1:34 pm COMEX Metals Closing Prices (:COMDX) :
- Aug gold fell $7.80 to $1306.10/oz
- Sep silver fell $0.01 to $21.00/oz
- Sep copper rose 1 cent to $3.21/lbs
1:25 pm Notable movers of interest (:SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).
Large Cap Gainers
- CMG (666.98 +13.06%): Beat on EPS by $0.41, beat on revs; Q2 comps +17.3% well above expectations; raised FY14 comp guidance; tgt raised to $680 from $560 at Wunderlich; tgt raised to $740 from $610 at Piper Jaffray; tgt raised to $730 from $680 at RBC Capital Mkts, tgt raised to $700 from $625 at Oppenheimer; tgt raised to $750 from $640 at BofA/Merrill; tgt raised to $800 from $650 at Robert W. Baird; tgt raised to $670 from $575 at JP Morgan; tgt raised to $660 from $595 at Telsey Advisory Group; tgt raised to $600 from $535 at Miller Tabak; tgt raised to $630 from $575 at Deutsche Bank.
- ARMH (45.28 +6.37%): Reported EPS in-line, beat on revs; sees outlook in-line with expectations.
- APA (103.64 +5.15%): According to reports, Jana Partners would like APA to sell of international business.
- HOG (62.94 -6.17%): Beat on EPS by $0.16, reported revs in-line; lowered FY14 shipment guidance to +3.5-5.5% from +7-9%.
- NFLX (426 -5.74%): Reported EPS in-line, revs in-line; guided Q3 EPS in-line; tgt raised to $440 from $393 at FBR Capital; tgt raised to $350 at Jefferies from $300; tgt raised to $525 from $450 at Janney; tgt raised to $530 from $500 at RBC Capital Mkts; tgt raised to $535 from $500 at Oppenheimer; tgt raised to $500 from $475 at Stifel; tgt raised to $550 from $500 at JP Morgan; tgt raised to $510 at CRT Capital; tgt raised to $500 from $425 at Cantor Fitzgerald.
- TRV (91.24 -4.23%): Missed on EPS by $0.14; co ordered by Court to pay $500 mln over case involving asbestos, according to reports.
- HLF (62.28 +15.29%): Co released a press release detailing the findings from research and analysis conducted by Walter H. A. Vandaele, Ph.D. of Navigant Economics; Robert Chapman of Chapman Capital on CNBC discussed his bullish outlook for HLF; Pershing Square held a presentation on co.
- CIT (48.92 +11.31%): Beat on EPS by $0.31, Credit metrics remain at or near cycle lows; co to acquire IMB Holdco, the parent co of OneWest Bank, for $3.4 bln in cash and stock; transaction is immediately accretive to CIT's earnings per share; Board of Directors approved repurchase of up to $500 mln of common stock through June 30, 2015.
- WWD (53.26 +10.64%): Beat on EPS by $0.08, beats on revs; reaffirmed FY14 EPS and revenue guidance.
- EDU (21.46 -11.32%): Beat on EPS by $0.02, beat on revs; guided Q1 revs below consensus.
- BXS (21.76 -7.05%): Reported EPS in-line.
- CCK (48.79 -5.21%): Beat on EPS by $0.01, beat on revs.
1:18 pm Ligand Pharma partner SAGE Therapeutics (SAGE) receives fast track designation for Captisol-enabled SAGE-547 to treat status Epilepticus (LGND) : Co announced that its partner Sage Therapeutics (SAGE), a biopharmaceutical company developing novel medicines to treat life-threatening, rare central nervous system disorders, announced today that the FDA has granted fast track designation to the SAGE-547 development program. SAGE-547 is an allosteric modulator of GABAA receptors in development for the treatment of adult patients with refractory status epilepticus who have not responded to standard regimens.
- Sage also recently announced the pricing of an initial public offering of common stock. The intended use of proceeds are described in the related prospectus and are expected to include funding pipeline programs including SAGE-547, an intravenous agent that utilizes Ligand's Captisol technology, among other purposes.
12:57 pm Midday Market Summary: Small Caps Hold Midday Lead (:WRAPX) : At midday, the major averages hover near their highs with small caps in the lead. The Russell 2000 trades higher by 1.1%, while the S&P 500 sports an advance of 0.6% with nine sectors in the green.
Equities climbed from the start with geopolitical concerns cast to the backburner after separatist forces in eastern Ukraine handed over black boxes from MH17 to Malaysian authorities and Secretary of State John Kerry began working on brokering a cease fire in Gaza.
With those concerns moving away from the spotlight, the stock market was able to rally on the back of a series of quarterly reports that were mostly better than expected. On that note, the likes of Chipotle Mexican Grill (CMG 667.15, +77.22), Texas Instruments (TXN 48.60, -0.57), Verizon (VZ 51.00, +0.30), United Technologies (UTX 110.95, -2.03), Coca-Cola (KO 41.13, -1.27), and Comcast (CMSCA 54.79, +0.97) best their estimates, while Travelers (TRV 91.22, -4.04) and McDonald's (MCD 95.78, -1.77) missed.
The blue chip Dow (+0.4%) has been pressured by the underperformance of Travelers, United Technologies, and McDonald's, but that relative weakness has not lured money out of high-growth areas like chipmakers and biotechnology.
The PHLX Semiconductor Index is higher by 0.7%, which has provided support to the broader technology sector (+0.9%). Elsewhere, the iShares Nasdaq Biotechnology ETF (IBB 253.94, +3.08) trades up 1.2%, while the health care space (+1.0%) sits in the lead.
On the flip side, another countercyclical sector-consumer staples (-0.1%)-hovers right below its flat line.
Treasuries display slim losses with the 10-yr yield up one basis point at 2.48%.
Economic data included CPI, FHFA Housing Price Index, and Existing Home Sales:
- Consumer prices increased 0.3% in June, down from a 0.4% increase in May, which matched the Briefing.com consensus estimate
- As expected from the June PPI report, a strong increase in energy prices, up 1.6% in June, was the main catalyst for the overall increase in consumer prices. That was the largest increase in monthly energy costs since December
- Gasoline costs rose 3.3% after increasing 0.7% in May
- Food prices moderated a bit in June, increasing only 0.1% after growing by at least 0.4% per month since February o Excluding food and energy, core CPI increased 0.1% in June after increasing 0.3% in May, while the consensus expected an increase of 0.2%
- The May Housing Price Index from the FHFA rose 0.4%, which followed a revised increase of 0.1% observed during the prior month (from 0.0%)
- Existing home sales increased to 5.04 million SAAR in June from an upwardly revised 4.91 million SAAR (from 4.89 million SAAR) in May, while the Briefing.com consensus an increase to 5.00 million SAAR
- This was the first time sales exceeded 5.00 million SAAR since October 2013. Still, sales are down 2.3% year-over-year
12:12 pm Laclede Group receives regulatory approval to acquire Alabama Gas Corporation from Energen Corporation (EGN) (LG) : Co unanimously voted to approve the acquisition of Alabama Gas Corporation by The Laclede Group from Energen Corporation (EGN). Laclede and Energen jointly filed a request for approval with the APSC on April 14. The APSC held a public hearing on the matter which concluded on July 1.
12:01 pm VOXX Intl subsidiary, VOXX Electronics Corp, and Steelmate Automotive sign exclusive distribution agreement (VOXX) : VOXX Electronics, a wholly-owned subsidiary of VOXX International, today announced the Company has entered into a distribution agreement with Guangdong Steelmate Security) whereby Steelmate will supply to VOXX Electronics on an exclusive basis their full line of collision avoidance and advanced automotive accessories for the company's automotive brands.
- In addition, under the terms of the agreement, VOXX Electronics Corporation has the option to distribute select products under the Steelmate brand should marketing needs or channel management dictate it.
11:48 am European Markets Closing Prices (:SUMRX) : European markets are now closed; stock markets across Europe performed as follows:
- UK's FTSE:+1.0%
- Germany's DAX:+1.2%
- France's CAC:+1.6%
- Spain's IBEX:+1.7%
- Portugal's PSI:+1.1%
- Italy's MIB Index:+2.2%
- Irish Ovrl Index:+1.2%
- Greece ASE General Index: +0.1%
11:48 am Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (170) outpacing new lows (35) (:SCANX) : Stocks that traded to 52 week highs: AA, AAT, AB, ABC, ABG, ABT, ABY, ACH, AET, AHGP, AIV, AKR, AMT, AOSL, APA, ARE, ATHL, AVGO, AZC, BBEP, BBL, BDN, BEE, BGCP, BHP, BIDU, BITA, BK, BKD, BLL, BRX, BX, CBG, CDZI, CENX, CHRW, CI, CIB, CIG, CM, CMG, CMSB, CNC, CNI, CONE, COO, CP, CSX, CUZ, DCM, DDR, DOC, DRE, EA, EDUC, EFX, ELP, EMC, ENB, ENPH, ENSV, EPR, EQR, ESC, ESS, FCS, FIS, FRT, FSI, GB, GLP, GLUU, GPRE, GRH, GT, HAL, HBM, HCLP, HIW, HON, HPP, HST, HT, HUB.B, HUM, IBCA, IDIX, IMS, INN, INTU, INVN, IR, ISS, JLL, KMR, KNDI, LLY, LNG, LXK, MAC, MAR, MIC, MJN, MMP, MNR, MTD, MYOS, NFX, NJ, NNBR, NNN, NOC, NOV, NSC, NSLP, NTES, NTT, OFC, PBR.A, PEGI, PEIX, PHX, PTR, PTSI, PXLW, QCOM, R, REX, REXI, RFMD, RHP, SAGE, SANM, SAVE, SBAC, SE, SHW, SIAL, SKX, SLCA, SMCI, SONS, SPG, ST, STLD, SVU, TCP, TEL, TEN, THRM, TIME, TMH, TQNT, TRNS, TSRA, TTM, TTWO, UBFO, VIPS, VNR, WIN, WLK, WLL, WLP, WOOF, WRI, WWD, XEC, XRX, ZINC
Stocks that traded to 52 week lows: ACI, ALCS, BAA, BAXS, BIOD, BTH, CERU, CGA, EDU, ENRJ, ENVI, ESNT, FELP, FNJN, ISNS, IVAN, LAYN, NEWL, NILE, NRX, NUS, OGXI, QKLS, RCII, ROYT, RTGN, SILC, TCCO, TCS, TRC, TSE, UUU, VGGL, VSAR, ZA
ETFs that traded to 52 week highs: AFK, BKF, DBB, EEM, EWC, EWW, EZA, ICF, IHF, ILF, IYR, IYT, OEF, QQQ, SPY, URE, VWO, XLK
ETFs that traded to 52 week lows: JJA, JJG, RJA
11:46 am Currency Commentary: DXY Hits Multi-Week Highs (:SUMRX) :
- The Dollar Index came within 7 pips of testing a multi-month high. The dollar was rallying ahead of the June CPI report but quickly saw selling when the number came in line with expectations. However that selling stopped at 80.67 and the buying would restart following solid housing data. The DXY is now trading at its best level in six weeks and is preparing to test the multi-month high of 80.90 for resistance.
