 10.9% year/year to $2.58 bln vs the $2.68 bln Capital IQ Consensus.
  • Co issues guidance for FY16, sees EPS of $0.34, may not be comparable to ($1.92) Capital IQ Consensus Estimate.
  • Segment Analysis
    • Second quarter results for Flat-Rolled segment improved from the first quarter as steel prices increased throughout the quarter. The increase in average realized price reflects the flow through of higher index prices to monthly contracts and increased pricing on spot business.
    • Second quarter results for European segment increased compared to the first quarter.
    • Second quarter results for Tubular segment decreased compared to the first quarter primarily due to lower shipments and prices. Shipments were adversely impacted as average rig counts were lower in the second quarter.
  • Second quarter results for Flat-Rolled segment improved from the first quarter as steel prices increased throughout the quarter. The increase in average realized price reflects the flow through of higher index prices to monthly contracts and increased pricing on spot business.
  • Second quarter results for European segment increased compared to the first quarter.
  • Second quarter results for Tubular segment decreased compared to the first quarter primarily due to lower shipments and prices. Shipments were adversely impacted as average rig counts were lower in the second quarter.

2016 Outlook

  • Commenting on U. S. Steel's outlook for 2016, Longhi said, "The significant improvements we have made to our earnings power through our Carnegie Way transformation will become more apparent as market prices recover from the very low levels at the end of 2015. While we began to realize some benefit from recent price increases in the second quarter, we will see better average realized prices, primarily in our Flat-Rolled and European segments, in the second half of the year.
  • Our Carnegie Way journey continues to create improvements in our business model that will enable us to be profitable across the business cycle." If market conditions, which include spot prices, customer demand, import volumes, supply chain inventories, rig counts and energy prices, remain at their current levels, we would expect:
    • 2016 net earnings to be approximately $50 million, or $0.34 per share, and adjusted EBITDA to be approximately $850 million.
    • Results for Flat-Rolled and European segments should each be higher than their 2015 results and results for Tubular segment should be lower than their 2015 results.
    • To be cash positive for the year, including approximately $400 million of cash benefits from working capital improvements in 2016.
  • 2016 net earnings to be approximately $50 million, or $0.34 per share, and adjusted EBITDA to be approximately $850 million.
  • Results for Flat-Rolled and European segments should each be higher than their 2015 results and results for Tubular segment should be lower than their 2015 results.
  • To be cash positive for the year, including approximately $400 million of cash benefits from working capital improvements in 2016.

4:55 pm Citrix Systems beats by $0.06, beats on revs; guides Q3 EPS & revs above consensus; increases FY16 guidance (CTXS) :

  • Reports Q2 (Jun) earnings of $1.20 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus of $1.14; revenues rose 5.8% year/year to $843 mln vs the $816.48 mln Capital IQ Consensus.
  • 2Q16 segment rev y/y comparisons:
    • Product and license revenue increased 7 percent
    • Software as a service revenue increased 14 percent
    • Revenue from license updates and maintenance increased 3 percent
    • Professional services revenue, which is comprised of consulting, product training and certification, decreased 6 percent
  • Product and license revenue increased 7 percent
  • Software as a service revenue increased 14 percent
  • Revenue from license updates and maintenance increased 3 percent
  • Professional services revenue, which is comprised of consulting, product training and certification, decreased 6 percent
  • Non-GAAP gross margin was 85 percent, excluding the effects of amortization of acquired product related intangible assets and stock-based compensation expense.
  • Co issues upside guidance for Q3, sees EPS of $1.18-1.20, excluding non-recurring items, vs. $1.18 Capital IQ Consensus Estimate; sees Q3 revs of $820-830 mln, excluding non-recurring items, vs. $816.16 mln Capital IQ Consensus Estimate.
  • Co increases guidance for FY16, sees EPS of $5.00-5.10 (prior guidance $4.90-5.00), excluding non-recurring items, vs. $4.98 Capital IQ Consensus Estimate; sees FY16 revs of $3.37-3.39 bln (prior guidance $3.34-3.36 bln), excluding non-recurring items, vs. $3.35 bln Capital IQ Consensus Estimate.

4:53 pm OTC name Cachet Financial announces 1:15 reverse stock split for a proposed application to up-list its common stock on the NASDAQ Capital Market (CAFN) :

  • The reverse stock split will become effective at 12:01 a.m. on Wednesday, July 27, 2016, and the Company's common stock will begin trading on a post-split basis at the open of trading on Wednesday, July 27, 2016.
  • The reverse stock split is being implemented by the Company in preparation for a proposed application to up-list the Company's common stock on the NASDAQ Capital Market ("NASDAQ"). The reverse stock split is intended to fulfill the stock price requirements for listing on NASDAQ since the requirements include, among other things, that the Company's common stock must maintain a minimum closing price per share of $4.00 or higher for 30 of the most recent 60 trading days. Assuming the Company is able to meet NASDAQ's requirements, the Company intends to file the proposed up-list application with NASDAQ in the coming weeks after meeting the minimum closing price requirement. However, there is no assurance that the Company's application to up-list the Company's common stock on NASDAQ will be approved.

4:52 pm Linear Tech beats by $0.01, reports revs in-line (LLTC) :

  • Reports Q4 (Jun) earnings of $0.54 per share, $0.01 better than the Capital IQ Consensus of $0.53; revenues fell 1.5% year/year to $373.77 mln vs the $373.78 mln Capital IQ Consensus.
  • As a result of the pending transaction with Analog Devices (ADI), the Company will not provide expected financial results for the fiscal first quarter of 2017 or future periods.

4:49 pm PG&E filing with the CPUC will be delayed by two weeks; continues discussions with labor groups on Diablo Canyon joint proposal (PCG) :

  • Pacific Gas and Electric Company (PG&E), along with labor and leading environmental groups, announced they would delay for two weeks the planned July 28, 2016, filing with the California Public Utilities Commission (:CPUC) of their Joint Proposal to increase investment in energy efficiency, renewables and storage beyond current state mandates while phasing out PG&E's production of nuclear power in California by 2025. PG&E and the original parties are focused on a continued dialogue and exploring the issues raised in order to seek potential solutions that could be integrated into the filing with the CPUC on or before August 11, 2016.
  • PG&E and the joint parties announced the Joint Proposal on June 21, 2016. Since that time, and in line with the company's commitment to ensuring an open and transparent process, PG&E has hosted a public workshop for parties who formally engage in the CPUC intervenor process as well as four public information meetings (two in San Luis Obispo and two in South San Francisco) in which PG&E provided an opportunity for the public to ask questions and to comment on the Joint Proposal.
  • Agreement Contingencies - The Joint Proposal is contingent on the following important regulatory actions: Approval by the CPUC of the proposed plan for replacement of Diablo Canyon with greenhouse gas free resources. Any resource procurement PG&E makes will be subject to a non-bypassable cost allocation mechanism that ensures all users of PG&E's grid pay a fair share of the costs. CPUC confirmation that PG&E's investment in DCPP will be recovered by the time the plant closes in 2025. CPUC approval of cost recovery for appropriate employee and community transition benefits.

4:49 pm QLogic beats by $0.04, reports revs in-line (QLGC) :

  • Reports Q1 (Jun) earnings of $0.29 per share, $0.04 better than the Capital IQ Consensus of $0.25; revenues rose 2.6% year/year to $116.4 mln vs the $115.44 mln two analyst estimate.
  • Due to the pending acquisition by Cavium (CAVM), QLogic will not be providing earnings guidance for the second quarter of fiscal 2017.

4:48 pm Greenhill beats by $0.14, beats on revs (GHL) :

  • Reports Q2 (Jun) earnings of $0.62 per share, $0.14 better than the Capital IQ Consensus of $0.48; revenues rose 23.3% year/year to $90.5 mln vs the $89.14 mln Capital IQ Consensus. 
  • Compensation expense ratio for the quarter at 49%; year to date at 56%.
  • "Despite significant market volatility both at the beginning of the year and more recently around Britain's vote to leave the European Union, we continue to see a good level of M&A activity in the U.S. market. In addition, restructuring advisory activity in the U.S. continues to show improvement off the low base of recent years, and we are hopeful of significantly increased revenue in that area over time."

4:46 pm Globus Medical beats by $0.01, misses on revs; reaffirms FY16 EPS guidance, lowers FY16 revs outlook; guides FY17 revs in-line (GMED) :

  • Reports Q2 (Jun) earnings of $0.29 per share, $0.01 better than the Capital IQ Consensus of $0.28; revenues rose 2.9% year/year to $137.49 mln vs the $141.53 mln Capital IQ Consensus.
  • Co updates guidance for FY16, continues to see EPS of $1.20 vs. $1.20 Capital IQ Consensus Estimate; sees FY16 revs of $575 mln (Includes $10 mln from Alphatec International acquisition; Prior guidance was for ~$583 mln) vs. $582.98 mln Capital IQ Consensus Estimate.
  • Co issues preliminary guidance for FY17, sees FY17 revs of ~$640 mln (Includes ~$40 mln from acquisition) vs. $637.06 mln Capital IQ Consensus Estimate.

4:46 pm Cincinnati Fincl beats by $0.18, beats on revs (CINF) :

  • Reports Q2 (Jun) earnings of $0.57 per share, excluding non-recurring items, $0.18 better than the Capital IQ Consensus of $0.39; revenues rose 4.2% year/year to $1.37 bln vs the $1.33 bln single analyst estimate.

4:44 pm JBT Corp beats by $0.10, beats on revs; increases FY16 EPS guidance (JBT) :

  • Reports Q2 (Jun) earnings of $0.67 per share, excluding non-recurring items, $0.10 better than the Capital IQ Consensus of $0.57; revenues rose 29.1% year/year to $328.8 mln vs the $304.2 mln Capital IQ Consensus.
  • Co increases guidance for FY16, sees adj EPS of $2.25-2.35 (prior $2.15-2.30) vs. $2.27 Capital IQ Consensus Estimate.
    • JBT anticipates revenue growth of ~16 percent, reflecting organic growth of 5 - 6 percent and 10 percent growth from acquisitions.
    • The co expects segment operating margin expansion of 50 - 75 basis points, compared with the previous guidance of 25 - 50 basis point expansion.
    • For the third quarter of 2016, the Company anticipates a seasonal decline in earnings from second quarter levels, similar to 2015.
    • The fourth quarter is expected to be seasonally stronger, with performance in line with the fourth quarter of 2015.
  • JBT anticipates revenue growth of ~16 percent, reflecting organic growth of 5 - 6 percent and 10 percent growth from acquisitions.
  • The co expects segment operating margin expansion of 50 - 75 basis points, compared with the previous guidance of 25 - 50 basis point expansion.
  • For the third quarter of 2016, the Company anticipates a seasonal decline in earnings from second quarter levels, similar to 2015.
  • The fourth quarter is expected to be seasonally stronger, with performance in line with the fourth quarter of 2015.

4:44 pm Alphatec confirms sale of its international operations and distribution channel to Globus Medical (GMED) for $80 mln in cash; secures five year $30 mln credit facility as part of transaction (ATEC) :

  • As part of the transaction, Globus has also agreed to provide Alphatec a five-year senior secured credit facility of up to $30 mln. Alphatec expects to use portions of the cash consideration to pay down ~$69 mln of existing debt and debt-related costs.
  • Under the terms of the agreement, Globus will acquire Alphatec's international distribution operations and agreements, including the wholly-owned subsidiaries in Japan and Brazil and substantially all of the assets of Alphatec's remaining international business, including its sales operations in the United Kingdom and Italy. This transaction includes a supply agreement through which Alphatec will supply its products to Globus for up to five years. Alphatec will agree to not compete in the international market for the term of the supply agreement plus an additional two years.
  • The closing is contingent on a number of conditions, including the entry into credit agreements involving the company's lender, MidCap Financial, and Globus. The parties expect the closing of the acquisition to occur by October 2016 following satisfaction of the applicable closing conditions.

4:42 pm Assurant beats by $0.03, beats on revs (AIZ) :

  • Reports Q2 (Jun) earnings of $1.42 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus of $1.39; revenues fell 32.0% year/year to $1.8 bln vs the $1.72 bln Capital IQ Consensus.
  • "Our second quarter operating results were in line with our outlook for the year and demonstrate a continued focus on the multi-year transformation of our business. While operating results this quarter were lower year-over-year, we are reaching key milestones by strengthening our portfolio of businesses and realigning our organization. Our continued expansion in the housing and lifestyle markets enables us to further sharpen our customer focus and generate long-term profitable growth."

4:42 pm Franklin Financial Network reports Q2 EPS of $0.62 vs $0.58 Capital IQ Consensus Estimate (FSB) :

  • Net interest income for the second quarter of 2016 increased 49.6% to $19.9 million from the second quarter of 2015 and 3.4% from the first quarter of 2016.

4:41 pm Wabash Natl beats by $0.08, misses on revs; raises FY16 EPS guidance (WNC) :

  • Reports Q2 (Jun) earnings of $0.55 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus of $0.47; revenues fell 8.4% year/year to $471.44 mln vs the $491.67 mln Capital IQ Consensus.
  • Co raises guidance for FY16, sees EPS of $1.80-1.90 (Prior $1.65-1.75) vs $1.72 Capital IQ Consensus Estimate;

4:41 pm Western Gas Equity Partners beats by $0.08, beats on revs (WGP) :

  • Reports Q2 (Jun) earnings of $0.41 per share, $0.08 better than the Capital IQ Consensus of $0.33; revenues fell 8.0% year/year to $428.66 mln vs the $406.02 mln Capital IQ Consensus.

4:40 pm Pennsylvania R.E.I.T. beats by $0.02, misses on revs; raises bottom end of FY16 FFO in-line (PEI) :

  • Reports Q2 (Jun) funds from operations of $0.43 per share, $0.02 better than the Capital IQ Consensus of $0.41; revenues fell 7.3% year/year to $94.3 mln vs the $101.65 mln two analyst estimate. Same Store NOI excluding lease terminations improved by 4.0% for the quarter and by an average of 4.0% for the first two quarters ended June 30, 2016 as compared to the prior year period.
  • Co issues in-line guidance for FY16, raises bottom end of FFO to $1.84-1.87 from $1.80-1.87 vs. $1.85 Capital IQ Consensus Estimate. 

4:39 pm II-VI announces ramp up of shipments of LAN-WDM optics to serve the 100GBASE-LR4 and ER4 transceiver market (IIVI) : Transceivers operating at 100 Gb/s are becoming the connectivity workhorse for spine-leaf network topologies. II-VI is ramping up its production output to meet the increasing demand for micro-optics used in transceivers for intra-data center connectivity.

4:38 pm Unisys beats by $0.58, beats on revs, will guide on the 2Q16 earnings call (UIS) :

  • Reports Q2 (Jun) earnings of $0.81 per share, $0.58 better than the Capital IQ Consensus of $0.23; revenues fell 2.1% year/year to $748.9 mln vs the $688.38 mln Capital IQ Consensus.
  • Overall operating profit margin of 6.6 percent includes cost reduction charges and pension expense. Second quarter 2016 non-GAAP operating profit margin was 10.8 percent, an increase of 690 basis points from the prior year.
  • Unisys re-affirms full-year guidance for total company revenue, non-GAAP operating profit margin and adjusted free cash flow, co will guide on their earnings call

4:38 pm Range Resources reports Q2 (Jun) results, beats on revs (RRC) :

  • Reports Q2 (Jun) loss of $1.35 per share, may not be comparable to the Capital IQ Consensus of ($0.19); revenues fell 10.4% year/year to $362.67 mln vs the $334.72 mln Capital IQ Consensus.
  • Production for the entire 2016 year remains at the high-end of previous guidance to average 1,410 to 1,420 Mmcfe per day after all announced asset sales. Production for the third quarter of 2016 is expected to be approximately 1,430 Mmcfe per day with 32% to 35% liquids.
  • The proposed merger with Memorial (MRD) is on track, with closing estimated to occur late in the third quarter.

4:37 pm C.R. Bard beats by $0.07, beats on revs; raises FY16 guidance (BCR) :

  • Reports Q2 (Jun) earnings of $2.54 per share, $0.07 better than the Capital IQ Consensus of $2.47; revenues rose 8.3% year/year to $931.5 mln vs the $915.37 mln Capital IQ Consensus.
  • Co raises FY16 guidance, sees EPS of $10.10-10.20 (from $10.05-10.18) vs. $10.14 Capital IQ Consensus Estimate; sees FY16 rev growth of +7-8% on an as-reported basis which we equate to $3.655-3.689 bln (from $3.57-3.64 bln) vs. $3.65 bln Capital IQ Consensus Estimate.
    • Excluding the impact of foreign exchange, full year 2016 net sales are forecasted to increase between 8 percent and 9 percent over 2015.
  • Excluding the impact of foreign exchange, full year 2016 net sales are forecasted to increase between 8 percent and 9 percent over 2015.

4:37 pm Alder BioPharmaceuticals misses by $0.07, beats on revs (ALDR) :

  • Reports Q2 (Jun) loss of $0.79 per share, $0.07 worse than the Capital IQ Consensus of ($0.72); revenues rose 112900.0% year/year to $0.11 mln vs the $0 mln Capital IQ Consensus.
  • As of June 30, 2016, Alder had $450.1 million in cash, cash equivalents and investments which included net proceeds from Alder's April 2016 public offering, compared to $353.3 million as of March 31, 2016.
  • Corporate update:
    • Advanced ALD1910 as a drug development candidate for the prevention of migraine. ALD1910 is a monoclonal antibody targeting pituitary adenylate cyclase-activating polypeptide-38 (PACAP-38), a protein that is active in mediating the initiation of migraine that Alder believes holds potential as a treatment for migraineurs who have an inadequate response to therapeutics directed at CGRP or its receptor.
    • Terminated development of ALD1613 based on preclinical studies identifying novel target specific toxicology findings that may limit human clinical utility.
  • Advanced ALD1910 as a drug development candidate for the prevention of migraine. ALD1910 is a monoclonal antibody targeting pituitary adenylate cyclase-activating polypeptide-38 (PACAP-38), a protein that is active in mediating the initiation of migraine that Alder believes holds potential as a treatment for migraineurs who have an inadequate response to therapeutics directed at CGRP or its receptor.
  • Terminated development of ALD1613 based on preclinical studies identifying novel target specific toxicology findings that may limit human clinical utility.
  • Expected upcoming events and milestones
    • Initiate PROMISE 2 (PRevention Of Migraine via Intravenous ALD403 Safety and Efficacy 2) in patients with chronic migraine in the second half of 2016 as the second pivotal clinical trial intended to support a Biologics License Application (:BLA) submission to the U.S. Food and Drug Administration (:FDA) for ALD403.
    • Advance Alder's alternate ALD403 formulation suitable for self-administration, as a single sub-cutaneous or intra-muscular injection, with the objective of initiating a late stage study in 2016 or early 2017.
    • Announce top-line data from PROMISE 1 (PRevention Of Migraine via Intravenous ALD403 Safety and Efficacy 1), the first pivotal trial of ALD403, in the first half of 2017.
  • Initiate PROMISE 2 (PRevention Of Migraine via Intravenous ALD403 Safety and Efficacy 2) in patients with chronic migraine in the second half of 2016 as the second pivotal clinical trial intended to support a Biologics License Application (:BLA) submission to the U.S. Food and Drug Administration (:FDA) for ALD403.
  • Advance Alder's alternate ALD403 formulation suitable for self-administration, as a single sub-cutaneous or intra-muscular injection, with the objective of initiating a late stage study in 2016 or early 2017.
  • Announce top-line data from PROMISE 1 (PRevention Of Migraine via Intravenous ALD403 Safety and Efficacy 1), the first pivotal trial of ALD403, in the first half of 2017.

4:37 pm Apollo Residential Mortg announces Apollo Commercial Real Estate Finance (ARI) will acquire (previously announced without specific price) them for ~$13.83/share in cash and stock (AMTG) : AMTG common stockholders will receive 0.417571 shares of ARI common stock per each share of AMTG common stock and approximately $6.86 per share in cash, based upon AMTG's book value per share of common stock on the Pricing Date of $15.52.

4:36 pm Match Group beats by $0.01, beats on revs (MTCH) :

  • Reports Q2 (Jun) earnings of $0.17 per share, $0.01 better than the Capital IQ Consensus of $0.16; revenues rose 21.0% year/year to $301.12 mln vs the $296.76 mln Capital IQ Consensus.
  • Q2 dating rev $275.3 mln vs. +4-5% Q/Q to ~$270.8-273.4 mln guidance; dating EBITDA margin 37% vs. low to mid-30% guidance
  • Yr/yr Operating income increased 82% to $74 mln & adj EBITDA increased 58% to $100 mln,
  • Average PMC grew 30% over the prior yr to 5.3 mln. ARPPU was up sequentially over Q1 2016 driven by increases at Tinder.

4:36 pm Apple beats by $0.04, reports revs in-line; guides Q4 rev mostly above estimates, gross margin a little light (AAPL) :

  • Reports Q3 (Jun) earnings of $1.42 per share, $0.04 better than the Capital IQ Consensus of $1.38; revenues fell 14.6% year/year to $42.36 bln vs the $42.1 bln Capital IQ Consensus; gross margins of 38.0% vs 37.9% ests vs 39.7% last year.
  • iPhones 40.4 mln vs 40.2 mln ests vs 47.5 mln last year.
    • iPads 9.95 mln vs 8.7 mln ests vs 10.9 mln last year.
    • Macs 4.2 mln vs 4.6 mln ests vs 4.4 mln last year.
  • iPads 9.95 mln vs 8.7 mln ests vs 10.9 mln last year.
  • Macs 4.2 mln vs 4.6 mln ests vs 4.4 mln last year.
  • Americas rev -11%; Europe -7%; China -33%; Asia/Pac -20%.
  • Co issues upside guidance for Q4, sees Q4 revs of $45.5-47.5 bln vs. $45.8 bln Capital IQ Consensus Estimate; gross margin 37.5-38% vs. 38.3% ests.

4:34 pm Carriage Services misses by $0.02, reports revs in-line; offers rolling four quarters guidance (CSV) :

  • Reports Q2 (Jun) earnings of $0.37 per share, $0.02 worse than the Capital IQ Consensus of $0.39; revenues rose 4.4% year/year to $61.87 mln vs the $61.34 mln Capital IQ Consensus.
  • "Our Same Store Funeral and Cemetery Portfolios along with our Acquisition Funeral Portfolio all delivered strong performances with respective Revenue and Total Field EBITDA growth of 2.0% and 6.1% for Same Store Funeral, 9.6% and 14.5% for Same Store Cemetery and 16.8% and 22.3% for Acquisition Funeral"
  • ROLLING FOUR QUARTER OUTLOOK -- Period Ending June 30, 2017
    • Sees Revs $251-255 mln
    • Sees Adj-Consolidated EBITDA of $74-78 mln
    • Sees Adj-Net Income $29-31 mln
    • Sees Diluted EPS of $1.71-1.75
  • Sees Revs $251-255 mln
  • Sees Adj-Consolidated EBITDA of $74-78 mln
  • Sees Adj-Net Income $29-31 mln
  • Sees Diluted EPS of $1.71-1.75

4:32 pm Globus Medical to acquire the international operations and distribution channels of Alphatec Holdings (ATEC) for $80 mln; expected to be marginally accretive in 2017 (GMED) :

Globus Medical also agreed to extend a 5-year senior secured credit facility of up to $30.0 million to Alphatec to support their working capital needs. The parties expect the closing of the acquisition to occur by October 2016 following satisfaction of the applicable closing conditions.

  • As a result of the acquisition, Globus Medical will assume Alphatec's existing international direct and distributor sales channels, which generated sales of approximately $71 million in 2015 and $15.6 million in the first quarter of 2016. Globus Medical intends to offer its own products through these sales channels, but during the transition, Globus Medical will continue to sell Alphatec products. The timing of the transition in each country will depend upon regulatory requirements and contractual or tender commitments. The transaction includes a supply agreement through which Alphatec will supply its products to Globus Medical for up to five years.
  • For the fourth quarter of 2016, Globus Medical expects this acquisition to add roughly $10 million of additional sales and to be earnings neutral, excluding acquisition related costs, adjusted for tax, which are expected to be roughly $0.02 per share. Globus Medical anticipates incurring significant expenses associated with integrating and optimizing this business in 2017. For 2017, Globus Medical expects the acquisition to add roughly $40 million of sales and contribute non-GAAP EPS of approximately $0.03-$0.05.

4:30 pm IBM files mixed securities shelf offering for undisclosed amount (IBM) : Net proceeds will be used for general corporate purposes.

4:30 pm Zix Corp reports EPS in-line, beats on revs; guides Q3 EPS in-line, revs below consensus; Reaffirms FY16 EPS guidance & lowers rev guidance (ZIXI) :

  • Reports Q2 (Jun) earnings of $0.06 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.06; revenues rose 12.0% year/year to $14.9 mln vs the $14.7 mln Capital IQ Consensus.
  • Co issues guidance for Q3, sees EPS of $0.06, excluding non-recurring items, vs. $0.06 Capital IQ Consensus Estimate; sees Q3 revs of $15.0-15.1 mln, excluding non-recurring items, vs. $15.18 mln Capital IQ Consensus Estimate.
  • Co reaffirms EPS guidance & lowers rev guidance for FY16, sees EPS of $0.24, excluding non-recurring items, vs. $0.24 Capital IQ Consensus Estimate; sees FY16 revs of $59.6-60.2 mln (prior $59.5-61.0 mln), excluding non-recurring items, vs. $59.82 mln Capital IQ Consensus Estimate.

4:30 pm Covanta misses by $0.17, beats on revs; reaffirms FY16 guidance (CVA) :

  • Reports Q2 (Jun) loss of $0.22 per share, $0.17 worse than the Capital IQ Consensus of ($0.05); revenues rose 2.5% year/year to $418 mln vs the $407.8 mln Capital IQ Consensus. The EPS decrease was driven primarily by book income taxes, partially offset by higher operating income.
  • Co continues to see FY16 Adj-EBITDA of $390-430 mln, FCF of $140-180 mln

4:29 pm Black Hills Corp reviews cost of service gas regulatory approval strategy; requested a withdrawal of proceedings for its cost of service gas application in Wyoming (BKH) :

  • Co announced it requested a withdrawal of proceedings for its cost of service gas application in Wyoming, which was scheduled for hearing on August 2-5. The Company will also be seeking to withdraw its applications in Iowa, Kansas and South Dakota. The Company's initial cost of service gas applications were developed during a two-year period with input from state regulatory commissioners, staff and consumer advocates to structure the program using a two phase approach. The first phase would establish the criteria for how the program would work and the second phase would seek approval for a specific gas reserves property.
  • Black Hills recently received a dismissal of its application in Colorado and denial of its application in Nebraska. Orders from these two states indicated that the initial phase filings contained insufficient information and data to support customer benefits. Based on pre-hearing discovery and commission orders, the Company is evaluating its options on how best to proceed, including the possibility of filing a single phase application for approval of a specific gas reserve property. Black Hills continues to believe that a cost of service gas program is in the best long-term interest of its utility customers. The program proposes to reduce our customers' exposure to long-term natural gas price increases and volatility, with a reasonable expectation of lower long-term natural gas costs for customers. Both are worthy objectives considering the historical volatility of natural gas prices, particularly during critical winter heating months.

4:29 pm Franklin Street Properties beats by $0.01; guides FY16 FFO in-line (FSP) :

  • Reports Q2 (Dec) funds from operations of $0.27 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.26.
  • Co issues in-line guidance for FY16, sees FFO of $1.03-1.06, excluding non-recurring items, vs. $1.04 Capital IQ Consensus Estimate.

4:29 pm CNO Financial reports EPS in-line, beats on revs (CNO) :

  • Reports Q2 (Jun) operating earnings of $0.35 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.35; revenues rose 4.6% year/year to $1.00 bln vs the $957 mln Capital IQ Consensus.

4:28 pm Apollo Commercial Real Estate beats by $0.01, misses on revs (ARI) :

  • Reports Q2 (Jun) earnings of $0.49 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.48; revenues rose 43.0% year/year to $46.9 mln vs the $47.67 mln Capital IQ Consensus. 
  • The Company's book value per share of common stock at June 30, 2016 was $15.51 as compared to $15.89 at March 31, 2016. The decline in book value was due primarily to unrealized marked to market losses on the Company's CMBS portfolio which totaled $0.17 per share of common stock. In addition, the Company recorded a provision for loan loss totaling $15.0 million, or $0.22 per share of common stock in connection with a $55 million first mortgage and mezzanine loan secured by a multifamily property in Williston, North Dakota.

4:28 pm USANA beats by $0.03, reports revs in-line; raises EPS guidance for FY16, reaffirms revs guidance (USNA) :

  • Reports Q2 (Jun) earnings of $2.07 per share, $0.03 better than the Capital IQ Consensus of $2.04; revenues rose 10.8% year/year to $258.5 mln vs the $256.66 mln Capital IQ Consensus.
  • Co raises guidance for FY16, sees EPS of $7.90-8.20 vs. $8.00 Capital IQ Consensus Estimate, up from $7.60-8.15; reaffirms FY16 revs of $1.02-1.05 bln vs. $1.02 bln Capital IQ Consensus Estimate.

4:28 pm Trustmark elects Michael Summerford to succeed Daniel A. Grafton as Chairman of the Board effective January 1, 2017 (TRMK) :

  • Summerford succeeds Daniel A. Grafton, who plans to retire from Trustmark's Boards of Directors at the 2017 Annual Shareholders' Meeting.
  • Summerford has been a member of Trustmark's Board of Directors since 2005.

4:27 pm Total System beats by $0.02, reports revs in-line (TSS) :

  • Reports Q2 (Jun) earnings of $0.74 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.72; revenues rose 66.2% year/year to $1.15 bln vs the $1.14 bln Capital IQ Consensus.
  • "All four segments achieved net revenue growth on a constant currency basis and our consolidated adjusted operating margin expanded by 202 basis points. We are also pleased to report that the integration of our TransFirst acquisition this quarter is going very well."

4:27 pm Juniper Networks beats on top and bottom lines; guides Q3 EPS in-line, revs in-line (JNPR) :

  • Reports Q2 (Jun) earnings of $0.50 per share, $0.03 better than the Capital IQ Consensus of $0.47; revenues fell 0.1% year/year to $1.22 bln vs the $1.19 bln Capital IQ Consensus.
  • JNPR's non-GAAP operating margin for Q2 of 2016 was 22.5%, a decrease from 25.2% in the second quarter of 2015, and an increase from 19.3% in the first quarter of 2016.
  • Co issues in-line guidance for Q3, sees EPS of 0.48-0.54 vs. $0.54 Capital IQ Consensus Estimate; sees Q3 revs of 1.22-1.28 bln vs. $1.24 bln Capital IQ Consensus Estimate.
    • Juniper Networks remains constructive on rev for 2016 and expects modest growth despite the current macro envm't. Co will continue to prudently manage operating expenses. However, it expects gross margins to remain approx at their Q2 levels in the NT. As a result, co expects operating margins for FY16 to decline slightly relative to the FY15. Co remains confident in its LT model and remains focused on growth and operating margin expansion.
  • Juniper Networks remains constructive on rev for 2016 and expects modest growth despite the current macro envm't. Co will continue to prudently manage operating expenses. However, it expects gross margins to remain approx at their Q2 levels in the NT. As a result, co expects operating margins for FY16 to decline slightly relative to the FY15. Co remains confident in its LT model and remains focused on growth and operating margin expansion.

4:26 pm Robert Half misses by $0.02, misses on revs (RHI) :

  • Reports Q2 (Jun) earnings of $0.71 per share, $0.02 worse than the Capital IQ Consensus of $0.73; revenues rose 5.7% year/year to $1.34 bln vs the $1.36 bln Capital IQ Consensus.
  • In the second quarter, unlevered return on equity for the company was 35%

4:26 pm Universal Health beats by $0.01, reports revs in-line (UHS) :

  • Reports Q2 (Jun) earnings of $1.94 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $1.93; revenues rose 6.8% year/year to $2.43 bln vs the $2.45 bln Capital IQ Consensus.

4:26 pm McDermott beats by $0.05, misses on revs (MDR) :

  • Reports Q2 (Jun) earnings of $0.07 per share, $0.05 better than the Capital IQ Consensus of $0.02; revenues fell 32.5% year/year to $706.6 mln vs the $753.43 mln Capital IQ Consensus.
  • Co issues guidance for FY16, sees EPS of ~($0.03) vs. $0.06 Capital IQ Consensus Estimate & previous guidance of ~($0.12); sees FY16 revs of ~$2.7 bln vs. $2.75 bln Capital IQ Consensus Estimate & in line with previous guidance.
  • As of June 30, backlog was $4.4 bln vs $3.8 bln at March 31, 2016. Of the June 30 backlog approx 80% is related to offshore operations and approximately 20% is related to subsea operations.

4:25 pm UDR beats by $0.01, beats on revs; guides Q3 AFFO in-line; guides FY16 AFFO in-line (UDR) :

  • Reports Q2 (Jun) FFO as adjusted of $0.45 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.44; revenues rose 10.6% year/year to $238.8 mln vs the $235.6 mln Capital IQ Consensus.
  • Co issues in-line guidance for Q3, sees FFO as adjusted of $0.44-0.46, excluding non-recurring items, vs. $0.45 Capital IQ Consensus Estimate.
  • Co issues in-line guidance for FY16, sees FFO as adjusted of $1.77-1.80, excluding non-recurring items, vs. $1.78 Capital IQ Consensus Estimate.

4:24 pm Acadia Realty Trust misses by $0.01, beats on revs; reaffirms FY16 FFO guidance (AKR) :

  • Reports Q2 (Jun) funds from operations of $0.37 per share, $0.01 worse than the Capital IQ Consensus of $0.38; revenues fell 9.9% year/year to $43.49 mln vs the $41.27 mln two analyst estimate.
  • Co reaffirms guidance for FY16, sees FFO of $1.52-1.60 vs. $1.58 Capital IQ Consensus Estimate.
  • Consistent with expectations, the Company generated same-property net operating income growth of 2.3%; maintaining guidance for full-year same-property NOI growth of 3.0% to 4.0%; maintained a leased rate of 96.6% as of quarter end

4:24 pm Tanger Factory beats by $0.03, beats on revs; raises FY16 FFO in-line (SKT) :

  • Reports Q2 (Jun) funds from operations of $0.59 per share, $0.03 better than the Capital IQ Consensus of $0.56; revenues rose 3.3% year/year to $111.3 mln vs the $109.16 mln Capital IQ Consensus.
  • Co issues raised guidance for FY16, raises FFO to $2.31-2.36 from $2.29-2.35 vs. $2.33 Capital IQ Consensus Estimate. FY16 Guidance: Expects 2016 Same Center NOI growth between 3.0% and 3.5% for the consolidated portfolio
  • Same Center NOI for the consolidated portfolio increased 4.1% during the first half of 2016, on top of a 4.3% increase for the first half of 2015. Consolidated portfolio occupancy rate of 96.9% as of June 30, 2016, compared to 96.8% at June 30, 2015 and 96.6% at March 31, 2016.
  • Based on in-place financing, Tanger expects the impact of the Westgate acquisition to be modestly accretive to net income per share and FFO per share during the second half of 2016. However, the Company is currently evaluating various long-term financing alternatives with the objective of reducing its floating rate debt exposure, extending the average term of its outstanding debt, increasing the unused capacity under its lines of credit, and expanding its unencumbered asset pool.