- The euro has continued to see selling pressure as it dives below 1.35 to the 1.3450 area. The single currency has been in a downward trend over the past six weeks and continue to looks for support levels. The single currency has slipped to the 1.3465 level this morning, the lowest it has been since November of 2013.
- The pound continues to trade in the 1.70 area. The trend has been down but the selling is hardly aggressive and cable has not even tested the 1.70 level for support at this point. Public Sector Net Borrowing was lower than expected and an Industrial Orders survey fell short of expectations. Market participants will be looking closely at tomorrow's Bank of England minutes. There is a belief that a growing number of members are looking to raise rates so the market will be looking to see if the BoE decisions remain unanimous.
- The yen rallied from 101.60 to 101.30 following the CPI release but is slowly giving up those gains. With risk on driving markets the yen is sliding back to the low end of 101. On a longer term outlook the yen is simply continuing its consolidation in the 101 area which has been the case over the past two weeks (BONDX, FOREX).
11:28 am Floor Talk (:TALKX) : The balance of headlines have skewed favorably today, making it understandable that the equity market would have a bullish bias.
- Geopolitical fears have ebbed on reports that separatist forces in eastern Ukraine have turned over two black boxes from MH17 to Malaysian authorities and that Secretary Kerry is charging ahead with work on cease-fire negotiations between Israel and Hamas
- The majority of earnings reports have been better than expected
- Economic data was pleasing with the dual message from the CPI and Existing Home Sales reports for June that inflation pressures remain in check and that home sales topped an annual pace of 5.00 mln for the first time since October 2013
A separate headline that a federal appeals court panel has ruled subsidies provided for health insurance bought on federal exchanges are illegal has caused a bit of a stir (subsidies for insurance bought on state exchanges remain in place). However, it has been widely reported simultaneously that two previous rulings in related cases have gone against plaintiffs and that a similar case in front of the 4th U.S. Circuit Court of Appeals is likely to result in a ruling against plaintiffs arguing subsidies received on HealthCare.gov are illegal. Health care-related stocks continue to hold up well, suggesting there isn't a lot of undue concern that today's ruling will win out in terms of being translated into law anytime soon (if at all).
The major indices are near their best levels of the day in a risk-on trade that has featured the outperformance of the small-cap stocks, evidenced by the 1.1% gain in the Russell 2000, and another spike lower in the CBOE Volatility Index (VIX 11.86, -0.95).
11:19 am Brunswick increases quarterly dividend to $0.125 from $0.1/share (BC) :
11:09 am S&P +12 finally tops early month peak to set a new all time high of 1986.24 (SPY) :
11:04 am Another try at all time high for S&P at 1985.59 -- session high 1985.06 (SPY) :
10:51 am Arthur J. Gallagher signs agreement to acquire Baker Tilly's employee benefits business; terms of the transaction were not disclosed (AJG) : Co announced that it signed an agreement to acquire the assets of Baker Tilly's Employee Benefits Solutions business, which has annualized revenues of ~$11.5 mln and is located in the United Kingdom. Other terms of the transaction were not disclosed. This agreement is subject to the satisfaction of certain conditions and the transaction is expected to close in the third quarter 2014.
10:42 am Opko Health granted patent from US Patent & Trademark Office for RAYALDEE (OPK) : Co announced that the United States Patent and Trademark Office granted OPKO a patent covering RAYALDEE, the company's product to treat secondary hyperparathyroidism in patients with stage 3 or 4 chronic kidney disease and vitamin D insufficiency.
- The new patent provides OPKO with additional intellectual property protection covering controlled release administration of a vitamin D compound.
- OPKO is on schedule to announce top-line results from the first pivotal phase 3 trial for RAYALDEE in the third quarter of 2014 and file a New Drug Application with the FDA in the first quarter of 2015.
10:37 am Small-cap Russell 2000 sets new session high but major averages continue to drift under morning peaks -- Dow +57, S&P +9.4, Nasdaq Comp +32 (:TECHX) :
10:17 am S&P flirts with early month/all time high at 1985.59 and pauses -- session high 1985.06 (SPY) :
10:12 am RadNet's eRAD Distributors sign 12 new customers in Q2 (RDNT) :
10:07 am Qualcomm extends strong start to new high of 81.15, its July/three month peak is 81.27 (QCOM) : The 2014/multi-year high from April comes into play thereafter at 81.66.
10:01 am Northrop Grumman: US Navy selects Northrop Grumman for ship self-defense system; $12 mln task order, and $61 mln potential value over five years (NOC) : The U.S. Navy has awarded Northrop Grumman Corporation a $12 million task order for a full range of engineering services to continue modernizing the Ship Self-Defense System Mark 2 (SSDS MK2). The contract has a potential value of $61 million over five years, if all options are exercised.
The task order was awarded under the SeaPort-e indefinite delivery, indefinite quantity contract vehicle.
10:01 am Preformed Line Products and Channell Commercial reported that both parties have resolved the dispute to their mutual satisfaction (PLPC) :
9:55 am Minor new session highs for major averages -- Dow +55, S&P +8.6, Nasdaq Comp +28 (:TECHX) :
9:51 am Waters acquires REIMS Technology, strengthens health science initiative (WAT) : Co announced the acquisition of Rapid Evaporative Ionization Mass Spectrometry (:REIMS) technology from MediMass Ltd. The REIMS technology represents substantially all of the assets of MediMass and includes patent applications, software, databases and REIMS expertise.
- Waters' experience with REIMS technology stems from a three-year collaboration among Waters, MediMass and Imperial College London focused on advancing REIMS. The goal of this relationship has been and continues to be advancing REIMS technology capabilities for health science applications.
9:49 am Coca-Cola on the call (KO) : Company commented on recent Brand success:
- "Share a Coke" program expanded co's social media reach and contributed to expanded Sparkling beverages.
- Global juice remaisn "robust" in regards to Tea, energy, coffee and water beverages are gaining share to date.
- Company chalks up Green Mountain Coffee (GMCR) partnership as the beginning and will try to strengthen their beverage share depth in the future.
9:48 am Intuit runs to new session high of 82.30, its March and July/multi-year highs are at 82.40/82.45 (INTU) :
9:45 am Relative sector performance (:TECHX) : Early relative strength has been noted in Solar TAN, Casino, biotech IBB, Networking IGN, Steel SLX, Disk Drive, Oil Service OIH, Home Constr ITB, Health XLV, Trucking, Copper JJC, Energy XLE, Transports IYT. Weaker sectors include: Gold Miners GDX, Crude Oil USO, Natural Gas UNG, Staples XLP.
9:44 am Opening Market Summary: Small Caps Display Early Strength (:WRAPX) : As expected, the major averages began the session on a strong note with small caps in the lead. The Russell 2000 is higher by 0.6%, while the S&P 500 trades up 0.3% with eight sectors in the green.
Energy (+0.9%) and health care (+0.8%) have grabbed the early lead, while industrials (+0.6%) and technology (+0.6%) follow not far behind. On the flip side, countercyclical consumer staples (-0.3%) and telecom services (-0.3%) hold modest losses.
Also of note, transport stocks have shown noteworthy strength and the Dow Jones Transportation Average currently trades higher by 0.8%.
Treasuries remain little changed with the 10-yr yield at 2.47%.
The Existing Home Sales report for June will be released at 10:00 ET (Briefing.com consensus 5.00 million).
9:35 am Solid start for market averages with small-caps pacing the way -- Dow +48, S&P +8.7, Nasdaq Comp +26 (:TECHX) : S&P reaches 1982 last week's peak is at 1983 with the July/all time high at 1985.
9:30 am Nymox Pharma announces positive efficacy results in Phase 3 repeat injection trial of NX-1207 for BPH (NYMX) : Co announced new positive efficacy data for U.S. Study NX02-0022, the co's repeat injection study of NX-1207 for BPH.
- Analysis of symptomatic improvement from repeat injection over a 1 to 2 year period showed a mean improvement of 8.2 points (p
- Evaluation of safety data from this study confirmed that NX-1207 reinjection treatment was well-tolerated by patients, did not impair sexual function, and has not shown any drug-related significant side effects.
- Participants in the clinical trial consisted of 160 consecutively treated men who had previously completed participation in an NX-1207 trial for BPH (the Phase 2 U.S. NX02-0014 or NX02-0016 trials or the U.S. Phase 3 NX02-0017 or NX02-0018 trials) and who volunteered for a subsequent open label injection of NX-1207.
- The mean symptomatic improvement of 8.2 points is in a similar range to the mean improvement of 7.6 points (p
9:30 am Rosetta Genomics receives final New York State approval for Rosetta kidney cancer test (ROSG) : Co announced that the New York State Department of Health has given the Company final approval for its Rosetta Kidney Cancer Test for testing on patient samples from the State. New York is the only U.S. state that requires an independent regulatory review process for laboratory-developed tests. Rosetta Genomics has been offering its Kidney Cancer Test in New York under conditional approval since December 9, 2013 and now has full approval in all 50 U.S. states.
- The Kidney Cancer Test is the Company's proprietary microRNA-based assay that can classify the four most common kidney tumors: Clear Cell Renal Cell Carcinoma, Papillary RCC, Chromophobe RCC and Oncocytoma. With this final approval, each of Rosetta's cancer testing services now has full New York State approval.
- A blinded independent validation set of 200 samples was studied to measure the performance of the Rosetta Kidney Cancer Test. Of the 184 samples that produced a result, 174 were classified correctly demonstrating 95% accuracy or sensitivity, with 98% specificity.
9:29 am Navios Maritime Acquisition announces delivery and employment of one VLCC (NNA) : Co announced that the Nave Electron, a 2002-built VLCC of 305,178 dwt, was delivered to Navios Acquisition's owned fleet on July 21, 2014. The co also announced that the Nave Electron has been chartered out to a high quality counterparty for minimum one year at a rate based on charterer's VLCC pool earnings.
- The Nave Electron has been provided as collateral under the 8.125% First Priority Ship Mortgage Notes due 2021, in place of the Nave Dorado and the Nave Lucida (MR2 product tankers). As a result, ~ $5.5 million of value has been added to the collateral package.
- Following the delivery of the Nave Electron, Navios Acquisition has 38 vessels in the water of which 11 VLCCs, 23 product tankers and four chemical tankers.
9:27 am On The Wires (:WIRES) :
- Boston Scientific (BSX) has initiated full commercial launch of the new POLARIS Imaging System. This system will support the Boston Scientific family of intravascular ultrasound catheters, including coronary, peripheral and intra-cardiac echo products.
- Platinum Group Metals (PLG) announced the award of the Independent Qualified Person role for the ongoing Waterberg Pre-Feasibility Study, "PFS" to South Africa based and global engineering firm DRA Mineral Projects. The award of the contract to DRA follows a competitive tender and adjudication process.
- Nielsen (NLSN) and Pointlogic announced a global strategic alliance. Together, the two cos will develop and bring to market next-generation media planning and inventory management solutions.
- Derma Sciences (DSCI) announced that AMNIOEXCEL, its novel human amniotic membrane allograft, has been approved by the Veterans Administration for inclusion in its Federal Supply Schedule V797P-2000D.
- Exide Technologies (XIDE; XIDEQ) announced that its GNB Industrial Power Division product line of 24V, 36V, 48V, 72V and 80V three phase industrial battery chargers for electric lift trucks and other material handling equipment has received energy efficiency certification from the California Energy Commission.
- ATA (ATAI) has entered into an agreement with New Oriental Education & Technology to form a JV that will provide online and mobile education and training to working professionals in China. ATA will invest RMB13.5 mln, representing a 45% stake in the new JV co, and New Oriental will invest RMB16.5 mln for a 55% stake.
- Hughes Network Systems, a subsidiary of EchoStar (SATS), and Thales Defense & Security have successfully tested a rapidly deployable Long-Term Evolution mobile networking solution via satellite.
9:26 am On The Wires (:WIRES) :
- Rocket Fuel (FUEL) announced that Booyah Advertising has switched from another DSP to the latest version of Rocket Fuel Mission Control, an AI-driven digital marketing hub with expanded self-service tools for digital campaign management.
- Knowles (KN) achieved a major milestone in the hearing health industry by shipping its two millionth MEMS microphone for hearing instruments.
- Kodak (KODK) has reached a significant milestone: 1,000 customers have adopted KODAK SONORA Process Free Plates that remove the plate processing step completely without sacrificing the quality or productivity of traditional mainstream processed plates.
- Xplore Technologies (XPLR) has been included in the Russell Microcap Index when Russell Investments reconstituted its comprehensive set of U.S. and global equity indexes on June 27, according to a preliminary list of additions posted June 13.
- Ellie Mae (ELLI) announced that Ditech Mortgage has selected Ellie Mae's Encompass as its mortgage management solution.
- Harris (HRS) has received a $15 mln order to deliver its latest wideband handheld tactical radio to a country in the Middle East.
- Elekta (EKTAY) and Royal Philips (PHG) announced that The Christie NHS Foundation Trust will join a consortium whose mission is to develop the clinical value of an integrated magnetic resonance imaging guided radiation therapy system. Such a system would, in principle, improve the practice of radiotherapy via real-time visualization of cancer targets.
- Alcatel-Lucent (ALU) announced that Turk Telekom has deployed Alcatel-Lucent's 7950 Extensible Routing Platform.
- Concur (CNQR) announced its availability on the Amazon (AMZN) Appstore, accessible to all Amazon Fire Phone users. Fire Phone enables Concur users to seamlessly access their workspace and resources even when on the go.
9:20 am Galmed Pharma announces FDA clearance of IND of armachol for the treatment of fatty liver disorders (GLMD) : Co announced that the FDA cleared Galmed's Investigational New Drug, or IND, application. Such clearance will permit Galmed to conduct clinical trials of its product candidate, aramchol, in the United States for the treatment of fatty liver disorders. Galmed is initially developing aramchol for the treatment of Non-Alcoholic Steato-Hepatitis, or NASH. According to scientific literature, NASH is a chronic disease that affects approxiately12% of the population in United States and in certain European Union nations and its prevalence is expected to increase in parallel with increased rates of obesity and diabetes.
- There are currently no approved drugs to treat NASH.
- In connection with the FDA's clearance of Galmed's IND application, Galmed submitted a request to the FDA for the approval of a Fast Track Designation for aramchol.
9:15 am S&P futures vs fair value: +6.80. Nasdaq futures vs fair value: +18.70. (:WRAPX) : The stock market is on track for an upbeat open with futures on the S&P 500 trading just below their best levels of the morning (seven pts above fair value). Futures held slim gains during the early part of the night, but climbed to highs shortly after markets in Europe opened for business. Like U.S. futures, European markets trade near their best levels of the day with earnings in focus.
Domestically, participants have also been responding to earnings with a full slate of companies reporting their results today. Notably, Chipotle Mexican Grill (CMG 654.03, +64.10) is indicated to open higher by 10.9% after beating estimates. On the flip side, Dow component McDonald's (MCD 95.35, -2.20) is on track to begin the session with a 2.3% loss in reaction to its below-consensus results.
Outside of McDonald's, another Dow component, Travelers (TRV 92.63, -2.63), also reported below-consensus earnings, while Coca-Cola (KO 41.37, -1.03) and Verizon (VZ 50.94, +0.24) beat by one cent each. Also of note, United Technologies (UTX 113.49, +0.51) surpassed estimates and DuPont (DD 65.70, +0.16) reported in line with its warning from June 26.
On the economic front, consumer prices increased 0.3% in June, down from a 0.4% increase in May. The Briefing.com consensus expected the CPI to increase 0.3%. As expected from the June PPI report, a strong increase in energy prices, up 1.6% in June, was the main catalyst for the overall increase in consumer prices. That was the largest increase in monthly energy costs since December. Gasoline costs rose 3.3% after increasing 0.7% in May. Food prices moderated a bit in June. Prices increased only 0.1% after growing by at least 0.4% per month since February. Excluding food and energy, core CPI increased 0.1% in June after increasing 0.3% in May. The consensus expected core prices to increase 0.2%.
Treasuries are little changed with the 10-yr yield at 2.47%.
9:12 am Tallgrass Energy Partners prices 7 mln common units representing limited partner interests at $41.07 per common unit (TEP) :
9:11 am MPLX LP increases quarterly dividend to $0.3425 from $0.3275/share (MPLX) :
9:10 am ALCO Stores: Glass Lewis also a no vote on ALCO Board, according to concerned ALCO stockholders (ALCS) : Co announced that Glass Lewis & Co. has joined Institutional Shareholders Services, Inc. in affirming the need for a change of the incumbent Board of Directors of ALCO Stores.
- GL's report released Monday, July 21, recommends that investors DO NOT VOTE for any of the incumbent Directors of the Company this year, including Messrs. Royce Winsten, Richard E. Wilson, Dennis E. Logue, Lolan C. Mackey, Terrence M. Babilla, Paul T. Davies, and Leslie A. Ball. Both Glass Lewis & Co. and Institutional Shareholders Services, Inc. recommend ALCO investors use the GOLD proxy card for voting.
9:06 am Halozyme Therapeutics resumes patient enrollment and dosing in PEGPH20 clinical program in pancreatic cancer; additional independent review board approvals expected for Phase 2 Trial (HALO) : Co announced that it has resumed enrollment and dosing of patients in its ongoing Phase 2 trial (Study 202) evaluating PEGPH20 in patients with pancreatic cancer under the revised clinical protocol agreed to with the FDA in June.
9:04 am S&P futures vs fair value: +5.90. Nasdaq futures vs fair value: +17.70. (:WRAPX) : The S&P 500 futures trade six points above fair value.
The May Housing Price Index from the FHFA rose 0.4%, which followed a revised increase of 0.1% observed during the prior month (from 0.0%).
9:04 am Silver Bay Realty Trust announces planned launch of securitization transaction (SBY) :
- Co announced that it is engaged in advanced discussions with Pine River Domestic Management and Provident Real Estate Advisors, the owners of Silver Bay's external manager, PRCM Real Estate Advisers on a transaction to internalize the management of the Company.
- As currently contemplated, Silver Bay expects such a transaction would involve Silver Bay's acquisition of the Manager in exchange for common stock in Silver Bay or common units in Silver Bay's operating partnership subsidiary.
- Following such a transaction, Silver Bay would own all material assets and intellectual property rights of the Manager currently used in the conduct of its business and would be managed by officers and employees who currently work for the Manager and who would become employees of Silver Bay or a subsidiary thereof as a result of the internalization.
9:03 am Sotherly Hotels announces 30.0% increase to quarterly dividend to $0.065/share (SOHO) : Co announced that its board has declared a quarterly cash dividend of $0.065 per common share of beneficial interest.
- The quarterly dividend will be paid on October 15, 2014 to shareholders of record as of October 2, 2014.
9:03 am Authentidate Holding provides business update (ADAT) :
- "We remain confident that we have the right long-term strategy and the right technology offerings at the right time in the healthcare software and telehealth space. The government and commercial markets continue to validate our business plan and our solutions through selection and acceptance of our products and services. We have invested significantly in building a platform that we believe will support innovative and far-reaching healthcare services for many years to come, and we are focused on achieving long-term growth and profitability for the benefit of our shareholders. While more moderate than we originally expected, our last fiscal year will be a year of growth for our company. Our pipeline is broader and remains solid, and we believe the long-term demand for our products and services will continue to increase as the Affordable Care Act and other healthcare reforms are implemented. We expect to be announcing additional new business signings in the quarters ahead."