4:23 pm Blackstone Mortgage Trust beats by $0.02, beats on revs (BXMT) :

  • Reports Q2 (Jun) earnings of $0.67 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.65; revenues rose 63.5% year/year to $81.4 mln vs the $78.44 mln Capital IQ Consensus. 
  • Loan originations of $859 million were 100% comprised of senior, floating rate mortgage loans.
  • Book value of $26.54 per share.

4:23 pm NCR Corp beats by $0.08, beats on revs; guides Q3 EPS in-line, revs above consensus; increases FY16 rev and reaffirms EPS guidance (NCR) :

  • Reports Q2 (Jun) earnings of $0.72 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus of $0.64; revenues rose 1.0% year/year to $1.62 bln vs the $1.56 bln Capital IQ Consensus.
  • Co issues guidance for Q3, sees EPS of $0.77-0.82 vs. $0.88 Capital IQ Consensus Estimate; sees Q3 revs of $1.62-1.64 bln, excluding non-recurring items, vs. $1.6 bln Capital IQ Consensus Estimate.
    • The third quarter 2016 guidance includes an expected foreign currency negative impact of $12 million for revenue and $0.01 for earnings per share.
  • The third quarter 2016 guidance includes an expected foreign currency negative impact of $12 million for revenue and $0.01 for earnings per share.
  • Co reaffirms guidance EPS guidance and raises FY16 rev guidance, sees EPS of $2.90-3.00, excluding non-recurring items, vs. $2.93 Capital IQ Consensus Estimate; sees FY16 revs of $6.325-6.4 bln (previous guidance of $6.25 bln to $6.35 bln). , excluding non-recurring items, vs. $6.29 bln Capital IQ Consensus Estimate.
  • Expects net cash provided by operating activities to be $675 million to $725 million and free cash flow to be $425 million to $475 million.
    • The 2016 guidance includes the impact of the IPS divestiture, expected foreign currency headwinds, and ongoing pension expense.
  • The 2016 guidance includes the impact of the IPS divestiture, expected foreign currency headwinds, and ongoing pension expense.

4:23 pm Ameriprise Financial misses by $0.03, reports revs in-line (AMP) :

  • Reports Q2 (Jun) operating earnings of $2.23 per share, excluding non-recurring items, $0.03 worse than the Capital IQ Consensus of $2.26; revenues fell 8.2% year/year to $2.87 bln vs the $2.88 bln Capital IQ Consensus
  • In the quarter, the co continued to deliver a strong return to shareholders through share repurchases and dividends of $571 mln. The co repurchased 4.7 mln shares in the quarter, up from 3.4 mln shares in the year ago period
  • Total assets under management and administration were $777 bln as Ameriprise advisor client net inflows were more than offset by the unfavorable impact of foreign exchange rates related to the UK referendum and asset management net outflows
  • Excess capital was ~$2.0 bln. In the quarter, the company repurchased 4.7 mln shares of common stock for $444 mln, reflecting its strategy of adjusting the level of share repurchases based on the valuation of the stock, up from 3.4 mln shares a year ago. The co also paid $127 mln in quarterly dividends.

4:22 pm Twitter beats by $0.04, reports revs in-line; guides Q3 revs below consensus; Raises low end of FY16 EBITDA guidance (TWTR) :

  • Reports Q2 (Jun) earnings of $0.13 per share, $0.04 better than the Capital IQ Consensus of $0.09; revenues rose 19.9% year/year to $602 mln vs the $607.41 mln Capital IQ Consensus.
  • MAUs
    • Average monthly active users (MAUs) were 313 million for Q2, up 3% year-over-year and compared to 310 million in the previous quarter.
    • Average U.S. MAUs were 66 million for Q2, up 1% year-over-year and compared to 65 million in the previous quarter.  
    • Average international MAUs were 247 million for Q2, up 4% year-over-year and compared to 245 million in the previous quarter.
    • Mobile MAUs represented 82% of total MAUs.
  • Average monthly active users (MAUs) were 313 million for Q2, up 3% year-over-year and compared to 310 million in the previous quarter.
  • Average U.S. MAUs were 66 million for Q2, up 1% year-over-year and compared to 65 million in the previous quarter.  
  • Average international MAUs were 247 million for Q2, up 4% year-over-year and compared to 245 million in the previous quarter.
  • Mobile MAUs represented 82% of total MAUs.
  • Revenue Breakdown
    • Advertising revenue totaled $535 million, an increase of 18% year-over-year.
    • Mobile advertising revenue was 89% of total advertising revenue.
    • Data licensing and other revenue totaled $67 million, an increase of 35% year-over-year.
    • U.S. revenue totaled $361 million, an increase of 12% year-over-year.
    • International revenue totaled $241 million, an increase of 33% year-over-year.  
  • Advertising revenue totaled $535 million, an increase of 18% year-over-year.
  • Mobile advertising revenue was 89% of total advertising revenue.
  • Data licensing and other revenue totaled $67 million, an increase of 35% year-over-year.
  • U.S. revenue totaled $361 million, an increase of 12% year-over-year.
  • International revenue totaled $241 million, an increase of 33% year-over-year.  
  • Ad Engagements
    • Total ad engagements were up 226% year-over-year.
    • Cost per engagement (CPE) was down 64% year-over-year.
  • Total ad engagements were up 226% year-over-year.
  • Cost per engagement (CPE) was down 64% year-over-year.
  • Co issues downside guidance for Q3, sees Q3 revs of $590-610 mln vs. $681.34 mln Capital IQ Consensus Estimate.
  • For Q3: 
    • Adjusted EBITDA to be in the range of $135 to $150 million;
    • Stock-based compensation expense to be in the range of $165 to $175 million.
  • Adjusted EBITDA to be in the range of $135 to $150 million;
  • Stock-based compensation expense to be in the range of $165 to $175 million.
  • For FY 2016 expect:
    • Capital expenditures to be $300 to $375 million (Prior $300-425 mln);
    • Adjusted EBITDA margin in the range of 26-27% (Prior 25-27%).
  • Capital expenditures to be $300 to $375 million (Prior $300-425 mln);
  • Adjusted EBITDA margin in the range of 26-27% (Prior 25-27%).

4:21 pm Cousins Prop misses by $0.01, beats on revs (CUZ) :

  • Reports Q2 (Jun) funds from operations of $0.21 per share, $0.01 worse than the Capital IQ Consensus of $0.22; revenues fell 5.3% year/year to $92.7 mln vs the $89.47 mln Capital IQ Consensus.
  • Merging with Parkway (PKY) - expected to close in the fourth quarter. In light of the announcement made on April 29, 2016 regarding the proposed merger and spin-off agreement with Parkway, Cousins Properties has withdrawn its 2016 FFO guidance.

4:20 pm Edwards Lifesciences beats by $0.06, beats on revs; guides Q3 EPS in-line, revs above consensus; raises FY16 EPS outlook, sees revs at high end of prior outlook (EW) :

  • Reports Q2 (Jun) earnings of $0.76 per share, $0.06 better than the Capital IQ Consensus of $0.70; revenues rose 23.1% year/year to $759.3 mln vs the $723.78 mln Capital IQ Consensus.
  • "For the quarter, the company's gross profit margin was 73.3 percent, compared to 74.3 percent in the same period last year. This decrease, which we expected, was driven primarily by the impact of foreign exchange, partially offset by a more profitable product mix reflecting strong growth in THVT and the prior year sales return reserve."
  • Co issues guidance for Q3, sees EPS of $0.62-0.68 vs. $0.64 Capital IQ Consensus Estimate; sees Q3 revs of $720-760 mln vs. $708.43 mln Capital IQ Consensus Estimate.
  • Co updates guidance for FY16, sees EPS of $2.78-2.88 (Prior $2.67-2.77) vs. $2.76 Capital IQ Consensus Estimate; sees FY16 revs at the high end of prior range of $2.7-3.0 bln vs. $2.89 bln Capital IQ Consensus Estimate.
  • "As patients and clinicians increasingly prefer TAVR, and based on the substantial body of compelling evidence, we remain as optimistic as ever about the long-term growth opportunity represented by transcatheter therapies. Overall, we remain committed to aggressively investing in structural heart disease and critical care technologies. We are confident this will result in more patients being treated with our innovative therapies and continued strong organic growth."

4:20 pm Spirit Realty Capital hires Jackson Hsieh as President and COO effective September 7 (SRC) :

Hsieh joins the co from Morgan Stanley (MS), where he serves as Managing Director and a Vice Chairman of Investment Banking, primarily focusing on the firm's real estate clients. Prior to rejoining Morgan Stanley, Jackson was Vice Chairman and Sole/Co-Global Head of UBS's Real Estate Investment Banking Group.

4:19 pm TransUnion beats by $0.04, beats on revs; guides Q3 EPS below consensus, revs in-line; guides FY16 EPS above consensus, revs in-line; announces new long-term agreement with Credit Karma (TRU) :

  • Reports Q2 (Jun) earnings of $0.37 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus of $0.33 and above guidance of $0.31-0.33; revenues rose 12.5% year/year to $425.7 mln vs the $414.8 mln Capital IQ Consensus and vs prior guidance of $405-410 mln.
  • Adjusted EBITDA for Q2 was $159 mln, up 18% YoY, and above prior guidance of $145-150 mln. Adjusted EBITDA margin was 37.5%, a YoY increase of 180 basis points.
  • Co issues guidance for Q3, sees EPS of $0.34-0.35, excluding non-recurring items, vs. $0.36 Capital IQ Consensus Estimate; sees Q3 revs of $420-425 mln vs. $423.96 mln Capital IQ Consensus Estimate. Sees Q3 adjusted EBITDA of $155-158 mln.
  • Co issues guidance for FY16, sees EPS of $1.37-1.39, excluding non-recurring items, vs. $1.34 Capital IQ Consensus Estimate; sees FY16 revs of $1.665-1.675 bln vs. $1.67 bln Capital IQ Consensus Estimate. Sees FY16 adjusted EBITDA of $613-618 mln.
  • "With continued execution of our strategy, we are seeing strong performance across the enterprise as well as attractive returns on our investments in key strategic initiatives, including the effective completion of our next generation technology platform. We have increased our ownership stake in the fast-growing, emerging markets of India and Colombia, and we added to our healthcare portfolio with the acquisition of Auditz."
  • "We're also excited to announce a new long-term agreement with Credit Karma, our strategic partner in pioneering alternative channels for consumer credit information."

4:19 pm Equity Residential reports FFO in-line, misses on revs; guides Q3 FFO in-line; guides FY16 FFO in-line (EQR) :

  • Reports Q2 (Jun) normalized funds from operations of $0.76 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.76; revenues fell 12.4% year/year to $595.2 mln vs the $612.84 mln Capital IQ Consensus.
  • Co issues in-line guidance for Q3, sees normalized FFO of $0.75-0.79 vs. $0.78 Capital IQ Consensus Estimate
  • Co lowers top end of FY16 normalized FFO guidance to $3.05-3.11, excluding non-recurring items, vs. $3.09 Capital IQ Consensus Estimate, from $3.05-3.15.

4:18 pm Fidelity National's FNF Group to acquire Commissions-provider of an end-to-end SaaS CRM; terms not disclosed (FNF) : Commissions has more than 1,500 customers who collectively have closed more than 170,000 residential real estate transactions over the last twelve months.

4:17 pm Illumina beats by $0.13, beats on revs; guides Q3 revs below consensus; raises FY16 EPS guidance, reaffirms revs guidance (ILMN) :

  • Reports Q2 (Jun) earnings of $0.86 per share, excluding non-recurring items, $0.13 better than the Capital IQ Consensus of $0.73; revenues rose 11.3% year/year to $600.1 mln vs the $593 mln Capital IQ Consensus.
  • Co issues downside guidance for Q3, sees Q3 revs of $625-630 mln vs. $631.57 mln Capital IQ Consensus Estimate.
  • Co guidance for FY16, raises EPS to $3.48-3.58 from $3.45-3.55, excluding non-recurring items, vs. $3.37 Capital IQ Consensus Estimate; sees FY16 revs of +12% to ~$2.49 bln vs. $2.48 bln Capital IQ Consensus Estimate.

4:17 pm C.H. Robinson reports EPS in-line, misses on revs (CHRW) :

  • Reports Q2 (Jun) earnings of $1.00 per share, in-line with the Capital IQ Consensus of $1.00; revenues fell 6.9% year/year to $3.3 bln vs the $3.43 bln Capital IQ Consensus.

4:16 pm McDermott and Nakilat-Keppel Offshore Marine announce a MoU for an exclusive cooperation agreement to pursue projects within Qatari waters (MDR) : Under the five-year agreement, McDermott and N-KOM, the joint venture shipyard between Qatar's Nakilat and Keppel Offshore & Marine, will develop an integrated approach to projects in Qatar by leveraging McDermott's proven track record in offshore EPCI projects and N-KOM's world-class ship repair and offshore construction facility at the Erhama Bin Jaber Al Jalahma Shipyard, strategically located in Qatar. McDermott will serve as prime contractor to customers and lead engineering with its teams based in Dubai as well as its Global Engineering Center in Chennai, India where necessary.

4:16 pm Cavium Networks names Raghib Hussain COO (CAVM) : Mr. Hussain co-founded Cavium in 2000. He has served in various management and technology leadership roles since the inception of Cavium and has been the Corporate Vice President, Chief Technology Officer and General Manager since 2014.

4:15 pm Huron Consulting to acquire Healthcare Services Management; terms not disclosed (HURN) : Co has entered into an agreement to acquire Healthcare Services Management, a firm specializing in healthcare information technology and management consulting. This will be Huron's fourth acquisition in the past year aimed at helping clients improve performance by aligning their business processes and systems with their financial and operational goals.

4:15 pm EQT GP Holdings increases quarterly dividend to $0.15/unit from $0.134/unit (EQGP) :  

4:14 pm Closing Market Summary: Averages End Mixed with Earnings and Fed in Focus (:WRAPX) :

The stock market ended the Tuesday affair on a flat note as investors eyed an influx of quarterly reports and upcoming policy statements from the Federal Reserve and Bank of Japan. The major indices recovered from an early pullback, responding to a modest rebound in crude oil and sector leadership from heavily-weighted technology (+0.4%) and industrials (+0.7%). The Nasdaq Composite (+0.2%) finished ahead of the S&P 500 (UNCHF) and the Dow Jones Industrial Average (-0.1%).

The major averages began the day on a modestly higher note, mirroring an early rebound in crude oil. The positive move in oil helped lift the broader market as the major indices notched early highs alongside the energy component. However, the rebound in oil proved to be short-lived as investors remained cautious ahead of inventory data from the American Petroleum Institute and the Department of Energy. The energy component pulled back mid-morning, bringing the broader market along with it.

The benchmark index inched off its low throughout the session as investors set their sights on the remainder of a busy macroeconomic week. Five sectors finished in the green as materials (+0.7%) and industrials (+0.7%) topped the leaderboard. The remaining gainers finished with upticks between 0.2% (financials) and 0.4% (technology). Conversely, defensively-oriented telecom services (-1.5%), utilities (-0.9%), consumer staples (-0.8%), and health care (-0.2%) rounded out the board. For its part, WTI crude ended its pit session lower by 0.5% ($42.91/bbl; -$0.22).

The heavily-weighted industrial sector (+0.7%) helped lead the broader market as United Technologies (UTX 107.89, +3.24) and Caterpillar (CAT 82.75, +4.06) outperformed. United Technologies jumped 3.1% after beating analysts' estimates for the quarter and raising its full-year earnings estimates. On the flipside, 3M (MMM 177.66, -1.97) underperformed after reporting a mixed quarter and lowering its local currency sales growth estimates. Separately, airlines outperformed alongside positive quarterly results from JetBlue Airways (JBLU 18.67, +1.39).

The high-beta chipmakers outperformed in the technology space (+0.4%), evidenced by the 3.8% gain in the PHLX Semiconductor Index. The index jumped alongside Linear Technology (LLTC 62.49, +14.02) after speculation mounted that Analog Devices (ADI 62.87, +2.34) was interested in the company. Additionally, Texas Instruments (TXN 71.42, +5.20) outperformed after reporting positive quarterly results. In the broader space, Apple (AAPL 96.67, -0.67) lagged ahead of this evening's earnings release.

In the consumer discretionary space (-0.2%), Dow component McDonald's (MCD 121.71, -5.69) finished at the bottom of the price-weighted index. The stock was under pressure as investors weighed a bottom-line beat against slower than expected second-quarter comparable store sales growth. Conversely, retail names outperformed as the sub-group traded higher in sympathy with Nordstrom (JWN 43.93, +1.19). The stock was upgraded to "Overweight" from "Neutral"at Piper Jaffray.

Biotechnology finished behind the broader health care (-0.2%) sector as the sub-group moved lower in sympathy with Gilead Sciences (GILD 81.05, -7.50). The drug maker fell 8.5% after lowering its full-year sales guidance. In the broader sector, Anthem (ANTM 137.59, -2.39) underperformed ahead of tomorrow morning's earnings report. Conversely, medical equipment names displayed relative strength as the group moved higher following positive earnings results from Baxter (BAX 48.01, +1.91) and Waters (WAT 155.09, +6.65).

The U.S. Dollar Index (97.14, -0.15) settled modestly lower as the pound, euro, and yen each gained against the greenback. Sterling ticked higher by 0.1% against the dollar (1.3134) while the single currency gained 0.1% against the buck (1.0988). Separately, the dollar fell 1.1% against the yen (104.63) amid jitters leading into Friday's policy decision from the Bank of Japan.

Treasuries settled higher as yields slipped throughout the complex. The yield on the 10-yr note finished lower by one basis point at 1.56%.

Today's trading volume was below the recent average as fewer than 803 million shares changed hands on the NYSE floor.

Today's economic data included the Case-Shiller 20-city Index for May, Consumer Confidence for July, and New Home Sales for June: 

  • The Case-Shiller 20-city Home Price Index for May fell to 5.2%, which was below the Briefing.com consensus of 5.4%. This followed the previous month's unrevised reading of 5.4%.
  • The Conference Board's Consumer Confidence Index dipped to 97.3 in July from a downwardly revised 97.4 (from 98.0) in June.
    • The Briefing.com consensus estimate for July was 96.0, so this report was better than expected.
    • The slight change can be attributed entirely to the Expectations Index, which fell from 84.6 in June to 83.3 in July as consumers softened their stance somewhat on the outlook for business and labor market conditions.
    • Conversely, the Present Situations Index rose from 116.6 to 118.3.
    • Confidence levels contribute to the outlook for consumer spending, but ultimately, spending activity rests predominately on income trends.
  • The Briefing.com consensus estimate for July was 96.0, so this report was better than expected.
  • The slight change can be attributed entirely to the Expectations Index, which fell from 84.6 in June to 83.3 in July as consumers softened their stance somewhat on the outlook for business and labor market conditions.
  • Conversely, the Present Situations Index rose from 116.6 to 118.3.
  • Confidence levels contribute to the outlook for consumer spending, but ultimately, spending activity rests predominately on income trends.
  • New home sales in June were at a seasonally adjusted rate of 592,000, up 3.5% from the revised May rate of 572,000 (from 551,000).
    • The June number was well ahead of the Briefing.com consensus estimate of 560,000 and 25.4% above the same period a year ago.
    • The strong year-over-year growth reflects a robust improvement in the context of the current economic environment.
    • Still, there is a long way to go to get back to the peak rate of 1.389 million seen in July 2005 and, for that matter, the seasonally adjusted annual rate of 891,000 seen in January 2007 (i.e. pre-Great Recession).
    • The gain in June was paced by a 10.9% increase in the West region and a 10.4% increase in the Midwest.
    • The Northeast and the South saw sales declines of 5.6% and 0.3%, respectively.
    • Notably, there was a large sales pickup in homes priced between $400,000 and $499,999, which accounted for 18% of sales versus 10% in May.
    • The percentage of home sold at all other price points were either flat, or down, from the prior month..
    • Altogether, homes priced under $300,000 accounted for 48% of homes sold (vs. 53% in May) while homes priced over $300,000 accounted for 52% of homes sold (vs. 48% in May).
    • The median sales price was $306,700, up 6.1% year-over-year
    • At the current sales pace, the inventory of new homes for sale is at a 4.9-months supply versus 5.1 months in May
  • The June number was well ahead of the Briefing.com consensus estimate of 560,000 and 25.4% above the same period a year ago.
  • The strong year-over-year growth reflects a robust improvement in the context of the current economic environment.
  • Still, there is a long way to go to get back to the peak rate of 1.389 million seen in July 2005 and, for that matter, the seasonally adjusted annual rate of 891,000 seen in January 2007 (i.e. pre-Great Recession).
  • The gain in June was paced by a 10.9% increase in the West region and a 10.4% increase in the Midwest.
  • The Northeast and the South saw sales declines of 5.6% and 0.3%, respectively.
  • Notably, there was a large sales pickup in homes priced between $400,000 and $499,999, which accounted for 18% of sales versus 10% in May.
  • The percentage of home sold at all other price points were either flat, or down, from the prior month..
  • Altogether, homes priced under $300,000 accounted for 48% of homes sold (vs. 53% in May) while homes priced over $300,000 accounted for 52% of homes sold (vs. 48% in May).
  • The median sales price was $306,700, up 6.1% year-over-year
  • At the current sales pace, the inventory of new homes for sale is at a 4.9-months supply versus 5.1 months in May

Tomorrow's economic data will include the weekly MBA Mortgage Index, which will be released at 7:00 ET. Durable Orders for June (Briefing.com consensus -1.0%) and Pending Home Sales for June (Briefing.com consensus +1.1%) will be released at 8:30 ET and 10:00 ET, respectively. The day's data will be capped off with the FOMC's July rate decision, which will cross the wires at 14:00 ET. 

  • Russell 2000 +7.1% YTD
  • S&P 500 +6.1% YTD
  • Dow Jones +6.0% YTD
  • Nasdaq Composite +2.1% YTD

4:13 pm NASDAQ reports mid-month open short interest positions in Nasdaq Stocks (NDAQ) : Short interest in all 3,084 Nasdaq securities totaled 8,512,475,252 shares at the July 15, 2016 settlement date, compared with 3,083 issues and 8,555,404,509 shares at the end of the previous reporting period. This is 3.80 days average daily volume, compared with an average of 4.59 days for the previous reporting period.

4:13 pm M/A-COM Tech reports EPS in-line, beats on revs; guides Q4 EPS in-line, revs above consensus (MTSI) :

  • Reports Q3 (Jun) earnings of $0.51 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.51; revenues rose 30.4% year/year to $142.3 mln vs the $140.02 mln Capital IQ Consensus.
  • Co issues guidance for Q4, sees EPS of $0.54-0.58 vs. $0.58 Capital IQ Consensus Estimate; sees Q4 revs of $148-152 mln vs. $147.19 mln Capital IQ Consensus Estimate.

4:13 pm LogMeIn beats by $0.03, beats on revs; guides Q3 EPS, revs above consensus; raises FY16 EPS, revs outlook (shares halted) (LOGM) :

Reports Q2 (Jun) earnings of $0.49 per share, $0.03 better than the Capital IQ Consensus of $0.46; revenues rose 28.4% year/year to $83.27 mln vs the $81.83 mln Capital IQ Consensus.

  • Co issues upside guidance for Q3, sees EPS of $0.52-0.53 vs. $0.51 Capital IQ Consensus Estimate; sees Q3 revs of $84.2-84.7 mln vs. $83.23 mln Capital IQ Consensus Estimate.
  • Co raises guidance for FY16, sees EPS of $1.91-1.97 (Prior $1.83-1.93) vs. $1.88 Capital IQ Consensus Estimate; sees FY16 revs of $333-335 mln (Prior $330-332 mln) vs. $331.44 mln Capital IQ Consensus Estimate.
  • As covered earlier, the company announced a deal to merge with Citrix's (CTXS) GoTo family of products

4:13 pm Zions Bancorp beats by $0.03 (ZION) :

  • Reports Q2 (Jun) earnings of $0.44 per share, $0.03 better than the Capital IQ Consensus of $0.41.
  • Net interest income was $465 million for 2Q16, up 3% from 1Q16 and up 10% from 2Q15
  • NIM up 4 bps to 3.39% from 3.35% in 1Q16 and up 21 bps from 3.18% in 2Q15 Operating Performance
  • Adjusted pre-provision net revenue was $211 million for 2Q16, up 16% from 1Q16 and up 32% from 2Q15
  • Efficiency ratio of 64.5% for 2Q16, an improvement of 399 bps from 1Q16
  • Net loans and leases increased $1.1 billion, or 2.6%, from 1Q16 (10.5% annualized)
  • Nonperforming assets were 1.30% of loans and leases, down from 1.33% in 1Q16
  • Provision for credit losses was $30 million, compared to $36 million in 1Q16
  • Net charge-offs were $38 million in 2Q16, compared to $36 million in 1Q16
  • Oil and Gas- Related Exposure
    • Net charge-offs for oil and gas loans were $37 million in 2Q16, compared to $36 million in 1Q16
    • Oil and gas portfolio allowance continued to exceed 8% of the portfolio
    • Criticized oil and gas-related loans remained stable at 38% of the oil and gas-related loans
  • Net charge-offs for oil and gas loans were $37 million in 2Q16, compared to $36 million in 1Q16
  • Oil and gas portfolio allowance continued to exceed 8% of the portfolio
  • Criticized oil and gas-related loans remained stable at 38% of the oil and gas-related loans

4:13 pm Anadarko Petroleum beats by $0.19, beats on revs (APC) :

  • Reports Q2 (Jun) loss of $0.60 per share, excluding non-recurring items, $0.19 better than the Capital IQ Consensus of ($0.79); revenues fell 27.4% year/year to $1.92 bln vs the $1.89 bln Capital IQ Consensus
    • Achieved record production levels at three operated Gulf of Mexico facilities and in the U.S. onshore Delaware and DJ basins Encountered more than 1,040 net feet of oil pay at the Shenandoah-5 appraisal well and increased working interest in this operated deepwater discovery Closed $2.5 billion of monetizations year to date Retired $3 billion of near-term maturities with proceeds from debt issued during the first quarter
  • Achieved record production levels at three operated Gulf of Mexico facilities and in the U.S. onshore Delaware and DJ basins Encountered more than 1,040 net feet of oil pay at the Shenandoah-5 appraisal well and increased working interest in this operated deepwater discovery Closed $2.5 billion of monetizations year to date Retired $3 billion of near-term maturities with proceeds from debt issued during the first quarter
  • Co said, "As a result of the record sales volumes from our Lucius and Caesar/Tonga fields in the Gulf of Mexico, as well as the improving well performance in the Delaware and DJ basins, we are increasing the midpoint of our full-year divestiture-adjusted sales-volume guidance by 2 million BOE (barrels of oil equivalent). Additionally, we've been very successful monetizing assets through the first six months of this year and have increased the high end of our target range to $3.5 billion in total proceeds expected by year end. As stated previously, we intend to use sales proceeds to retire debt, including the remaining $750 million of 2017 maturities. In addition, should the commodity-price outlook continue to improve, we will evaluate redeploying some of the additional cash generated via operations and asset sales toward our highest-quality U.S. onshore opportunities."

4:13 pm RenaissanceRe misses by $0.49, beats on revs (RNR) :

  • Reports Q2 (Jun) operating earnings of $1.55 per share, $0.49 worse than the Capital IQ Consensus of $2.04; total revenues rose 21.6% year/year to $483.3 mln vs the $414.98 mln Capital IQ Consensus. 
  • Gross premiums written of $759.1 million increased $97.1 million, or 14.7%, in the second quarter of 2016, compared to the second quarter of 2015, with the Company's Lloyd's, Specialty Reinsurance and Catastrophe Reinsurance segments experiencing increases of $44.3 million, or 38.0%; $40.7 million, or 25.4%; and $12.1 million, or 3.1%, respectively.
  • Tangible book value per common share plus accumulated dividends increased $2.68, or 2.8%, in the second quarter of 2016 to $113.07, compared to a 1.9% increase in the second quarter of 2015.

4:12 pm iRobot beats by $0.06, reports revs in-line; guides Q3 EPS & revs in-line; guides FY16 EPS in-line, revs above consensus (IRBT) :

  • Reports Q2 (Jun) earnings of $0.17 per share, $0.06 better than the Capital IQ Consensus of $0.11; revenues fell 0.1% year/year to $148.7 mln vs the $148.09 mln Capital IQ Consensus.
  • Co issues in-line guidance for Q3, sees EPS of $0.40-0.45 vs. $0.45 Capital IQ Consensus Estimate; sees Q3 revs of $155-160 mln vs. $159.18 mln Capital IQ Consensus Estimate.
  • Co issues guidance for FY16, sees EPS of $1.26-1.40 vs. $1.31 Capital IQ Consensus Estimate; sees FY16 revs of $640-645 mln vs. $633.68 mln Capital IQ Consensus Estimate.

"Based on our Q2 results, and our outlook for the rest of 2016, fueled by the U.S. momentum, we are increasing our full-year financial expectations."

4:11 pm Sunoco increases quarterly dividend to $0.8255/unit from $0.8173/share (SUN) :  

4:10 pm RadiSys beats by $0.03, beats on revs; guides Q3 EPS below consensus, revs above consensus (RSYS) :

  • Reports Q2 (Jun) earnings of $0.10 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus of $0.07; revenues rose 30.3% year/year to $61.29 mln vs the $60.33 mln Capital IQ Consensus.
    • On a non-GAAP basis, second quarter 2016 gross margin was 28.6%, compared to 26.8% in the prior quarter and 31.2% in the second quarter of 2015.
  • On a non-GAAP basis, second quarter 2016 gross margin was 28.6%, compared to 26.8% in the prior quarter and 31.2% in the second quarter of 2015.
  • Co issues mixed guidance for Q3, sees EPS of $0.02-0.06, excluding non-recurring items, vs. $0.07 Capital IQ Consensus Estimate; sees Q3 revs of $48-52 mln, excluding non-recurring items, vs. $45.73 mln Capital IQ Consensus Estimate.

4:10 pm Nanometrics reports EPS in-line, beats on revs; guides Q3 EPS below consensus, revs in-line (NANO) :

  • Reports Q2 (Jun) earnings of $0.26 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.26; revenues rose 14.8% year/year to $55.8 mln vs the $54.55 mln Capital IQ Consensus.
  • Co issues guidance for Q3, sees EPS of $0.23-0.30 vs. $0.32 Capital IQ Consensus Estimate; sees Q3 revs of $55-59 mln vs. $56.90 mln Capital IQ Consensus Estimate.
  • "Our results for the second quarter reflect continued strength in our key customer positions, especially in 3D-NAND, and continued improvements in financial performance. As expected, the second quarter showed solid top-line growth, while improvements in our operational efficiency led to multi-year records in both product gross margin and operating margin. Our outlook for the year is unchanged from last quarter, as we continue to expect the second half of 2016 to be stronger than the first half, driven by increased contributions from the Foundry and DRAM markets. Combined with our strengthened customer footprint and opportunity to expand our positions in integrated and thin-film metrology, we expect 2016 will be another year in which our revenue growth meaningfully outperforms overall spending on wafer fab equipment, with significant year-on-year improvements in gross margin, operating margin, and EPS."

4:10 pm EQT Midstream Partners increases quarterly dividend to $0.78/share from $0.745/share (EQM) :  

4:09 pm BJ Restaurants reports EPS in-line, misses on revs; expands buyback by $100 mln to $350 mln (BJRI) :

  • Reports Q2 (Jun) earnings of $0.56 per share, in-line with the Capital IQ Consensus of $0.56; revenues rose 7.9% year/year to $250.3 mln vs the $253.23 mln Capital IQ Consensus.
  • Comparable restaurant sales declined 0.2%
  • Board of Directors has approved a $100 mln expansion of the Company's share repurchase program. The expansion brings the total amount authorized under the share repurchase program to $350 mln
  • Expects to open a total of five new restaurants in the third quarter and up to seven new restaurants in the fourth quarter of fiscal 2016.

4:09 pm Panera Bread beats by $0.04, reports revs in-line; guides FY16 EPS above consensus; comps +4.2% vs +4.0% market estimate; Q3 comps quarter-to-date +3.1% (PNRA) :

  • Reports Q2 (Jun) earnings of $1.78 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus of $1.74; revenues rose 3.3% year/year to $698.9 mln vs the $696.5 mln Capital IQ Consensus.
  • Co issues upside guidance for FY16, sees EPS of $6.60-6.70, excluding non-recurring items, vs. $6.68 Capital IQ Consensus Estimate and up from prior guidance of $6.50-6.70; reiterated its targeted range for fiscal 2016 Company-owned comparable net bakery-cafe sales growth of 4.0% to 5.0%.
  • Q2 company-owned comparable net bakery-cafe sales up +4.2%vs +4.0% market estimate.
  • Q3 (first 27 days) company-owned comparable net bakery-cafe sales up +3.1%
  • "At a time when other restaurant companies are feeling the impact of a slowing consumer environment, we are maintaining our momentum. One-year comps of 4.2% and two-year comps of 6.6% speak to the traction at Panera. As well, that momentum can be seen in the year-over-year growth in Q2 non-GAAP EPS, which excludes refranchising charges, which was up 11%. Most importantly, as our initiatives rollout, we can, with the benefit of significantly more robust and mature data, now more clearly see the potential that those initiatives represent for sustained earnings growth at Panera."
  • Update on Refranchising and Canada Strategic Review: Co has signed a definitive agreement to sell and refranchise 12 Company-owned bakery-cafes in Canada to a Canada-based franchisee with a long track record of success with US concepts. The Company anticipates this transaction to close by the end of fiscal Q3 2016. The Company expects the sale of these bakery-cafes to be accretive to ongoing earnings. This ongoing accretion was included in the full-year fiscal 2016 non-GAAP EPS target. A charge of $7.2 million related to the pending sale of these bakery-cafes was incurred in fiscal Q2 2016.

4:09 pm Regal Entertainment misses by $0.01, reports revs in-line (RGC) :

  • Reports Q2 (Jun) earnings of $0.23 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus of $0.24; revenues fell 8.9% year/year to $785.9 mln vs the $793.36 mln Capital IQ Consensus. 
  • "In a challenging second quarter box office environment, we were pleased that our ongoing seating and concession initiatives had a positive impact on our operating metrics including new record highs in both average ticket price and concession sales per patron."

4:08 pm Cedar Realty Trust commences a public offering of 5.0 million shares of the Company's common stock (CDR) :

Co will also grant the underwriter a 30-day option to purchase up to an additional 750,000 shares of common stock. All of the shares of common stock will be offered under the co's existing shelf registration statement filed with the Securities and Exchange Commission.

Co intends to use any net proceeds for general working capital and other corporate purposes, including the repayment of outstanding indebtedness and the acquisition of additional properties.

4:08 pm Buffalo Wild Wings beats by $0.01, misses on revs, misses on SSS; guides FY16 EPS in-line (BWLD) :

  • Reports Q2 (Jun) earnings of $1.27 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $1.26; revenues rose 15.0% year/year to $490.2 mln vs the $498.69 mln Capital IQ Consensus.
    • Same-store sales decreased 2.1% at company-owned restaurants and 2.6% at franchised restaurants (Expectations were for approx -0.6%)
  • Same-store sales decreased 2.1% at company-owned restaurants and 2.6% at franchised restaurants (Expectations were for approx -0.6%)
  • Co issues in-line guidance for FY16, sees EPS of $5.65-5.85, excluding non-recurring items, vs. $5.74 Capital IQ Consensus Estimate.
  • For 2016, the company expects the following new unit development:
    • Approximately 40 company-owned Buffalo Wild Wings restaurants
    • 30 to 35 franchised Buffalo Wild Wings locations in the United States
    • 12 to 15 franchised Buffalo Wild Wing locations internationally
    • 6 company-owned and 4 franchised R Taco restaurants
  • Approximately 40 company-owned Buffalo Wild Wings restaurants
  • 30 to 35 franchised Buffalo Wild Wings locations in the United States
  • 12 to 15 franchised Buffalo Wild Wing locations internationally
  • 6 company-owned and 4 franchised R Taco restaurants
  • For 2016, the company expects the following:
    • Deflationary food costs, excluding traditional chicken wings
    • Depreciation and amortization expense of $150 to $155 million
    • Share repurchase activity of approximately $150 million for the year
    • Capital expenditures of approximately $170 million
  • Deflationary food costs, excluding traditional chicken wings
  • Depreciation and amortization expense of $150 to $155 million
  • Share repurchase activity of approximately $150 million for the year
  • Capital expenditures of approximately $170 million

4:08 pm Digimarc beats by $0.04, misses on revs (DMRC) :

  • Reports Q2 (Jun) loss of $0.62 per share, $0.04 better than the Capital IQ Consensus of ($0.66); revenues fell 5.9% year/year to $5.46 mln vs the $5.62 mln Capital IQ Consensus.
  • At quarter-end, cash, cash equivalents and marketable securities totaled $31.9 million, compared to $35.9 million at March 31, 2016.

4:07 pm Seattle Genetics beats by $0.09, beats on revs (SGEN) :

  • Reports Q2 (Jun) loss of $0.23 per share, $0.09 better than the Capital IQ Consensus of ($0.32); revenues rose 23.7% year/year to $95.4 mln vs the $94.31 mln Capital IQ Consensus
  • Anticipated ADCETRIS upcoming activities: Top-line data from ADCETRIS Phase 3 ALCANZA trial expected in Q3 of 2016. Report data in the 2017 through mid-2018 timeframe from the phase 3 ECHELON-1 trial in frontline classical Hodgkin lymphoma. Complete enrollment in the phase 3 ECHELON-2 trial in frontline mature T-cell lymphoma (:MTCL) during 2016 and report data in the 2017 to 2018 timeframe.
  • Other anticipated pipeline programs upcoming activities: Initiate a randomized phase 2 trial of denintuzumab mafodotin (SGN-CD19A; 19A) in frontline diffuse large B-cell lymphoma (:DLBCL) during 2016. Report additional data from phase 1 trials of ASG-15ME and enfortumab vedotin at the European Society for Medical Oncology (:ESMO) annual congress being held October 7 to 11.
  • As of June 30, 2016, Seattle Genetics had $659.5 million in cash, cash equivalents and investments, compared to $712.7 million as of December 31, 2015.

4:07 pm Recro Pharma announces its Phase III clinical trial evaluating intravenous (:IV) meloxicam achieved the primary endpoint (shares halted) (REPH) :

The co announced positive results from its Phase III clinical trial evaluating intravenous (:IV) meloxicam (N1539) for the treatment of acute postoperative pain in patients following bunionectomy surgery. In the trial, IV meloxicam achieved the primary endpoint of a statistically significant difference in Summed Pain Intensity Difference (:SPID) over the first 48 hours (SPID48) compared to placebo.

  • The IV meloxicam treatment arm demonstrated a statistically significant reduction in SPID48 (p=0.0034) compared to the placebo arm. The study also achieved 15 of the 19 secondary endpoints, including statistically significant differences in SPID6 (p=0.0153), SPID12 (p=0.0053), SPID24 (p=0.0084), SPID24-28 (p=0.0050), time to first use of rescue medication (p=0.0076), and several other rescue use and pain relief metrics during the first 48 hours, compared to placebo.
  • The safety results demonstrated that IV meloxicam was well tolerated with no serious adverse events or bleeding events in the IV meloxicam-treated patients. The most common (=3%) adverse events (AEs) were nausea, headache, pruritus, constipation, vomiting, dizziness, flushing and somnolence, and were comparable to the placebo group. The IV meloxicam-treated patients experienced injection site pain and injection site erythema at a rate comparable to placebo. The majority of treatment emergent AEs (TEAEs) were mild in nature and there were no discontinuations due to AEs. There were no meaningful differences between treatment groups in vital signs, ECGs or clinical lab assessments.
  • Recro plans to submit additional data from this Phase III clinical trial for presentation at a future scientific conference or in a journal publication.

"We continue to enroll patients in our second ongoing Phase III trial evaluating IV meloxicam following "mini" abdominoplasty surgery and we remain on track to report top-line results from that trial by the end of the fourth quarter of 2016. Assuming positive results from the second pivotal Phase III trial, we believe we will file a New Drug Application for IV meloxicam mid-summer 2017."

4:07 pm Cavium Networks reports EPS in-line, revs in-line (CAVM) :

  • Reports Q2 (Jun) earnings of $0.29 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.29; revenues rose 5.2% year/year to $107.2 mln vs the $106.58 mln Capital IQ Consensus. 
  • Non-GAAP gross margin was 67.3% and Non-GAAP operating margin (non-GAAP income from operations as a percentage of revenue) was 16.6%.

4:06 pm ICF International receives a new contract with Great Plains Energy Services (GXP unit); contract has a value of ~$11 mln and a term of three years (ICFI) :  

4:06 pm Ethan Allen beats by $0.05, beats on revs (ETH) :

  • Reports Q4 (Jun) earnings of $0.57 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus of $0.52; revenues rose 6.3% year/year to $205.7 mln vs the $201.28 mln Capital IQ Consensus. 
  • Retail net sales increased 7.6% to $163.6 million; comparable store net sales increased 9.4%
  • Retail total written orders decreased 1.2% and comparable written orders decreased 0.6%
  • Wholesale net sales increased 9.6% to $127.4 million
  • "We remain cautiously optimistic due to the launch of many marketing initiatives including the launch of the Ethan Allen | Disney program in the latter part of our second quarter."

4:06 pm NuVasive beats by $0.04, beats on revs; raises FY16 guidance (NUVA) :

  • Reports Q2 (Jun) earnings of $0.40 per share, $0.04 better than the Capital IQ Consensus of $0.36; revenues rose 16.4% year/year to $236.2 mln vs the $232.5 mln Capital IQ Consensus.
  • Co raises guidance for FY16, sees EPS of $1.64 (Prior $1.48) vs. $1.51 Capital IQ Consensus Estimate; sees FY16 revs of $962.0 mln (Prior $928 mln) vs. $936.02 mln Capital IQ Consensus Estimate.
  • "NuVasive delivered another strong quarter, outperforming the spine market to deliver double-digit revenue growth, expanding our operating profitability year-over-year and delivering earnings growth of 28%. Our results were driven by strong growth in our international business, which benefitted from our continued revitalization efforts, and strength in our U.S. spinal hardware business, where adoption of our integrated Global Alignment platform drove momentum in sales of our procedurally integrated solutions. With this growth in our geographies and businesses for the first half of the year, and the addition of the Biotronic NeuroNetwork business, we are raising our full year guidance for 2016."

4:05 pm Amdocs beats by $0.03, reports revs in-line; guides Q4 EPS below consensus, revs in-line (DOX) :

  • Reports Q3 (Jun) earnings of $0.90 per share, $0.03 better than the Capital IQ Consensus of $0.87; revenues rose 2.4% year/year to $930.13 mln vs the $928.21 mln Capital IQ Consensus.
  • Twelve-month backlog, which includes anticipated revenue related to contracts, estimated revenue from managed services contracts, letters of intent, maintenance and estimated on-going support activities, was $3.11 billion at the end of the third quarter of fiscal 2016, up $10 million from the end of the prior quarter.
  • Co issues guidance for Q4, sees EPS of $0.85-0.91, excluding non-recurring items, vs. $0.92 Capital IQ Consensus Estimate; sees Q4 revs of $920-960 mln vs. $949.67 mln Capital IQ Consensus Estimate.
  • "We enter our fourth fiscal quarter encouraged by our sales momentum and record backlog although we remain cognizant of the many moving parts affecting our outlook. These include the ongoing challenges of the global macroeconomic and industry environment in which we operate.....Taking all these factors into consideration, we are reiterating our expectation for diluted non-GAAP earnings per share growth towards the midpoint of our previously guided range of 3.5% to 7.5% for the full fiscal year."
  • AT&T (T) and Amdocs also announced plan to collaborate to deliver open software solutions to accelerate network function virtualization-Amdocs to serve as integrator for companies adopting AT&T's open source ECOMP platform to enable software-centric network capabilities.

4:05 pm Knowles beats by $0.02, reports revs in-line; guides Q3 EPS midpoint below consensus, revs below consensus (KN) :

  • Reports Q2 (Jun) earnings of $0.13 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.11; revenues fell 1.3% year/year to $190.3 mln vs the $190.11 mln Capital IQ Consensus. Co sees Q3 Non-GAAP gross margin of 38-40%.
  • Co issues downside guidance for Q3, sees EPS of $0.27-0.33 vs. $0.33 Capital IQ Consensus Estimate; sees Q3 revs of $225-240 mln vs. $246.71 mln Capital IQ Consensus Estimate.
  • "In our mobile consumer electronics segment, sales came in as predicted. Sequentially, we saw higher microphone shipments to Chinese handset OEMs offset by lower sales to North American and Korean customers."

4:05 pm Kimco Realty will redeem CAD 150 million Series 3 5.99% notes, CAD 200 million Series 4 3.855% notes, and ~$291 mln of its 5.70% Senior Notes due 2017, (KIM) :  

4:04 pm Hub Group beats by $0.03, misses on revs (HUBG) :

  • Reports Q2 (Jun) diluted earnings of $0.61 per share $0.03 better than the Capital IQ Consensus of $0.58; revenues fell 4.9% year/year to $855.56 mln vs the $884.03 mln Capital IQ Consensus.
    • The Hub segment's revenue decreased 6% to $649 million due primarily to a decrease in fuel revenue.
    • Second quarter intermodal revenue decreased 6% to $438 million.
    • Intermodal volume decreased 2%.
    • Truck brokerage revenue decreased 11% to $83 million this quarter.
    • Second quarter Unyson Logistics revenue decreased 1% to $127 million.
    • The Hub segment's operating income was $27.2 million, an increase of 24% compared to the prior year period.
    • The Mode segment's revenue decreased 1% to $232 million.
    • Operating income was $7.1 million compared to $7.5 million in the prior year period.
  • The Hub segment's revenue decreased 6% to $649 million due primarily to a decrease in fuel revenue.
  • Second quarter intermodal revenue decreased 6% to $438 million.
  • Intermodal volume decreased 2%.
  • Truck brokerage revenue decreased 11% to $83 million this quarter.
  • Second quarter Unyson Logistics revenue decreased 1% to $127 million.
  • The Hub segment's operating income was $27.2 million, an increase of 24% compared to the prior year period.
  • The Mode segment's revenue decreased 1% to $232 million.
  • Operating income was $7.1 million compared to $7.5 million in the prior year period.

4:04 pm Akamai Tech reports EPS in-line, revs in-line; guides on call (AKAM) :

  • Reports Q2 (Jun) earnings of $0.64 per share, in-line with the Capital IQ Consensus of $0.64; revenues rose 5.8% year/year to $572.1 mln vs the $574.82 mln Capital IQ Consensus.
    • Adjusted EBITDA was $231 million, an 8% increase from second quarter 2015. Adjusted EBITDA margin* was 40%, consistent with the second quarter of 2015.
  • Adjusted EBITDA was $231 million, an 8% increase from second quarter 2015. Adjusted EBITDA margin* was 40%, consistent with the second quarter of 2015.
  • Performance and Security Solutions revenue was $327 million, up 16% year-over-year and also up 16% when adjusted for foreign exchange
  • Cloud Security Solutions revenue, a component of Performance and Security, was $87 million, up 42% year-over-year and also up 42% when adjusted for foreign exchange
  • Media Delivery Solutions revenue was $197 million, down 9% year-over-year and down 10% when adjusted for foreign exchange
  • Services and Support Solutions revenue was $48 million, up 18% year-over-year and up 17% when adjusted for foreign exchange
  • Guides Q3 on call

4:02 pm Aehr Test Systems receives $4 mln in follow-on orders for its Advanced Burn-in and Test Systems (AEHR) : Co announced that it has received $4 million in follow-on orders for its Advanced Burn-in and Test Systems (:ABTS) from a leading multi-national manufacturer of advanced logic integrated circuits (ICs) for automotive, embedded processing, digital signal processing and analog applications. The orders include significant prepayments to lock in short lead times and special pricing. The systems are expected to ship over the first three quarters of co's fiscal 2017.

4:01 pm LogMeIn confirms it will merge with Citrix's (CTXS) GoTo family of products in a $1.8 bln deal (shares halted) (LOGM) :

The co and Citrix Systems (CTXS) announced that the companies have entered into a definitive merger agreement for LogMeIn to combine with Citrix's GoTo business in a Reverse Morris Trust transaction. The transaction is valued at approximately $1.8 billion based on shares to be issued and LogMeIn's closing price of $65.31 as of July 25, 2016.

  • The transaction, which has been unanimously approved by the Boards of Directors of Citrix and LogMeIn, is expected to be tax-free to Citrix and its shareholders for U.S. federal income tax purposes.
  • The combined company is expected to have annual revenues in excess of $1 billion with more than two million customers in virtually every country around the globe.
  • Upon completion of the transaction, the combined company is expected to achieve run rate cost synergies for the benefit of both Citrix and LogMeIn shareholders of $65 million within the first year post-close, and run rate cost synergies of more than $100 million in year two.
  • LogMeIn's Bill Wagner will continue in his role as President and CEO, and LogMeIn's Ed Herdiech will serve as Chief Financial Officer. Certain members of the GoTo management team are expected to join the combined company as well. The combined company will be headquartered in Boston.

  • In connection with approving the transaction, on July 26, 2016, LogMeIn's Board of Directors also declared a special cash dividend of $0.50 per share of common stock. The special dividend will be paid on August 26, 2016 to shareholders of record on August 8, 2016.
  • 3:42 pm Analog Devices updates Q3 guidance in conjunction with Linear Tech (LLTC) acquisition (shares halted) (ADI) :

    • Analog Devices said it sees Q3 EPS of $0.77-0.78 (Prior guidance was for $0.66-0.74) vs $0.70 Capital IQ Consensus Estimate; sees revs of ~$865 mln (Prior guidance was for $800-840 mln) vs $819.92 mln Capital IQ Consensus Estimate

    3:36 pm Linear Tech confirms deal with Analog Devices (ADI), agrees to be acquired for ~$60.00/share, or ~$14.8 bln ($46.00 in cash, 0.2321 in ADI shares) (shares halted) (LLTC) :

    The co's announced that they have entered into a definitive agreement under which Analog Devices will acquire Linear Technology in a cash and stock transaction that values the combined enterprise at approximately $30 billion. Upon completion of the acquisition, Analog Devices will be the premier global analog technology company with approximately $5 billion in anticipated annual revenues.

    • Linear Technology shareholders will receive $46.00 per share in cash and 0.2321 of a share of Analog Devices common stock for each share of Linear Technology common stock they hold at the closing of the transaction. The transaction values Linear Technology at approximately $60.00 per share, representing an equity value for Linear Technology of approximately $14.8 billion
    • The transaction is expected to be immediately accretive to Analog Devices' non-GAAP EPS and free cash flow. Analog Devices expects to achieve $150 million of annualized run-rate cost synergies within 18 months post transaction close
    • Closing of the transaction is expected by the end of the first half of calendar year 2017

    3:29 pm Apple: AAPL now -0.80% has set a new two-week low print here @ 96.42 in the final hour of trading before quarterly earnings results expected after today's closing bell (AAPL) :


    3:18 pm Finjan provides an update on the Finjan vs Blue Coat Systems II case regarding patent infringment, court denies Blue Coat's motion to stay proceedings (FNJN) :

    • On July 15, 2015, Finjan filed this second case against Blue Coat, accusing Blue Coat of further infringing ten Finjan patents. Blue Coat moved to stay Blue Coat II pending proceedings before the USPTO and the PTAB. the court's order denying Blue Coat's motion to stay proceedings pending final resolutions of Finjan or inter partes reviews and ex parte rexaminations was decided in Finjan's favor.
    • Blue Coat has filed 9 IPRs and 2 reexams against 6 of 10 Finjan patents in this case. To date, the USPTO and PTAB have decided against institution of 6 of the challenges; four IPR challenges were instituted, and one reexamination are pending.

    3:15 pm Floor Talk: Fed Up (:TALKX) :

    The Federal Open Market Committee (:FOMC) convened today for a two-day meeting that will culminate with the issuance of a new policy directive on Wednesday at 2:00 p.m. ET.

    The market is close to unanimous in its thinking that the FOMC will not raise the fed funds rate.   That view is rooted in the following factors:

    • The fed funds futures market is pricing in only a 3.6% probability of a rate hike at the July meeting.  
    • Market participants know the Fed has no intention of rocking the capital markets now with what would be the mother of all rate hike surprises
    • The spread between the 2-yr note and the 10-yr note has narrowed ten basis points (to just 80 basis points) since the time of the June 15 policy decision
    • The Brexit vote on June 23 unleashed a new layer of uncertainty that Fed officials will want to take added time to see how it plays out in the data
    • The U.S. Dollar Index (and the Fed's Broad Trade-Weighted Exchange Rate Index) has strengthened in the wake of the Brexit vote, providing some de facto tightening pressure already
    • Oil prices have fallen nearly 15% since the Brexit vote

    There is some building chatter, however, that the Fed will issue a directive that implies it may very well defy market expectations and raise rates at least once, if not twice, before the end of the year.  At the moment, the fed funds futures market doesn't place a greater than 50% probability on another rate hike until the February 2017 meeting.

    Part of that outlook is tied to the belief that the Fed won't raise rates in front of the presidential election (Nov. 8), so as not to risk looking political with its policy action.  Any hawkish-sounding talk from the Fed, then, will be interesting to hear. The question is, will the market really believe it?

    Time will tell, yet the factors playing into any hawkish-sounding mindset from the Fed would include the following:

    • The quick recovery in global equity markets after the Brexit fallout, highlighted by the Dow and S&P 500 hitting new record highs
    • The 287,000 gain in nonfarm payrolls in June
    • The marked improvement in high-yield spreads
    • Core CPI, which excludes food and energy, edging up to 2.3% on a year-over-year basis from 2.2% in May
    • Average hourly earnings growth in June increasing 2.6% year-over-year, matching the highest growth rate seen since July 2009
    • A bevy of incoming data recently that has been stronger than expected
      • Retail Sales, existing home sales, new home sales, housing starts, industrial production, ISM Index
    • Retail Sales, existing home sales, new home sales, housing starts, industrial production, ISM Index

    The Fed won't raise rates on Wednesday.  However, it may just raise the bar for holding to its accommodative stance, because we suspect the Fed is going to want to keep the market in check with its complacency about the rate hike outlook.  

    If it doesn't, the hesitation on the part of buyers in the stock market this week could give way to the resuscitation of animal spirits.

    3:05 pm Treasury Market Summary (BONDX) :

    Treasuries Hold Ground Ahead of Fed

    • U.S. Treasuries held solid gains overnight after a cautious session in Asia, but slow and steady selling began taking hold in the early morning hours. That selling continued in morning action with the complex finding support right after a $34 billion, 5-yr auction, which was nearly as weak as yesterday's 2-yr offering. Today's auction drew a bid-cover ratio of 2.27, representing the lowest level since September 2009.
    • Market participants have been reluctant to dive into short-dated debt in case the tone of tomorrow's policy statement from the Federal Reserve begins setting the stage for a rate hike before the end of 2016. Currently, the fed funds futures market estimates that the next rate hike will take place in March (56.2%), while the implied likelihood of a hike tomorrow sits at a lowly 3.6%.
    • Yield Check:
      • 2-yr: -1 bp to -0.76%
      • 5-yr: UNCH at 1.14%
      • 10-yr: -1 bp to 1.56%
      • 30-yr: -1 bp to 2.28%
    • 2-yr: -1 bp to -0.76%
    • 5-yr: UNCH at 1.14%
    • 10-yr: -1 bp to 1.56%
    • 30-yr: -1 bp to 2.28%
    • Commodities:
      • WTI crude: -0.5% to $42.91/bbl
      • Gold: +0.1% to $1320.80/ozt
      • Copper: +0.5% to $2.23/lb
    • WTI crude: -0.5% to $42.91/bbl
    • Gold: +0.1% to $1320.80/ozt
    • Copper: +0.5% to $2.23/lb
    • Currencies:
      • EUR/USD: -0.1% to 1.0987
      • USD/JPY: -1.1% to 104.62
    • EUR/USD: -0.1% to 1.0987
    • USD/JPY: -1.1% to 104.62
    • Data out Wednesday:
      • MBA Mortgage Index at 7:00 ET (prior -1.3%)
      • June Durable Orders (Briefing.com consensus -1.0%) and Orders ex-transportation (Briefing.com consensus 0.2%) at 8:30 ET
      • June Pending Home Sales (Briefing.com consensus 1.1%) at 10:00 ET
      • Crude Inventories at 10:30 ET
      • July FOMC Rate Decision at 14:00 ET (no policy change expected)
    • MBA Mortgage Index at 7:00 ET (prior -1.3%)
    • June Durable Orders (Briefing.com consensus -1.0%) and Orders ex-transportation (Briefing.com consensus 0.2%) at 8:30 ET
    • June Pending Home Sales (Briefing.com consensus 1.1%) at 10:00 ET
    • Crude Inventories at 10:30 ET
    • July FOMC Rate Decision at 14:00 ET (no policy change expected)

    2:40 pm Currency Market Summary (:FOREX) :

    Dollar Index Down For Second Consecutive Day

    • The U.S. Dollar Index registered its second decline in a row, but the downtick was limited to just 0.1%, leaving the index at 97.15. The index tested Friday's session low in morning action, but climbed off that level after the release of better than expected July Consumer Confidence (97.3; Briefing.com consensus 96.0) and June New Home Sales (592K; Briefing.com consensus 560K). The greenback edged up against the euro, but gave up more than 1.0% versus the Japanese yen. The yen rally took place amid concerns that Friday's statement from the Bank of Japan could turn out to be a disappointment in the eyes of stimulus-hungry investors.
    • EUR/USD: -0.1% to 1.0989
      • Spain PPI -4.7% year-over-year (last -5.6%)
    • Spain PPI -4.7% year-over-year (last -5.6%)
    • GBP/USD: +0.1% to 1.3148
      • UK BBA Mortgage Approvals 40,100 (expected 40,200; last 41,800)
    • UK BBA Mortgage Approvals 40,100 (expected 40,200; last 41,800)
    • USD/CHF: +0.6% to 0.9922
    • USD/JPY: -1.1% to 104.69
    • USD/CNY: UNCH at 6.6735
    • USD/CAD: -0.2% to 1.3198
    • AUD/USD: +0.5% to 0.7508
      • Australia Q2 CPI scheduled for 21:30 ET (expected +0.4% quarter-over-quarter)
    • Australia Q2 CPI scheduled for 21:30 ET (expected +0.4% quarter-over-quarter)
    • NZD/USD: +0.6% to 0.7038

    2:01 pm BB&T confirms increase in quarterly dividend to $0.30/share from $0.28/share & a $640 mln share buyback, as noted in the CCAR capital plan (BBT) :  

    1:39 pm Republic First to acquire Oak Mortgage, financial terms were not disclosed (FRBK) :

    • Oak Mortgage Co is a residential mortgage co. Oak Mortgage will maintain its current business model and operate as a wholly owned subsidiary of the Bank.
    • In 2015, Oak closed more than $330 mln in mortgage loans.
    • Closing is expected to occur on or before Aug 1, 2016.

    1:13 pm Midday Market Summary: Indices Flat Ahead of Fed and Key Earnings (:WRAPX) :

    The stock market trades on a flat note at midday as investors favor a cautious approach ahead of key earnings reports and policy statements from the Federal Reserve and Bank of Japan. Additional factors impacting today's trade include a leg lower in crude oil and weakness from the heavily-weighted consumer discretionary (-0.2%) and health care (-0.3%) sectors. At midday, the Dow Jones Industrial Average (-0.2%) trades behind the S&P 500 (-0.1%) and the Nasdaq Composite (+0.1%).

    Equity futures signaled a flat start as investors responded to a gaggle of earnings reports and fading expectations of easing measures from the Bank of Japan. Six Dow components reported quarterly results ahead of the open with 3M (MMM 176.73, -2.90) and United Technologies (UTX 107.50, +2.85) beating expectations. Separately, Japan's Nikkei (-1.4%) underperformed as commentary from Japanese officials lowered expectations regarding immediate stimulus measures. However, reports indicated that the government continues to consider a JPY6 trillion fiscal stimulus package.

    Indices ticked higher at the start of the session as crude oil trimmed a larger loss. The energy component tumbled to the $42.40/bbl price level overnight, rebounding to $43.00/bbl shortly before the open. The major averages notched session highs in the first half-hour of trade before pulling back alongside another downturn in crude oil. Currently, WTI crude trades lower by 0.7% ($42.81/bbl; -$0.32). The major averages carved out session lows mid-morning when the heavily-weighted technology sector (+0.3%) briefly dipped beneath its flat line. 

    Equities have ticked off their worst levels of the day as the benchmark index attempts to maintain footing near its flat line. Five sectors trade in the green as materials (+0.7%), industrials (+0.4%), and technology (+0.3%) lead the pack. Conversely, countercyclical telecom services (-1.3%), utilities (-0.9%), consumer staples (-0.5%), and health care (-0.3%) round out the leaderboard. 

    The industrial sector (+0.5%) displays relative strength as quarterly results from the likes of United Technologies (UTX 107.50, +2.85) and Caterpillar (CAT 81.95, +3.26) boost their respective sub-groups. United Technologies has gained 2.7% after reporting above-consensus quarterly results. The aerospace name also boosted its earnings estimates for the year. Separately, Caterpillar trades higher by 4.2% as positive quarterly results outweigh cautious guidance. 

    In the influential technology sector (+0.3%), Apple (AAPL 97.23,- 0.11) trades on a flat note ahead of this evening's earnings release. Separately, the high-beta chipmakers demonstrate relative strength, evidenced by the 1.7% gain in the PHLX Semiconductor Index. The group outperforms as it trades higher in sympathy with Texas Instruments (TXN 70.92, +4.70). Conversely, Facebook (FB 121.06,- 0.56) and Alphabet (GOOG 737.30, -2.47) show respective losses of 0.5% and 0.3%. The two will release earnings after the closing bell on Wednesday and Thursday, respectively.

    The heavyweight health care sector (-0.3%) displays relative weakness as biotechnology underperforms. The iShares Nasdaq Biotechnology ETF (IBB 280.27, -1.98) trades lower by 0.7% as quarterly results from Gilead Sciences (GILD 80.52, -8.03) weigh on the sub-group. Gilead Sciences beat bottom-line estimates for the quarter, but lowered its full-year sales guidance below consensus. Additionally, the stock was downgraded to "Hold" from "Buy" at Needham. Conversely, medical equipment name Baxter (BAX 47.59, +1.49) outperforms after topping bottom-line estimates for the quarter.

    In the consumer discretionary space (-0.2%), Dow component McDonald's (MCD 121.80, -5.60) underperforms after reporting that global second-quarter comparable store sales grew by 3.1%, which was below expectations.

    The U.S. Dollar Index (97.20, -0.09) trades narrowly beneath its flat line as the pound, euro, and yen each sport gains against the buck. The pound/dollar pair trades higher by 0.1% (1.3133) while the single currency has gained 0.1% against the greenback (1.0985). Separately, the dollar has tumbled 0.9% against the yen (104.85).

    Treasuries trade on a flat note as the yield on the 10-yr not sits unchanged at 1.58%.

    Today's economic data included the Case-Shiller 20-city Index for May, Consumer Confidence for July, and New Home Sales for June: 

    • The Case-Shiller 20-city Home Price Index for May fell to 5.2%, which was below the Briefing.com consensus of 5.4%. This followed the previous month's unrevised reading of 5.4%.
    • The Conference Board's Consumer Confidence Index dipped to 97.3 in July from a downwardly revised 97.4 (from 98.0) in June.
      • The Briefing.com consensus estimate for July was 96.0, so this report was better than expected.
      • The slight change can be attributed entirely to the Expectations Index, which fell from 84.6 in June to 83.3 in July as consumers softened their stance somewhat on the outlook for business and labor market conditions.
      • Conversely, the Present Situations Index rose from 116.6 to 118.3.
      • Confidence levels contribute to the outlook for consumer spending, but ultimately, spending activity rests predominately on income trends.
    • The Briefing.com consensus estimate for July was 96.0, so this report was better than expected.
    • The slight change can be attributed entirely to the Expectations Index, which fell from 84.6 in June to 83.3 in July as consumers softened their stance somewhat on the outlook for business and labor market conditions.
    • Conversely, the Present Situations Index rose from 116.6 to 118.3.
    • Confidence levels contribute to the outlook for consumer spending, but ultimately, spending activity rests predominately on income trends.
    • New home sales in June were at a seasonally adjusted rate of 592,000, up 3.5% from the revised May rate of 572,000 (from 551,000).
      • The June number was well ahead of the Briefing.com consensus estimate of 560,000 and 25.4% above the same period a year ago.
      • The strong year-over-year growth reflects a robust improvement in the context of the current economic environment.
      • Still, there is a long way to go to get back to the peak rate of 1.389 million seen in July 2005 and, for that matter, the seasonally adjusted annual rate of 891,000 seen in January 2007 (i.e. pre-Great Recession).
      • The gain in June was paced by a 10.9% increase in the West region and a 10.4% increase in the Midwest.
      • The Northeast and the South saw sales declines of 5.6% and 0.3%, respectively.
      • Notably, there was a large sales pickup in homes priced between $400,000 and $499,999, which accounted for 18% of sales versus 10% in May.
      • The percentage of home sold at all other price points were either flat, or down, from the prior month..
      • Altogether, homes priced under $300,000 accounted for 48% of homes sold (vs. 53% in May) while homes priced over $300,000 accounted for 52% of homes sold (vs. 48% in May).
      • The median sales price was $306,700, up 6.1% year-over-year
      • At the current sales pace, the inventory of new homes for sale is at a 4.9-months supply versus 5.1 months in May
    • The June number was well ahead of the Briefing.com consensus estimate of 560,000 and 25.4% above the same period a year ago.
    • The strong year-over-year growth reflects a robust improvement in the context of the current economic environment.
    • Still, there is a long way to go to get back to the peak rate of 1.389 million seen in July 2005 and, for that matter, the seasonally adjusted annual rate of 891,000 seen in January 2007 (i.e. pre-Great Recession).
    • The gain in June was paced by a 10.9% increase in the West region and a 10.4% increase in the Midwest.
    • The Northeast and the South saw sales declines of 5.6% and 0.3%, respectively.
    • Notably, there was a large sales pickup in homes priced between $400,000 and $499,999, which accounted for 18% of sales versus 10% in May.
    • The percentage of home sold at all other price points were either flat, or down, from the prior month..
    • Altogether, homes priced under $300,000 accounted for 48% of homes sold (vs. 53% in May) while homes priced over $300,000 accounted for 52% of homes sold (vs. 48% in May).
    • The median sales price was $306,700, up 6.1% year-over-year
    • At the current sales pace, the inventory of new homes for sale is at a 4.9-months supply versus 5.1 months in May

    1:03 pm Auction Out (BONDX) :

    Treasury Auction Results

    • $34 bln 5-year Treasury auction
      • Auction results:
        • High yield: 1.180% (when-issued 1.164%)
        • Bid-to-cover: 2.27
        • Indirect bid: 53.6%
        • Direct bid: 4.7%
      • Average results of prior 12 auctions:
        • High yield: 1.447%
        • Bid-to-cover: 2.44
        • Indirect bid: 59.2%
        • Direct bid: 7.6%
    • Auction results:
      • High yield: 1.180% (when-issued 1.164%)
      • Bid-to-cover: 2.27
      • Indirect bid: 53.6%
      • Direct bid: 4.7%
    • High yield: 1.180% (when-issued 1.164%)
    • Bid-to-cover: 2.27
    • Indirect bid: 53.6%
    • Direct bid: 4.7%
    • Average results of prior 12 auctions:
      • High yield: 1.447%
      • Bid-to-cover: 2.44
      • Indirect bid: 59.2%
      • Direct bid: 7.6%
    • High yield: 1.447%
    • Bid-to-cover: 2.44
    • Indirect bid: 59.2%
    • Direct bid: 7.6%

    12:31 pm Cummins shows midday strength as price challenges its July range highs along the $120-level (CMI) : Earnings scheduled for Aug 2.

    12:19 pm Cliffs Natural Resources displays strong relative strength as price climbs +11% intraday with a breakout into fresh 52-week high territory (CLF) :

    • Note FBR Capital raised their target from $4 to $7 on this Iron Ore company.
    • Firm notes they are increasing estimates to reflect the stronger domestic steel fundamentals and what they believe this means for full-year realized USIO prices and volumes.
    • On earnings (July 28 pre-mkt), they expect the company to highlight recent positive developments for its long-term business outlook

    12:08 pm Fiat Chrysler gives clarification regarding sales reporting process; has prepared unit sales reports going back to beginning of 2011 using updated format (FCAU) :

    FCAU noted going forward, vehicle unit sales data reported by co will by comprised of three main components: (a) sales made by dealers to retail customers; (b) sales of vehicles shipped directly by FCA US to fleet customers and (c) other retail sales including sales by dealers in Puerto Rico, limited deliveries through distributors and a small number of vehicles delivered to FCA employees and retirees and vehicles used for marketing. Further:

    Total sales will be comprised of

    • Dealer reported sales in the U.S.;
    • Fleet sales delivered directly by FCA US;
    • and Retail other sales including sales by dealers in Puerto Rico.

    Fleet sales will be recorded as sales upon shipment by FCA US of the vehicle to the customer or end user.

    Other retail sales will either be recorded when the sale is recorded in the NVDR system (for sales by dealers in Puerto Rico and limited sales made through distributors that submit NVDRs) or upon receipt of a similar delivery notification (for vehicles for which NVDRs are not entered such as vehicles for FCA executives and employees).

    12:01 pm London Stock Exchange: Deutsche Borse (DBOEY) confirmed acceptance threshold under the Exchange Offer of 60% has currently been exceeded (LDNXF) : As at 5.00 p.m. (CESTY) today, the preliminary acceptance level amounted to ~60.35% of the Deutsche Brse Shares (less treasury shares). The final number of Deutsche Brse Shares tendered under the Exchange Offer at the time of expiration of the Acceptance Period is expected to be published on 29 July 2016 once confirmation of the final outcome has been obtained.

    12:01 pm CSX to redeem all outstanding zero coupon convertible debentures due Oct 30, 2021 on Aug 26 (CSX) :

    • The debentures will be redeemed at a redemption price of $992 per $1,000 principal amount at maturity, which is the accreted value of the debentures to be redeemed up to, but excluding, the redemption date.
    • The debentures are convertible at any time prior to the close of business on Aug 25, 2016 at a rate of 106.4766 shares of CSX common stock per debenture.
      • The debentures surrendered for conversion will be settled in stock plus cash in lieu of fractions.
    • The debentures surrendered for conversion will be settled in stock plus cash in lieu of fractions.