- "The executive management team and board of directors believe the company's share price today does not adequately reflect the opportunity we have in front of us and the progress we've made to date. To affirm our views and ensure alignment of management's and the board's interests with that of our shareholders, we implemented a compensation modification program back in 2010. Under this program, company executives, including myself, agreed to take a significant portion of our salaries in restricted stock. Similarly, our directors receive all of their board compensation in options or restricted stock. We remain committed to our long range business plan; we are excited about our future prospects and continue to be personally invested in positive outcomes for our business."
9:03 am Amazon.com announces Amazon Appstore selection has nearly tripled over the past year, and since Fire phone launched, the rate of app submissions to the Amazon Appstore has more than doubled (AMZN) : Co announces that Amazon Appstore selection has nearly tripled over the past year, and since Fire phone launched, the rate of app submissions to the Amazon Appstore has more than doubled. App submissions are at record levels in the 5 week period since launch. In the few weeks since Fire phone launched, developers have already found innovative uses of the phone's enhanced carousel, Dynamic Perspective and Firefly.
9:02 am MELA Sciences announces $27.3 million at the market private placement of preferred stock, debentures and warrants (MELA) :
- Co announced that it entered into a definitive securities purchase agreement with entities affiliated with institutional investors in connection with a private placement of approximately $15.0 million aggregate principal amount of senior secured convertible debentures, 12,300 shares of Series B convertible preferred stock at a price of $1,000 per share, and warrants to purchase approximately 11.2 million shares of common stock at an exercise price of $2.45 per share.
- Subject to certain ownership limitations, the debentures are convertible into approximately 5.8 million shares of common stock at an initial conversion price of $2.565 per share, will bear interest at 4% per year, and will mature on the five year anniversary of the date of issuance. The Series B convertible preferred stock is convertible at any time into an aggregate of approximately 4.8 million shares of common stock at an initial conversion price of $2.565 per share.
9:01 am Mechel Steel reports record results for coal supplies to Asia Pacific; In January-June 2014, Mechel exported 5.3 mln tonnes of coal to Asia Pacific markets, which is the highest result in the co's history. In the same period in 2013, the co shipped ~3.8 mln tonnes of coal to Asia Pacific (MTL) :
- Co exported 5.3 million tonnes of coal to Asia Pacific markets, which is the highest result in the company's history. In the same period in 2013, the company shipped approximately 3.8 million tonnes of coal to Asia Pacific. Mechel's coal exports to the East thus increased by 39%, with Asia Pacific states accounting for 75% of its total coal export.
- Shipments for Asia Pacific customers generally go by sea through Port Posiet in Primorye, which is part of Mechel, and Port Vanino in Khabarovsk Region. Record shipment results were primarily due to the launch of specialized transshipment coal complex at Port Posiet into preliminary operation. Mechel's shipments through Port Vanino also increased due to upgrading of the port's transshipment equipment which is currently under way.
9:01 am Silver Bay Realty Trust announces discussions to internalize its management structure (SBY) : Co annonces that it is engaged in advanced discussions with Pine River Domestic Management and Provident Real Estate Advisors, the owners of Silver Bay's external manager, PRCM Real Estate Advisers, on a transaction to internalize the management of the Company.
- As currently contemplated, Silver Bay expects such a transaction would involve Silver Bay's acquisition of the Manager in exchange for common stock in Silver Bay or common units in Silver Bay's operating partnership subsidiary. Following such a transaction,
- Silver Bay would own all material assets and intellectual property rights of the Manager currently used in the conduct of its business and would be managed by officers and employees who currently work for the Manager and who would become employees of Silver Bay or a subsidiary thereof as a result of the internalization.
9:01 am Identiv wins government security news award for premises solution at San Diego International Airport (INVE) :
- Co announced it won the 2014 GSN Award for the Best Physical/Logical Privileged Access Solution.
- This award comes for Identiv's work with San Diego International Airport.
9:00 am Tecogen to supply additional school districts with combined heat power systems (TGEN) : Co announces the sale of combined heat and power systems to a group of public schools in northern New Jersey, and Long Island, New York.
- The sales involved three contracts with a combined value at $1.97 million, and were made separately to two regional offices of a multi-national Energy Services Company.
- Under the terms of the contracts, Tecogen will supply the CHP modules as well as engineering and installation services. All units are expected to be commissioned by the end of 2014.
- These orders follow similar projects received from the same ESCO in 2012 and 2013.
9:00 am Rocket Fuel expands self-service platform with features tailored to independent agencies (FUEL) : Co announced that Booyah Advertising has switched from another DSP to the latest version of Rocket Fuel Mission Control. T
8:58 am First Merchants and Community Bancshares announce merger agreement; shareholders of Community Bancshares will have right to exchange each Community Bancshares common share held for either or a combination of 4.0926 shares of First Merchants' common stock, or $85.94 in cash (FRME) :
- Co announced they have executed a definitive agreement whereby Community Bancshares will merge with and into First Merchants, and its wholly-owned bank subsidiary, Community Bank, will merge with and into First Merchants Bank, N.A. The merger agreement provides that shareholders of Community Bancshares will have the right to exchange each Community Bancshares common share held for either or a combination of (i) 4.0926 shares of First Merchants' common stock, or (ii) $85.94 in cash.
- In the event that the total amount of cash elections exceeds $15 mln, proration will occur to limit the cash paid to $15 mln. Based on the closing price of First Merchants' common stock on July 21, 2014 of $20.38, the transaction value is ~$46.3 mln.
- The transaction is expected to be completed in the first quarter of 2015, subject to the approval of Community Bancshares shareholders, regulatory approvals, and other customary closing conditions. The combined financial institutions, which will do business as First Merchants Bank, expect to complete the integration during the second quarter of 2015.
8:58 am S&P futures vs fair value: +6.70. Nasdaq futures vs fair value: +18.50. (:WRAPX) : The S&P 500 futures trade seven points above fair value.
The major Asian indices ended on a higher note. The Japanese government lowered its 2014 growth forecast to 1.2% from 1.4%, citing weak demand from emerging markets. Elsewhere, Reserve Bank of Australia Governor Glenn Stevens reiterated the central bank's view that a period of stable rates is likely, and that animal spirits are needed to help the real economy.
- Economic data was limited:
- Japan's All Industries Activity Index rose 0.6% month-over-month (forecast 0.7%; prior -4.6%)
- Taiwan's unemployment rate held at 4.0%
- Japan's Nikkei added 0.8%, finishing just shy of six-month highs as traders returned to work following the extended holiday weekend. The weaker yen provided a boost for exporters as Honda Motor climbed 0.5% and Canon added 0.3%.
- Hong Kong's Hang Seng surged 1.7% to an eight-month high. Real estate developers led the way on word more cities were easing restrictions. China Overseas Land & Investment and China Resources Land rallied 4.4% and 3.2%, respectively.
- China's Shanghai Composite rose 1.0%, finishing at its best level in over a month. Automakers provided support after Beijing once again promoted electric and hybrid vehicles. BYD jumped 5.6% to lead the space higher.
- Participants received just three data points:
- Switzerland's trade surplus narrowed to CHF1.377 billion from CHF2.849 billion (forecast CHF2.970 billion)
- CBI Industrial Trends Orders in Great Britain fell to 2 from 11 (forecast 8) and Public Sector Net Borrowing came in at GBP9.51 billion (expected GBP9.20 billion; previous GBP11.86 billion)
- Great Britain's FTSE trades higher by 0.9% with ARM Holdings in the lead. The chipmaker trades up 4.9% after reporting in-line results. Staple stocks underperform with Tesco, J Sainsbury, and WM Morrison Supermarkets down between 0.9% and 3.7%.
- Germany's DAX holds an advance of 0.9%. Conglomerate Siemens outperforms with an increase of 1.7%, while Infineon Technologies follows not far behind (+1.6%). Adidas lags, down 0.8%.
- In France, the CAC is higher by 1.0%. Oil companies lead with Technip and Total up 2.7% and 2.0%, respectively. Publicis Groupe is lower by 5.2% following disappointing results.
- Italy's MIB is higher by 1.7% amid broad strength. Banco Popolare, Pirelli, and Saipem are up between 2.5% and 3.4%.
8:57 am Allot Comms receives anticipated Notice of Deficiency from NASDAQ resulting from a previously announced departure of an Independent Director (ALLT) : Co announces that on July 16, 2014 it received a notice of deficiency from NASDAQ Stock Market.
- The non-compliance cited by NASDAQ is the result of the previously-announced departure of Mr. Dov Baharav from the company's board of directors.
- With the departure of Baharav, the company is currently not in compliance with NASDAQ Stock Market Listing Rule 5605(b)(1), which requires the company's board of directors to be comprised of a majority of independent directors, and NASDAQ Listing Rule 5605(c)(2), which requires the company's audit committee to be comprised of at least three independent directors.
- The Notice indicated that, consistent with NASDAQ Stock Market Listing Rules 5605(b)(1)(A) and 5605(c)(4), NASDAQ will provide the company a cure period in order to regain compliance within the time period set forth in those rules.
- Accordingly, the company intends to hold a meeting of its shareholders to elect one or more new directors who will be independent under the NASDAQ Stock Market Listing Rules and, once elected, to appoint such director to serve as a member of the audit committee within the time period specified in the Notice.
8:52 am On The Wires (:WIRES) :
- Green PolkaDot Box (GPDB) commenced its crowd funding campaign on Indiegogo for the purpose of raising $250,000 or more to complete Phase I of its first Living Produce Growing Center. The co has investors and members who have committed up to $500,000 in matching funding for the Campaign.
- LLamasoft has announced that Ryder (R) has selected LLamasoft Supply Chain Guru as the primary application for supply chain design and vehicle route optimization throughout the company's global enterprise.
- Tennant (TNC) has been named the strategic cleaning partner for the Minnesota Twins.
- Dakota Plains (DAKP) has expanded its board of directors from six to seven directors and William DeRosa, of Lone Star Value Management, has been appointed to the board to fill the newly created vacancy effective immediately. Lone Star Value beneficially owns 3.5 mln shares of Dakota Plains common stock, equating to 6.4% of all shares outstanding.
- Sanofi Pasteur, the vaccines division of Sanofi (SNY), announced that the first lots of Fluzone (Influenza Vaccine) for the 2014-2015 influenza season have been released by the FDA for distribution. The lots were shipped on July 21, 2014, representing the first of at least 65 mln doses of seasonal influenza vaccine manufactured by Sanofi Pasteur that will be delivered to U.S. health care providers and pharmacies in Aug.