    11:55 am Ingenico misses 1H16 estimates; reaffirms FY16 outlook (INGIY) :

    • Revenue of 1.133 bln , just below ests: up 12% on a comparable basis, up 7% on a reported basis
    • Strong growth across most regions: Excluding Brazil, organic growth of 15% in the first half
    • ePayments accelerating; double-digit growth expected in the second half
    • EBITDA of 244 million, equal to 21.5% of revenue
    • Net Profit attributable to Ingenico Group shareholders of 122 million
    • Objective for 2016 maintained: Organic growth above or equal to 10%; EBITDA margin of c. 21%

    11:52 am LVMH reports 1H results with organic rev up 4% (LVMUY) :

    • 1H16 revenue +3% to EUR 17.2 bln vs. EUR 16.97 bln ests; net profit +8% to EUR 1.7 bln vs. EUR 1.73 bln ests.
    • Organic revenue growth was 4% compared to the same period in 2015.
    • The American market is dynamic, while Europe remains on track, with the exception of France, which has been affected by a decrease in tourism. Asia improved steadily during the period.
      • Strong momentum in the United States, and continued growth in the European market
      • Excellent performance from Wines and Spirits in all regions
      • Success of iconic lines and new products at Louis Vuitton, where profitability remains at an exceptional level
      • Impressive growth of Fendi, which celebrates its 90(th) year
      • Continued investment in the fashion brands
      • Strong momentum at Parfums Christian Dior, led by successful innovations
      • Market share gains at Bvlgari and the successful refocusing of TAG Heuer on its core range
      • Exceptional progress at Sephora which is strengthening its position in all operating regions and in the digital universe.
    • Strong momentum in the United States, and continued growth in the European market
    • Excellent performance from Wines and Spirits in all regions
    • Success of iconic lines and new products at Louis Vuitton, where profitability remains at an exceptional level
    • Impressive growth of Fendi, which celebrates its 90(th) year
    • Continued investment in the fashion brands
    • Strong momentum at Parfums Christian Dior, led by successful innovations
    • Market share gains at Bvlgari and the successful refocusing of TAG Heuer on its core range
    • Exceptional progress at Sephora which is strengthening its position in all operating regions and in the digital universe.
    • Despite the context of geopolitical and currency uncertainties, LVMH will continue to gain market share thanks to the numerous product launches planned before the end of the year and its geographic expansion in promising markets, while continuing to manage costs.

    11:52 am European Markets Closing Prices (:SUMRX) : European markets are now closed; stock markets across Europe performed as follows:

    • UK's FTSE: + 0.2%
    • Germany's DAX: + 0.5%
    • France's CAC: + 0.2%
    • Spain's IBEX: -0.1%
    • Portugal's PSI: + 0.4%
    • Italy's MIB Index: + 0.0%
    • Irish Ovrl Index: -0.9%
    • Greece ASE General Index: + 0.2%

    11:48 am Comerica increases quarterly dividend to $0.23/share from $0.22/share; Board also authorized an increase to its share repurchase plan by up to 10 mln additional shares (CMA) :

    These actions were taken in conjunction with its announcement on June 29, 2016, that the Federal Reserve did not object to its annual capital plan and contemplated capital distributions under the 2016 Comprehensive Capital Analysis and Review.

    • The plan includes up to $440 million in equity repurchases for the four-quarter period commencing in the third quarter 2016 and ending in the second quarter 2017.

    11:46 am Sangamo BioSci announces the presentation of preclinical data that 'supports' the clinical development of its gene therapy for the treatment of hemophilia A at the World Federation of Hemophilia 2016 World Congress (SGMO) :

    This new therapeutic comprises an adeno-associated virus cDNA human Factor 8 construct driven by Sangamo's synthetic liver specific promoter, which in preclinical studies is at least three times more potent than existing AAV-based cDNA constructs currently under evaluation for the treatment of hemophilia A.

    • The data, presented by Sangamo scientists at the World Federation of Hemophilia 2016 World Congress demonstrated production of supraphysiologic levels of human Factor VIII in a mouse model of the disease and in non-human primates.
    • Mean levels of hFVIII several fold in excess of normal, obtained using research grade AAV in NHPs, were confirmed by dosing with AAV manufactured using Sangamo's clinical process. In these animals, mean hFVIII levels ranged from 5 - 230% of normal and were obtained using AAV doses in the 6 x 1011 -- 6 x 1012 vgs/kg range - the most potent dose response in NHPs thus far disclosed for an hF8 cDNA.
    • Based on other studies in the field, vector dose and corresponding hFVIII expression levels observed in NHPs are highly predictive of those observed in patients. The high potency of this novel therapeutic may enable clinically relevant levels of hFVIII to be obtained using lower vector doses, which potentially provides a better therapeutic risk/benefit profile for patients. Sangamo is conducting additional studies to determine the minimal effective dose necessary to provide therapeutic benefit.
    • The co will focus on accelerating clinical development of its AAV cDNA approach for the treatment of hemophilia A, with the goal of filing an investigational new drug application with the FDA in 2016.
    • The co expects to provide updated guidance for its in vivo genome editing approach for hemophilia A and other programs during its second quarter 2016 conference call.

    11:46 am Currency Commentary: Yen Surge Suggest Doubt BoJ Can Impress (:SUMRX) :

    • The Dollar Index is straddling the 97 level as we await tomorrow's Fed statement. Economic data was strong ahead of the meeting with Case Shiller, Consumer Confidence and New Home Sales all boasting solid results. The market expectations appear to be set ahead of the Fed and that is for the committee to leave rates unchanged but strike a somewhat hawkish tone in its directive. If the Fed does provide markets with this base line scenario it could very well turn into a non-event as it will not change the current narrative. But participants will remain on high alert ahead of the statement.
    • The euro is trying to move back above the 1.10 level but continues to see difficulty in finding a bid. The single currency has found some temporary support at the 1.0950 area. There are some economic data points of note at the end of the week and the ECB bank stress tests will be key for the region, but at the moment the single currency is being led by the dollar and Fed expectations.
    • The pound continues to hold the 1.3080 area. Overnight, Bank of England's Martin Weale stated that there was enough evidence for him to consider further easing. This will continue to lead the market to expect a 25-50 bps rate cut and perhaps an increase to the banks current GBP 375 bln asset purchase program. But it is notable that the expectations of further easing did little to dent the pound.
    • The yen saw a strong overnight rally as it broke out from the 106 level to make a run to 104. The move comes ahead of Thursday night's Bank of Japan meeting in which it is expected to provide further easing. The move was the biggest single day for yen since the Brexit. Concern over the Japanese economy is certainly a driver here following the poor trade numbers out Sunday night. But it also suggests that there is doubt that the BoJ can reach the high expectations in the market, especially following the January debacle on the NIRP policy (BONDX, FOREX). 

    11:40 am Virgin America announces the merger with Alaska Air Group (ALK) has been approved by shareholders (VA) : The merger with Alaska Air Group (ALK) is expected to close in 4Q16.

    11:34 am New Supply (BONDX) :

    Treasury Auction Preview

    • $34 billion, 5-yr Treasury auction (results at 13:00 ET)
    • Today's 5-yr auction will follow yesterday's woeful 2-yr offering that was met with the weakest bid-cover ratio since 2008, which created a 1.2-basis point tail.
    • Prior auction results:
      • High yield: 1.128%
      • Bid-to-cover: 2.45
      • Indirect bid: 57.2%
      • Direct bid: 3.7%
      • Primary takedown: 39.1%
    • High yield: 1.128%
    • Bid-to-cover: 2.45
    • Indirect bid: 57.2%
    • Direct bid: 3.7%
    • Primary takedown: 39.1%
    • Average results of prior 12 auctions:
      • High yield: 1.447%
      • Bid-to-cover: 2.44
      • Indirect bid: 59.2%
      • Direct bid: 7.6%
    • High yield: 1.447%
    • Bid-to-cover: 2.44
    • Indirect bid: 59.2%
    • Direct bid: 7.6%

    10:49 am Fiat Chrysler company FCA US to invest $1.48 bln in its Sterling Heights Assembly Plant to retool it to build the next generation Ram 1500 (FCAU) :

    • FCA US announces that it will invest $1.48 bln in its Sterling Heights Assembly Plant to retool it to build the next generation Ram 1500 and support the future growth of the Ram brand
    • The co also confirmed that production of the Chrysler 200 will end in Dec 2016 in order to begin the transformation of the plant.
    • Future plans for the Warren Truck Assembly Plant which currently builds the Ram 1500, will be announced at a later date.

    10:47 am Notable movers of interest: Texas Instruments hits 16 year-high following Q2 beat (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

    • TXN (70.55 +6.54%): Stock hits 16 year-high following Q2 beat on EPS and revenue.
    • WAT (156.74 +5.59%): Reports Q2 EPS beats of $0.13, and a beats on revenue ($537 mln vs. $523.18 mln consensus).
    • NFLX (91.85 +4.78%): Director J. Hoag's discloses purchase of 600K shares worth ~$51.9 mln (was disclosed last night, purchases made 7/21-7/25).

    Large Cap Losers

    • MBLY (42.91 -12.96%): Shares slide after announcing co won't work with Tesla beyond its current EyeQ3 chip.
    • GILD (81.63 -7.82%): Shares hit 3-week low following Q2 earnings. Needham downgrades the stock on overal revenue growth concerns.
    • MCD (122.45 -3.89%): Shares drop as Q2 comp sales dissapoint. Co reported 3.1% global comparable sales growth vs. 3.5% consensus.

    Mid Cap Gainers

    • WWW (23.83 +6.91%): Q2 EPS beat by $0.02, reports revs in-line, reaffirms FY16 EPS, revs guidance.
    • CR (61.93 +6.87%): Shares rise following Q2 beat on eps, revenue, and the co raised FY16 EPS guidance. Sees EPS of $4.00-4.20, excluding non-recurring items ($4.03 consensus).
    • WYNN (102.04 +4.75%): Shares rise following LVS earnings.

    Mid Cap Losers

    • SANM (24.25 -16.78%): Shares sharply lower following Q3 earnings report. Shares have outperformed the broader market S&P 500, +44.3% vs +6.4% in 2016.
    • PLAY (46.58 -3.74%): Stiffel lowers to hold, analysts turn bearish on sector (PNRA, CMG, LOCO...). 

    10:29 am Inovio Pharma doses the first subject in its multi-center phase I trial to evaluate its Zika DNA vaccine (INO) : In addition to the previously announced US FDA approval for the conduct of the study, Health Canada's Health Products and Food Branch has also approved this study, which will be conducted at clinical sites in Miami, Philadelphia, and Quebec City.

    10:08 am SAExploration Holdings announces a 1:135 reverse split; will begin trading on a split-adjusted basis when the market opens on July 27 (SAEX) :  

    10:07 am Criteo drops to lows - SteelHouse countersues Criteo alleging over 50% of company's revenue comes from fraudulent sources (CRTO) : In the suit, SteelHouse alleges that 52% of Criteo's clicks, the primary source of the company's revenue, do not originate from any known website or publisher. SteelHouse uncovered these findings after analyzing third party customer data that showed the source of Criteo's traffic for customers that were active with both SteelHouse and Criteo since January 2016. Additionally, the lawsuit alleges Criteo inflates its performance through fraudulent click practices; as an example, 16% of Criteo clicks are from users clicking the same advertisement within a 30-minute period -- eight times the industry standard.

    10:06 am Exxon Mobil to expand ultra-low sulfur fuels production at Beaumont refinery by more than 40,000 barrels per day (XOM) : Construction is scheduled during the second half of 2016 to install a selective cat naphtha hydrofining unit, which uses a proprietary catalyst system to remove sulfur while minimizing octane loss. Startup of the flexible technology, known as SCANfining, is expected in 2018. Gasoline produced using this technology will meet the U.S. Environmental Protection Agency's Tier 3 gasoline sulfur specifications.

    10:02 am Microsoft edges higher off the opening to notch a fresh 15-year high above last week's Earnings gap high of $56.84 (MSFT) : All-time highs reside just shy of $60-mark going back to 1999.

    10:01 am United Development Funding IV: NASDAQ hearings panel approves continued listing of United Development Funding IV Shares (halted) (UDF) :

    • NASDAQ Hearings Panel has determined to continue the listing of the Trust's common shares on The NASDAQ Stock Market. The Trust's continued listing is subject to the condition that, on or before September 12, 2016, the Trust evidence compliance with Nasdaq Listing Rule 5250(c)(1) by filing all necessary periodic reports with the Securities and Exchange Commission. The Trust must also be able to demonstrate that it satisfies all other quantitative and qualitative requirements for continued listing on NASDAQ.
    • Trust currently expects that it will be in a position to file the 2015 Form 10-K, First Quarter Form 10-Q and Second Quarter Form 10-Q and thereby evidence full compliance with the Filing Requirement on or before the September 12, 2016 date required by the Panel.
    • Trading in UDF IV's securities on NASDAQ has been halted since February 18, 2016, and the Trust expects that the trading halt will continue at least until the Trust has become fully current in its periodic filing obligations with the SEC. No assurance can be given regarding the resumption of regular trading of the Trust's securities on any market.

    9:45 am Opening Market Summary:Averages Flat as Oil Rebounds (:WRAPX) :

    The stock market began its day on a flat note as the S&P 500 (+0.1%) and the Nasdaq Composite (+0.1%) trade ahead of the Dow Jones Industrial Average (UNCHF).

    Six sectors trade in the green with technology (+0.4%) and industrials (+0.4%) leading to the upside. The remaining gainers sport upticks between 0.1% (consumer staples) and 0.3% (materials). On the flipside, health care (-0.3%) and telecom services (-0.5%) sport the largest losses.

    The PHLX Semiconductor Index (+1.5%) demonstrates relative strength as the group trades higher in sympathy with Texas Instruments (TXN 70.28, +4.06). The company beat analysts' estimates for the quarter and received several upgrades following the positive quarter.

    Biotechnology demonstrates relative weakness as the iShares Nasdaq Biotechnology ETF (IBB 280.63, -1.63) declines 0.6%. The sub-group is trading lower in sympathy with Gilead Sciences (GILD 83.00, -5.55). The company beat bottom-line estimates for the quarter, but lowered its sales guidance for the full year.

    On the commodities front, WTI crude trades lower by 0.1% ($43.10/bbl; -$0.03) while gold trades flat at $1,319.20/ozt.

    9:44 am Oramed Pharmaceuticals appointed Dr. Roy Eldor MD PhD to the newly created position of Chief Medical Director (ORMP) : He is currently Director of the Diabetes Unit at the Institute of Endocrinology, Metabolism & Hypertension, Tel-Aviv Sourasky Medical Center. Prior to that, Dr. Eldor served as Principal Scientist at Merck Research Laboratories, Clinical Research - Diabetes & Endocrinology, Rahway, New Jersey.

    9:40 am Apple - - 50-Day Alert ahead of tonight's earnings (AAPL) : Stock opens slightly lower to challenge its 50-day simple moving average along the $97-area ahead of tonight's earnings release.

    9:36 am First Merchants reports Q2 EPS of $0.49 vs $0.46 Capital IQ Consensus Estimate (FRME) : Net-interest income totaled a record $56 million for the quarter and reported net-interest margin, of 3.86 percent, increased by 5 basis points over the second quarter of 2015 total of 3.81 percent.

    9:35 am FelCor Lodging missed by $0.02, missed on revs; lowered FY16 FFO below consensus premarket (FCH) :

    • Reports Q2 (Jun) funds from operations of $0.32 per share, $0.02 worse than the Capital IQ Consensus of $0.34; revenues fell 1.3% year/year to $237.9 mln vs the $241.22 mln Capital IQ Consensus. 
      • Same-store RevPAR increased 2.6% over the same period in 2015.
      • Adjusted EBITDA increased $2.7 million to $72.4 million over the same period in 2015.
    • Same-store RevPAR increased 2.6% over the same period in 2015.
    • Adjusted EBITDA increased $2.7 million to $72.4 million over the same period in 2015.
    • Co issues downside guidance for FY16, lowers FFO to $0.87-0.92 from $0.93-0.99 vs. $0.96 Capital IQ Consensus Estimate. 
    • "We are updating our 2016 guidance to reflect second quarter results and ongoing softness in corporate transient demand for the remainder of the year. We continue to expect RevPAR for our portfolio will outperform that of our peers due to our high-quality, well-located portfolio in markets with relatively lower supply growth. Our outlook assumes Hotel EBITDA for the Wyndham hotels equals the amount guaranteed by Wyndham for 2016 (which equates to ~$59 million of Hotel EBITDA).
    • RevPAR for same-store hotels will increase 3.0 - 4.0%; Adjusted EBITDA will be $237.0 million - $243.0 million (excludes $1.5 million of EBITDA from the Renaissance Esmeralda Indian Wells Resort and Holiday Inn Nashville Airport from the time of sale to Dec 31, 2016). 

    9:27 am Trustmark reports EPS in-line (TRMK) :

    • Reports Q2 (Jun) earnings of $0.40 per share, in-line with the Capital IQ Consensus of $0.40.
    • Loans held for investment increased $137.2 million, or 7.6% annualized, from the prior quarter and $958.1 million, or 14.9%, year-over-year.

    9:23 am On The Wires (:WIRES) :

    • Zynga (ZNGA) announced the launch of Words With Friends EDU. The free educational game is now available for students, teachers and parents on the App Store for iPad, Google Play for Android tablet and on the Web.
    • Tecogen (TGEN) announced additional project wins from National Mechanical Services. The two new projects bring total relationship value with the expert contractor to in excess of $1.5 million.
    • Halozyme Therapeutics (HALO) and Eisai (ESALY) dosed the first patient in a collaborative phase 1b/2 clinical trial to assess whether Eisai's eribulin mesylate (:HALAVEN) in combination with Halozyme's investigational drug PEGPH20 (PEGylated recombinant human hyaluronidase) can improve overall response rate -- the proportion of women that have a predefined reduction in tumor burden -- as compared with eribulin alone as a therapy in women with advanced or metastatic, High-Hyaluronan HER2-negative breast cancer.
    • Stereotaxis (STXS) announced the market release of its second generation V-CAS Deflect catheter advancement system in Europe.
    • LSB Industries (LXU) announced that, due to an intense lightning storm, its El Dorado, Arkansas facility suffered a complete power outage on July 14, 2016, which caused production to be halted. Subsequent restart activities indicated that normal operating parameters had been affected from the outage and repairs were required. Adjustments to El Dorado's ammonia plant synthesis loop are currently being made and the Company expects to restore ammonia production at nameplate capacity during the first week of August 2016. 
    • Nortek (NTK) disclosed that on July 25, 2016, Melrose confirmed that Melrose's shareholders approved (i) the acquisition of the Company by Melrose for purposes of the United Kingdom stock exchange listing rules, (ii) the creation and authorization of the issuance of ordinary shares of Melrose for purposes of Melrose's rights issue of its ordinary shares to its shareholders and (iii) the authorization of Melrose to cancel the listing of Melrose's shares on the premium listing segment and to re-admit the listing of such shares on the standard listing segment with respect to the trading of Melrose's shares on the London Stock Exchange. Therefore, the requirement that Melrose seek the approval of its shareholders as a condition to the Offer has been satisfied.

    9:22 am Tata Steel reported Q1 2017 saleable steel sales of 2.15 mln tons, up 0.1% YoY (:TATLY) :

    • Co registered Hot Metal and Crude Steel production of 3.01 million tonnes (up by 16.5 % y-o-y) and 2.52 million tonnes (up by 7.6 % y-o-y) respectively for Q1 FY17.
    • Saleable Steel production is 2.34 million tonnes (up by 4.8 % y-o-y) and Sales is 2.15 million tonnes (up by 0.1 % y-o-y) for Q1 FY17.

    9:20 am S&P futures vs fair value: -0.70. Nasdaq futures vs fair value: +0.90. :

    The stock market is on track for a flat open as the S&P 500 futures trade one point below fair value.

    Index futures trade on a mixed note as investors examine the latest battery of U.S. earnings releases and developments out of Japan. Earnings reports continue to roll in on a mixed note as cautious guidance from Dow component Caterpillar (CAT 77.81 -0.88) overshadows an otherwise positive quarter. Fellow industrial name 3M (MMM 177.60, -2.03) is also under pressure this morning after lowering its revenue outlook for the year. However, the conglomerate did top analysts' bottom-line estimates and issue largely in-line earnings guidance.

    Global bourses trade on a mixed note as a reduced likelihood of stimulus measures from Japan weighs on sentiment. Japan's Finance Minister Taro Aso said the Bank of Japan will be allowed to make its own decision regarding potential stimulus measures. However, overnight reports indicated that the Japanese government is mulling a JPY6 trillion fiscal stimulus package.

    On the corporate front, United Technologies (UTX 106.50, +1.85) trades higher by 1.8% after beating top- and bottom-line expectations for the quarter. The industrial name raised its earnings estimates for the year, projecting earnings between $6.45 and $6.60 for the year. Starbucks (SBUX 58.73, +0.78) has gained 1.4% after being added to the Conviction Buy List at Goldman. Separately, DuPont (DD 69.50, +0.62) trades higher by 0.9% after surpassing analysts' estimates for the quarter and raising the low end of its full-year earnings guidance.

    Today's economic data will be capped off with Consumer Confidence for July (Briefing.com consensus 96.0) and New Home Sales for June (Briefing.com consensus 560k), which will both be released at 10:00 ET.

    9:14 am DepoMed: Starboard delivers letter to shareholders, says moving forward with consent solicitation to garner shareholder support to call a special meeting (DEPO) :

    Highlights of the letter:

    • We continue to have significant concerns regarding serious corporate governance deficiencies, questionable capital allocation decisions, and actions taken by the Board to stymie strategic interest in acquiring Depomed. We believe the Board clearly lacks the independence, objectivity, and perspective needed to make decisions that are in the best interests of shareholders.
    • Following our initial evaluation of well over 100 qualified potential board candidates, we have continued to meet with numerous pharmaceutical executives to supplement our slate with additional pharmaceutical experience. Unfortunately, given the extensive requirements and restrictions under the Depomed Bylaws for calling the Special Meeting, the addition of any new, highly qualified nominees to our slate at this time would effectively require us to submit a new record date request notice to Depomed, thereby restarting the clock under the Bylaws for the Special Meeting and further delaying our efforts to remove and replace the Board. Further delay is unpalatable; therefore, we have instead appointed two exceptionally qualified former senior pharmaceutical executives -- Robert G. Savage and James L. Tyree -- as advisors to assist in our solicitation efforts given their significant industry knowledge and experience.
    • Today, we are also announcing that we will proceed with our original solicitation to call the Special Meeting by going through the procedures required for a shareholder to call a special meeting under Depomed's Bylaws by soliciting the support of the holders of at least 10% of Depomed's outstanding shares entitled to vote. The Company has set a record date of August 19, 2016, for determining the shareholders entitled to provide their written request to call the Special Meeting. Following the Record Date, Starboard will have up to 30 days to deliver the written requests to Depomed along with the other information required under the Bylaws, including the date Starboard would like to set for holding the Special Meeting, which cannot be less than 35 nor more than 60 days after Starboard submits the Special Meeting Notice.

    9:12 am On The Wires (:WIRES) :

    • Sanofi Pasteur, the vaccines division of Sanofi (SNY), announced that its first doses of Fluzone (Influenza Vaccine) for the 2016-2017 influenza season have been released by the FDA for shipment. This represents the first of more than 65 million total doses of seasonal influenza vaccine manufactured by Sanofi Pasteur that will be delivered to U.S. health care providers and pharmacies beginning in July and continuing throughout the remainder of the year.
    • K+S Aktiengesellschaft (KPLUF) issued a statement saying that the revival of potash production at the Siegfried-Giesen site, which is being reviewed under a planning decision procedure set to still last several months from today's perspective, is not expected to occur soon against the backdrop of a recently released assessment of economic conditions and of market conditions as forecast at present.
    • ClearOne (CLRO) announces that it has been awarded a new patent covering audio streaming technology.

    9:12 am Golden Star Resources prices $65 mln of 7.0% convertible senior notes due 2021 and prices $30 mln of its common shares in a public offering at $0.75/share (GSS) :

    • As part of the notes offering, the Company has entered into exchange and purchase agreements with two holders of its 5.0% convertible senior unsecured debentures due June 1, 2017 to exchange ~$40.0 million principal amount of the outstanding convertible debentures for an equal principal amount of newly issued Notes

    9:09 am CU Bancorp reports Q2 EPS of $0.36 vs $0.36 Capital IQ Consensus Estimate (CUNB) : The net interest margin in the second quarter of 2016 was 3.81%, compared to 3.87% in the second quarter of 2015.

    9:07 am China Ceramics states that is not aware of any material corporate developments that could account for its unusual trading activity (CCCL) :  

    9:01 am Sotherly Hotels increases quarterly dividend to $0.095/share from $0.09/share (SOHO) :  

    9:01 am S&P futures vs fair value: -1.20. Nasdaq futures vs fair value: +0.10. (:WRAPX) :

    The S&P 500 futures trade one point below fair value.

    Just released, the Case-Shiller 20-city Home Price Index for May fell to 5.2%, which was below the Briefing.com consensus of 5.4%. This followed the previous month's unrevised reading of 5.4%. 

    9:01 am Tetra Tech receives a $125 mln, single-award contract to provide comprehensive architecture-engineering services to the U.S. Agency for International Development (TTEK) : Under the five-year Engineering Support Program, co will provide engineering services, construction oversight, and quality assurance assistance to implement USAID's infrastructure design and construction activities.

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

    • Progress (PRGS) today announced the appointment of Mitch Breen to the role of CRO. 
    • Cubic Global Defense, a business unit of Cubic Corporation (CUB), today announced an award of $13.9 million from Oasis Advanced Engineering to produce and deliver Crewstation Subsystems in support of the Bradley Fighting Vehicle Conduct of Fire Trainer.
    • First Cash Financial Services (FCFS) and Cash America International (CSH) today announced that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, with respect to the proposed business combination of First Cash and Cash America, has expired, concluding antitrust review of the transaction under the HSR Act and satisfying one of the important conditions to the closing of the pending transaction. The co' s also announced today the entry by First Cash into a $400 million unsecured revolving bank credit facility for the combined company, which will become effective upon the completion of the proposed transaction subject to the satisfaction of customary closing conditions.

    8:55 am Itron recommended by the National Grid (NGG) as its Advanced Metering Functionality solution provider in Massachusetts (ITRI) :

    • The utility has proposed use of its OpenWay smart grid platform to meet the AMF objectives of its Grid Modernization Plan in Massachusetts.
    • National Grid's proposal is subject to approval from the Massachusetts Department of Public Utilities, which ordered the filing of a 10-year Grid Modernization plan consistent with state policy objectives, and subject to National Grid and Itron agreeing on a contract.

    8:55 am S&P futures vs fair value: -1.00. Nasdaq futures vs fair value: +1.30. (:WRAPX) :

    The S&P 500 futures trade one point below fair value.

    Equity indices across the Asia-Pacific region ended Tuesday on a mixed note with Japan's Nikkei (-1.4%) showing relative weakness. The retreat in Japanese equities was accompanied by yen strength that sent the dollar/yen pair to 104.00. The currency pair has inched up to 104.35, which leaves the yen up 1.4% against the dollar. The yen strength began building after Japan's Finance Minister Taro Aso said the Bank of Japan will be allowed to make its own decision on stimulus.

    • In economic data:
      • Japan's Corporate Services Price Index 0.2% year-over-year (consensus 0.1%; last 0.2%)
      • Hong Kong's trade deficit HKD45.60 billion (last deficit of HKD26.20 billion)
      • South Korea's Q2 GDP +0.7% quarter-over-quarter, as expected (last 0.5%); +3.2% year-over-year (consensus 2.9%; last 2.8%)
      • New Zealand's June trade deficit narrowed to NZD3.31 billion from NZD3.63 billion (expected deficit of NZD3.30 billion)
      • Singapore's June Industrial Production -2.5% month-over-month, as expected (last -0.4%); -0.3% year-over-year (consensus -0.2%; last 0.8%)
    • Japan's Corporate Services Price Index 0.2% year-over-year (consensus 0.1%; last 0.2%)
    • Hong Kong's trade deficit HKD45.60 billion (last deficit of HKD26.20 billion)
    • South Korea's Q2 GDP +0.7% quarter-over-quarter, as expected (last 0.5%); +3.2% year-over-year (consensus 2.9%; last 2.8%)
    • New Zealand's June trade deficit narrowed to NZD3.31 billion from NZD3.63 billion (expected deficit of NZD3.30 billion)
    • Singapore's June Industrial Production -2.5% month-over-month, as expected (last -0.4%); -0.3% year-over-year (consensus -0.2%; last 0.8%)

    ---Equity Markets---

    • Japan's Nikkei lost 1.4% with nine sectors ending in the red. Materials (-2.4%), financials (-2.2%), and energy (-2.1%) lagged while communications (+0.2%) outperformed. Toshiba sank 9.2% while TDK, Alps Electric, Nitto Denko, Olympus, Kyocera, Yokohama Rubber, and Sony Financial Holdings lost between 3.8% and 5.4%.
    • Hong Kong's Hang Seng added 0.6% with casino names leading the advance. Galaxy Entertainment and Sands China gained 6.5% and 5.8%, respectively, after Sheldon Adelson made upbeat comments about regional industry trends. Financials like China Life Insurance, Bank of East Asia, Ping An Insurance, Hang Seng Bank, and Bank of China added between 0.9% and 1.5%.
    • China's Shanghai Composite advanced 1.1%. China Animal Husbandry Industry, SAIC Motor, Shandong Gold-Mining, and Tangshan Sanyou Chemical added between 6.6% and 7.8%.

    Major European indices are mixed with Italy's MIB (-0.3%) struggling to keep pace with other markets. The overall investor sentiment was dampened after comments from Japanese officials downplayed the immediate need for stimulus. Financials have shown relative weakness in Europe while other stocks have had a better showing.

    • Economic data was limited:
      • UK's BBA Mortgage Approvals 40,100 (expected 40,200; last 41,800)
      • Spain's PPI -4.7% year-over-year (last -5.6%)
    • UK's BBA Mortgage Approvals 40,100 (expected 40,200; last 41,800)
    • Spain's PPI -4.7% year-over-year (last -5.6%)

    ---Equity Markets---

    • Germany's DAX has added 0.4% with Volkswagen, Daimler, and BMW up between 0.9% and 2.2%. Financials have faced some selling pressure with Deutsche Bank falling 3.0% and Commerzbank sliding 5.0%.
    • UK's FTSE is higher by 0.3% with select miners among the leaders. Fresnillo, Randgold Resources, Rio Tinto, and BHP Billiton are up between 1.5% and 4.7%. On the downside, consumer names Tesco and Sainsbury are down 3.9% and 2.2%, respectively, while homebuilders Barratt Developments and Taylor Wimpey hold respective losses of 2.0% and 1.7%.
    • France's CAC has ticked higher by 0.1%. Exporters Valeo, Michelin, Peugeot, and Renault show gains between 1.1% and 2.6% while financials lag. Societe Generale, AXA, and Credit Agricole show losses between 0.5% and 1.2%.
    • Italy's MIB has given up 0.3% with Mediaset falling 9.8%. Financials like Unicredit, Mediobanca, Banca Pop Emilia Romagna, UBI Banca, and Banco Popolare are down between 1.3% and 3.1%.

    8:51 am Tennant beats by $0.13, beats on revs; raises FY16 EPS guidance, narrows revs guidance, both in-line (TNC) :

    • Reports Q2 (Jun) earnings of $0.85 per share, $0.13 better than the Capital IQ Consensus of $0.72; revenues rose 0.6% year/year to $216.8 mln vs the $210.61 mln Capital IQ Consensus.
      • Co raises guidance for FY16, sees EPS of $2.35-2.60 vs. $2.36 Capital IQ Consensus Estimate, up from $2.25-2.55; co also narrows FY16 revs guidance to $800-820 mln vs. $807.63 mln Capital IQ Consensus Estimate, from $795-825 mln
    • Co raises guidance for FY16, sees EPS of $2.35-2.60 vs. $2.36 Capital IQ Consensus Estimate, up from $2.25-2.55; co also narrows FY16 revs guidance to $800-820 mln vs. $807.63 mln Capital IQ Consensus Estimate, from $795-825 mln
    • Foreign currency exchange headwinds in 2016 are estimated to negatively impact operating profit in the range of $3 million to $4 million, or a negative impact of approximately $0.10 to $0.15 per diluted share.
    • Co said, "Looking ahead, we will continue to face global economic volatility which can lead to lumpy order patterns, particularly in our industrial sector. We are narrowing our full year revenue guidance, while raising our earnings guidance to reflect a less adverse foreign currency exchange environment than we previously anticipated. We remain committed to balancing our growth strategies with continued discipline in spending."

    8:49 am Active Power announces its Board is conducting a review of strategic and financial alternatives 'to potentially accelerate key growth initiatives and enhance total shareholder value' --shares halted-- (ACPW) :

    Co has engaged Vinson & Elkins LLP as its legal advisor in connection with its review of strategic and financial alternatives.

    • Co states, "We believe customers may be delaying capital investment spending during this period of economic uncertainty and slow global growth. In addition, while we do not foresee an immediate need for capital, our current share price and the capital markets environment create less than ideal conditions for traditional equity financings that the company had pursued in the past when contemplating its longer term strategic planning. This review process will enable us to evaluate various opportunities intended to enhance the company's profitability, including without limitation a sale of the company, new investors, and a transition into other profitable businesses."
    • In light of these developments, co will not be hosting a conference call to review its 2Q16 results.

    8:47 am Banro CFO Kevin Jennings will resign after accepting a position at another firm; co will conduct a search for a new CFO (BAA) :  

    8:46 am On The Wires (:WIRES) :

    • Evoke Pharma (EVOK) announced that the FDA has conditionally accepted the proprietary brand name, "Gimoti," for the Company's product candidate, EVK-001 (metoclopramide nasal spray).
    • Xtant Medical Holdings (XTNT) announced the expansion of its tissue processing facility in Belgrade, MT, which now includes an additional seven new processing rooms. This more than doubles the capacity of processing rooms available for production.
    • UQM Technologies (UQM) signed an extension to its long-term supply agreement with Proterra. 

    8:40 am TEGNA beats by $0.02, reports revs in-line, separately announced the acquisition of DealerRater, financial terms were not disclosed (TGNA) :

    • Reports Q2 (Jun) adj earnings of $0.50 per share, $0.02 better than the Capital IQ Consensus of $0.48; revenues rose 7.3% year/year to $811.79 mln vs the $814.74 mln Capital IQ Consensus.
      • Martore continued, "Looking ahead to the second half of the year, we continue to be very well positioned in both our Media and Digital Segments to maximize on market demand for our services. We expect political revenue to ramp up steadily in the third and fourth quarters as a longer-than-usual primary process led to delayed ad buys from front running candidates. We also are seeing robust advertising from the Olympics this summer driven by our strong NBC footprint."
    • Martore continued, "Looking ahead to the second half of the year, we continue to be very well positioned in both our Media and Digital Segments to maximize on market demand for our services. We expect political revenue to ramp up steadily in the third and fourth quarters as a longer-than-usual primary process led to delayed ad buys from front running candidates. We also are seeing robust advertising from the Olympics this summer driven by our strong NBC footprint."
    • Acquisition news:
      • TEGNA announces it will acquire DealerRater, an automotive consumer review website, financial terms were not disclosed.
      • The transaction is expected to close by the end of August.
    • TEGNA announces it will acquire DealerRater, an automotive consumer review website, financial terms were not disclosed.
    • The transaction is expected to close by the end of August.