8:50 am Neogen misses by $0.02, beats on revs (NEOG) : Reports Q4 (May) earnings of $0.20 per share, $0.02 worse than the Capital IQ Consensus Estimate of $0.22; revenues rose 20.2% year/year to $67.3 mln vs the $66.36 mln consensus.
- Neogen's gross margin was 49.6% of sales in its 2014 fiscal year, compared to 52.8% of sales for FY 2013. This decrease was due almost entirely to the change in the company's overall product mix.
8:46 am Kite Realty Group Trust announces 1-for-4 reverse share split (KRG) : Co announced that its board of trustees has approved a reverse share split of the Company's common shares at a ratio of 1-for-4.
- The reverse share split is expected to take effect at about 5:00 p.m. Eastern time on August 11, 2014
- As a result of the reverse share split, the number of outstanding common shares of the company will be reduced from approximately 332.7 million to approximately 83.2 million
8:35 am Stryker announces appointment of Kevin A. Lobo as Chairman of the Board of Directors (SYK) :
- Co announced that Kevin A. Lobo, President and Chief Executive Officer, has been appointed Chairman of the Board, in addition to his current responsibilities, effective July 22, 2014.
- William U. Parfet, Stryker's Non-Executive Chairman, will again assume the role of Lead Independent Director.
- Lobo joined Stryker in April 2011 and served as Group President of Stryker Orthopaedics prior to his appointment as President and Chief Executive Officer in October, 2012.
8:34 am Regency Energy Partners LP announces public offering of $500 million of senior notes (RGP) : Co announced a public offering of $500 million in aggregate principal amount of its senior notes due 2022.
- Regency intends to use the net proceeds from the offering to repay outstanding borrowings under its revolving credit facility and for general partnership purposes.
8:34 am China Xiniya Fashion receives continued listing standard notice from the NYSE (XNY) : Co announces that on June 20 the co received notice from the NYSE that Xiniya is no longer in compliance with the NYSE's continued listing standards because the average per share closing price of Xiniya's ADSs was too low. The co expects to notify the NYSE that it will take steps to cure this deficiency within the prescribed timeframe. Until then, its ADSs will continue to be listed and traded on the NYSE.
8:33 am Gannett beats by $0.04, misses on revs (GCI) : Reports Q2 (Jun) adj earnings of $0.67 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.63; revenues rose 12.1% year/year to $1.46 bln vs the $1.48 bln consensus.
- Adjusted EBITDA rose 28 percent to $354 mln driven by strong Broadcasting and Digital Segment results.
- Free Cash Flow of $307 mln, 78 percent year-over-year increase.
- Special items in the second quarter of 2014 include: operating charges of $51.7 mln ($0.16 per share) representing primarily workforce restructuring, other transformation costs and asset impairments; non-operating income of $143.5 mln ($0.39 per share) reflecting principally the pre-tax gain from the sale of Apartments.com. Special items in the second quarter of 2013 totaled $35.7 mln ($0.10 per share) due primarily to workforce restructuring charges and transformation costs.
8:33 am On Track Innovations receives $6.2 mln order for cashless payment readers (OTIV) :
- Co has received a $6.2 million purchase order from one of its newest U.S. channel partners to supply oti's Saturn readers to the North American self-serve market.
- oti will deliver the NFC readers over the next 18-months, with the first shipments beginning immediately.
- The shipments will include multiple types of oti readers geared specifically for the self-serve market.
8:33 am Galectin Therapeutics announces first patient dosed in Cohort 1 of Phase 1B clinical trial of GR-MD-02 in combination with Ipilimumab in Metastatic Melanoma (GALT) : Co announced that the first patient has been dosed in cohort 1 of the Company's Phase 1B clinical trial evaluating GR-MD-02 in combination with ipilimumab (Yervoy) in patients with metastatic melanoma. Providence Portland Medical Center's Earle A. Chiles Research Institute (:EACRI), a leader in immunotherapy research and translational clinical trials in melanoma and other cancers, is conducting the study under principal investigator Brendan D. Curti, M.D. The study employs a 3+3 Phase 1 design with dose escalation of GR-MD-02, a galectin inhibitor, in conjunction with the standard therapeutic dose of ipilimumab in patients with advanced melanoma for whom ipilimumab would be considered standard of care. Cohort 1, which seeks to enroll at least 3 patients (and up to 6 should there be drug associated adverse events), will utilize 1 mg/kg of GR-MD-02 administered one hour before 3 mg/kg of ipilimumab on days 1, 22, 43 and 65. Researchers will assess the effects of GR-MD-02 with ipilimumab on melanoma response by inducing proliferation, activation and memory function of CD8+ T cells. In addition to monitoring for toxicity and clinical response, blood samples will be obtained to assess immunologic measures relevant to galectin biology and ipilimumab T-cell check-point inhibition. Tumor volume will be assessed by immune response RECIST criteria.
8:33 am Finjan provides litigation update - Blue Coat Markman hearing set for August 22, 2014 (FNJN) :
- Finjan Holdings' subsidiary filed a patent infringement lawsuit against Blue Coat on August 28, 2013. In accordance with the local patent rules of the U.S. District Court for the Northern District of California, a Claim Construction or "Markman" Hearing is set for August 22, 2014.
- Finjan asserts that Blue Coat is infringing six of its patents: 7,418,731; 6,804,780; 6,154,844; 7,647,633; 6,965,968 and 7,058,822, which cover endpoint, web, and network security technologies.
8:32 am S&P futures vs fair value: +7.00. Nasdaq futures vs fair value: +19.20. (:WRAPX) : The S&P 500 futures trade seven points above fair value.
Total CPI increased 0.3% (Briefing.com consensus +0.3%) in June while core CPI, which excludes food and energy, increased 0.1% (Briefing.com consensus +0.2%). On a year-over-year basis, total CPI is up 2.1% and core CPI is up 1.9%.
8:31 am Capitala Finance released Q2 update of its investment and capital markets activity; invested ~$22.6 million into new portfolio investments (CPTA) : Co released an update of its investment and capital markets activity for the second quarter of 2014, as well as the first 21 days of July 2014. In describing Capitala's activities in the second quarter of 2014 and the first 21 days of July 2014, Joseph B. Alala, III, Capitala's Chairman, President and Chief Executive Officer, stated, "On the heels of our successful notes offering, completed in June, we think it is important to update our shareholders on deployments since the beginning of the second quarter of 2014. We believe that our investment activity since the beginning of the second quarter of 2014 positions us to further capitalize on what we believe are the superior risk-adjusted investment opportunities present in both the lower-end and the more traditional center of the middle market.
- During the second quarter of 2014, the Company completed a registered public offering of notes due 2021. Gross proceeds from the offering, including pursuant to the underwriters' partial exercise of their option to purchase additional notes, were $113 million.
- Since June 30, 2014, the Company has invested approximately $26.5 million into two new portfolio companies.
8:31 am Market View: Sep. stock-index futures hold a firm bid above fair values following the 8:30 a.m. ET Jun. CPI figures (:TECHX) :
- ESu4 now @ 1975.25 +9.25
- YMu4 now @ 17042 +59
- NQu4 now @ 3946.25 +20.50
8:31 am Signal Genetics appoints Tamara Seymour as new CFO (SGNL) : Co announces the appointment of Tamara Seymour as CFO. She will replace Robert Johnson, who has tendered his resignation as CFO, effective August 4, 2014.
- Seymour joins Signal from HemaQuest Pharmaceuticals, a developer of small molecules for hemoglobin disorders, where she oversaw all financial, accounting and administrative functions of the company as Chief Financial Officer.
- Co did not provide a reason for the prior CFO's resignation
8:31 am Hemispherx Biopharma achieves high ranking in sensitivity testing against MERS/SARS Coronaviruses compared to other drugs (HEB) : Co announced that a new publication abstract in Infectious Disorder Drug Targets is available for review as described in PubMed on July 16, 2014, and proposes that the Middle East Respiratory Syndrome SARS coronaviruses may be most effectively inhibited by interferons and an IFN inducer.
- Hemispherx Biopharma continues to be in active dialogue with various agencies responsible for various aspects of biosecurity designed to protect U.S. citizenry. No representation can be made that these discussions will lead to clinical collaboration and/or contractual relationships.
8:30 am ALCO Stores Responds to dissident shareholder group's proxy solicitation materials; 'several of their statements are incorrect, exaggerated or misleading' (ALCS) :
- Co issued a statement responding to the proxy solicitation materials filed by a dissident shareholder group calling itself Concerned ALCO Shareholders, which is seeking to elect a slate to replace the current Board of Directors. Commenting on the CAS proxy solicitation materials, ALCO Board Chairman Royce Winsten stated,
- "We have been very clear in our communications with shareholders that recent sales and earnings results have been unacceptable. That said, several of their statements are incorrect, exaggerated or misleading."
8:30 am CEL-SCI Corp receives regulatory clearance to expand Phase III Head and Neck Cancer trial into Turkey (CVM) : Co announced that Turkey's Ministry of Health has cleared the company to begin patient enrollment in CEL-SCI's global pivotal Phase III Head and Neck Cancer clinical trial of its investigational cancer immunotherapy treatment Multikine.
- Further expansion of the Phase III trial is underway with a goal to have a total of 880 patients enrolled through about 100 clinical centers by the end of 2015. Over 220 patients have been enrolled in the study to date.
8:27 am On The Wires (:WIRES) :
- Cisco (CSCO) and Barcelona City Council announced plans to open a Cisco Global IoE Innovation Center in Barcelona.
- Export Now, which helps U.S. companies reach Chinese consumers, announced the opening of a new Crucial, a global brand of Micron Technology (MU), online store in China.
- CB&I (CBI) and Clariant announced its new Ziegler-Natta polypropylene catalyst production plant in Louisville, Kentucky, is on schedule to begin production in 2015. The plant is part of a long-term strategic partnership between Clariant's Catalysts business unit and CB&I's Lummus Novolen Technology business.
- CombiMatrix (CBMX) has entered into a contractual agreement with Stratose for coverage of CombiMatrix's diagnostic laboratory services.
- Yingli Green Energy (YGE) has expanded its footprint in the Americas by opening the co's third Latin American office in Santiago, Chile.
- Versar (VSR) was awarded an Iraq Personal Services II contract from the U.S. Army Corps of Engineers with a maximum contract value of $10.69 mln. The firm fixed price IDIQ contract is a single award with a three-year period of performance consisting of a base year and two option years with a potential for a six-month extension after year three. Co was also awarded its first Task Order under the new contract, valued at $2.23 mln with services beginning on Aug 7, 2014.
8:27 am Synovus reports EPS in-line, revs in-line (SNV) : Reports Q2 (Jun) earnings of $0.35 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate of $0.35; revenues rose 0.5% year/year to $268.4 mln vs the $266.3 mln consensus.
- Total loans grew $296.8 million sequentially or 5.9% annualized, driven by growth in C&I and retail loans.
- Credit quality improved significantly with a 32.5% sequential quarter decline in non-performing loans.
- The NPL ratio declined to 1.27% at June 30, 2014 from 1.91% at March 31, 2014 and 2.47% a year ago.
- All Tier 1 capital ratios continued to expand with the Tier 1 common equity ratio ending the quarter at 10.41%, up 17 basis points from the prior quarter.
8:27 am On The Wires (:WIRES) :
- Napier Park Global Capital has returned to Citigroup (C) the last of the capital which had been invested in Napier Park's hedge funds. The staggered $2.4 bln redemption schedule began in March 2013 when Napier Park completed its spinout from Citi and became majority owned by its employees. As a result, Citi is no longer an investor in any of Napier Park's hedge funds.
- RingCentral UK., a subsidiary of RingCentral (RNG), announced a new distributions alliance with Imago Group PLC. Imago, through its reseller network in the UK, will distribute RingCentral's cloud business phone systems.
- The Cardiovascular Cell Therapy Research Network has selected Cytori (CYTX) Therapeutics to supply adipose-derived regenerative cells for a clinical trial aimed at evaluating the safety and feasibility of treating patients with Left Ventricular Assist Devices.
- Varian Medical Systems (VAR) announced that its ARIA oncology information system has been certified for use to demonstrate Stage 1 and 2 "meaningful use" of an electronic health record.
- Infinera (INFN) and XO Communications announced the deployment of the Infinera DTN-X packet optical transport networking platform capable of delivering high bandwidth network services up to 100G across the XO nationwide network.
- Virtual Piggy (VPIG), provider of Oink, has partnered with commerce solutions provider, Amplifi Commerce.
- WidePoint (WYY) announced its collaboration with SPYRUS to issue WidePoint Certificate-on-Device for the SPYRUS WorkSafe and WorkSafe Pro USB 3.0 drives with Windows To Go 8.1 certification, enabling higher assurance security and functionality for mobile workers.
- AMD (AMD) announced the completion by NetNames of a massively efficient, hyperscale data center based on AMD's SeaMicro SM15000 server.
8:25 am European Markets Update: FTSE +0.8%, DAX +0.8%, CAC +0.9%, MIB +1.7% (:SUMRX) : Major European indices trade higher across the board, attempting to recoup yesterday's losses, while regional foreign ministers are expected to discuss additional sanctions against Russia.
- Participants received just three data points:
- Switzerland's trade surplus narrowed to CHF1.377 billion from CHF2.849 billion (forecast CHF2.970 billion)
- CBI Industrial Trends Orders in Great Britain fell to 2 from 11 (forecast 8) and Public Sector Net Borrowing came in at GBP9.51 billion (expected GBP9.20 billion; previous GBP11.86 billion)
- Great Britain's FTSE trades higher by 0.8% with ARM Holdings in the lead. The chipmaker trades up 4.9% after reporting in-line results. Staple stocks underperform with Tesco, J Sainsbury, and WM Morrison Supermarkets down between 0.9% and 3.7%.
- Germany's DAX holds an advance of 0.8%. Conglomerate Siemens outperforms with an increase of 1.7%, while Infineon Technologies follows not far behind (+1.6%). Adidas lags, down 0.8%.
- In France, the CAC is higher by 0.9%. Oil companies lead with Technip and Total up 2.7% and 2.0%, respectively. Publicis Groupe is lower by 5.2% following disappointing results.
- Italy's MIB is higher by 1.7% amid broad strength. Banco Popolare, Pirelli, and Saipem are up between 2.5% and 3.4%.
8:16 am Tiger Media announces appointment of Jacky Wang as CFO (IDI) : Co announced the appointment of Jacky Wang as Chief Financial Officer effective August 1, 2014. Prior to joining Tiger Media, Mr. Wang served as the Vice President of Finance of Touchmedia, an in-taxi touchscreen media provider in China.
8:15 am Heartland Express beats by $0.05, misses on revs (HTLD) : Reports Q2 (Jun) earnings of $0.30 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.25; revenues rose 69.3% year/year to $226.8 mln vs the $245.2 mln consensus.
- Operating revenues increased 69.3% primarily due to increased miles associated with the November 11, 2013 acquisition of Gordon Trucking.
- Operating revenues for the quarter included fuel surcharge revenues of $46.2 million compared to $27.3 million in the same period of 2013.
- Operating income for the three-month period was positively impacted by a $5.2 million increase in gains on disposal of property and equipment.
- The Company posted an operating ratio of 82.1% and an 11.7% net margin in the second quarter of 2014 compared to 78.1% and 14.3%, respectively in the second quarter of 2013.
8:13 am Teradata announced two acquisitions that accelerate the growth of its big data capabilities; co acquired assets of Revelytix and assets of Hadapt; financial terms not disclosed (TDC) : Co announced two acquisitions that accelerate the growth of its big data capabilities.
- On July 16th, Teradata acquired assets of Revelytix, a leader in information management products for big data with unique metadata management technology and deep expertise in integrating information across the enterprise.
- On July 17th, Teradata acquired assets of Hadapt, including experienced big data technologists and intellectual property.
- Because they are not material to Teradata, the terms of these acquisitions have not been disclosed.
8:12 am Peabody Energy reports Q2 in-line, co issues Q3 EPS loss below consensus (BTU) : Reports Q2 (Jun) loss of ($0.28) per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate of a loss of ($0.28); revenues rose 1.9% year/year to $1.76 bln vs the $1.64 bln consensus.
- Peabody Energy issues downside Q3 guidance; co sees Q3 (0.53)-(0.40) vs ($0.18) Capital IQ Consensus Estimate.
- Also, in Q3, co is also targeting adjusted EBITDA of $140-190 mln.
- Targets reflect the impact of lower realizations in Australia and the Western U.S., three longwall moves, improved performance at the North Goonyella Mine and the repeal of the carbon tax in Australia.
- New total sales targets of 245 to 260 mln tons, including U.S. sales of 185 to 190 mln tons and Australian sales of 35-37 mln tons; U.S. costs per ton 1-3% below 2013 levels on cost containment efforts, with U.S. revenues per ton 4-7% low 2013 levels due to price re-openers
- Australian costs in the low-to-mid $70 per ton range.
- Second quarter revenues increased 2% to $1.76 bln, primarily due to a 1% increase in sales volumes to 61.7 mln tons and the finalization of pricing on a long-term Western coal supply agreement, partly offset by lower Australian realizations.
- U.S. Mining revenues rose to $1.03 bln as an increase in both Western shipments and realizations overcame a decline in Midwestern volumes and revenues per ton.
- Australian revenues declined 5% on lower realized pricing.
- Australian sales totaled 9.7 mln tons, including 4.8 mln tons of metallurgical coal and 3.1 mln tons of seaborne thermal coal.
- Peabody's projected 2014 U.S. production is essentially fully priced, with 2015 sales 20-30% unpriced based on comparable 2014 production levels.
- Sustainable cost improvements continue across the platform; capital efficiency initiatives lead to reduced capital spending targets of $210-250 mln
- Global coal market share increases to 30% of energy consumption; greatest contribution to energy mix since 1970
8:12 am MYOS reports positive top-line clinical study results of Fortetropin's muscle building activity; significantly increases muscle size and lean body mass in average males with modest resistance training (MYOS) : The randomized, double-blind, placebo controlled trial clinically demonstrated that Fortetropin resulted in statistically significant increases in both muscle size and lean body mass in average males. The study evaluated 45 male subjects adhering to a supervised nutritional intake program and a monitored modest resistance training regimen over a period of twelve weeks. The various endpoints included skeletal muscle hypertrophy, lean body mass, fat mass and measurements of strength and power. Subjects taking Fortetropin showed significantly improved lean body mass and increased muscle size compared to placebo.
- Following the close of the acquisition, the Level 3 executive management team will include:
- Jeff Storey, president and chief executive officer
- John Blount, regional president, North America and Asia Pacific Andrew Crouch, regional president, Europe, Middle East and Africa and global accounts management division
- Hector Alonso, regional president, Latin America
- The acquisition of tw telecom is expected to close in the fourth quarter 2014.
8:11 am CombiMatrix signs contract with Stratose Networks Division; will provide diagnostic laboratory services to physicians, hospitals, large member base (CBMX) : Co announced that it has entered into a contractual agreement with Stratose for coverage of CombiMatrix's diagnostic laboratory services. Stratose, based in Atlanta, GA, maintains one of the largest and growing directly managed PPO networks in the U.S., including more than 850K direct and affiliate medical, dental and workers' compensation provider contract. These members will now have access to CombiMatrix's suite of molecular diagnostic solutions and comprehensive clinical support specializing in prenatal, miscarriage and pediatric healthcare.
8:11 am Genpact to support Honeywell (HON) in Asian markets; multi-year contract to deliver finance and accounting (G) : Co announced it has entered into a multi-year contract to deliver finance and accounting services in the South East Asian markets for Honeywell.
8:06 am Interdigital Comm provides infrastructure licensing update; co efforts and creation of signal trust to drive ~ $100 mln in cash over next 9 years, with significant market possibilities remaining (IDCC) :
- Co provided an update on licensing activities related to infrastructure, including the creation of the Signal Trust for Wireless Innovation.
- Since the creation of the Signal Trust in October 2013, the company's infrastructure licensing efforts have resulted in signed agreements expected to deliver ~$100 million in cash over the next nine years, with a substantial portion of the wireless infrastructure market remaining.