    8:40 am Cardiome Pharma prices 10 mln common shares from treasury at a price to the public of $3.00 per common share for aggregate gross proceeds $30 mln (CRME) :  

    8:36 am Air Methods sees Q2 EPS and revs below consensus (AIRM) :

    • Co issues downside guidance for Q2 (Jun), sees EPS of $0.69-0.71 vs. $0.91 Capital IQ Consensus Estimate; sees Q2 (Jun) revs of $293 mln vs. $310.96 mln Capital IQ Consensus Estimate. Total patient transports by community bases increased 15.9% to 18,662 from 16,105 in the second quarter of 2015.
    • Preliminary net revenue per transport increased 1.9% to $11,516 as compared with $11,298 in the prior-year quarter with there being minimal impact from TSCF.

    8:36 am CNH Industrial reports EPS in-line, beats on revs; Co confirms its 2016 guidance (CNHI) :

    • Reports Q2 (Jun) earnings of 0.10 per share, in-line with the Capital IQ Consensus of 0.10; revenues fell 2.9% year/year to 6.75 bln vs the 5.86 bln Capital IQ Consensus.
    • Industrial Activities operating profit and margin increased year-over-year, led by improvements in Agricultural Equipment, Commercial Vehicles, and Powertrain segments: Agricultural Equipment profitable in all regions, with best-in-class operating margin at 10.7% Commercial Vehicles solidly profitable, with 3.9% operating margin
    • Agricultural Equipment's net sales decreased 7.5% for the second quarter 2016 compared to the same period in 2015 (down 6.3% on a constant currency basis), as a result of lower industry volume, unfavorable product mix in the row crop sector in NAFTA and unfavorable industry volume in the small grain sector in EMEA
    • Construction Equipment's net sales decreased 19.6% for the second quarter 2016 compared to the same period in 2015 (down 18.4% on a constant currency basis), due to negative industry volumes primarily in the heavy product class in all regions.

    CNH Industrial is confirming its 2016 guidance as follows:

    • Net sales of Industrial Activities between $23 bln and $24 bln, with an operating margin of Industrial Activities between 5.2% and 5.8%
    • Net industrial debt at the end of 2016 between $1.5 bln and $1.8 bln excluding the European Commission settlement (~$500 mln).

    8:36 am Gapping down (SCANX) :

    Gapping down
    In reaction to disappointing earnings/guidance
    : NDLS -15.5%, (Noodles & Co announces management and Board changes, sees Q2 revs below consensus), SANM -9.9%, FCX -6.7%, EFII -4.4%, ORAN -4.2%, GILD -4.1%, MPWR -3.6%, CE -3.6%, GIG -3.3%, CDNS -3%, MCD -3%, BP -2.2%, BLX -1.7%, SPN -1.6%, CMP -1.5%, MMM -1.5%, VNOM -1.3%, (Viper Energy Partners announces a 7 mln common unit underwritten public offering), VZ -0.9%, CAT -0.9%, CVLT -0.8%, KEY -0.7%, JBLU -0.5%, MDXG -0.5%

    M&A news: KLDX -3.4% ( to acquire the Hollister mine and the Esmeralda mine and ore milling complex located in Northern Nevada; discloses CAD $100 mln bought deal financing)

    Select oil/gas related names showing early weakness: CHK -2.5%, MRO -1.9%, WLL -1.9%, RDS.A -0.6%

    Other news:

    • TKAI -67.9% (announces clinical update; co to discontinue Phase 3 ARMOR3-SV trial of Galeterone in AR-V7 Positive mCRPC)
    • CRME -34.9% (announces proposed underwritten public offering of common stock)
    • MSTX -21.3% (Mast Therapeutics provides guidance on the anticipated timing for announcement of top-line data from the EPIC study, provided guidance on the anticipated timing for announcement of top-line data from the EPIC study)
    • SDLP -11.9% (reduces quarterly distribution to $0.10 per unit (from $0.25 per unit prior))
    • TCAP -4.7% (commences 6.25 mln common stock offering)
    • PRKR -3.3% ( files for ~1.44 mln share common stock offering by selling shareholders)
    • CELG -3.2% (announces the Lymphoma Academic Research Organisation reported initial data from a phase III REMARC clinical study; REMARC achieved the primary endpoint of a statistically significant improvement inPFS for patients receiving REVLIMID)

    Analyst comments:

    • SC -2.2% (downgraded to Equal Weight from Overweight at Barclays)
    • WFM -2.2% (downgraded to Sell from Neutral at Goldman )
    • CMG -1.9% (downgraded to Sell at Stifel)
    • PNRA -1.4% (downgraded to Sell at Stifel)

    8:35 am TrovaGene announces the publication of study results from its urine- and blood based liquid biopsy tests to assess EGFR T790M mutational status in Journal of Thoracic Oncology (TROV) :

    The data show that the Trovera test, using proprietary mutation allele enrichment technology, successfully identifies EGFR mutations in both urine and blood of patients with metastatic non-small cell lung cancer (:NSCLC) and has high concordance with tumor tissue.

    Highlights: 

    • Using the tissue result as reference, the sensitivity of EGFR mutation detection in urine with specimens that met a recommended volume of 90-100 mL was 93% (13/14) for T790M, 71% (5/7) for L858R, and 83% (10/12) for exon 19 deletions. A comparable sensitivity of EGFR mutation detection was observed in plasma: 93% (38/41) for T790M, 100% (17/17) for L858R, and 87% (34/39) for exon 19 deletions.
    • The specificity of urine EGFR assays in healthy volunteers, or patients without NSCLC, was 96% for T790M, 94% for exon 19 deletions and 100% for L858R mutations
    • The combination of urine and plasma testing identified 12 T790M-positive cases that were undetectable by testing of tumor tissue

    8:35 am AK Steel beats by $0.08, misses on revs (AKS) :

    • Reports Q2 (Jun) earnings of $0.08 per share, $0.08 better than the Capital IQ Consensus of ($0.00); revenues fell 11.7% year/year to $1.49 bln vs the $1.54 bln Capital IQ Consensus.
    • Adjusted EBITDA of $99.3 mln, or 6.7% of sales, more than doubled from adjusted EBITDA of $47.6 mln, or 2.8% of sales last year.
    • "Our strategic decision to reduce exposure to commodity spot markets, optimize our footprint and focus on higher value products continued to show positive results as we achieved another quarter of significant improvement"
    • Sales declined primarily as a result of lower automotive contract pricing compared to a year ago as well as a decrease in shipments. In Q2, shipments of 1,555,500 tons represented a decline of 14% YoY as the company's decision to reduce exposure to the commodity carbon steel spot market resulted in a 320,000 ton decline in shipments to the distributors and converters markets, or a 48% YoY reduction. Shipments of higher value coated products, which are sold mostly to the automotive market, increased to 53% of total shipments in Q2, up from 45% a year ago.

    8:33 am BioTelemetry receives FDA 510(k) clearance of its Mobile Cardiac Outpatient Telemetry device, the MCOT Patch (BEAT) :  

    8:32 am Unicredit S.p.A approves new organisational structure (UNCFF) :

    The new structure will involve the reduction of the number of CEO direct reports, with the CEO focusing on the group's strategy, risks and costs structure. As such, he will retain direct oversight of strategy, risk management, compliance, human resources, as well as operating activities.

    8:31 am Marrone Bio Innovations announces that Mexico regulatory authorities have approved for sale both of its bioinsecticides, GRANDEVO and VENERATE (MBII) :  

    8:31 am Progenics Pharm receives a $50 mln milestone payment from Valeant Pharma (VRX) resulting from the FDA's marketing approval last week of RELISTOR Tablets for the treatment of opioid-induced constipation in adults with chronic non-cancer pain (PGNX) :  

    8:31 am TEGNA to acquire DealerRater, terms were not disclosed (TGNA) :

    DealerRater is an automotive consumer review website.

    • The transaction is expected to close by the end of August.
    • Terms of the transaction were not disclosed.

    8:30 am S&P futures vs fair value: -0.20. Nasdaq futures vs fair value: +2.90. (:WRAPX) :

    Equity futures have inched higher in recent action as the S&P 500 futures trade within one point of fair value.

    In company specific news, Eli Lilly (LLY 82.87, +0.89) has gained 1.1% after beating analysts' estimates for the quarter and reaffirming its full-year guidance. The company reported that its top-line grew 8.6% year-over-year to $5.4 billion. McDonald's (MCD 123.00, -4.40) trades lower by 3.5% after global comparable sales missed estimates. However, the company did beat bottom-line estimates for the quarter. Finally, Verizon (VZ 55.30, -0.57) has ticked lower by 1.0% after reporting a mixed quarter. The Dow component beat bottom-line estimates, but reported that revenue fell 5.3% year-over-year.

    The U.S. Dollar Index (97.08, -0.20) trades modestly lower as the greenback loses ground to the yen. The dollar/yen pair trades lower by 1.4% (104.32) as investors respond to a reduced likelihood of stimulus measures from Japan. Separately, the dollar has gained 0.1% against the commodity-sensitive Canadian dollar (1.3235) amid a sustained downturn in crude oil. WTI crude trades lower by 1.4% ($42.54/bbl, -$0.59).

    8:30 am Triangle Capital prices a 6.25 mln share underwritten public offering of common stock at $19.90/share for net proceeds of ~$119.6 mln (TCAP) :  

    8:29 am Volkswagen AG reports H1 commercial vehicle worldwide deliveries increase by 7% YoY (VLKAY) :

    • Volkswagen Commercial Vehicles records a significant growth of 7.0 per cent in the first six months of the year with worldwide deliveries of urban delivery vans, transporters and pick-ups totalling 238,800.
    • Particularly successful during this period was the T model range with 100,300 vehicles delivered (+12.9 per cent). In the month of June alone, the brand lay well ahead of last year's figures with 43,700 vehicles delivered (+13.3 per cent).

    8:28 am Gapping up (SCANX) :

    Gapping up
    In reaction to strong earnings/guidance
    : ALIM +29.2%, CRY +10.2%, EXAS +9.1%, EVER +6.8%, TXN +6.6%, CETV +5.4%, CR +5.3%, LVS +3.6%, MBLY +3.4%, AUDC +3.2%, CNC +3.2%, ATI +2.6%, CNXC +2.5%, ( elects not to pay a distribution to holders of subordinated units for Q2), CLGX +2.5%, KKR +2.4%, MAS +2.2%, ARLP +2%, AKS +1.8%, AOS +1.5%, LLY +1.5%, SIRI +1.2%, FIS +1%, IPAR +0.9%, (Inter Parfums reports prelim Q2 sales above consensus; on track to achieve 2016 net sales guidance), DD +0.9%, UTX +0.8%, ESRX +0.5%

    M&A news:

    • SWHC +2.1% (Smith & Wesson to acquire Crimson Trace for $95.0 mln, subject to certain adjustments, utilizing cash on hand; expects the acquisition to be accretive to its EPS in fiscal 2017)
    • BUD +1.3% (Anheuser-Busch InBev (BUD) revises offer to GBP 45/share in cash (from GBP 44/share prior))
    • P +1.0% (following late surge higher -- reports that the company hired advisor for strategic options)

    Select metals/mining stocks trading higher: GFI +4.2%, DRD +3%, RIO +2.2%, HMY +1.7%, KGC +1.7%, BBL +1.7%, AG +1.6%, GOLD +1.5%, BHP +1.4%

    Other news:

    • VKTX +11.7% (announces 'positive' top-line results from a proof-of-concept study of VK0214 in a mouse model of X-linked adrenoleukodystrophy)
    • SGY +8.6% (announces estimated production for the quarter ended June 30, 2016 of ~29 MBoe (174 MMcfe) per day, slightly above the upper end of guidance for the quarter)
    • BEAT +6.7% (to join S&P SmallCap 600)
    • ANCB +6% (Anchor Bancorp engages investment banking firm to assist it in identifying and evaluating various strategic options and operating scenarios)
    • MPEL +5% (following LVS earnings)
    • BT +4.6% (makes governance changes to further increase independence for Openreach), GALE +3.9% (files for 3,658,012 share common stock offering by selling shareholders)
    • RAVN +3.9% (to join S&P SmallCap 600)
    • NFLX +3.7% (following Director J. Hoag's disclosure of purchase of 600K shares worth ~$51.9 mln (was disclosed last night, purchases made 7/21-7/25))
    • WYNN +3.1% (following LVS earnings)
    • NXPI +1.9% (following TXN earnings)
    • MGM +1.4% (following LVS earnings)
    • MBFI +1.2% (to join S&P MidCap 400)
    • MXIM +1% (following TXN earnings)
    • ADI +0.9% (following TXN earnings)

    Analyst comments:

    • SFM +3.3% (upgraded to Buy from Sell at Goldman)
    • FMSA +2% (upgraded to Outperform at Cowen)
    • JWN +1.8% (upgraded to Overweight from Neutral at Piper Jaffray)
    • LYG +1.7% (upgraded to Hold from Sell at Berenberg)
    • XXIA +1.6% (upgraded to Buy from Hold at Stifel)
    • KR +1.4% (upgraded to Buy from Neutral at Goldman; added to Conviction Buy List)
    • ALKS +1.1% (upgraded to Outperform from Market Perform at Cowen)
    • SBUX +1% (added to Conviction Buy List at Goldman)

    8:26 am On The Wires (:WIRES) :

    • NeuroDerm (NDRM) announced that dosing has started in its EU bioequivalence trial (Trial 101) comparing ND0701 with commercial continuous, subcutaneously delivered apomorphine-HCl. Trial 101 is a crossover, randomized, two-sequence, 12 hour bioequivalence study that compares the pharmacokinetics, safety and tolerability of ND0701 with those of a reference commercial apomorphine product. The study is expected to enroll a total of 18 healthy volunteers and is expected to be completed in the fourth quarter of this year.
    • CB&I (CBI) announces it has been awarded a contract valued in excess of $50 mln to provide operations, maintenance and management services for methane gas production and purification facilities at two landfills in the Northeast.
    • MagneGas (MNGA) has become an authorized distributor for Global Calibration Gasses. 

    8:22 am On The Wires (:WIRES) :

    • Inovalon (INOV) entered into a multi-year agreement with athenahealth. Together, the organizations will work to establish interoperability between Inovalon's advanced healthcare data aggregation and analytics platform and athenaNet. 
    • Flex Pharma (FLKS) completed enrollment of its human proof-of-concept efficacy study in nocturnal leg cramps with its chemically synthesized, single molecule, transient receptor potential ion channel activator, formulated as an orally disintegrating tablet. Topline results are expected by year end.
    • Advaxis (ADXS) announced its combination study of axalimogene filolisbac with AstraZeneca's (AZN) anti-PD-L1 durvalumab has completed the second dose-escalation cohort and has commenced enrollment for the Part A expansion and Part B phases of the study. Data from the first dose-escalation cohort will be submitted as an abstract for an upcoming major medical meeting this fall.

    8:20 am Peoples Bancorp, Inc. reports Q2 EPS of $0.44 vs $0.41 Capital IQ Consensus Estimate (PEBO) :

    • Net interest margin improved to 3.57% in the second quarter of 2016, compared to 3.53% for the linked quarter and 3.46% in the second quarter of 2015.

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

    • Pioneer Power Solutions (PPSI) announced that over the last 60 days, the Co has booked more than $3.6 million in distributed generation business, reflecting several orders from new customers.
    • Gulf Resources (GURE) announced the following updates on its Sichuan natural gas project: signed the agreement to purchase the equipment needed for drilling and converting the natural gas, and constructed the roads and related infrastructure needed to begin operations in the remote and mountainous region of Daying county.
    • X-Chem announces a multi-target drug discovery agreement with AbbVie (ABBV). The collaboration is focused on the discovery and development of novel treatments for diseases in oncology and immunology.  Under the terms of the agreement X-Chem will deploy its DNA-encoded library discovery platform for the identification of novel small-molecule inhibitors of both promising new targets as well as validated targets that have been historically challenging to address. AbbVie has an exclusive option to license active hits and leads generated in the course of the collaboration and is responsible for all further development and commercialization.

    8:18 am Tandem Diabetes Care announces FDA clearnace of an expanded pediatric indication for the t:slim Insulin Pump, lowering its use to children age 6 and older from children age 12 and older (TNDM) :  

    8:17 am Klondex Mines upsizes CAD 100 mln 'bought deal' private placement; Underwriters have agreed to purchase, on a bought deal private placement basis, 22.9 mln subscription receipts, at a price of CAD 5.00/Subscription Receipt, for aggregate gross proceeds of CAD 114.5 mln (KLDX) :  

    8:12 am Freeport-McMoRan misses by $0.01, misses on revs; Announces $1.5 bln common stock offering, Lowers Operating Cash Flow guidance, Lowers CapEx Guidance (FCX) :

    • Reports Q2 (Jun) loss of $0.02 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus of ($0.01); revenues fell 15.3% year/year to $3.33 bln vs the $3.68 bln Capital IQ Consensus.
      • Average realized prices were $2.18 per pound of copper, $1,292 per ounce for gold and $41.10 per barrel for oil for second-quarter 2016. Average unit net cash costs were $1.33 per pound of copper for mining operations and $15.00 per barrel of oil equivalents (BOE) for oil and gas operations for second-quarter 2016.
      • Unit net cash costs for the year 2016 are expected to average $1.06 per pound of copper for mining operations (including Tenke) and $15.50 per BOE for oil and gas operations.
    • Average realized prices were $2.18 per pound of copper, $1,292 per ounce for gold and $41.10 per barrel for oil for second-quarter 2016. Average unit net cash costs were $1.33 per pound of copper for mining operations and $15.00 per barrel of oil equivalents (BOE) for oil and gas operations for second-quarter 2016.
    • Unit net cash costs for the year 2016 are expected to average $1.06 per pound of copper for mining operations (including Tenke) and $15.50 per BOE for oil and gas operations.
    • Operating cash flows totaled $874 million for second-quarter 2016. Operating cash flows for the year 2016 are expected to approximate $4.5 billion compared to prior guidance of $4.8 bln (including $0.7 billion in working capital sources and changes in other tax payments).
    • Capital expenditures totaled $833 million for second-quarter 2016, consisting of $441 million for mining operations and $392 million for oil and gas operations. Capital expenditures are expected to approximate $3.1 billion for the year 2016 (Prior guidance $3.3 bln), consisting of $1.7 billion for mining operations (including $1.3 billion for major projects) and $1.4 billion for oil and gas operations.
    • During second-quarter 2016, FCX completed previously announced asset sales for aggregate cash consideration of $1.3 billion, including the $1.0 billion sale of an additional 13 percent undivided interest in Morenci. In May 2016, FCX entered into a definitive agreement to sell its interest in TF Holdings Limited for $2.65 billion in cash and contingent consideration of up to $120 million. In accordance with accounting guidelines, the results of Tenke are reported as discontinued operations for all periods presented.
    • At June 30, 2016, consolidated debt totaled $19.3 billion (Compared to $20.3 bln at the end of Q1) and consolidated cash totaled $352 million (Compared to $331 mln at the end of Q1). At June 30, 2016, FCX had no borrowings (Prior had $500 mln in net borrowings) and $3.5 billion available under its $3.5 billion revolving credit facility.
    • To date, FCX has announced over $4 billion in transactions and has received aggregate cash consideration of $1.4 billion, including $87 million in July 2016.
      • The $2.65 billion Tenke Fungurume (Tenke) transaction is expected to close in fourth-quarter 2016. In addition, FCX continues to aggressively manage production, exploration and administrative costs and capital spending.
    • The $2.65 billion Tenke Fungurume (Tenke) transaction is expected to close in fourth-quarter 2016. In addition, FCX continues to aggressively manage production, exploration and administrative costs and capital spending.
    • With the successful completion of the Cerro Verde expansion and access to higher grade ore from the Grasberg mine in future quarters, FCX expects to generate substantial cash flows over the next 18 months for debt reduction.
    • As part of its plan to reduce outstanding indebtedness, FCX intends to commence a registered at-the-market offering of up to $1.5 billion of common stock and use the proceeds to retire outstanding indebtedness.
    • While additional asset sales may be considered, FCX remains focused on retaining a high-quality portfolio of long-lived copper assets positioned to generate value as market conditions improve.


    8:11 am Tower Intl beats by $0.12, reports revs in-line; guides FY16 EPS in-line, gives favorable outlook (TOWR) :

    • Reports Q2 (Jun) earnings of $0.81 per share, excluding non-recurring items, $0.12 better than the Capital IQ Consensus of $0.69; revenues rose 12.4% year/year to $505.1 mln vs the $504.83 mln Capital IQ Consensus.
    • Co reaffirms guidance for FY16, sees EPS of $3.00-3.20 vs. $3.19 Capital IQ Consensus Estimate.
    • The co is re-affirming its outlook for full year earnings and free cash flow both.
      • When co reported last in April, it Anticipated free cash flow (including customer tooling) is being increased by $10 mln (to $20 mln).
    • When co reported last in April, it Anticipated free cash flow (including customer tooling) is being increased by $10 mln (to $20 mln).
    •  The outlook for full year revenue is down slightly for vehicle and Company-specific reasons; to date, there has been no evidence experienced by the co of a meaningful industry production downturn in North America or adverse fall-out in Europe from Brexit.

    Tower believes it is entering a period of very favorable earnings comparisons and strong free cash flow.

    • For example:
      • Second half 2016 adjusted EBITDA is projected to be up more than 20% from second half 2015
      • Free cash flow in the second half of 2016 through 2017 is projected at $130 million
      • And Depending on the pace of the Company's previously announced stock buyback program, diluted adjusted EPS could exceed $4.00 in 2017 (Consensus is currently calling for EPS of $3.58 in 2017)
    • Second half 2016 adjusted EBITDA is projected to be up more than 20% from second half 2015
    • Free cash flow in the second half of 2016 through 2017 is projected at $130 million
    • And Depending on the pace of the Company's previously announced stock buyback program, diluted adjusted EPS could exceed $4.00 in 2017 (Consensus is currently calling for EPS of $3.58 in 2017)

    8:11 am European Yields (BONDX) :

    Core Yields Slip

    • Overnight demand for German and French debt has pressured yields in the two economies while Spanish and Italian bonds have staged a moderate retreat. It is worth pointing out that the mixed sentiment comes after a three-week risk rally that lifted regional equity markets off their July lows. Also of note, Bank of England member Martin Weale said he now supports an August rate cut in response to weak Services PMI data.
    • Economic data:
      • UK's BBA Mortgage Approvals 40,100 (expected 40,200; last 41,800)
      • Spain's PPI -4.7% year-over-year (last -5.6%)
    • UK's BBA Mortgage Approvals 40,100 (expected 40,200; last 41,800)
    • Spain's PPI -4.7% year-over-year (last -5.6%)
    • Yield Check:
      • France, 10-yr OAT: -2 bps to 0.18%
      • Germany, 10-yr Bund: -2 bps to -0.06%
      • Greece, 10-yr note: +1 bp to 8.01%
      • Italy, 10-yr BTP: +1 bp to 1.24%
      • Portugal, 10-yr PGB: +2 bps to 3.03%
      • Spain, 10-yr ODE: +1 bp to 1.12%
      • UK, 10-yr Gilt: -3 bps to 0.78%
    • France, 10-yr OAT: -2 bps to 0.18%
    • Germany, 10-yr Bund: -2 bps to -0.06%
    • Greece, 10-yr note: +1 bp to 8.01%
    • Italy, 10-yr BTP: +1 bp to 1.24%
    • Portugal, 10-yr PGB: +2 bps to 3.03%
    • Spain, 10-yr ODE: +1 bp to 1.12%
    • UK, 10-yr Gilt: -3 bps to 0.78%

    8:09 am Banco Latinoamer misses Q2 EPS estimates (BLX) :

    • Q2 GAAP EPS $0.57 vs $0.69 Capital IQ Consensus Estimate
    • Bladex's 2Q16 Net Profit totaled $22.3 million (+65% YoY, -5% QoQ) on robust net interest income (+10% YoY, -3% QoQ), increased fees and other income (+43% YoY, +87% QoQ), and improved efficiency through lower operating expenses (-21% YoY, -19% QoQ), offsetting higher provisions for impairment from allowance for credit losses. In the 2Q16, the Bank's results also benefited from the divestment of its remaining participation in the investment funds effective April 1st, 2016, with a residual gain of $0.2 million recorded for the quarter, compared to losses from its participation in the investment funds recorded during the comparison quarters.

    8:09 am Organovo to move its stock exchange listing to the NASDAQ Stock Market from the NYSE MKT effective August 8 (ONVO) :  

    8:08 am S&P futures vs fair value: -1.70. Nasdaq futures vs fair value: +0.90. (:WRAPX) :

    U.S. equity futures hover near their flat lines as the S&P 500 futures trade two points below fair value. Index futures tread water as investors examine a plethora of earnings results and developments in Japan. Six Dow components are scheduled to release quarterly reports this morning as positive bottom-line results from the likes of 3M Company (MMM 177.73, -1.89), Caterpillar (CAT 77.75, -0.94), DuPont (DD 69.75, +0.87), and United Technologies (UTX 105.47, +0.82) prompt mixed reactions.

    In Japan, the Nikkei (-1.4%) underperformed as investors weighed potential stimulus measures ahead of the Bank of Japan's policy meeting later in the week. Additionally, reports indicated that the Japanese government would launch a JPY6 billion stimulus plan, but that it could be spread out through an unspecified number of years.

    Treasuries trade on a higher note as yields fall throughout the complex. The yield on the 10-yr note has slipped two basis points to 1.56%.

    On the economic front, data will include the 9:00 ET release of the Case-Shiller 20-city Index for May (Briefing.com consensus 5.4%). Separately, Consumer Confidence for July (Briefing.com consensus 96.0) and New Home Sales for June (Briefing.com consensus 560k) will both cross the wires at 10:00 ET.

    In U.S. corporate news of note:

    • Texas Instruments (TXN 70.85, +4.63): +7.0% after the company beat analysts' estimates for the quarter and issued in-line guidance for Q3
    • Under Armour (UA 43.90, +0.31): +0.7% following the company missing bottom-line estimates on in-line revenue
    • Gilead Sciences (GILD 84.60, -3.95): -4.5% after reporting a bottom-line beat, but lowering FY16 sales guidance
    • 3M Company (MMM 177.73, -1.89): -1.1% following the company lowering its revenue outlook and reporting a mixed quarter

    Reviewing overnight developments: 

    • Asia-Pacific markets ended on a mixed note as Japan's Nikkei (-1.4%) underperformed Hong Kong's Hang Seng (+0.6%) and China's Shanghai Composite (+1.1%). 
      • In economic data:
        • Japan's Corporate Services Price Index 0.2% year-over-year (consensus 0.1%; last 0.2%)
        • Hong Kong's trade deficit HKD45.60 billion (last deficit of HKD26.20 billion)
        • South Korea's Q2 GDP +0.7% quarter-over-quarter, as expected (last 0.5%); +3.2% year-over-year (consensus 2.9%; last 2.8%)
        • New Zealand's June trade deficit narrowed to NZD3.31 billion from NZD3.63 billion (expected deficit of NZD3.30 billion)
        • Singapore's June Industrial Production -2.5% month-over-month, as expected (last -0.4%); -0.3% year-over-year (consensus -0.2%; last 0.8%)
      • In news: 
        • The retreat in Japanese equities was accompanied by yen strength. 
        • Yen strength began building after Japan's Finance Minister Taro Aso said the Bank of Japan will be allowed to make its own decision on stimulus.
        • The currency pair has inched up to 104.30, which leaves the yen up 1.4% against the dollar.
    • In economic data:
      • Japan's Corporate Services Price Index 0.2% year-over-year (consensus 0.1%; last 0.2%)
      • Hong Kong's trade deficit HKD45.60 billion (last deficit of HKD26.20 billion)
      • South Korea's Q2 GDP +0.7% quarter-over-quarter, as expected (last 0.5%); +3.2% year-over-year (consensus 2.9%; last 2.8%)
      • New Zealand's June trade deficit narrowed to NZD3.31 billion from NZD3.63 billion (expected deficit of NZD3.30 billion)
      • Singapore's June Industrial Production -2.5% month-over-month, as expected (last -0.4%); -0.3% year-over-year (consensus -0.2%; last 0.8%)
    • Japan's Corporate Services Price Index 0.2% year-over-year (consensus 0.1%; last 0.2%)
    • Hong Kong's trade deficit HKD45.60 billion (last deficit of HKD26.20 billion)
    • South Korea's Q2 GDP +0.7% quarter-over-quarter, as expected (last 0.5%); +3.2% year-over-year (consensus 2.9%; last 2.8%)
    • New Zealand's June trade deficit narrowed to NZD3.31 billion from NZD3.63 billion (expected deficit of NZD3.30 billion)
    • Singapore's June Industrial Production -2.5% month-over-month, as expected (last -0.4%); -0.3% year-over-year (consensus -0.2%; last 0.8%)
    • In news: 
      • The retreat in Japanese equities was accompanied by yen strength. 
      • Yen strength began building after Japan's Finance Minister Taro Aso said the Bank of Japan will be allowed to make its own decision on stimulus.
      • The currency pair has inched up to 104.30, which leaves the yen up 1.4% against the dollar.
    • The retreat in Japanese equities was accompanied by yen strength. 
    • Yen strength began building after Japan's Finance Minister Taro Aso said the Bank of Japan will be allowed to make its own decision on stimulus.
    • The currency pair has inched up to 104.30, which leaves the yen up 1.4% against the dollar.
    • European indices trade mixed as Germany's DAX (+0.3%) leads the U.K.'s FTSE (+0.2%) and France's CAC (-0.1%). Elsewhere,  Italy's MIB (-0.7%) underperforms. 
      • Economic data was limited:
        • UK's BBA Mortgage Approvals 40,100 (expected 40,200; last 41,800)
        • Spain's PPI -4.7% year-over-year (last -5.6%)
      • In news: 
        • Investor sentiment was dampened after comments from Japanese officials downplayed the immediate need for stimulus.
    • Economic data was limited:
      • UK's BBA Mortgage Approvals 40,100 (expected 40,200; last 41,800)
      • Spain's PPI -4.7% year-over-year (last -5.6%)
    • UK's BBA Mortgage Approvals 40,100 (expected 40,200; last 41,800)
    • Spain's PPI -4.7% year-over-year (last -5.6%)
    • In news: 
      • Investor sentiment was dampened after comments from Japanese officials downplayed the immediate need for stimulus.
    • Investor sentiment was dampened after comments from Japanese officials downplayed the immediate need for stimulus.

    8:06 am Franklin Electric beats by $0.02, misses on revs; reaffirms FY16 guidance (FELE) :

    • Reports Q2 (Jun) earnings of $0.51 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.49; revenues rose 1.9% year/year to $252.08 mln vs the $255.59 mln Capital IQ Consensus.
    • Co reaffirms guidance for FY16, sees adj EPS of $1.60-1.70 vs. $1.64 Capital IQ Consensus Estimate.
      • Water Systems sales were $194.6 million in the second quarter 2016, an increase of $3.0 million or about 2 percent versus the second quarter 2015 sales of $191.6 million. Foreign currency translation reduced Water Systems sales by $7.2 million or about 4 percent in the quarter. Excluding foreign currency translation, Water Systems sales grew about 6 percent compared to the second quarter 2015.
      • Fueling Systems sales were $57.5 million in the second quarter 2016, an increase of $1.7 million or about 3 percent versus the second quarter 2015 sales of $55.8 million. Fueling Systems sales decreased by $0.3 million or about 1 percent in the quarter due to foreign currency translation. Fueling Systems sales were up about 4 percent, after excluding foreign currency translation.
    • Water Systems sales were $194.6 million in the second quarter 2016, an increase of $3.0 million or about 2 percent versus the second quarter 2015 sales of $191.6 million. Foreign currency translation reduced Water Systems sales by $7.2 million or about 4 percent in the quarter. Excluding foreign currency translation, Water Systems sales grew about 6 percent compared to the second quarter 2015.
    • Fueling Systems sales were $57.5 million in the second quarter 2016, an increase of $1.7 million or about 3 percent versus the second quarter 2015 sales of $55.8 million. Fueling Systems sales decreased by $0.3 million or about 1 percent in the quarter due to foreign currency translation. Fueling Systems sales were up about 4 percent, after excluding foreign currency translation.

    8:06 am Accuride beats by $0.04, misses on revs; guides FY16 revs below consensus (ACW) :

    • Reports Q2 (Jun) earnings of $0.05 per share, $0.04 better than the Capital IQ Consensus of $0.01; revenues fell 11.5% year/year to $164.12 mln vs the $171.33 mln Capital IQ Consensus.
    • Co issues downside guidance for FY16, sees FY16 revs of $625-650 mln vs. $663.4 mln Capital IQ Consensus Estimate. Co narrows its FY16 adjusted EBITDA guidance to $65-75 mln from prior guidance of $65-80 mln.
    • "During the second quarter, our top line was impacted by significantly lower demand at Brillion, lower Class 8 production and lower pricing related to raw material pass through mechanisms. Our strong operating performance and cost reduction initiatives enabled us to offset the revenue declines and expand EBITDA margins at Wheels and Gunite from 2015 levels."
    • "Looking at the second half of 2016, we expect to face headwinds from continued weak demand in Brillion's end markets and lower North American Class 8 truck demand, which should be somewhat offset by healthy Class 5-7 and Trailer market segments. In addition, we expect to partially offset the impact of rising steel prices on margins by continuing to deliver strong operational performance across our business units."

    8:04 am PACCAR beats by $0.04, reports revs in-line (PCAR) :

    • Reports Q2 (Jun) earnings of $1.06 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus of $1.02; revenues fell 14.0% year/year to $4.12 bln vs the $4.12 bln Capital IQ Consensus.
    • On July 19, 2016 the EC concluded its investigation by reaching a settlement with DAF. Including the favorable adjustment to the EC charge, which is not taxable, PACCAR reported net income of $481.3 million ($1.37 per diluted share) in the second quarter of 2016. The company earned net income of $447.2 million ($1.26 per diluted share) in the second quarter last year.

    Global Truck Markets:

    • Industry sales in the above 16-tonne truck market in Europe are estimated to be in the range of 280,000-300,000 vehicles this year, which is the strongest market since 2008.
    • "The European above 16-tonne truck market continues to strengthen due to positive economic growth and increased freight activity," said Preston Feight, DAF president and PACCAR vice president. "DAF achieved market share of 16.0 percent in the first half of 2016. DAF's above 16-tonne truck registrations increased 28% year-to-date compared to the same period last year." Feight added, "We are very proud that the DAF XF has been honored by Motor Transport magazine as the 2016 U.K. Fleet Truck of the Year."
    • Class 8 truck industry retail sales for the U.S. and Canada in 2016 are expected to be in a range of 220,000-240,000 vehicles. Peterbilt and Kenworth are benefiting from the third best U.S. and Canada Class 8 truck market in the last ten years, and have achieved 27% market share year-to-date this year.
    • "The truck market reflects the good economy and high freight tonnage levels," said Gary Moore, PACCAR executive vice president. "Our customers are benefiting from the excellent operating efficiency of Peterbilt and Kenworth trucks."