8:06 am I.D. Systems appoints former Qualcomm (QCOM) VP, Norman Ellis, as Chief Operating Officer (IDSY) : Co has appointed industry veteran Norman Ellis to the position of chief operating officer. Mr. Ellis will be responsible for I.D. Systems' customer-facing operations, including sales, marketing, customer service, implementation and support. Prior to joining I.D. Systems, Mr. Ellis spent 16 years at Omnitracs, a leading provider of fleet management solutions and a division of NASDAQ-listed Qualcomm.
8:06 am Liberty Prop misses by $0.02, misses on revs; lowers FY14 FFO guidance below consensus (LPT) : Reports Q2 (Jun) funds from operations of $0.59 per share, $0.02 worse than the Capital IQ Consensus Estimate of $0.61; revenues rose 27.8% year/year to $193 mln vs the $201.01 mln consensus.
- Leasing: At June 30, 2014, Liberty's in-service portfolio of 102.5 million square feet was 91.7% occupied, compared to 91.0% at the end of the first quarter of 2014. During the quarter, Liberty completed lease transactions totaling 7.2 million square feet of space.
- Same Store Performance: Property level operating income for same store properties decreased by 2.3% on a cash basis and by 0.6% on a straight line basis for the second quarter of 2014 compared to the same quarter in 2013.
Co issues downside guidance for FY14, sees FFO of $2.42-2.48 vs. $2.50 Capital IQ Consensus Estimate vs previous guidance of $2.45-2.55 per share.
- The revised guidance reflects reduced acquisition volumes for the year, minor delays in expected development starts, and slower than budgeted occupancy increases in the core portfolio.
8:06 am McDonald's misses by $0.04, misses on rev and comps; sees FY14 comps similar to YTD; sees July comps negative (MCD) : Reports Q2 (Jun) earnings of $1.40 per share, $0.04 worse than the Capital IQ Consensus Estimate of $1.44; revenues rose 1.4% year/year to $7.18 bln vs the $7.29 bln consensus.
- Global comparable sales were relatively flat vs. estiamtes of +0.9%, reflecting higher average check and negative guest traffic in all major segments.
- In the U.S., second quarter comparable sales decreased 1.5% while operating income rose 1%. Results for the quarter reflected negative comparable guest traffic amid ongoing broad-based challenges. Looking ahead, McDonald's U.S. is intent on strengthening the overall customer experience to effectively position the segment for long-term growth. Key areas of focus include service excellence, enhanced marketing, and value, core menu and breakfast daypart initiatives.
- In Europe, comparable sales declined 1.0% and operating income was flat (decrease of 4% in constant currencies) for the second quarter. The U.K. and France delivered solid comparable sales and operating income results for the quarter. Germany's quarterly performance reflected ongoing weakness. Emphasis on compelling premium menu offers, renewed focus on core menu and value options, and the roll-out of blended ice beverages in several markets supported the quarter's performance.
- APMEA's (Asia/Pacific, Middle East and Africa) second quarter comparable sales increased 1.1%, reflecting strong comparable sales performance in China, as well as positive performance in many other markets. Results were impacted by continued weakness in Japan. APMEA's second quarter operating income declined 2% (increase of 1% in constant currencies). Enhanced value offerings, locally-relevant product promotions, convenience initiatives and new store development were positive contributors to the segment's results.
- "Overall, 2014 is a year of strengthening the foundational elements of our business that are critical to enabling and advancing our longer-term strategies. Heading into 2014, we acknowledged that we did not expect any material changes to the operating environment this year. As such, full year 2014 global comparable sales are expected to be relatively similar to year-to-date June performance, with July global comparable sales expected to be negative (Q3 est: +1.4%).
8:05 am St. Jude Medical announces CE Mark approval and first use of the flexability ablation catheter (STJ) : Co announces CE Mark approval and first use of the FlexAbility Ablation Catheter, a novel ablation technology used by electrophysiologists for the treatment of cardiac arrhythmias. The next-generation flexible tip technology was designed to reduce complications associated with ablation procedures through its ability to bend and conform to the cardiac anatomy, decreasing the amount of pressure distributed to a patient's heart wall while simultaneously increasing the stability of therapy delivery.
- The approval of the FlexAbility catheter further strengthens St. Jude Medical's fast-growing ablation technology portfolio, which also includes the TactiCath contact-force sensing irrigated ablation catheter. The TactiCath and FlexAbility ablation catheters are investigational devices in the United States.
8:05 am Scorpio Bulkers announces a commitment for a $540 mln loan facility and an update on the financing of its fleet (SALT) :
- On July 21, 2014, the Company received a commitment from two leading European financial institutions for a Loan Facility of up to $540 million. The Facility will be used to finance up to 55% of the contract price of six Ultramax, nine Kamsarmax, and nine Capesize vessels currently under construction for delivery in 2015 and 2016.
- The Loan Facility has a final maturity of six years from the date of signing. The terms and conditions of this commitment are consistent with those of the Company's existing credit commitments. The closing of the Loan Facility, which is expected to occur within 2014, remains subject to customary conditions precedent, including negotiation and execution of final documentation.
- As of July 22, 2014, the Company has received proposals from leading European and Asian financial institutions to finance a portion of the cost of its remaining unfinanced vessels. If definitive agreements are entered into on these terms, the amounts provided by such facilities will vary between 55% of the contract price and 60% of the market value of the remaining unfinanced vessels currently under construction.
8:04 am Silicom Limited misses by $0.07, misses on revs (SILC) : Reports Q2 (Jun) earnings of $0.50 per share, $0.07 worse than the Capital IQ Consensus Estimate of $0.57; revenues rose 14.0% year/year to $17.9 mln vs the $19.29 mln consensus.
- "We have reported solid year-over-year growth for both the quarter and the first half of 2014, however softer demand in Q2 resulted in a 6% sequential revenue decline compared with the first quarter of 2014. While these challenges may remain with us for the short term, we continue to believe in the long-term power of our growth engines: especially our more than 100 existing customers, many of whom are industry leaders, our proven portfolio of mission-critical products, and our impressive roadmap of innovative new product lines that give us entry into high-potential new opportunities. As such, we continue implementing our proven strategy for building our business and pursuing our goals."
8:04 am Genocea Biosciences HSV-2 immunotherapeutic GEN-003 elicits significant, durable T cell responses in vaccinated subjects (GNCA) :
- Co announced the start of a Phase 2 dose optimization trial for GEN-003, the company's immunotherapy candidate against herpes simplex-type 2.
- The co will be announcing interim results from this trial in the middle of 2015
8:02 am RF Micro Device and Peregrine Semiconductor (PSMI) settle all outstanding litigation (RFMD) : Cos announced that they have settled all outstanding claims between the companies. The two parties have entered into patent cross licenses and have agreed to dismiss all related litigation. Specific financial terms of the agreement remain confidential.
8:02 am Lions Gate Entertainment and Comcast partner to create immersive multi-platform movie experiences (LGF) : Lionsgate and Comcast announce the expansion of their partnership to create immersive multi-platform experiences for digital consumers, beginning with the launch of an app for the motion picture Divergent. With more than four hours of state-of-the-art bonus features and interactive content, the Lionsgate-designed iOS app, which is free via the iTunes App Store, includes an authenticated premium experience available to Xfinity customers with the purchase of the film through the Xfinity On Demand digital store. As part of this ongoing collaboration, Lionsgate will roll out additional title-specific apps built around upcoming releases featuring premium digital content available to Xfinity customers.
8:01 am CymaBay Therapeutics announces pricing of public offering of 4,000,000 shares of common stock at $5.50 per share (CBAY) :
8:00 am Alnylam Pharma receives notice of allowance from USPTO for new patent broadly covering conjugate-based delivery of RNA therapeutics (ALNY) : Co announced today that the United States Patent and Trademark Office has issued a Notice of Allowance for claims in the Manoharan et al. patent application .
- The patent application includes newly allowed claims directed to compositions including those comprising a modified RNA agent linked to a biantennary or triantennary ligand.
- Specifically, the allowed application includes claims that broadly cover single-stranded or double-stranded, chemically modified RNA therapeutics conjugated with an N-acetylgalactosamine ligand independent of length, sequence, or disease target.
- The allowance of this patent application represents a major advance in Alnylam's intellectual property estate, since GalNAc-siRNA conjugates enable potent and durable silencing of liver-expressed disease genes with subcutaneous dose administration and a wide therapeutic index.
- Importantly, this delivery approach is a key component of the company's execution on its Alnylam 5x15 and broader genetic medicine product strategy.
7:58 am Gapping down (:SCANX) : Gapping down
In reaction to disappointing earnings/guidance: EDU -8.1%, UCTT -4.5%, ATR -2.9%, RMBS -2.6%, STFC -2.3%, CS -2.2%, POL -2%, KMB -1.8%, TRV -1.7%, HOG -1.6%, RCII -1%, VZ -1%, KO -0.9%.
Select metals/mining stocks trading lower: GDX -0.9%, GFI -0.8%, ABX -0.5%.
Other news: TEP -4.8% (announced self tender offer to purchase up to 1 mln shares, or about 9.9%, of its outstanding common stock, at a price of not less than $28 and not more than $29 per share), ITI -2.1% (announces receipt of Notice of Noncompliance with NYSE MKT Listing Standards ), TWX -0.5% (discloses bylaw amendment; removed provisions regarding stockholders' ability to cause Board to call a special meeting of stockholders), ACT -0.5% (co and Medicines360 announced FDA acceptance for filing of NDA for Levosert IUD).
Analyst comments: NILE -2% (downgraded to Mkt Perform from Outperform at William Blair), AMZN -1.6% (downgraded to Neutral from Buy at Citigroup), ARCO -1.5% (downgraded to Underweight from Neutral at HSBC Securities), STI -0.7% (downgraded to Equal Weight from Overweight at Evercore).
7:56 am S&P futures vs fair value: +4.30. Nasdaq futures vs fair value: +14.70. (:WRAPX) : U.S equity futures trade near their pre-market highs amid upbeat action overseas. The S&P 500 futures hover four points above fair value.