    8:04 am Cynosure beats by $0.07, beats on revs (CYNO) :

    • Reports Q2 (Jun) earnings of $0.36 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus of $0.29; revenues rose 31.8% year/year to $110.3 mln vs the $101.31 mln Capital IQ Consensus. 
    • Gross margin for the second quarter of 2016 was $65.1 million, or 59.0 percent of revenue, compared with $47.4 million, or 56.6 percent of revenue, for the same period in 2015.
    • Outlook: "Looking ahead, we expect to successfully execute our growth strategy through targeted marketing, clinical and regulatory initiatives...We begin the second half of 2016 with strong momentum, and we are well positioned to continue to deliver value for all of our stakeholders."

    8:04 am McDonald's beats by $0.06, reports revs in-line (MCD) :

    • Reports Q2 (Jun) earnings of $1.45 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus of $1.39; revenues fell 3.6% year/year to $6.26 bln vs the $6.27 bln Capital IQ Consensus. 
    • Global comparable sales increased 3.1% vs. ests near +3.4%, reflecting positive comparable sales in all segments. In the U.S., second quarter comparable sales increased 1.8%, with continued contributions from All Day Breakfast and McPick 2 despite softening industry growth during the quarter. Operating income for the quarter rose 10%, reflecting higher sales-driven franchised margins and higher gains from restaurant refranchising. McDonald's U.S. begins the second half of the year focused on adding more breakfast sandwich favorites - Biscuits, McMuffins and McGriddles - to the All Day Breakfast menu this fall.
    • Comparable sales for the International Lead segment increased 2.6% for the quarter, led by positive performance in the U.K., Canada and Australia, and slightly positive results in Germany. Operating income for the quarter increased 4% (7% in constant currencies), driven by improved franchised margins.
    • In the High Growth segment, second quarter comparable sales increased 1.6%, led by positive comparable sales performance in China and Russia, along with solid performance across various other markets. The segment's operating income rose 25% (32% in constant currencies) fueled by improved results in China.
    • Comparable sales rose 7.7% in the Foundational markets, reflecting very strong performance in Japan and many other markets. For the segment, operating income for the quarter declined due to the impact of strategic charges associated with the Company's ongoing refranchising and G&A initiatives.

    8:03 am A10 Networks acquires Appcito; terms not disclosed (ATEN) : Appcito is a provider of a versatile SaaS-based, multi-cloud ADC solution utilizing microservice and container architectures.

    8:03 am USG misses by $0.01, reports revs in-line (USG) :

    • Reports Q2 (Jun) earnings of $0.46 per share, $0.01 worse than the Capital IQ Consensus of $0.47; revenues rose 3.3% year/year to $1 bln vs the $1.01 bln Capital IQ Consensus.
    • Ceilings segment: Improved price and volume with strong cost control drove second quarter margins to a new quarterly record of 23.8% in the US Ceilings business.  
    • Distribution segment: Operating margins improved 140 basis points to 3.9% in the second quarter of 2016, with same store sales and wallboard volumes both increasing 8%.

    8:03 am Adaptimmune Therapeutics announces that the EC has designated its NY-ESO SPEAR T-cell therapy as an orphan medicinal product for the treatment of soft tissue sarcoma (ADAP) :  

    8:03 am Fate Therapeutics announces issuance of U.S. Patent covering preparations of human induced pluripotent cells (FATE) :

    • Patent covers renewable pluripotent cell source for Development of off-the-shelf NK- and T-Cell immunotherapies
    • The compositions protected by the patent cover induced pluripotent cells that do not contain a polynucleotide encoding c-MYC. The MYC family of transcription factors are proto-oncogenes implicated in tumor growth. The expression of c-MYC was previously considered to be indispensable for the generation of human induced pluripotent cells.

    8:01 am Tonix Pharma announces the first patient has been randomized in RE-AFFIRM, the second Phase 3 clinical study of TNX-102 SL, 2.8 mg, in fibromyalgia (TNXP) :

    RE-AFFIRM is a randomized, double-blind, placebo-controlled study similar in design to the ongoing AFFIRM Phase 3 clinical trial of TNX-102 SL in fibromyalgia.

    • First pivotal Phase 3 study of TNX-102 SL to report topline this quarter

    8:00 am Torchlight Energy Resources regains compliance w/ the Nasdaq (TRCH) : The Co has regained compliance with the $1.00 minimum closing bid price listing requirement. 

    7:57 am On The Wires (:WIRES) :

    • Actions Semiconductor (ACTS) announces that its wholly-owned subsidiary Actions Technology (Zhuhai) has released two high performance chipsets based on 28 nm process technology, the S900VR and the V700, targeting the fast growing virtual reality market. 
    • Scientific Games Corporation (SGMS) announces that Chukchansi Gold Resort & Casino in Coursegold, Calif. awarded Scientific Games a contract to provide its Promotional Kiosk solution as well as its mobile business-to-business SG Universe solution to drive player engagement at the casino resort located between Fresno and the southern entrance to Yosemite National Park.  Financial terms of the contract were not disclosed.  
    • Jacobs Engineering Group (JEC) announces the expansion of its Field Services business, including additional presence on the Gulf Coast and a further commitment to workforce training and development.  Under the terms of the contract, Jacobs is providing preventive, predictive and repair maintenance, as well as planning and scheduling of all maintenance activities; packaging, shipping and warehouse operational support; and maintenance and engineering support.  

    7:56 am Cynosure receives approval from the Korean Ministry of Food and Drug Safety to market SculpSure for non-invasive lipolysis of the abdomen and flanks (CYNO) : The product will be marketed through the Company's direct sales force in Korea beginning in the third quarter of 2016.

    7:52 am Overnight Treasury Summary (BONDX) :

    Cautious Sentiment Boosts Treasuries

    • U.S. Treasuries inched higher during overnight action, responding to a modest wave of risk-off posturing in the wake of comments from Japan Finance Minister Taro Aso, who said the Bank of Japan has yet to decide on the size and scope of potential easing. The news sent the dollar/yen pair to 104.00.
    • Overnight economic news featured a few data points from Asia, including, Japan's Corporate Services Price Index (+0.2% year-over-year; consensus 0.1%; last 0.2%), Hong Kong's trade deficit HKD45.60 billion (last deficit of HKD26.20 billion), and South Korea's Q2 GDP (+0.7% quarter-over-quarter, as expected; last 0.5%)
    • The S&P 500 futures trade within a couple points of fair value while the Dollar Index (-0.2%) shows a slim loss. Crude oil has retreated 1.1% to $42.63/bbl while gold futures are little changed at $1326.80/ozt.
    • Yield Check:
      • 2-yr: -2 bps to 0.75%
      • 5-yr: -2 bps to 1.13%
      • 10-yr: -3 bps to 1.55%
      • 30-yr: -3 bps to 2.26%
    • 2-yr: -2 bps to 0.75%
    • 5-yr: -2 bps to 1.13%
    • 10-yr: -3 bps to 1.55%
    • 30-yr: -3 bps to 2.26%
    • Economic Data on Tap:
      • May Case-Shiller 20-city Index (Briefing.com consensus 5.4%) at 9:00 ET
      • July Consumer Confidence (Briefing.com consensus 96.0) at 10:00 ET
      • New Home Sales (Briefing.com consensus 560K) at 10:00 ET
    • May Case-Shiller 20-city Index (Briefing.com consensus 5.4%) at 9:00 ET
    • July Consumer Confidence (Briefing.com consensus 96.0) at 10:00 ET
    • New Home Sales (Briefing.com consensus 560K) at 10:00 ET
    • The U.S. Treasury will auction $34 billion, 5-yr notes at 13:00 ET

    7:50 am Asahi Group amended FY16 forecasts; sees net income of JPY 28.5 bln versus JPY 19.8 bln; sees net sales of JPY 863.7 mln versus prior guidance of JPY 860.0 bln (ASBRF) :

    • "With regard to the interim consolidated financial results of the Company, the operating income is expected to exceed the previous forecast, because Alcohol Beverages, Soft Drinks and Food segments enjoyed increases in sales and made progress in cost reduction, and Overseas segment including Oceania region outperformed its forecasts as well."
    • Potential Related Stocks: BUD, SBMRY

    7:47 am Commvault Systems beats by $0.04, beats on revs, guides on the call at 8:30 am ET (CVLT) :

    • Reports Q1 (Jun) earnings of $0.21 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus of $0.17; revenues rose 9.6% year/year to $152.41 mln vs the $149.15 mln Capital IQ Consensus.
      • Software revenue was $63.9 mln, an increase of 13% year-over-year, and up 15% on a year-over-year constant currency basis.
      • Services revenue in the quarter was $88.5 mln, an increase of 7% year-over-year, and 8% on a year-over-year constant currency basis.
    • Software revenue was $63.9 mln, an increase of 13% year-over-year, and up 15% on a year-over-year constant currency basis.
    • Services revenue in the quarter was $88.5 mln, an increase of 7% year-over-year, and 8% on a year-over-year constant currency basis.
    • Operating cash flow totaled $24.0 million for the first quarter of fiscal 2017.
    • Total cash and short-term investments were $410.2 million as of June 30, 2016 compared to $387.2 million as of Mar 31, 2016.
    • The co will release guidance on the earnings call at 8:30 am ET today

    7:44 am Liberty Prop beats by $0.04, misses on revs; guides FY16 FFO in-line (LPT) :

    • Reports Q2 (Jun) funds from operations of $0.68 per share, $0.04 better than the Capital IQ Consensus of $0.64; revenues fell 8.3% year/year to $186.7 mln vs the $189.45 mln Capital IQ Consensus.
    • Co issues lowered guidance for FY16, sees FFO of $2.30-2.40 from $2.35-2.55 vs. $2.48 Capital IQ Consensus Estimate.
    • Same Store Performance: Property level operating income for same store properties increased by 2.6% on a cash basis and by 2.2% on a straight line basis for the second quarter of 2016 compared to the same quarter in 2015. For the six months ended June 30, 2016, property level operating income for same store properties increased by 3.0% on a cash basis and by 2.2% on a straight line basis, compared to the same period in 2015.

    7:43 am Sonic Automotive reports EPS in-line, misses on revs; guides Q3 EPS below consensus; guides Q4 (Dec) EPS in-line (SAH) :

    • Reports Q2 (Jun) earnings of $0.50 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.50; revenues fell 1.7% year/year to $2.38 bln vs the $2.46 bln Capital IQ Consensus. Q2 same store fixed operations revenues up 3.0% over prior year quarter; same store finance and insurance revenues and gross profit up 2.9% over prior year quarter
    • Co issues downside guidance for Q3, sees EPS of $0.52-0.54 vs. $0.59 Capital IQ Consensus Estimate.
    • Co issues in-line guidance for Q4 (Dec), sees EPS of $0.66-0.69 vs. $0.67 Capital IQ Consensus Estimate.

    7:43 am Ally Financial beats by $0.03 (ALLY) :

    • Reports Q2 (Jun) earnings of $0.54 per share, $0.03 better than the Capital IQ Consensus of $0.51.
      • Core ROTCE 9.7% compared to 8.3% in prior year.
      • Efficiency Ratio 43.7% compared to 45.6% in prior year. 
      • NIM 2.68%, up 13 bps y/y
      • NCOs decline to 0.54% from 0.64% in Q1
      • Provision expense $172 mln compared to $220 mln in Q1
      • U.S. Retail Auto Delinquencies rises to 2.60% from 2.20% in Q1
    • Core ROTCE 9.7% compared to 8.3% in prior year.
    • Efficiency Ratio 43.7% compared to 45.6% in prior year. 
    • NIM 2.68%, up 13 bps y/y
    • NCOs decline to 0.54% from 0.64% in Q1
    • Provision expense $172 mln compared to $220 mln in Q1
    • U.S. Retail Auto Delinquencies rises to 2.60% from 2.20% in Q1
    • Capital Return Plan
      • $0.08 dividend in Q3
      • Share repurchase program of $700 mln (3Q16 thru 2Q17)
    • $0.08 dividend in Q3
    • Share repurchase program of $700 mln (3Q16 thru 2Q17)
    • Q2 Earnings Presentation

    7:41 am JetBlue Airways beats by $0.04, reports revs in-line; co also will expand its Mint experience by bringing 30 additional A321 aircraft into its fleet; co also announces west coast expansion (JBLU) :

    • Reports Q2 (Jun) earnings of $0.53 per share, $0.04 better than the Capital IQ Consensus of $0.49; revenues rose 1.9% year/year to $1.64 bln vs the $1.64 bln Capital IQ Consensus.
    • Revenue passenger miles for Q2 increased 10.3% to 11.6 bln on a capacity increase of 11.1%, resulting in a load factor of 85.0%, a 0.6 point decrease YoY. Yield per passenger mile was 12.87 cents, down 9.9% YoY.
    • Passenger revenue per available seat mile (:PRASM) for Q2 decreased 10.5% YoY to 10.94 cents and operating revenue per available seat mile (:RASM) decreased 8.2% to 12.09 cents.
    • Operating expense per available seat mile (CASM) for Q2 decreased 9.9% YoY to 9.78 cents. Excluding fuel and profit sharing, CASM decreased 1.0% to 7.48 cents.
    • Mint expansion: JetBlue announces today it intends to further expand its highly successful Mint experience by amending its purchase agreement with Airbus to bring 30 additional A321 aircraft into its fleet over seven years. The additional aircraft will allow JetBlue to capture an opportunity to position itself as the carrier of choice in transcontinental markets with a targeted approach that leverages its east coast strength. Airbus is scheduled to deliver 15 incremental A321ceos starting in 2017.
    • West Coast Expansion: As west coast travelers face reduced options and less competition, JetBlue is quickly moving to organically strengthen its presence on a national scale with a leading transcontinental franchise between the west and east coasts. JetBlue's targeted approach will give the airline increased frequencies in high-value west coast markets, including the Bay Area and Los Angeles, while leveraging the strength of its east coast point of sale. In addition to JetBlue's intention to expand Mint to grow its west coast presence, JetBlue is strengthening its Long Beach (:LGB) focus city with new all-core service.
    • Outlook: For Q3, CASM excluding fuel and profit sharing is expected to grow between 1% and 3%. For 2016, JetBlue continues to expect CASM excluding fuel and profit sharing to grow between zero and 1.5%. In Q3, capacity is expected to increase between 5.5% and 7.5%. For the full year 2016, JetBlue continues to expect capacity to increase between 8.0% and 9.5%.

    7:40 am Caterpillar beats by $0.13, beats on revs; co sees FY16 forecast closer to bottom end of prior guidance (CAT) :

    • Reports Q2 (Jun) earnings of $1.09 per share, excluding non-recurring items, $0.13 better than the Capital IQ Consensus of $0.96; revenues fell 16.0% year/year to $10.34 bln vs the $10.13 bln Capital IQ Consensus. 
      • The decrease was primarily due to lower sales volume resulting from continued weak commodity prices globally and economic weakness in developing countries. While sales for both new equipment and aftermarket parts declined in all segments, most of the decrease was for new equipment. Unfavorable price realization also contributed to the decline
      • Sales declined in all regions
      • Sales declined in all regions
      • Mining, oil and gas, and rail industries remain challenged
      • However, co does has strong balance sheet -- Maintained $0.77 per share dividend (announced June 8, 2016)
    • The decrease was primarily due to lower sales volume resulting from continued weak commodity prices globally and economic weakness in developing countries. While sales for both new equipment and aftermarket parts declined in all segments, most of the decrease was for new equipment. Unfavorable price realization also contributed to the decline
    • Sales declined in all regions
    • Sales declined in all regions
    • Mining, oil and gas, and rail industries remain challenged
    • However, co does has strong balance sheet -- Maintained $0.77 per share dividend (announced June 8, 2016)
    • Co sees FY16 forecast closer to bottom end of prior guidance; sees EPS at $3.70, excluding non-recurring items, vs. $3.53 Capital IQ Consensus Estimate; sees FY16 revs of $40-42 bln vs. $40.29 bln Capital IQ Consensus Estimate
    • More specifically, co said, "The outlook for 2016 that we provided with our first-quarter financial results in April expected sales and revenues in a range of $40 to $42 billion. At the midpoint of that range, profit was expected to be $3.00 per share, or $3.70 per share excluding restructuring costs. Over the past quarter, economic risks have persisted and, as a result, our current expectations for 2016 sales and revenues are closer to the bottom end of that outlook range."
    • Co also said, "World economic growth remains subdued and is not sufficient to drive improvement in most of the industries and markets we serve. Commodity prices appear to have stabilized, but at low levels. Global uncertainty continues, and the recent Brexit outcome and the turmoil in Turkey add to risks, especially in Europe."

    7:40 am Allegheny Tech beats by $0.16, beats on revs (ATI) :

    • Reports Q2 (Jun) loss of $0.21 per share, excluding after-tax charges related to work stoppage in the flat rolled segment & an above-normal tax rate benefit, $0.16 better than the Capital IQ Consensus of ($0.37); revenues fell 20.7% year/year to $810.5 mln vs the $795.7 mln Capital IQ Consensus.
      • Compared to the first quarter 2016, sales increased 1% in the High Performance Materials & Components segment. Flat Rolled Products segment sales increased 18% compared to the first quarter 2016, due primarily to 54% higher shipments of standard stainless steel sheet products following low first quarter operating levels related to the work stoppage and return to work sequencing.
    • Compared to the first quarter 2016, sales increased 1% in the High Performance Materials & Components segment. Flat Rolled Products segment sales increased 18% compared to the first quarter 2016, due primarily to 54% higher shipments of standard stainless steel sheet products following low first quarter operating levels related to the work stoppage and return to work sequencing.
    • Outlook:
      • "In our FRP segment, our second quarter results demonstrate that we are making progress in our journey toward a consistently profitable business, during a period of continuing low raw material prices, global stainless steel sheet and strip overcapacity, and uncertain end market demand. While FRP operational performance is improving, more work remains as we continue our rightsizing and restructuring activities to streamline and simplify this business. While we expect a further reduction in operating losses in the third quarter, compared to the second quarter, third quarter results for FRP are expected to be impacted by higher maintenance expenses, including planned equipment upgrades in our finishing operations. As we continue to reposition this business to a higher-value and more differentiated product mix, we expect shipments of our specialty coil and plate products to increase in the second half of 2016 and benefit from the HRPF capabilities, particularly for our 48"-wide nickel-based alloy sheet. As a result of these initiatives we continue to believe that the FRP segment will be modestly profitable in the fourth quarter 2016."
    • "In our FRP segment, our second quarter results demonstrate that we are making progress in our journey toward a consistently profitable business, during a period of continuing low raw material prices, global stainless steel sheet and strip overcapacity, and uncertain end market demand. While FRP operational performance is improving, more work remains as we continue our rightsizing and restructuring activities to streamline and simplify this business. While we expect a further reduction in operating losses in the third quarter, compared to the second quarter, third quarter results for FRP are expected to be impacted by higher maintenance expenses, including planned equipment upgrades in our finishing operations. As we continue to reposition this business to a higher-value and more differentiated product mix, we expect shipments of our specialty coil and plate products to increase in the second half of 2016 and benefit from the HRPF capabilities, particularly for our 48"-wide nickel-based alloy sheet. As a result of these initiatives we continue to believe that the FRP segment will be modestly profitable in the fourth quarter 2016."

    7:39 am MiMedx Group misses by $0.02, beats on revs; guides Q3 revs in-line; slashes FY16 EPS guidance, narrows FY16 revs outlook (MDXG) :

    • Reports Q2 (Jun) earnings of $0.05 per share, $0.02 worse than the Capital IQ Consensus of $0.07; revenues rose 25.5% year/year to $57.34 mln (in-line with 7/11 pre-announcement) vs the $56.2 mln Capital IQ Consensus.
    • The Company's Adjusted Gross Margin for the second quarter of 2016 was 88.1%, compared to 88.9% in the second quarter of 2015.
    • Co issues in-line guidance for Q3, sees Q3 revs of $62-64 mln vs. $62.88 mln Capital IQ Consensus Estimate.
    • Co adjusts guidance for FY16, sees EPS of $0.21-0.23 (Prior $0.30-0.32) vs. $0.30 Capital IQ Consensus Estimate; sees FY16 revs of $243.50-248 mln (Prior $242.50-250 mln) vs. $243.64 mln Capital IQ Consensus Estimate.
    • "Although we have high expectations for the impact of our new product launches, we have chosen to be very conservative and just narrow the range of our estimates for the year at this time. However, I believe our third quarter revenue growth projections should be a solid indication of how the remainder of the year and the fourth quarter should evolve"

    7:37 am Hubbell beats by $0.10, beats on revs; reaffirms FY16 EPS guidance (HUBB) :

    • Reports Q2 (Jun) earnings of $1.53 per share, excluding non-recurring items, $0.10 better than the Capital IQ Consensus of $1.43; revenues rose 4.0% year/year to $908.8 mln vs the $898.99 mln Capital IQ Consensus. (+1% organic, +4% acquisitions, -1% FX)
    • Co reaffirms guidance for FY16, sees EPS of $5.20-5.40 vs. $5.35 Capital IQ Consensus Estimate.
      • "We continue to expect flat end markets in the aggregate for the second half of 2016, consistent with our annual expectations, and we target to outperform our end markets"
      • "Similar to the first quarter, organic growth offset foreign exchange headwind while acquisitions fueled higher sales," said David G. Nord, Chairman, President and Chief Executive Officer. "End market performance continued to be mixed, with expansion in non-residential and residential markets, declines in oil and core industrial, and flat utility markets. While overall demand was in line with our annual expectations, it was uneven within the months of the quarter."
    • "We continue to expect flat end markets in the aggregate for the second half of 2016, consistent with our annual expectations, and we target to outperform our end markets"
    • "Similar to the first quarter, organic growth offset foreign exchange headwind while acquisitions fueled higher sales," said David G. Nord, Chairman, President and Chief Executive Officer. "End market performance continued to be mixed, with expansion in non-residential and residential markets, declines in oil and core industrial, and flat utility markets. While overall demand was in line with our annual expectations, it was uneven within the months of the quarter."

    7:36 am T. Rowe Price beats by $0.40, beats on revs (TROW) :

    • Reports Q2 (Jun) earnings of $1.15 per share, $0.40 better than the Capital IQ Consensus of $0.75; revenues fell 2.6% year/year to $1.04 bln vs the $1.03 bln Capital IQ Consensus. 
    • This nonrecurring charge (excluded from above) reduced net income in the second quarter of 2016 by $100.7 million, or $.39 in diluted earnings per common share.
    • Assets under management increased $12.0 billion in the second quarter of 2016 and $13.5 billion in the first half of 2016 to $776.6 billion at June 30, 2016.

    7:34 am FirstMerit Corp beats by $0.03 (FMER) :

    • Reports Q2 (Jun) earnings of $0.36 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus of $0.33.
    • Total loan growth of $118.2 million, or 0.73% from the prior quarter
    • Net charge-offs to average originated loans of 0.13%
    • Common equity ratio (GAAP) 11.27% and tangible common equity ratio (non-GAAP) at 8.48%

    7:34 am 3M beats by $0.01, reports revs in-line; guides FY16 EPS in-line, lowers revenue outlook (MMM) :

    • Reports Q2 (Jun) earnings of $2.08 per share, $0.01 better than the Capital IQ Consensus of $2.07; revenues fell 0.3% year/year to $7.66 bln vs the $7.71 bln Capital IQ Consensus.
    • Co issues in-line guidance for FY16, sees EPS of $8.15-8.30 (Prior $8.10-8.45), excluding non-recurring items, vs. $8.25 Capital IQ Consensus Estimate. To reflect the current economic environment and outlook, the company also updated its organic local-currency sales growth guidance to be in the range of 0 to 1 percent, versus a previous range of 1 to 3 percent.
      • 3M forecasts foreign currency translation to reduce 2016 sales by 1 to 2 percent, versus a previous expected reduction of 1 to 3 percent.
      • The company also estimates its full-year tax rate will be in the range of 29.0 to 29.5 percent, versus a prior range of 29.5 to 30.5 percent.
    • 3M forecasts foreign currency translation to reduce 2016 sales by 1 to 2 percent, versus a previous expected reduction of 1 to 3 percent.
    • The company also estimates its full-year tax rate will be in the range of 29.0 to 29.5 percent, versus a prior range of 29.5 to 30.5 percent.

    7:33 am Alimera Sciences offers upside Q2 prelim revenue results, announces certain modifications to its loan facility (ALIM) :

    • The co said it sees Q2 revs $9.3-9.5 mln vs $7.16 mln two analyst estimate
    • The Company also announced that it has modified the liquidity and revenue covenants in its existing loan agreement with Hercules Capital, Inc. (HTGC). The modification allows for the reduction of Alimera's liquidity threshold and reduces its trailing three-month revenue requirement through the period ending August 31, 2016.
    • The co will release its financial results for the period ending June 30, 2016, after the market closes on August 3, 2016.

    7:33 am City Holding Co beats by $0.04 (CHCO) :

    • Reports Q2 (Jun) earnings of $0.83 per share, $0.04 better than the Capital IQ Consensus of $0.79. 
    • Return on assets and return on tangible equity of 1.31% and 14.5%, respectively.
    • Total net loan growth of $26.3 mln from March 31, 2016 to June 30, 2016.
    • Average total deposit balances grew $95.9 mln from the quarter ended March 31, 2016 to the quarter ended June 30, 2016.
    • Asset quality continues to remain strong with nonperforming assets declining to $21.3 mln, or 0.73% of total loans and other real estate owned. Past due loans remained steady at just 0.30% of total loans outstanding. 

    7:31 am Reynolds American misses by $0.03, misses on revs; guides FY16 EPS in-line; announces $2 bln buyback; increases dividend payout target to 80% of adjusted net income (RAI) :

    • Reports Q2 (Jun) earnings of $0.58 per share, $0.03 worse than the Capital IQ Consensus of $0.61; revenues rose 33.0% year/year to $3.19 bln vs the $3.26 bln Capital IQ Consensus.
    • Co issues in-line guidance for FY16, sees EPS of $2.26-2.34 vs. $2.34 Capital IQ Consensus Estimate.
    • RAI's board also approved a new $2.0 billion share repurchase program that is intended to be completed by year-end 2018. This is the first share repurchase program authorized by RAI's board since the announcement of the Lorillard acquisition in July 2014.
      RAI announced today that its board has approved an increase in its dividend payout target to 80 percent of adjusted net income, and has authorized a new share repurchase program.

    7:31 am Clearside Biomedical reports additional top-line data from its Phase 2 clinical trial (:TANZANITE); expects to have an end-of-Phase 2 meeting with the FDA in the second half of 2016 (CLSD) :

    78% or 18 out of 23 patients in the active arm of the TANZANITE trial did not require additional treatments during the three-month trial compared to 30% (7/23) in the control arm (p=0.003).

    • Co expects to have an end-of-Phase 2 meeting with the FDA in the second half of 2016, and, if feedback from the FDA at that meeting is positive, co intends to commence a Phase 3 clinical program for the treatment of macular edema associated with RVO in the first half of 2017.

    7:25 am First Bancorp reports Q2 earnings in-line (FBP) :

    Reports Q2 (Jun) earnings of $0.10 per share, in-line with Capital IQ Consensus of $0.10.

    • The financial results for the first quarter of 2016 included other-than-temporary impairment losses on debt securities of $6.7 mln and a gain of $4.2 mln on repurchase and cancellation of $10 mln in trust preferred securities
    • On a non-GAAP basis, excluding the effect of OTTI losses and the gain on the repurchase and cancellation of trust preferred securities in the first quarter of 2016, the net income of $22.0 mln for the second quarter of 2016 decreased $3.8 mln compared to adjusted net income of $25.8 mln for the first quarter of 2016

    Credit quality variances:

    • Non-performing assets increased in the quarter by $19.0 mln, to $756.2 mln as of June 30, 2016, primarily attributable to the inflow to non-performing status of a $35.0 mln commercial relationship, partially offset by reductions in non-performing residential mortgage loans and other real estate owned balances
    • Early stage loan delinquencies decreased for the second consecutive quarter, down 13% from the first quarter
    • Net charge-off rate of 1.11% remained stable compared to 1.05% for the first quarter of 2016

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

    • LMI Aerospace (LMIA) COO Joe DeMartino has resigned his post effective immediately for personal reasons. LMI Chief Executive Officer Dan Korte will oversee DeMartino's duties while the company evaluates options for a new leader of its Aerostructures business segment.
    • Novocure (NVCR) announced today that the National Comprehensive Cancer Network has recommended Optune as a standard treatment option for newly diagnosed glioblastoma in its Clinical Practice Guidelines in Oncology for Central Nervous System Cancers.

    7:22 am Mueller Industries reports Q2 EPS of $0.49 versus $0.59 last year; revs -2% YoY to $544.1 mln (no ests) (MLI) :

    • "In the U.S., construction activity continues at a steady pace in both the residential and non-residential sectors. Orders for our construction related products in North America are solid and we look forward to moving beyond production constraints related to our ongoing piping products plant modernization programs."

    7:21 am European Markets Update: FTSE +0.3%, DAX +0.3%, CAC UNCH (:SUMRX) :

    Major European indices are mixed with Italy's MIB (-0.5%) struggling to keep pace with other markets. The overall investor sentiment was dampened after comments from Japanese officials downplayed the immediate need for stimulus. Financials have shown relative weakness in Europe while other stocks have had a better showing.

    • Economic data was limited:
      • UK's BBA Mortgage Approvals 40,100 (expected 40,200; last 41,800)
      • Spain's PPI -4.7% year-over-year (last -5.6%)
    • UK's BBA Mortgage Approvals 40,100 (expected 40,200; last 41,800)
    • Spain's PPI -4.7% year-over-year (last -5.6%)

    ---Equity Markets---

    • UK's FTSE is higher by 0.3% with select miners among the leaders. Fresnillo, Randgold Resources, Rio Tinto, and BHP Billiton are up between 1.5% and 4.7%. On the downside, consumer names Tesco and Sainsbury are down 3.9% and 2.2%, respectively, while homebuilders Barratt Developments and Taylor Wimpey hold respective losses of 2.0% and 1.7%.
    • Germany's DAX has added 0.3% with Volkswagen, Daimler, and BMW up between 0.9% and 2.2%. Financials have faced some selling pressure with Deutsche Bank falling 3.0% and Commerzbank sliding 5.0%.
    • France's CAC trades flat. Exporters Valeo, Michelin, Peugeot, and Renault show gains between 1.1% and 2.6% while financials lag. Societe Generale, AXA, BNP Paribas, and Credit Agricole show losses between 0.5% and 1.2%.
    • Italy's MIB has given up 0.5% with Mediaset falling 9.8%. Financials like Unicredit, Mediobanca, Banca Pop Emilia Romagna, UBI Banca, and Banco Popolare are down between 1.3% and 3.1%.

    7:19 am Alliance Resource beats by $0.27, reports revs in-line (ARLP) :

    • Reports Q2 (Jun) earnings of $0.82 per basic and diluted share, $0.27 better than the Capital IQ Consensus of $0.55; revenues fell 27.4% year/year to $439.2 mln vs the $440.83 mln Capital IQ Consensus.
    • FY16 Production Guidance:
      • Based on results to date and expectations for the balance of 2016, ARLP is adjusting its 2016 full-year estimates for coal production to a range of 33.5 to 34.5 mln tons and coal sales volumes to a range of 35.0 to 36.0 mln tons. ARLP currently anticipates its 2016 average coal sales price per ton will be 2.5% to 4.5% lower at the midpoint compared to 2015 realizations, a slight improvement over initial 2016 guidance. Reflecting current sales volume and pricing estimates, ARLP now anticipates 2016 revenues, excluding transportation revenues, in a range of $1.82 to $1.91 bln.
    • Based on results to date and expectations for the balance of 2016, ARLP is adjusting its 2016 full-year estimates for coal production to a range of 33.5 to 34.5 mln tons and coal sales volumes to a range of 35.0 to 36.0 mln tons. ARLP currently anticipates its 2016 average coal sales price per ton will be 2.5% to 4.5% lower at the midpoint compared to 2015 realizations, a slight improvement over initial 2016 guidance. Reflecting current sales volume and pricing estimates, ARLP now anticipates 2016 revenues, excluding transportation revenues, in a range of $1.82 to $1.91 bln.
    • FY16 Capex Guidance:
      • Capital expenditures of $16.9 mln during the 2016 Quarter continued to be below expectations. Co is reducing anticipated 2016 total capex to a range of $100.0 to $110.0 mln. In addition to these capital expenditures, ARLP currently anticipates its current commitment to acquire oil and gas mineral interests will be completed by the end of the year and, as a result, is increasing 2016 estimated investments for this activity to a range of $80.0 to $85.0 mln.
    • Capital expenditures of $16.9 mln during the 2016 Quarter continued to be below expectations. Co is reducing anticipated 2016 total capex to a range of $100.0 to $110.0 mln. In addition to these capital expenditures, ARLP currently anticipates its current commitment to acquire oil and gas mineral interests will be completed by the end of the year and, as a result, is increasing 2016 estimated investments for this activity to a range of $80.0 to $85.0 mln.

    7:18 am Dorman Products beats by $0.02, misses on revs; co also announces investment in Powertrain Industries, Inc (DORM) :

    Reports Q2 (Jun) earnings of $0.75 per share, $0.02 better than the Capital IQ Consensus of $0.73; revenues rose 5.5% year/year to $209.6 mln vs the $214.1 mln Capital IQ Consensus.

    • "Second quarter net sales were up 5% despite several headwinds, including lower purchases from one of our larger customers due to its first quarter inventory build and the consolidation of another large customer. The team executed well on many fronts which allowed us to deliver solid double digit earnings growth. We remain optimistic about the long term organic growth prospects for our business, and for the year we expect mid-to-high single-digit revenue growth and reported net income growth to be in the high single-digit to low double-digit range," said Matt Barton, President and Chief Executive Officer.

    The company also announced that it has acquired a 40% interest in Powertrain Industries ("PTI"), a leading manufacturer of driveshafts and driveline related products, for ~$6 mln in July 2016.

    • PTI is headquartered in Garden Grove, CA with four driveshaft manufacturing facilities located regionally throughout the U.S., and gives Dorman a unique opportunity to service the growing need for complete driveshafts, and quality aftermarket components. A minimal 2016 impact on net income is expected as a result of the investment.
    • Co said, "We've seen rapid technological change in driveline systems, and believe that this partnership provides an immediate opportunity to emerge as a leader in driveline repair parts."

    7:18 am Baxter beats by $0.06, beats on revs; guides Q3 EPS above consensus; raises FY16 EPS above consensus (BAX) :

    • Reports Q2 (Jun) earnings of $0.46 per share, $0.06 better than the Capital IQ Consensus of $0.40; revenues rose 4.4% year/year to $2.59 bln vs the $2.52 bln Capital IQ Consensus.
    • Co issues upside guidance for Q3, sees EPS of $0.43-0.45, excluding non-recurring items, vs. $0.42 Capital IQ Consensus Estimate. For the third quarter, the company expects reported sales growth of 2 percent to 3 percent and on a constant currency basis, sales growth of 3 percent to 4 percent.
    • Co issues upside guidance for FY16, sees EPS of $1.69-1.74 (Prior $1.59-1.67), excluding non-recurring items, vs. $1.64 Capital IQ Consensus Estimate. For full-year 2016, Baxter now expects reported sales growth of 1 percent to 2 percent and on a constant currency basis, sales growth of 3 percent to 4 percent.

    7:18 am Masco beats by $0.03, reports revs in-line; raises annual dividend to $0.40 from $0.38 (MAS) :

    • Reports Q2 (Jun) earnings of $0.46 per share, $0.03 better than the Capital IQ Consensus of $0.43; revenues rose 3.7% year/year to $2 bln vs the $2 bln Capital IQ Consensus. 
    • Gross margins improved to 35.2% compared to 33.0%.
    • Plumbing Products' net sales increased 9 percent (10 percent excluding the impact of foreign currency translation), driven by growth in the retail and wholesale channels
    • Decorative Architectural Products' net sales matched last year, with growth from paints and other coating products and builders' hardware offset by the timing and amount of promotions
    • Cabinetry Products' net sales decreased 3 percent due to the exit of lower margin business in the builder channel, which was partially offset by growth and improved mix in the retail channel
    • Windows and Other Specialty Products' net sales increased 3 percent (4 percent excluding the impact of foreign currency translation), led by our North American windows business
    • "The fundamental demand drivers of our end markets remain robust," said Allman. "Combined with these underlying fundamentals, our strong performance this quarter is evidence that we continue to successfully execute against our long-term growth strategies by leveraging our brand portfolio, our industry-leading positions and our Masco Operating System. Reflecting confidence in Masco's future outlook, our Board of Directors intends to increase our annual dividend by $0.02 per share to $0.40 per share, beginning with the quarterly dividend to be paid in the fourth quarter of 2016."

    7:16 am AstraZeneca files Clinical Trial Application with the Paul Ehrlich Institute and the German Federal Ministry of Health to initiate a Phase 1 clinical trial of AZD8601 (AZN) :

    AstraZeneca and Moderna Therapeutics today announced that AstraZeneca has filed a Clinical Trial Application with the Paul Ehrlich Institute and the German Federal Ministry of Health to initiate a Phase 1 clinical trial of AZD8601. The program is part of a collaboration between AstraZeneca and Moderna to discover, develop and commercialize messenger RNA Therapeutics to treat serious cardiovascular, metabolic and renal diseases as well as cancer. It marks the first program resulting from the collaboration to progress towards clinical trials.

    • AZD8601 is an investigational mRNA-based therapy that encodes for vascular endothelial growth factor-A

    7:12 am Fidelity Nat'l Info beats by $0.03, beats on revs; raises FY16 guidance (FIS) :

    • Reports Q2 (Jun) earnings of $0.90 per share, $0.03 better than the Capital IQ Consensus of $0.87; revenues rose 49.0% year/year to $2.36 bln vs the $2.33 bln Capital IQ Consensus.
    • Co raises guidance for FY16, sees EPS of $3.75-3.85 (Prior $3.70-3.80) vs. $3.79 Capital IQ Consensus Estimate; sees organic revenue growth of 4-5% (Prior 3-4%)

    7:12 am Janus Capital misses by $0.01, misses on revs (JNS) :

    • Reports Q2 (Jun) earnings of $0.21 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus of $0.22; revenues fell 7.4% year/year to $251.9 mln vs the $254.73 mln Capital IQ Consensus. 
    • Average assets under management during the second quarter 2016 were $189.3 billion compared with $180.2 billion during the first quarter 2016 and $193.0 billion during the second quarter 2015.

    7:11 am Verizon beats by $0.01, misses on revs (VZ) :

    • Reports Q2 (Jun) earnings of $0.94 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.93; revenues fell 5.3% year/year to $30.53 bln vs the $30.97 bln Capital IQ Consensus.
    • New revenue streams from IoT continue to grow, with revenues of approximately $205 million in second-quarter 2016, a year-over-year increase of about 25 percent.
    • Wireless
      • Verizon reported 615,000 retail postpaid net additions in second-quarter 2016.
      • Customer retention remained at industry-leading levels, with retail postpaid churn at a low 0.94 percent in second-quarter 2016, a year-over-year increase of 4 basis points, as strong retention in the phone base was offset by increased churn in tablets.
      • Total revenues were $21.7 billion in second-quarter 2016, a decline of 4.0 percent compared with second-quarter 2015, as more customers continued to choose unsubsidized device payment plans.
      • The percentage of phone activations on device payment plans was 67 percent in second-quarter 2016, compared with 68 percent in first-quarter 2016. The company expects this percentage to remain consistent with recent experience.
    • Verizon reported 615,000 retail postpaid net additions in second-quarter 2016.
    • Customer retention remained at industry-leading levels, with retail postpaid churn at a low 0.94 percent in second-quarter 2016, a year-over-year increase of 4 basis points, as strong retention in the phone base was offset by increased churn in tablets.
    • Total revenues were $21.7 billion in second-quarter 2016, a decline of 4.0 percent compared with second-quarter 2015, as more customers continued to choose unsubsidized device payment plans.
    • The percentage of phone activations on device payment plans was 67 percent in second-quarter 2016, compared with 68 percent in first-quarter 2016. The company expects this percentage to remain consistent with recent experience.
    • Wireline
      • Total revenues for Fios fiber-optic-based services grew 3.7 percent, to $2.8 billion, comparing second-quarter 2016 with second-quarter 2015. The work stoppage impacted Fios connection growth, resulting in net declines of 13,000 Fios internet connections and 41,000 Fios video connections in second-quarter 2016.
    • Total revenues for Fios fiber-optic-based services grew 3.7 percent, to $2.8 billion, comparing second-quarter 2016 with second-quarter 2015. The work stoppage impacted Fios connection growth, resulting in net declines of 13,000 Fios internet connections and 41,000 Fios video connections in second-quarter 2016.
    • Guidance
      • 2016 adjusted earnings to be at a level comparable to 2015, excluding the 7-cent-per-share impact of the 2016 work stoppage (Comments are a reiteration of the outlook provided in Q1, although Q1 also had the caveat of the uncertainty surrounding the strike; 2015 was $4.37, Capital IQ consensus for 2016 stands at $3.89 which may not be comparable);
      • Consolidated adjusted EBITDA margin consistent with full-year 2015;
      • Consolidated capital spending between $17.2 billion and $17.7 billion;
      • A minimum pension funding requirement of approximately $550 million in 2016;
      • An effective tax rate for financial reporting purposes in the range of 35-36%;
      • Growth in consolidated revenue for full-year 2017 consistent with GDP growth for that year;
      • A return, by 2018-2019, to the company's credit-rating profile prior to the acquisition of Vodafone's indirect 45 percent interest in Verizon Wireless in early 2014.
    • 2016 adjusted earnings to be at a level comparable to 2015, excluding the 7-cent-per-share impact of the 2016 work stoppage (Comments are a reiteration of the outlook provided in Q1, although Q1 also had the caveat of the uncertainty surrounding the strike; 2015 was $4.37, Capital IQ consensus for 2016 stands at $3.89 which may not be comparable);
    • Consolidated adjusted EBITDA margin consistent with full-year 2015;
    • Consolidated capital spending between $17.2 billion and $17.7 billion;
    • A minimum pension funding requirement of approximately $550 million in 2016;
    • An effective tax rate for financial reporting purposes in the range of 35-36%;
    • Growth in consolidated revenue for full-year 2017 consistent with GDP growth for that year;
    • A return, by 2018-2019, to the company's credit-rating profile prior to the acquisition of Vodafone's indirect 45 percent interest in Verizon Wireless in early 2014.

    7:11 am Sirius XM Radio misses by $0.01, reports revs in-line; guides FY16 revs above consensus; co added 587,000 net new subscribers in Q2 (SIRI) :

    • Reports Q2 (Jun) earnings of $0.03 per share, $0.01 worse than the Capital IQ Consensus of $0.04; revenues rose 10.0% year/year to $1.24 bln vs the $1.22 bln Capital IQ Consensus.
    • Adjusted EBITDA in Q2 came in at $468 mln, up 13% YoY.
    • Co issues upside guidance for FY16, sees FY16 revs of approaching $5.0 bln vs. $4.97 bln Capital IQ Consensus Estimate and vs prior guidance of approx $4.9 bln. Co increases adjusted EBITDA guidance to approx $1.8 bln from prior guidance of a[[rox $1.78 bln.
    • Co added 587,000 net new subscribers to end Q2 with more than 30.6 mln subscribers, an increase of 8% YoY. Self-pay net additions were 507,000 during Q2, resulting in self-pay subscribers of 25.1 mln, up 7% YoY. The revenue increase was driven by an 8% increase in subscribers and a 3% increase in average revenue per user (:ARPU) to $12.78.
    • "SiriusXM's [Q2] results demonstrated continued strong demand for our content bundle and solid execution by our entire team....Our programming team has been hard at work developing new and exclusive content to power our unique service."
    • Co now expects to add 1.6 mln net new self-pay subscribers and 1.7 mln total net new subscribers in 2016, an increase from prior guidance of 1.4 mln and 1.6 mln, respectively.

    7:10 am CTG beats by $0.01, misses on revs; guides Q3 EPS in-line, revs below consensus; raises FY16 guidance, Operating margin +1.1% y/y (CTG) :

    • Reports Q2 (Jun) earnings of $0.05 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.04; revenues fell 11.9% year/year to $83.5 mln vs the $85.77 mln Capital IQ Consensus.
      • The year-over-year rev decline primarily reflects a decrease in staffing revenue at significant staffing customers and the continued trail-off of legacy electronic medical records account business. Positive currency translation increased revenue in the second quarter by $0.3 million.
    • The year-over-year rev decline primarily reflects a decrease in staffing revenue at significant staffing customers and the continued trail-off of legacy electronic medical records account business. Positive currency translation increased revenue in the second quarter by $0.3 million.
    • Operating margin was 2.3%, compared with 1.2% in the second quarter of 2015, which included $2.3 million in charges
    • Co issues guidance for Q3, sees EPS of $0.02-0.04, excluding non-recurring items, vs. $0.03 Capital IQ Consensus Estimate; sees Q3 revs of $79.0-81.0 vs. $85.12 mln Capital IQ Consensus Estimate.
    • Co raises EPS guidance for FY16, sees adj EPS of $0.17-0.23 (prior $0.13-0.21), vs. $0.16 Capital IQ Consensus Estimate; sees FY16 revs of $328.0-334.0 mln (prior $338-350 mln) vs. $342.62 mln Capital IQ Consensus Estimate.
      • "As largely anticipated, current macro and industry trends are continuing to be challenges for a number of our clients, resulting in lower revenue expectations for the third quarter and full year. However, we remain fully committed to working closely with all of our clients and providing the consistent unmatched reliability that sets CTG apart. Equally important is our continued execution on business objectives and growth initiatives. We expect to further build on CTG's existing roster of new clients and our broadening business pipeline, with the goal of exiting 2016 on strong footing and growing momentum."
    • "As largely anticipated, current macro and industry trends are continuing to be challenges for a number of our clients, resulting in lower revenue expectations for the third quarter and full year. However, we remain fully committed to working closely with all of our clients and providing the consistent unmatched reliability that sets CTG apart. Equally important is our continued execution on business objectives and growth initiatives. We expect to further build on CTG's existing roster of new clients and our broadening business pipeline, with the goal of exiting 2016 on strong footing and growing momentum."

    7:10 am Valero Energy beats by $0.08, beats on revs (VLO) :

    • Reports Q2 (Jun) earnings of $1.07 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus of $0.99; revenues fell 22.0% year/year to $19.58 bln vs the $18.67 bln Capital IQ Consensus. 
    • "Despite a challenging earnings environment, our operations generated $2.3 billion of cash during the quarter," said Joe Gorder, Valero Chairman, President and Chief Executive Officer. "Our advantaged refining portfolio in the U.S. Gulf Coast and our team's focus on safe, reliable, low-cost operations allowed us to continue delivering solid performance despite lower margins."
    • Valero exported a second quarter record 396,000 BPD of diesel and gasoline combined in the second quarter of 2016.
    • "Demand for refined products domestically and in the export markets remained strong in the second quarter," said Gorder. "We are also encouraged by ample supplies of medium and heavy sour crude oils in the market, which should help to expand their discounts relative to Brent crude oil, and by a positive demand outlook."
      • The refining segment reported $1.3 billion of operating income ($954 million of adjusted operating income) for the second quarter of 2016, compared to $2.2 billion of operating income for the second quarter of 2015. The decline was primarily attributable to weaker gasoline and distillate margins. Other factors included narrower sweet crude oil discounts relative to the Brent benchmark and higher costs to meet our biofuel blending obligations (primarily for the purchase of RINs).
      • The ethanol segment reported $69 million of operating income ($49 million of adjusted operating income) for the second quarter of 2016 compared to $108 million of operating income for the second quarter of 2015. Ethanol production volumes averaged 3.8 million gallons per day in the second quarter of 2016, which was consistent with the second quarter of 2015. Valero expects ethanol demand to remain strong given high gasoline demand in the U.S. and attractive economics for corn-based ethanol exports.
    • The refining segment reported $1.3 billion of operating income ($954 million of adjusted operating income) for the second quarter of 2016, compared to $2.2 billion of operating income for the second quarter of 2015. The decline was primarily attributable to weaker gasoline and distillate margins. Other factors included narrower sweet crude oil discounts relative to the Brent benchmark and higher costs to meet our biofuel blending obligations (primarily for the purchase of RINs).
    • The ethanol segment reported $69 million of operating income ($49 million of adjusted operating income) for the second quarter of 2016 compared to $108 million of operating income for the second quarter of 2015. Ethanol production volumes averaged 3.8 million gallons per day in the second quarter of 2016, which was consistent with the second quarter of 2015. Valero expects ethanol demand to remain strong given high gasoline demand in the U.S. and attractive economics for corn-based ethanol exports.

    7:08 am Colliers beats by $0.08, beats on revs (CIGI) :

    • Reports Q2 (Jun) earnings of $0.63 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus of $0.55; revenues rose 17.7% year/year to $482.5 mln vs the $438.73 mln Capital IQ Consensus.
    • During the second quarter, coinciding with Colliers' first anniversary as an independent public company, the Company implemented a plan to consolidate global leadership in Toronto, with Seattle and Vancouver continuing as shared services centres. The plan resulted in the downsizing of the Seattle office and a modest headcount reduction. Restructuring costs incurred during the quarter totalled $2.8 million and are reflected as reconciling items in the computation of Adjusted EBITDA and Adjusted EPS. The plan will be completed, and additional costs of approximately $1.5 million will be incurred, during the third quarter of 2016.

    7:07 am Under Armour misses by $0.01, reports revs in-line; reaffirms FY16 revs guidance (UA) :

    • Reports Q2 (Jun) earnings of $0.01 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus of $0.02; revenues rose 27.7% year/year to $1 bln vs the $1 bln Capital IQ Consensus. EPS is inclusive of $0.03 impact from the impairment related to the Sports Authority liquidation. This compares with diluted earnings per share of $0.03 for all classes in the prior year's period.
    • Gross margin for the second quarter of 2016 was 47.7% compared with 48.4% in the prior year's period.
    • Co reaffirms guidance for FY16, sees FY16 revs of ~$4.925 bln vs. $4.96 bln Capital IQ Consensus Estimate.
    • North America net revenues for the second quarter grew 22% year-over-year. International net revenues, which represented 15% of total net revenues for the second quarter, grew 68% year-over-year, or 72% on a currency neutral basis.
    • FY16 Guidance: Co sees 2016 operating income in the range of $440 mln to $445 mln, representing growth of 8% to 9% over 2015. Below the operating line, the Company expects interest expense of ~$32 mln, an effective full year tax rate of ~36.5%, and fully diluted weighted average shares outstanding of ~448 mln.

    7:07 am NeoGenomics beats by $0.01, beats on revs; reaffirms FY16 EPS, revs guidance (NEO) :

    • Reports Q2 (Jun) earnings of $0.04 per share, $0.01 better than the Capital IQ Consensus of $0.03; revenues rose 159.0% year/year to $63.13 mln vs the $60.94 mln Capital IQ Consensus.
    • Co reaffirms guidance for FY16, sees EPS of $0.08-0.13 vs. $0.12 Capital IQ Consensus Estimate; sees FY16 revs of $242-252 mln vs. $247.82 mln Capital IQ Consensus Estimate.

    7:06 am Allegiance Bancshares reports EPS in-line (ABTX) :

    • Reports Q2 (Jun) earnings of $0.36 per share, in-line with the Capital IQ Consensus of $0.36.
    • Core loans increased 15.4% year over year and 2.9% for the second quarter 2016 compared to the first quarter 2016
    • Annualized net charge-offs of 0.11% and a nonperforming assets to total assets ratio of 0.37% for the second quarter 2016

    7:05 am PAVmed units to separate into common stock (:PAVM) and warrants (:PAVMW); PAVMU will cease trading upon separation on or about July 27 (PAVMU) :  

    7:04 am Select Income REIT misses by $0.02, reports revs in-line (SIR) :

    • Reports Q2 (Jun) funds from operations of $0.72 per share, $0.02 worse than the Capital IQ Consensus of $0.74; revenues rose 7.2% year/year to $114.9 mln vs the $114.8 mln single analyst estimate.

    7:04 am Mobileye N.V. beats by $0.02, beats on revs; guides on call (MBLY) :

    • Reports Q2 (Jun) earnings of $0.17 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.15; revenues rose 58.1% year/year to $83.5 mln vs the $76.98 mln Capital IQ Consensus. Within total revenue, original equipment manufacturing (:OEM) revenue was $64.4 million, compared to $43.6 million in the prior-year period.
    • EyeQ chip volume increased 45.4% year-over-year to 1,409 thousand EyeQ units, compared to 969 thousand units in the prior-year period. The EyeQ Average Selling Price (:ASP) per unit for the second quarter of 2016 was $44.5, up from $43.7 during the same period last year. After market (AM) revenue contributed the remaining $19.1 million of total revenue for the second quarter of 2016 compared to $9.2 million in the prior-year period.
    • "In addition to winning new ADAS programs and new Tier-1 partnerships, we have begun an expansion of our value proposition by creating partnerships with automakers and others in order to bring fully autonomous driving to volume production within the next five years. The BMW/Intel/Mobileye partnership is the first significant collaboration of this type and we anticipate others. Overall, we believe we have made important progress in advancing our strategy of securing a significant, long-term presence in all levels of autonomous driving."
    • Will update FY16 guidance on 8:00 call.

    7:04 am Asian Markets Close: Nikkei -1.4%, Hang Seng +0.6%, Shanghai +1.1% (:SUMRX) :

    Equity indices across the Asia-Pacific region ended Tuesday on a mixed note with Japan's Nikkei (-1.4%) showing relative weakness. The retreat in Japanese equities was accompanied by yen strength that sent the dollar/yen pair to 104.00. The currency pair has inched up to 104.40, which leaves the yen up 1.3% against the dollar. The yen strength began building after Japan's Finance Minister Taro Aso said the Bank of Japan will be allowed to make its own decision on stimulus.

    • In economic data:
      • Japan's Corporate Services Price Index 0.2% year-over-year (consensus 0.1%; last 0.2%)
      • Hong Kong's trade deficit HKD45.60 billion (last deficit of HKD26.20 billion)
      • South Korea's Q2 GDP +0.7% quarter-over-quarter, as expected (last 0.5%); +3.2% year-over-year (consensus 2.9%; last 2.8%)
      • New Zealand's June trade deficit narrowed to NZD3.31 billion from NZD3.63 billion (expected deficit of NZD3.30 billion)
      • Singapore's June Industrial Production -2.5% month-over-month, as expected (last -0.4%); -0.3% year-over-year (consensus -0.2%; last 0.8%)
    • Japan's Corporate Services Price Index 0.2% year-over-year (consensus 0.1%; last 0.2%)
    • Hong Kong's trade deficit HKD45.60 billion (last deficit of HKD26.20 billion)
    • South Korea's Q2 GDP +0.7% quarter-over-quarter, as expected (last 0.5%); +3.2% year-over-year (consensus 2.9%; last 2.8%)
    • New Zealand's June trade deficit narrowed to NZD3.31 billion from NZD3.63 billion (expected deficit of NZD3.30 billion)
    • Singapore's June Industrial Production -2.5% month-over-month, as expected (last -0.4%); -0.3% year-over-year (consensus -0.2%; last 0.8%)

    ---Equity Markets---

    • Japan's Nikkei lost 1.4% with nine sectors ending in the red. Materials (-2.4%), financials (-2.2%), and energy (-2.1%) lagged while communications (+0.2%) outperformed. Toshiba sank 9.2% while TDK, Alps Electric, Nitto Denko, Olympus, Kyocera, Yokohama Rubber, and Sony Financial Holdings lost between 3.8% and 5.4%.
    • Hong Kong's Hang Seng added 0.6% with casino names leading the advance. Galaxy Entertainment and Sands China gained 6.5% and 5.8%, respectively, after Sheldon Adelson made upbeat comments about regional industry trends. Financials like China Life Insurance, Bank of East Asia, Ping An Insurance, Hang Seng Bank, and Bank of China added between 0.9% and 1.5%.
    • China's Shanghai Composite advanced 1.1%. China Animal Husbandry Industry, SAIC Motor, Shandong Gold-Mining, and Tangshan Sanyou Chemical added between 6.6% and 7.8%.
    • India's Sensex shed 0.4%. Dr. Reddy's Labs was the weakest performer, losing 4.4%, after the release of disappointing earnings. Financials were mixed with ICICI Bank losing 2.6%, HDFC Bank falling 0.5%, and AXIS Bank spiking 2.9%.

    ---FX---

    • USDJPY -1.3% to 104.38
    • USDCNY UNCH at 6.6735
    • USDINR -0.2% to 67.266

    7:03 am Viking Therapeutics announces 'positive' top-line results from a proof-of-concept study of VK0214 in a mouse model of X-linked adrenoleukodystrophy (VKTX) :

    The results of this study showed that VK0214 rapidly reduced plasma very long chain fatty acid (:VLCFA) levels by more than 25% in treated animals compared with vehicle controls (p < 0.01).

    • The study successfully achieved its primary objective, which was to demonstrate the ability of VK0214 to lower plasma VLCFA levels after six weeks of treatment.
    • Treatment with VK0214 led to robust effects on multiple VLCFAs and resulted in significantly lower levels of saturated C26, C24, C22, and C20 fatty acids relative to controls.

    7:03 am Navigant Consult beats by $0.07, beats on revs; reaffirms FY16 EPS guidance at high end of reange, reaffirms revs guidance (NCI) :

    • Reports Q2 (Jun) earnings of $0.33 per share, $0.07 better than the Capital IQ Consensus of $0.26; revenues rose 13.0% year/year to $238.48 mln vs the $233.74 mln Capital IQ Consensus.
    • Co reaffirms guidance for FY16, sees EPS at the higher end of $1.05-1.15 vs. $1.14 Capital IQ Consensus Estimate; sees FY16 revs of $900 mln to 1.01 bln vs. $933.01 mln Capital IQ Consensus Estimate.

    7:03 am Shire plc to present additional data of ADYNOVATE Phase 3 efficacy and safety at the International Congress of the World Federation of Hemophilia (SHPG) :

    • ADYNOVATE met its primary endpoint in the study, as no patients developed inhibitory antibodies to ADYNOVATE. Nearly 40 percent (37.9 percent) of patients experienced no bleeding episodes and more than 70 percent (72.7 percent) of patients had no joint bleeds. Of the bleeding episodes that did occur, none were considered major. The study also assessed the median annualized bleeding rate (ABR), which was 2.0 [mean ABR 3.0 (2.2 - 4.2)].

    Following is a synopsis of the data to be presented:

    • Characteristics of Pediatric Previously Treated Patients with Severe Hemophilia A Aged <12 Years Experiencing No Bleeds During a 6-month Prophylactic Treatment Regimen with Pegylated Recombinant Factor VIII. Poster #:T-P-86
    • One analysis evaluated the characteristics of patients in the trial who achieved zero bleeds. The study found that 25 of the 66 pediatric (<12 years) patients (37.9 percent) receiving prophylactic treatment with ADYNOVATE achieved zero bleeds. While most characteristics were similar across all participants, patients without bleeding generally had fewer target joints at screening.
    • Reduction in Dosing Frequency and ABRs in Previously Treated Pediatric (<12 Years) Patients With Severe Hemophilia a During Prophylactic Treatment With Pegylated Recombinant Factor VIII Compared to Pre-Study Prophylactic Regimen With Other FVIII Concentrates. Poster #: T-P-79
    • Another analysis compared dosing frequency and ABRs in previously treated pediatric patients (<12 years). These patients were treated with ADYNOVATE during the study and had been treated prophylactically prior to the study using other FVIII concentrates, such as ADVATE (rFVIII). Twice-weekly prophylactic treatment with ADYNOVATE resulted in reduced dosing frequency in the majority of patients and fewer bleeding episodes. This is based on a reduction in ABRs compared with pre-study prophylactic treatment, while reducing the frequency of infusions in the majority of patients (from three or more times per week).

    7:03 am Astec Industries beats by $0.04, beats on revs (ASTE) :

    • Reports Q2 (Jun) earnings of $0.79 per share, $0.04 better than the Capital IQ Consensus of $0.75; revenues rose 11.5% year/year to $294.39 mln vs the $283.44 mln Capital IQ Consensus.
    • The Company's backlog increased 58.8% from $229.5 million at June 30, 2015 to $364.5 million at June 30, 2016
    • "As our sales and backlog reflect, our domestic business remained strong during the quarter....In contrast to the success of our domestic business, we continued to face headwinds in all of our groups with regard to our international business, primarily as a result of the strong U.S. dollar. We also continue to be challenged in our Aggregate and Mining Group as a result of the global mining slow down. Finally, we remain challenged in our Energy Group equipment sales in the oil and natural gas industries as prices for these commodities remain at low levels."

    7:01 am Plug Power announces that Newark Farmers Market has placed an order for 96 GenDrive fuel cell units to operate its electric industrial truck fleet in Newark (PLUG) :  

    7:00 am CONSOL Energy misses by $0.02; guides FY16 for E&P and coal divisions (CNX) :

    • Reports Q2 (Jun) loss of $0.21 per share, excluding non-recurring items, $0.02 worse than the Capital IQ Consensus of ($0.19); revenues fell 47.6% year/year to $285.8 mln. 
    • Adjusted EBITDA from continuing operations was $136 million for the 2016 second quarter, compared to $138 million in the year-earlier quarter. Organic FCF from ops. $46 mln.
    • E&P Division Guidance: CONSOL Energy increases its annual 2016 E&P Division production to 380-385 Bcfe, compared to previous quarter's guidance of ~378 Bcfe. Total hedged natural gas production in the 2016 third quarter is 75.6 Bcf.
    • Coal division guidance: Pro rata adj. EBITDA $200-250 mln, CONSOL Energy expects annual 2016 Pennsylvania Operations sales to be ~22.5-25.5 million tons. CONSOL Energy expects 2016 total Coal Division capital expenditures to be between $105-$125 million, which includes Pennsylvania Operations capital expenditures of $90-$100 million On a normalized basis, the Coal Division expects maintenance of production capital of $5-$6 per ton.
    • "While we have seen the industry issue equity to improve liquidity and manage leverage ratios, CONSOL has focused on cutting costs, improving capital efficiencies, and monetizing assets."

    7:00 am Tokai Pharma announces clinical update; co to discontinue Phase 3 ARMOR3-SV trial of Galeterone in AR-V7 Positive mCRPC (shares halted) (TKAI) :

    Co plans to discontinue the ARMOR3-SV clinical trial, its pivotal Phase 3 study comparing galeterone to enzalutamide in treatment-nave metastatic castration-resistant prostate cancer (mCRPC) patients whose prostate tumors express AR-V7, following the recommendation made by the trial's independent Data Monitoring Committee.

    • Based on a review of all safety and efficacy data, the DMC determined that the ARMOR3-SV trial will likely not succeed in meeting its primary endpoint of demonstrating an improvement in radiographic progression-free survival (rPFS) for galeterone versus enzalutamide in AR-V7 positive mCRPC.
    • Co intends to evaluate its ongoing ARMOR2 expansion in mCRPC patients with acquired resistance to enzalutamide, and the planned study in patients who rapidly progress on either enzalutamide or abiraterone acetate.
    • As of June 30, 2016, Tokai had ~$43.9 mln in cash and cash equivalents.
    • Co will host an update conference call today, July 26, at 8:30 AM E.T.

    7:00 am Bristol-Myers announces a new clinical research collaboration with Janssen Biotech, subsidiary of Johnson & Johnson (JNJ), to evaluate Opdivo and Janssen's LADD Listerial monocytogenes cancer immunotherapy in patients with non-small cell lung cancer (BMY) : The Phase 2 clinical trial will evaluate the tolerability and clinical activity of the combination of these agents in NSCLC patients.

    7:00 am United Tech beats by $0.14, beats on revs; guides FY16 EPS in-line, revs in-line (UTX) :

    • Reports Q2 (Jun) earnings of $1.82 per share, excluding non-recurring items, $0.14 better than the Capital IQ Consensus of $1.68; revenues rose 1.3% year/year to $14.87 bln vs the $14.69 bln Capital IQ Consensus.
    • Co issues in-line guidance for FY16, sees EPS of $6.45-6.60 (Prior $6.30-6.60) vs. $6.54 Capital IQ Consensus Estimate; sees FY16 revs of $57-58 bln (Prior $56-58 bln) vs. $57.06 bln Capital IQ Consensus Estimate.
    • Remains on track to hit its 2020 targets.

    6:58 am On The Wires (:WIRES) :

    • Fiesta Restaurant Group's (FRGI) Pollo Tropical has inked a development agreement to open five locations in Guyana, financial terms were not disclosed.
    • CytoDyn (CYDY) announces the enrollment of the first patient under a recently modified protocol in the Company's Phase 3 combination study with PRO 14O (humanized monoclonal antibody to CCR5). The modified protocol has been cleared by the FDA and features a 50% reduction in enrollment to 150 subjects and relaxed enrollment criteria allowing HIV-infected subjects to enter the study before confirmation of the R5 strain.

    6:55 am A.O. Smith beats by $0.07, misses on revs; guides FY16 EPS above consensus (AOS) :

    • Reports Q2 (Jun) earnings of $0.98 per share, $0.07 better than the Capital IQ Consensus of $0.91; revenues rose 2.1% year/year to $667 mln vs the $694.03 mln Capital IQ Consensus. 
    • Co issues raised guidance for FY16, sees EPS of $3.58-3.64 from $3.47-3.55 vs. $3.53 Capital IQ Consensus Estimate.
    • Higher prices in the U.S. and Canada and significantly lower material costs contributed to the improved segment financial performance.

    6:53 am Avery Dennison beats by $0.08, reports revs in-line; raises FY16 EPS guidance (AVY) :

    • Reports Q2 (Jun) earnings of $1.09 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus of $1.01; revenues rose 1.7% year/year to $1.54 bln vs the $1.54 bln Capital IQ Consensus.
      • Organic sales growth (non-GAAP) of approx. 4%
      • Pressure-sensitive Materials segment:
        • PSM reported sales increased approximately 3 percent; on an organic basis, sales grew approximately 5 percent. Within the segment, organic sales growth was mid-single digit for Label and Packaging Materials, and low-single digit for combined Graphics and Performance Tapes. Operating margin improved 130 basis points to 13 percent as the benefit of productivity initiatives and increased volume more than offset higher employee-related costs and the net impact of price and raw material input costs. Adjusted operating margin improved 120 basis points.
      • Retail Branding and Information Solutions:
        • RBIS reported sales decreased 2 percent; on an organic basis, sales grew approximately 2 percent. Operating margin increased by nearly five points to 7.5 percent, largely due to the benefit of lower restructuring charges. Adjusted operating margin improved 30 basis points as the net savings associated with the business model transformation and higher volume were partially offset by the impact of strategic pricing actions and higher employee-related costs.
    • Organic sales growth (non-GAAP) of approx. 4%
    • Pressure-sensitive Materials segment:
      • PSM reported sales increased approximately 3 percent; on an organic basis, sales grew approximately 5 percent. Within the segment, organic sales growth was mid-single digit for Label and Packaging Materials, and low-single digit for combined Graphics and Performance Tapes. Operating margin improved 130 basis points to 13 percent as the benefit of productivity initiatives and increased volume more than offset higher employee-related costs and the net impact of price and raw material input costs. Adjusted operating margin improved 120 basis points.
    • PSM reported sales increased approximately 3 percent; on an organic basis, sales grew approximately 5 percent. Within the segment, organic sales growth was mid-single digit for Label and Packaging Materials, and low-single digit for combined Graphics and Performance Tapes. Operating margin improved 130 basis points to 13 percent as the benefit of productivity initiatives and increased volume more than offset higher employee-related costs and the net impact of price and raw material input costs. Adjusted operating margin improved 120 basis points.
    • Retail Branding and Information Solutions:
      • RBIS reported sales decreased 2 percent; on an organic basis, sales grew approximately 2 percent. Operating margin increased by nearly five points to 7.5 percent, largely due to the benefit of lower restructuring charges. Adjusted operating margin improved 30 basis points as the net savings associated with the business model transformation and higher volume were partially offset by the impact of strategic pricing actions and higher employee-related costs.
    • RBIS reported sales decreased 2 percent; on an organic basis, sales grew approximately 2 percent. Operating margin increased by nearly five points to 7.5 percent, largely due to the benefit of lower restructuring charges. Adjusted operating margin improved 30 basis points as the net savings associated with the business model transformation and higher volume were partially offset by the impact of strategic pricing actions and higher employee-related costs.
    • Co raises guidance for FY16, sees adj EPS of $3.80-3.95 (prior $3.75-3.90) vs. $3.83 Capital IQ Consensus Estimate.
    • Previously announced acquisition of Mactac Europe on track for Aug close.

    6:53 am MarineMax beats by $0.12, beats on revs; guides FY16 EPS above consensus and prior range (HZO) :

    • Reports Q3 (Jun) earnings of $0.57 per share, $0.12 better than the Capital IQ Consensus of $0.45; revenues rose 49.1% year/year to $345.59 mln vs the $269.43 mln Capital IQ Consensus.
    • Same-store sales grew 44% which is on top of 10% growth in the same period last year.
    • Co issues upside guidance for FY16, sees EPS of $0.86-0.90 vs. $0.83 Capital IQ Consensus Estimate, prior range $0.68-0.75.

    6:53 am DTE Energy beats by $0.09, misses on revs; raises FY16 EPS guidance (DTE) :

    • Reports Q2 (Jun) earnings of $0.98 per share, $0.09 better than the Capital IQ Consensus of $0.89; revenues fell 0.3% year/year to $2.26 bln vs the $2.3 bln Capital IQ Consensus.
    • Co raises guidance for FY16, sees EPS of $4.91-5.19 (Prior $4.80-5.05) vs. $4.95 Capital IQ Consensus Estimate.

    6:52 am Waters beats by $0.13, beats on revs (WAT) :

    • Reports Q2 (Jun) earnings of $1.58 per share, excluding non-recurring items, $0.13 better than the Capital IQ Consensus of $1.45; revenues rose 8.6% year/year to $537 mln vs the $523.18 mln Capital IQ Consensus.

    6:51 am Capella Education beats by $0.09, reports revs in-line; guides Q3 revs above consensus; guides FY16 EPS in-line, revs above consensus (CPLA) :

    • Reports Q2 (Jun) earnings of $0.93 per share, $0.09 better than the Capital IQ Consensus of $0.84; revenues rose 2.0% year/year to $106.7 mln vs the $105.93 mln Capital IQ Consensus. 
      • Capella University total active enrollment increased 2.4 percent to 38,231 learners, new enrollment increased by 2.5 percent compared to second quarter 2015, and early cohort persistence improved by ~4 percent.
    • Capella University total active enrollment increased 2.4 percent to 38,231 learners, new enrollment increased by 2.5 percent compared to second quarter 2015, and early cohort persistence improved by ~4 percent.
    • Co issues upside guidance for Q3, sees Q3 revs +4.5-5.5% to ~$108.4-109.4 mln vs. $101.81 mln Capital IQ Consensus. Consolidated operating margin for continuing operations is anticipated to be ~10.5 to 11.5 percent of total revenue for the third quarter of 2016.
    • Co issues guidance for FY16, sees EPS of $3.30-3.40, excluding non-recurring items, vs. $3.33 Capital IQ Consensus Estimate; sees FY16 revs of $424-428 mln vs. $421.27 mln Capital IQ Consensus Estimate. Capella University new enrollment is expected to be slightly up year-over-year and total enrollment is expected to grow about 2.0 to 3.0 percent year-over-year.
    • "Capella University's performance year-to-date and expectations for the third quarter position us for better annual performance in 2016 than we anticipated at the beginning of the year," said Steve Polacek, senior vice president and chief financial officer. "We are in a strong financial position, diligently managing costs, and we believe we are well-positioned for long-term sustainable growth." 

    6:51 am Axalta Coating Systems reports EPS in-line, revs in-line; reaffirms FY16 rev & EBITDA guidance (AXTA) :

    • Reports Q2 (Jun) earnings of $0.34 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.34; revenues fell 2.6% year/year to $1.07 bln vs the $1.07 bln Capital IQ Consensus. Adjusted EBITDA of $252.6 million for the second quarter compared with $255.5 million in Q2 2015.
    • Co issues reaffirms guidance for FY16, sees FY16 revs of flat sales YoY (cons -1% YoY) vs. $4.06 bln Capital IQ Consensus Estimate. Co reaffirms FY16 adjusted EBTIDA guidance of $900-940 mln; reaffirms CapEx of ~$150 mln.

    6:50 am Waddell & Reed beats by $0.14, beats on revs (WDR) :

    • Reports Q2 (Jun) earnings of $0.59 per share, excluding non-recurring items, $0.14 better than the Capital IQ Consensus of $0.45; revenues fell 19.0% year/year to $319.2 mln vs the $313.31 mln Capital IQ Consensus.
    • As of June 30, 2016, assets under management declined 9% sequentially to $86 billion due mainly to outflows from our Institutional and unaffiliated distribution channels.
    • Management fees declined 3% sequentially, while average assets under management declined 5%.

    6:49 am Potlatch beats by $0.06, beats on revs (PCH) :

    • Reports Q2 (Jun) earnings of $0.13 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus of $0.07; revenues rose 9.9% year/year to $141.5 mln vs the $135.32 mln Capital IQ Consensus.
    • "We expect seasonally higher harvest volumes and sawlog prices along with increased lumber shipments and prices to drive strong third quarter results".

    6:41 am Flagstar Bancorp beats by $0.09 (FBC) :

    • Reports Q2 (Jun) earnings of $0.66 per share, $0.09 better than the Capital IQ Consensus of $0.57. 
    • Positive operating leverage, led by 11 percent rise in revenue versus 2 percent increase in expenses against prior quarter.
    • Net gain on loan sales rose $15 million, or 20 percent, on higher fallout-adjusted locks and wider gain on sale margin.
    • Lower nonperforming loans and consumer delinquencies on continuing strong credit performance.
    • Tier 1 leverage was 11.6 percent and remains strong at 8.6 percent when adjusted for TARP redemption.
    • "As we previously announced, we received regulatory approval to redeem our TARP preferred shares on June 23, 2016. Given the notice requirement prior to redemption, we will be redeeming these shares in full by the end of July. We've replaced this high-cost funding with senior notes and other bank-level sources of funds that cost, on average, only one-third of the TARP preferred on an after-tax basis. After this redemption, our regulatory capital remains strong on an adjusted basis as of June 30, 2016, with Tier 1 leverage at 8.59 percent and Common Equity Tier 1 at 12.17 percent."

    6:40 am Anixter misses by $0.03, reports revs in-line, reaffirms FY16 rev guidance (AXE) :

    • Reports Q2 (Jun) earnings of $1.32 per share, excluding non-recurring items, $0.03 worse than the Capital IQ Consensus of $1.35; revenues rose 32.1% year/year to $1.96 bln vs the $1.94 bln Capital IQ Consensus.
      • Excluding the impact of the following items, organic sales decreased 0.6% year-over-year: $526.8 mln favorable impact from the acquisition of Power Solutions, $22.2 mln unfavorable impact from the lower average price of copper, & $16.5 mln unfavorable impact from the fluctuation in foreign currencies.
    • Excluding the impact of the following items, organic sales decreased 0.6% year-over-year: $526.8 mln favorable impact from the acquisition of Power Solutions, $22.2 mln unfavorable impact from the lower average price of copper, & $16.5 mln unfavorable impact from the fluctuation in foreign currencies.
    • The current quarter had 64 billing days, compared to 63 billing days in the year-ago quarter. Further excluding the favorable impact from one additional billing day, organic sales per day decreased 2.2% year-over-year.
    • Gross margin of 20.1% compares to 20.4% sequentially, with the decline primarily caused by segment and product mix.
      • The decrease versus prior year gross margin of 22.2% is due primarily to the Power Solutions acquisition.
    • The decrease versus prior year gross margin of 22.2% is due primarily to the Power Solutions acquisition.
    • Business Outlook:
      • "As we enter the second half of the year, our NSS segment continues to experience positive momentum in all regions except CALA, driven by strength in projects with global customers," commented Bob Eck. "While our EES segment continues to experience weakness related to industrial and manufacturing end market exposure, sales trends are improving in all regions except CALA. Our UPS segment continues to experience soft trends related to its exposure to oil and gas end markets in the US and Canada, combined with the timing impact of major capital projects. Reflecting diverging trends across our business and across the broad economy, as well as the uncertainty created by Brexit, we remain cautious regarding prospects for a recovery in the second half of 2016. Combining our more positive outlook in NSS with an improving outlook in our EES and UPS segments, we now expect full year 2016 sales growth between 20 to 24%. The acquisition will increase sales by 24 %, while currency and copper will each have a negative impact of 1%."
      • The co reaffirmed FY16 organic sales growth rate in the -2% to +2% range, compared to +2% Consensus.
    • "As we enter the second half of the year, our NSS segment continues to experience positive momentum in all regions except CALA, driven by strength in projects with global customers," commented Bob Eck. "While our EES segment continues to experience weakness related to industrial and manufacturing end market exposure, sales trends are improving in all regions except CALA. Our UPS segment continues to experience soft trends related to its exposure to oil and gas end markets in the US and Canada, combined with the timing impact of major capital projects. Reflecting diverging trends across our business and across the broad economy, as well as the uncertainty created by Brexit, we remain cautious regarding prospects for a recovery in the second half of 2016. Combining our more positive outlook in NSS with an improving outlook in our EES and UPS segments, we now expect full year 2016 sales growth between 20 to 24%. The acquisition will increase sales by 24 %, while currency and copper will each have a negative impact of 1%."
    • The co reaffirmed FY16 organic sales growth rate in the -2% to +2% range, compared to +2% Consensus.

    6:35 am KeyCorp misses by $0.01, reports revs in-line (KEY) :

    • Reports Q2 (Jun) adj earnings of $0.27 per share, $0.01 worse than the Capital IQ Consensus of $0.28; revenues fell 0.1% year/year to $1.08 bln vs the $1.08 bln Capital IQ Consensus. 
    • Average loans up 5%, driven by 12% growth in commercial, financial and agricultural loans.
    • Net interest income up $14 million, as higher earning asset balances and yields were partially offset by lower reinvestment yields.
    • Co reported Q2 NIM of 2.76% versus 2.88% last year.

    6:35 am Wolverine beats by $0.02, reports revs in-line; reaffirms FY16 EPS, revs guidance (WWW) :

    Reports Q2 (Jun) earnings of $0.25 per share, $0.02 better than the Capital IQ Consensus of $0.23; revenues fell 7.4% year/year to $583.7 mln vs the $579.25 mln Capital IQ Consensus.

    • Co reaffirms guidance for FY16, sees EPS of $1.30-1.40 vs. $1.36 Capital IQ Consensus Estimate; sees FY16 revs of $2.475-2.575 bln vs. $2.54 bln Capital IQ Consensus Estimate; sees inventory levels being meaningfully lower than 2015 at year-end.
    • Reported gross margin was 38.8%, compared to 39.1% in the prior year. Gross margin on a constant currency basis was 39.8%, an increase of 70 basis points versus the prior year.
    • Inventory balances at the end of the quarter were 2.9% lower than the prior year.

    6:34 am Graphic Packaging reports EPS in-line, revs in-line (GPK) :

    • Reports Q2 (Jun) earnings of $0.19 per share, in-line with the Capital IQ Consensus of $0.19; revenues rose 4.4% year/year to $1.1 bln vs the $1.1 bln Capital IQ Consensus.
    • Share repurchases were $37.0 million in Q2 and $82.0 million year-to-date through June 30th

    6:32 am Eli Lilly beats by $0.01, beats on revs; reaffirms FY16 guidance (LLY) :

    • Reports Q2 (Jun) earnings of $0.86 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.85; revenues rose 8.6% year/year to $5.4 bln vs the $5.16 bln Capital IQ Consensus, driven by an 8 percent increase in volume, as realized prices and the impact of foreign exchange rates remained relatively flat, compared with the second quarter of 2015.
      • The increase in worldwide volume was driven by new pharmaceutical products, including Trulicity and Cyramza, as well as Humalog. Revenue in the U.S. increased 14 percent to $2.890 billion, primarily driven by increased volume for several pharmaceutical products, including Trulicity and Humalog, and to a lesser extent, higher realized prices, primarily for Cialis and Forteo, partially offset by lower realized prices for Humalog. Revenue outside the U.S. increased 3 percent to $2.515 billion, driven by increased volume for several pharmaceutical products, primarily Cyramza, Trulicity and Humalog, partially offset by the loss of exclusivity for Cymbalta in Europe in 2014.
      • Gross margin as a percent of revenue was 76.0 percent, a decline of 3.2 percentage points compared with the second quarter of 2015. The decline in gross margin percent was primarily due to a lower benefit from foreign exchange rates on international inventories sold.
    • The increase in worldwide volume was driven by new pharmaceutical products, including Trulicity and Cyramza, as well as Humalog. Revenue in the U.S. increased 14 percent to $2.890 billion, primarily driven by increased volume for several pharmaceutical products, including Trulicity and Humalog, and to a lesser extent, higher realized prices, primarily for Cialis and Forteo, partially offset by lower realized prices for Humalog. Revenue outside the U.S. increased 3 percent to $2.515 billion, driven by increased volume for several pharmaceutical products, primarily Cyramza, Trulicity and Humalog, partially offset by the loss of exclusivity for Cymbalta in Europe in 2014.
    • Gross margin as a percent of revenue was 76.0 percent, a decline of 3.2 percentage points compared with the second quarter of 2015. The decline in gross margin percent was primarily due to a lower benefit from foreign exchange rates on international inventories sold.
    • Co reaffirms guidance for FY16, sees EPS of $3.50-3.60, excluding non-recurring items, vs. $3.56 Capital IQ Consensus Estimate; sees FY16 revs of $20.6-21.1 bln vs. $20.92 bln Capital IQ Consensus; gross margin 76%; R&D $4.9-5.1 bln.

    6:32 am Nielsen reports EPS in-line, revs in-line (NLSN) :

    • Reports Q2 (Jun) earnings of $0.71 per share, in-line with the Capital IQ Consensus of $0.71; revenues rose 2.4% year/year to $1.6 bln vs the $1.61 bln Capital IQ Consensus.
    • Cash flow from operations decreased to $210 million for the second quarter of 2016 from $253 million in the second quarter of 2015. Free cash flow for the second quarter of 2016 decreased to $98 million from $156 million in the second quarter of 2015, driven by working capital timing and the accelerated investments in our growth initiatives.
    • "The syndication of Digital Content Ratings for participating clients in May was a key milestone, and we remain on track for the syndication of Total Content Ratings for participating clients in the third quarter."

    6:28 am Asbury Automotive reports EPS in-line, misses on revs (ABG) :

    • Reports Q2 (Jun) earnings of $1.65 per share, in-line with the Capital IQ Consensus of $1.65; revenues fell 3.7% year/year to $1.63 bln vs the $1.71 bln Capital IQ Consensus, principally attributable to strategic divestitures during the second half of 2015; total revenue on a same store basis was down 1% from the prior year period.
    • New vehicle revenue down 1%; gross profit down 5%. Used vehicle retail revenue down 4%; gross profit up 1%.
    • "Despite a challenging retail environment, our improved used margins, strong parts and service customer pay performance, and capital deployment enabled us to deliver 9% EPS growth."

    6:27 am EverBank Financial misses by $0.04, misses on revs; discloses that it is in advanced negotiations to be acquired for $19.50/share (EVER) :

    • Reports Q2 (Jun) earnings of $0.32 per share, excluding non-recurring items, $0.04 worse than the Capital IQ Consensus of $0.36; revenues fell 22.2% year/year to $196.61 mln vs the $236.03 mln Capital IQ Consensus.
    • Total assets were $27.4 billion at June 30, 2016, an increase of $0.7 billion, or 3%, compared to the prior quarter and an increase of $3.2 billion, or 13%, year over year. Compared to the prior quarter, loans held for sale (:HFS) increased $348 million, or 31%, to $1.5 billion and loans HFI increased $463 million, or 2%, to $23.2 billion.
    • The Company also announced that as a result of an ongoing review of its strategic alternatives it is in advanced negotiations with a well-respected financial services company regarding a transaction in which EverBank Financial Corp would be acquired and EverBank Financial Corp's common stockholders would receive $19.50 per share in cash. In addition, the transaction contemplates that each share of EverBank Financial Corp's Series A Preferred Stock would receive cash in an amount equal to the liquidation preference plus accrued and unpaid dividends. EverBank Financial Corp further noted that it had entered into an agreement with the financial services company to negotiate exclusively with it regarding a transaction and such exclusivity agreement expires at 11:59 p.m. on August 8. In light of the foregoing, the Company will not conduct its previously scheduled conference call to discuss second quarter 2016 results.

    6:20 am Comstock Mining exercises purchase commitment to acquire 98 acres of land and over 257 acre-feet of senior-priority water rights in Silver Springs, Nevada (LODE) : The property was acquired through a wholly-owned subsidiary called Comstock Industrial LLC. The acquisition and the first six months of interest was funded from a two-year loan of $3,250,000 to acquire the property, secured by a deed of trust on the property. The loan will be repaid through proceeds from sales of the land or water rights. The Company, along with Comstock Mining LLC and Comstock Real Estate Inc., also wholly-owned subsidiaries of the Company, provided guaranties for obligations relating to the property purchased.

    6:17 am Helios & Matheson receives favorable decision from the Nasdaq hearings panel (HMNY) : The co announced that it has received written notification that the Nasdaq Hearings Panel has granted HMNY's request for continued listing on The Nasdaq Stock Market, subject to HMNY's fulfillment of certain conditions, with the final condition being that HMNY shall have publicly announced, on or before November 15, 2016, that it has closed its pending merger with Zone Technologies, Inc. and an equity financing, and as a result, has stockholders' equity above $2.5 million.

    6:15 am Carlisle Cos beats by $0.12, misses on revs; reaffirms FY16 revs guidance (CSL) :

    • Reports Q2 (Jun) earnings of $1.75 per share, $0.12 better than the Capital IQ Consensus of $1.63; revenues rose 1.2% year/year to $996.9 mln vs the $1011.93 mln Capital IQ Consensus.
    • Segment Results for Second Quarter 2016
      • Carlisle Construction Materials (CCM): Net sales in the second quarter 2016 grew 0.8% to $582.5 million, reflecting higher net sales volume partially offset by lower selling price. Higher demand for commercial roofing membrane and insulation applications in the U.S. was partially offset by lower international net sales.
      • Carlisle Interconnect Technologies (CIT): Net sales in the second quarter 2016 grew 5.6% to $209.4 million, reflecting higher net sales volume and $2.4 million in net sales contribution from the acquisition of Micro-Coax, partially offset by lower selling price in the aerospace and medical markets. Net sales to the aerospace market increased 5%.
    • Carlisle Construction Materials (CCM): Net sales in the second quarter 2016 grew 0.8% to $582.5 million, reflecting higher net sales volume partially offset by lower selling price. Higher demand for commercial roofing membrane and insulation applications in the U.S. was partially offset by lower international net sales.
    • Carlisle Interconnect Technologies (CIT): Net sales in the second quarter 2016 grew 5.6% to $209.4 million, reflecting higher net sales volume and $2.4 million in net sales contribution from the acquisition of Micro-Coax, partially offset by lower selling price in the aerospace and medical markets. Net sales to the aerospace market increased 5%.
    • Co reaffirms guidance for FY16, sees FY16 revs of mid single digits growth vs. +6.5% YoY or $3.76 bln Capital IQ Consensus Estimate.

    6:15 am Sensata Tech beats by $0.01, reports revs in-line; guides Q3 in-line; narrows FY16 guidance (ST) :

    • Reports Q2 (Jun) earnings of $0.73 per share, $0.01 better than the Capital IQ Consensus of $0.72; revenues rose 7.4% year/year to $827.5 mln vs the $823.78 mln Capital IQ Consensus. Excluding an 8.5 percent positive effect from acquisitions, net of exited businesses, and a 1.2 percent negative effect from changes in foreign exchange rates, Sensata reported flat organic revenue growth in the second quarter of 2016.
    • Co issues in-line guidance for Q3, sees EPS of $0.70-0.76, excluding non-recurring items, vs. $0.73 Capital IQ Consensus; sees Q3 revs of $770-810 mln vs. $796.58 mln Capital IQ Consensus Estimate.
    • Co issues in-line guidance for FY16, nwrrows EPS to $2.80-2.94 from $2.74-3.00, excluding non-recurring items, vs. $2.86 Capital IQ Consensus; narrows FY16 revs to $3.17-3.25 bln from $3.14-3.28 bln vs. $3.22 bln Capital IQ Consensus Estimate.

    6:13 am Radware beats by $0.01, reports revs in-line (RDWR) :

    • Reports Q2 (Jun) earnings of $0.06 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.05; revenues fell 11.4% year/year to $49.6 mln vs the $49.46 mln Capital IQ Consensus. "Despite challenging market conditions this year, we have made solid progress this past quarter with our subscription booking and revenues."

    6:10 am ICON plc reports EPS in-line, revs in-line; reaffirms FY16 EPS guidance, revs guidance (ICLR) :

    • Reports Q2 (Jun) earnings of $1.14 per share, in-line with the Capital IQ Consensus of $1.14; revenues rose 5.6% year/year to $410.6 mln vs the $409.98 mln Capital IQ Consensus. 
    • Record net business wins of $502 million, a net book to bill of 1.22.
    • Backlog of business grows 8.6% year on year to surpass $4 billion for the first time.
    • Co reaffirms guidance for FY16, sees EPS of $4.60-4.80, excluding non-recurring items, vs. $4.68 Capital IQ Consensus Estimate; sees FY16 revs of $1.665-1.680 bln vs. $1.67 bln Capital IQ Consensus Estimate.

    6:09 am Provident Fincl beats by $0.06 (PROV) :

    • Reports Q4 (Jun) earnings of $0.34 per share, $0.06 better than the two analyst estimate of $0.28.
    • Net interest income decreased $88,000, or one percent, to $8.76 mln in the fourth quarter of fiscal 2016 from $8.85 mln for the same quarter of fiscal 2015, attributable to a lower average earning assets balance, partly offset by a slight increase in the net interest margin.

    6:07 am Nord Anglia Education beats by $0.01, beats on revs; narrows FY16 EPS, rev and EBITDA guidance (NORD) :

    • Reports Q3 (May) earnings of $0.28 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.27; revenues rose 49.3% year/year to $253.8 mln vs the $246.27 mln Capital IQ Consensus.
    • Co issues in-line guidance for FY16, lowers top end of EPS to $0.64-0.65 from $0.64-0.67 vs. $0.65 Capital IQ Consensus Estimate; raises bottom end of FY16 revs to $850-855 mln from $845-855 mln vs. $850.36 mln Capital IQ Consensus Estimate.  Co narrowed FY16 EBITDA guidance to $206.5-208.5 mln vs $205-210 mln last year.
    • Adjusted EBITDA increased 39.9%, or $20.0 million, to $69.9 million (27.5% Adjusted EBITDA margin) in Q3 FY2016 from $49.9 million (29.4% Adjusted EBITDA margin) in Q3 FY2015 due to growth in FTEs, tuition fee increases and the impact of the acquisitions in Switzerland, China, the United States and Mexico in fiscal 2015.

    6:07 am DuPont beats by $0.14, beats on revs; raises low end of FY16 EPS (DD) :

    • Reports Q2 (Jun) earnings of $1.24 per share, excluding non-recurring items, $0.14 better than the Capital IQ Consensus of $1.10; revenues fell 0.8% year/year to $7.06 bln vs the $6.98 bln Capital IQ Consensus, reflected 2-percent volume growth, due to Agriculture, Performance Materials and Nutrition & Health. Local price, currency and portfolio in aggregate negatively impacted sales by 3 percent, resulting in total sales declining 1 percent.
      • Agriculture sales reflected 3-percent volume growth, driven by higher corn seed and insecticide sales, partially offset by lower soybean volumes in North America. Volume growth was offset by negative impacts from currency and portfolio.
      • Total company gross margins expanded more than 100 basis points. Total segment operating margins increased about 250 basis points, as operating margins expanded in all reportable segments. 
    • Agriculture sales reflected 3-percent volume growth, driven by higher corn seed and insecticide sales, partially offset by lower soybean volumes in North America. Volume growth was offset by negative impacts from currency and portfolio.
    • Total company gross margins expanded more than 100 basis points. Total segment operating margins increased about 250 basis points, as operating margins expanded in all reportable segments. 
    • Co issues in-line guidance for FY16, raises EPS to $3.15-3.20 from $3.05-3.20, excluding non-recurring items, vs. $3.15 Capital IQ Consensus Estimate. 
    • "Solid execution enabled volume growth of 2 percent, and we expanded operating margins across all reportable segments. Cost savings, mix enrichment from new technologies and lower product costs contributed to the margin expansion. Continued progress on our cost savings program keeps us on track to reach $1 billion on a run-rate basis by year-end."
    • Merging with Dow (DOW).

    6:04 am Hartford Financial to sell its U.K. property & casualty run-off subsidiaries to Catalina Holdings; transaction is not expected to result in a material gain or loss (HIG) :

    The U.K. businesses have been largely in runoff since 1993. They primarily consist of U.S. asbestos and environmental liabilities, most of which was previously underwritten by Excess Insurance Company Limited, as well as U.K. asbestos liabilities.

    • At March 31, 2016, DLM and HFPI had total assets of ~$1 bln, undiscounted gross reserves of $686 mln, undiscounted reserves net of reinsurance of $516 mln and shareholders' equity of ~$321 mln, all stated on a U.S. GAAP basis.

    5:57 am Shanghai...+1.14% (FXI) :  

    5:57 am S&P futures vs fair value: -3.50. Nasdaq futures vs fair value: -8.10. :

    5:57 am European Markets : FTSE...6725.78...+15.70...+0.20%.  DAX...10205.77...+7.50...+0.10%.

    5:57 am Asian Markets : Nikkei...16383...-237.30...-1.40%.  Hang Seng...22130...+136.30...+0.60%.

    5:07 am EXACT Sciences beats by $0.09, beats on revs; reaffirms and guides FY16 revs above consensus (EXAS) :

    • Reports Q2 (Jun) loss of $0.46 per share, $0.09 better than the Capital IQ Consensus of ($0.55); revenues rose 161.7% year/year to $21.2 mln vs the $18.5 mln Capital IQ Consensus.
      • The company completed approximately 54,000 Cologuard tests during the second quarter, an increase of approximately 160 percent compared to the 21,000 tests completed during the same period of 2015.
    • The company completed approximately 54,000 Cologuard tests during the second quarter, an increase of approximately 160 percent compared to the 21,000 tests completed during the same period of 2015.
    • Co reaffirms upside guidance for FY16, sees FY16 revs of $90-100 mln vs. $86.63 mln Capital IQ Consensus Estimate.
      • Co continues to anticipate completing more than 240,000 Cologuard tests during 2016
    • Co continues to anticipate completing more than 240,000 Cologuard tests during 2016

    5:03 am Check Point Software beats by $0.02, reports revs in-line (CHKP) :

    • Reports Q2 (Jun) earnings of $1.09 per share, $0.02 better than the Capital IQ Consensus of $1.07; revenues rose 7.0% year/year to $422.8 mln vs the $421.57 mln Capital IQ Consensus.
      • Deferred Revenues: $892 million, representing a 14 percent increase year over year 
      • Software Blades Subscriptions Revenues: $93 million, representing a 21 percent increase year over year
    • Deferred Revenues: $892 million, representing a 14 percent increase year over year 
    • Software Blades Subscriptions Revenues: $93 million, representing a 21 percent increase year over year

    4:58 am On The Wires (:WIRES) :

    • Epson (SEKEY) recommends Google Cast for Education as an easy way to share Chromebook screens wirelessly to BrightLink interactive projectors and PowerLite projectors.
    • PT Astra Honda Motor (HMC), Honda's joint venture company in Indonesia for motorcycle production and sales, announced the world premiere of the "CBR250RR," an all-new 250cc sports model motorcycle. The CBR250RR will be manufactured in its major market, Indonesia, making it the largest displacement Honda motorcycle to be manufactured in the country. Honda plans to begin sales of the all-new sports model in Indonesia by the end of 2016.
    • Vivendi (VIVHY) wishes to clarify that its CEO Arnaud de Puyfontaine, in a letter dated the 21st June, informed Mediaset (MDIUY) Management of significant differences in the analysis of its subsidiary's-Mediaset Premium- results, for which the two companies are currently in negotiations In addition the Group yesterday made a proposal to Mediaset to come to a new agreement, under different terms, so as to pursue discussions. Vivendi confirms its desire to build a major strategic alliance with Mediaset and Mediaset Premium.
    • Accenture (ACN) announced it will provide Her Majesty's Revenue & Customs with application services. In this role, Accenture will support HMRC to increase its use of digital technologies across HMRC's primary personal tax platform, the National Insurance and PAYE Service. Under the terms of the agreement, which runs through to June 2020, Accenture will develop, implement and maintain a secure cloud-hosted tax-management platform for individual taxpayers

    4:31 am British Sky Broadcasting issues statement regarding BT/Openreach announcement (SKYAY) : Sky's CEO states: "Today's proposal to create a legally separate Openreach is a step in the right direction, although falls short of the full change that would have guaranteed the world-class broadband network customers expect and the UK will need.

    In particular, leaving Openreach's budget in the hands of BT Group raises significant questions as to whether this will really lead to the fibre investment Britain requires"

    3:42 am Unilever prices a dual-tranche $1.25 bln consisting of $550 mln 1.375% fixed rate notes due 2021, with a further $700 mln 2.0% fixed rate notes due 2026 (UN) :  

    3:32 am Audiocodes reports EPS in-line, beats on revs; appoints new CFO (AUDC) :

    • Reports Q2 (Jun) earnings of $0.06 per share, in-line with the Capital IQ Consensus of $0.06; revenues rose 10.8% year/year to $35.9 mln vs the $35.38 mln Capital IQ Consensus.

    Niran Baruch promoted to Chief Financial Officer

    • The Company also announced that it has promoted Niran Baruch from Chief Accounting Officer to Chief Financial Officer, effective July 26, 2016.
      • Baruch joined AudioCodes in 2005 initially as Director of Finance and then as Vice President of Finance.
    • Baruch joined AudioCodes in 2005 initially as Director of Finance and then as Vice President of Finance.

    3:21 am Seadrill Partners reduces quarterly distribution to $0.10 per unit (from $0.25 per unit prior) (SDLP) :

    • The decision to reduce the distribution level reflects the increase in the extended standby rate period for the West Capricorn and the termination of the drilling contract for the West Capella.
    • Although available units are being bid on a number of opportunities and extension conversations continue, the Company believes this is a prudent move that will improve its liquidity position.
    • Despite some contract cancellations for which termination payments are being received, the Company still has an average contact term of 2.7 years, total contract backlog of $3.4 billion and 64% of its rigs on contract until 2018.
    • The Company continues to achieve high operational uptime on its operating units and has strong contract terms with creditworthy customers.

    3:06 am BT Group makes governance changes to further increase independence for Openreach (BT) :

    BT confirmed it has volunteered significant governance changes to further increase the independence and transparency of its local network business Openreach. It believes these unprecedented changes, elements of which have been welcomed by Ofcom, can form the basis for a fair, proportionate and sustainable regulatory settlement. They can also help Ofcom conclude its review and achieve its aims in a quicker timeframe. 

    • The changes will enable BT to focus on its plans to further improve the UK's digital infrastructure.
    • BT believes the re-organisation of Openreach addresses the concerns relating to governance set out by the Culture, Media and Sport select committee which last week requested that BT "allows Openreach much more autonomy over what it invests, when and where". The changes also meet all of the objectives Ofcom outlined for the strengthened independence of Openreach in February
    • An obligation for Openreach to serve all its customers equally will be included in the Articles of Association of BT plc. This will supplement the legal obligations set out in the current regulatory Undertakings and strengthen Openreach's purpose to serve all of its customers equally.
    • BT is calling on Ofcom to support these proposals as the best way forward for the country and as the foundation for the competition and investment in digital networks that the UK needs.

    2:57 am On The Wires (:WIRES) :

    • Veolia (VEOEY) secured three contracts for the sustainable treatment of domestic and business recycling and waste from Westminster City Council. Veolia will provide a suite of sustainable solutions to help the Council reach its target of zero waste to landfill. The 3 contracts worth a total of 71 mln.
    • Eurofins (ERFSF) announced the acquisition of Agfirst Bay of Plenty, a fruit maturity testing laboratory in New Zealand. This transaction strengthens its footprint in food testing in New Zealand. Terms were not disclosed.
    • Ladbrokes (LDBKY) announced the CMA approved the merger with the Coral Group and can proceed subject to the sale of 350-400 shops. This is a significant step forward and co will now begin to talk in earnest to potential buyers for these shops. Co remains on track to complete the merger in the autumn.

    2:55 am SABMiller plc: Anheuser-Busch InBev (BUD) revises offer to GBP 45/share in cash (from GBP 44/share prior) (SBMRY) :

    Anheuser-Busch InBev (BUD) has decided to announce the following revised and final terms of its offer to acquire the entire issued and to be issued share capital of SABMiller (SBMRY).

    • Pursuant to the revised and final terms of the Transaction, each SABMiller Shareholder will now be entitled to receive:
      • For each SABMiller Share: 45.00 in cash
      • The revised Cash Consideration represents an increase of 1.00 per SABMiller Share over the 44.00 Cash Consideration set out in the 11 Nov 11, 2015 Announcement.
    • For each SABMiller Share: 45.00 in cash
    • The revised Cash Consideration represents an increase of 1.00 per SABMiller Share over the 44.00 Cash Consideration set out in the 11 Nov 11, 2015 Announcement.

    2:33 am On The Wires (:WIRES) :

    • JA Solar Holdings Co (JASO) announced that as of middle of July this year, the company's shipments of monocrystalline PV products over the last ten years had totaled 7GW.
    • Technip (TKPPY) has been awarded a key contract by Repsol Sinopec Resources UK Limited (REPYY / SNP jv)  for Inspection, Repair and Maintenance works on its North Sea subsea infrastructure. The frame agreement with Repsol Sinopec Resources UK will see Technip provide diving support and IRM services for 2016, with possible extension to include 2017 and 2018.
    • TomTom (TMOAY) Telematics announced a collaboration with Sage cloud accounting software. By combining TomTom WEBFLEET and Sage Live, the collaboration will deliver real-time accounting for companies with fleets of vehicles.
    • SEGRO plc (SEGXF) appointed Soumen Das as its Chief Financial Officer. Mr Das is currently the Managing Director & Chief Financial Officer of Capital & Counties Properties (CRPCY). He is expected to join the Company and the Board in the new year and will succeed Justin Read who will retire at the end of 2016.

    2:13 am BE Aerospace beats by $0.02, beats on revs; guides FY16 EPS in-line, revs above consensus; guides FY17 EPS in-line (BEAV) :

    • Reports Q2 (Jun) earnings of $0.84 per share, $0.02 better than the Capital IQ Consensus of $0.82; revenues rose 7.5% year/year to $753.1 mln vs the $713.38 mln Capital IQ Consensus.
    • Co issues guidance for FY16, sees EPS of ~$3.25 vs. $3.26 Capital IQ Consensus Estimate and compared to prior guidance of $3.20-3.25; sees FY16 revs of +5% YoY to ~$2.87 bln vs. $2.83 bln Capital IQ Consensus Estimate and compared to prior guidance of +4% YoY to ~$2.84 bln.
    • Co issues in-line guidance for FY17, sees EPS of sees growth in the low teens vs. $3.69 (implies 13.5% growth assuming FY16 EPS at $3.25) Capital IQ Consensus Estimate.

    1:53 am On The Wires (:WIRES) :

    • Polaris Industries (PII) is issuing a stop-ride/stop-sale advisory, pending a formal recall, for MY2016 RZR Turbo off-road vehicles, due to a potential fire hazard. Polaris is currently evaluating a comprehensive repair solution. Once validated, repair instructions will be issued to Polaris dealers and vehicle owners will be notified that they can contact their dealer about scheduling a free repair.
    • AMD (AMD) announced that its engine is becoming open source, giving developers access to the source code. As part of GPUOpen, Radeon ProRender enables creators to bring ideas to life through applications and workflows enhanced by photorealistic rendering. Co also unveiled the new Radeon Pro WX Series of professional graphics cards.

    1:51 am FibroGen and Astellas (ALPMY) treat first patient in its Phase 3 trials of roxadustat in Japan (FGEN) :

    Astellas Pharma (ALPMY) and FibroGen (FGEN) announced the dosing of the first patient in Phase 3 trials in Japan of roxadustat for treatment of anemia in chronic kidney disease, which triggered a $10 million milestone payment from Astellas to FibroGen.

    • The initiation of Phase 3 studies in Japan follows the positive results from two Phase 2 studies in Japan of roxadustat in CKD patients on dialysis and in CKD patients not on dialysis.
    • In the Phase 2 studies in Japan of CKD patients receiving dialysis and not receiving dialysis, roxadustat was well tolerated and met the primary objective of demonstrating dose-related rates of hemoglobin increase measured over the first six weeks of treatment, as well as anemia correction and Hb maintenance over the 24-week treatment period.

    1:49 am Euronet beats by $0.07, beats on revs; guides Q3 EPS above consensus (EEFT) :

    • Reports Q2 (Jun) earnings of $0.97 per share, $0.07 better than the Capital IQ Consensus of $0.90; revenues rose 12.2% year/year to $476.9 mln vs the $470.89 mln Capital IQ Consensus.
      • Transactions of 793 million, an 8% increase from 734 million.
    • Transactions of 793 million, an 8% increase from 734 million.
    • Co issues upside guidance for Q3, sees EPS of ~$1.34 vs. $1.22 Capital IQ Consensus Estimate 
      • Guidance assumes foreign currency exchange rates remain stable through the end of the quarter
    • Guidance assumes foreign currency exchange rates remain stable through the end of the quarter