Reviewing overnight developments:
- Asian markets ended on a higher note. Japan's Nikkei +0.8%, China's Shanghai Composite +1.0%, and Hong Kong's Hang Seng +1.7%
- Economic data was limited:
- Japan's All Industries Activity Index rose 0.6% month-over-month (forecast 0.7%; prior -4.6%)
- In news:
- Japan cut its GDP forecast to 1.2% from 1.4%, which had been expected
- Economic data was limited:
- Major European indices trade higher across the board. Great Britain's FTSE +0.8%, Germany's DAX +0.8%, and France's CAC +0.8%. Elsewhere, Italy's MIB +1.3% and Spain's IBEX +1.0%
- Economic data was limited:
- Switzerland's trade surplus narrowed to CHF1.377 billion (forecast CHF2.970 billion; prior CHF2.849 billion)
- Among news of note:
- European markets are recouping a portion of yesterday's loss while regional foreign ministers are expected to discuss additional sanctions against Russia
- Economic data was limited:
- Chipotle Mexican Grill (CMG 652.00, +62.07): +10.5% after beating estimates and surpassing comparable restaurant sales growth expectations
- Netflix (NFLX 455.09, +3.14): +0.7% following its in-line quarterly report
- Texas Instruments (TXN 48.90, -0.27): -0.6% despite beating estimates and guiding in line with expectations
- Coca-Cola (KO 42.00, -0.40): -0.9% in reaction to its one-cent beat on below-consensus revenue
- DuPont (DD 65.61, +0.07): +0.1% after reporting results in line with its June 26 warning. The company guided Q3 earnings below consensus and boosted its quarterly dividend to $0.47/share
- Travelers (TRV 92.10, -3.16): -3.3% after missing the Capital IQ consensus estimate by $0.14
- United Technologies (UTX 114.00, +1.02): +0.9% following its above-consensus results and improved guidance
- Verizon (VZ 50.22, -0.48): -1.0% despite reporting a one-cent beat on better than expected revenue
7:55 am Gapping up (:SCANX) : Gapping up
In reaction to strong earnings/guidance: SANM +11.8%, CIT +11.8%, CMG +10.6%, WWD +7.6%, STLD +7.5%, TGTX +5.4%, (also announces preliminary clinical results from its ongoing Phase I study of TG-1101 (ublituximab): 100% of CLL/SLL patients had significant nodal reduction with either a normalization of or =80% reduction in Blood Lymphocyte Count), HLX +4.8%, ARMH +4.8%, CROX +4.6%, PII +4.4%, CYS +3.7%, MOSY +3%, LMT +2.5%, CMCSA +2.2%, DPZ +2.2%, CNC +2.1%, PKG +2%, UTX +1.3%, CNI +1.1%, RF +0.5%, STT +0.4%, NFLX +0.3%, .
M&A news: GTIV +0.9% (announces receipt of acquisition proposal from Kindred Healthcare (KND)).
Select alt energy related names showing strength after German Govt issued research awards: FCEL +5%, KNDI +4.2%, PLUG +3.5%.
Select semi peers trading higher after TXN and ARMH earnings: STM +2%, AMD +1.1%, MU +0.8%.
Select oil/gas related names showing strength following strength in Crude oil market: TOT +1.3%, RDS.A +0.9%, BP +0.5%.
Other news: RSH +7.2% (still checking),FBRC +6.6% ( announces self tender offer to purchase up to one mln shares, or about 9.9%, of its outstanding common stock, at a price of not less than $28 and not more than $29 per share),SNTA +5.7% (announces advancement of Ganetespib into Phase 3 Extension of AML LI-1 study for patients with AML and High-Risk MDS; follows positive interim analysis of Phase 2 results),TGTX +5.4% (announced preliminary clinical results from ongoing Phase I study of TG-1101 (ublituximab): 100% of CLL/SLL patients had significant nodal reduction with either a normalization of or =80% reduction in Blood Lymphocyte Count),APA +4.4% (reports that Jana Partners would like APA to sell off international business),GST +3.6% (reported 43% increase in mid-year proved reserves),GPRO +2.7% (still checking),GALE +2.5% (enters into definitive agreement to license U.S. rights for Zuplenz (ondansetron) oral soluble film),RDC +2.2% (Blue Harbour Group discloses 6.5% stake in SC 13D filing; expects to continue to engage in discussions with management and the board),MM +1.3% (following Yahoo (YHOO) acquisition of mobile-analytics co Flurry; MM is a mobile advertising platform company),EVGN +1.3% (co and Marrone Bio Innovations (MBII) sign multi-year collaborative agreement; joint discovery efforts to lead to novel insect control solutions),ERIC +1.1% (chosen as sole supplier of Claro's LTE network in Costa Rica),FITB +1% (Fifth Third disclosed share repurchase agreement with Morgan Stanley),AAPL +0.9% (requested that suppliers produce 80 mln large screen iPhones, according to reports (AAPL reports tonight after the close)).
Analyst comments: AXL +1% (upgraded to Neutral from Underweight at JP Morgan),QSII +0.9% (initiated with a Buy at Topeka Capital Markets ),HBAN +0.5% (upgraded to Outperform from Mkt Perform at Keefe Bruyette)
7:52 am On The Wires (:WIRES) :
- Remy International (REMY) was recently awarded the standard alternator position for Navistar's IC Bus brand.
- LiveDeal (LIVE) announced that website traffic has increased by 90% in the first week of the campaign compared to the prior week. Co believes this is the direct result of expanding their ad campaign from 35 to 50 markets.
- Mad Catz Interactive (MCZ) announced the shipping of the first products in its range of licensed audio headsets for MSFT's Xbox One under the TRITTON gaming audio brand.
- RRsat Global Communications Network (RRST) has completed its first 4K restoration project, a collaboration between Cohen Films and the BFI, bringing the Alfred Hitchcock classic, Jamaica Inn, back to its former glory.
- Jacobs Engineering (JEC) was awarded a contract as sole provider to United Utilities plc for engineering services for the next investment period of its Asset Management Program.
- Sidra, Illumina (ILMN) and Alliance Global, Illumina's partner in the Middle East, will work together to implement next-generation sequencing technologies at Sidra's new High-Throughput Genomics Center, set to ramp up operations over the next year. The initial focus of the facility will cater primarily to high-end applications, including human whole genome sequencing for rare genetic diseases and population studies using Illumina's ultra-high-throughput HiSeq X Ten Sequencing System.
- 4moms uses ANSYS (ANSS) engineering simulation solutions to create virtual prototypes of its products.
7:44 am Asian Markets Close: Nikkei +0.8%, Hang Seng +1.7%, Shanghai +1.0% (:SUMRX) :
- Markets rallied across much of Asia.
- The Japanese government lowered its 2014 growth forecast to 1.2% (1.4% previous), citing weak demand from emerging markets.
- Reserve Bank of Australia Governor Glenn Stevens reiterated the central bank's view that a period of stable rates is likely, and that animal spirits are needed to help the real economy.
- Taiwan's unemployment rate held at 4.0%.
- Japan's Nikkei (+0.8%) finished just shy of six-month highs as traders returned to work following the extended holiday weekend. The weaker yen provided a boost for exporters as Honda Motor climbed 0.5% and Canon added 0.3%.
- Hong Kong's Hang Seng (+1.7%) surged to an eight-month high. Real estate developers led the way on word more cities were easing restrictions. China Overseas Land & Investment and China Resources Land rallied 4.4% and 3.2%, respectively.
- China's Shanghai Composite (+1.0%) finished at its best level in over a month. Automakers provided support after Beijing once again promoted electric and hybrid vehicles. BYD jumped 5.6% to lead the space higher.
- India's Sensex (+1.2%) ended just short of all-time highs. Telecom provider Bharti Airtel gained 5.0% after a regulator suggested the co share spectrum to reduce costs.
- Australia's ASX (+0.1%) ticked to its best closed in more than six years. Miner BHP Billiton added 0.8% ahead of tomorrow's earnings report.
- Regional Decliners: Thailand -1.2%...Indonesia -0.9%...Vietnam -0.5%...Philippines -0.1%
- Regional Advancers: Singapore +0.1%...Malaysia +0.2%...South Korea +0.5%...Taiwan +0.6%
- Fx: USDCNY slipped to 6.2037...USDINR eased to 60.21...USDJPY +15 pips @ 101.55...USDCAD +5 pips @ 1.0745
7:41 am Coca-Cola beats by $0.01, misses on revs; discusses outlook (KO) : Reports Q2 (Jun) earnings of $0.64 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.63; revenues fell 1.4% year/year to $12.57 bln vs the $12.83 bln consensus.
- Global unit case volume grew 3% in the quarter and 2% year to date. Coca-Cola International volume grew 3% in the quarter while North America volume was even. Sparkling volume and brand Coca-Cola volume accelerated in North America, Eurasia and Africa, Europe and Asia Pacific in the quarter. Global price/mix increased 2% in both the quarter and year to date.
- "At the beginning of the year, we communicated that we expected the bottling transactions completed in 2013 to have an unfavorable 1% structural impact on both our full-year 2014 net revenues and operating income, with the impact in the first half of the year. We now expect the impact of structural items, including the new provision in Venezuela, to be a 1 to 2 point headwind on net revenues and an approximate 3 point headwind on operating income during the second half of the year. The refranchised territories in North America that closed during the second quarter are not expected to have a meaningful impact over the balance of the year. Currency exchange rates are expected to have an unfavorable impact on our reported results in 2014. Based on current spot rates, our existing hedge positions, and the cycling of our prior year rates, we expect an approximate 3 point headwind on operating income during the second half of 2014, with a relatively similar impact on both the third and fourth quarters. We now estimate currency will be a 5 to 6 point headwind on our full-year operating income, which is an improvement compared to our prior outlook primarily due to the decrease in bolivar-denominated revenues and operating income.
- After considering all of the factors above, for the second half of the year we expect the unfavorable impact of structural items to be partially offset by the reduction in our underlying effective tax rate, resulting in a net unfavorable impact of 2 cents to comparable EPS. In 2014, we are targeting net share repurchases of $2.5 to $3.0 billion."
7:36 am Mead Johnson Nutrition misses by $0.01, reports revs in-line; guides FY14 EPS in-line (MJN) : Reports Q2 (Jun) earnings of $0.88 per share, $0.01 worse than the Capital IQ Consensus Estimate of $0.89; revenues rose 5.3% year/year to $1.11 bln vs the $1.11 bln consensus.
- The Asia segment reported sales of $575.6 million for the second quarter of 2014, up eight percent from $534.2 million in the prior-year quarter.
- The Latin America segment reported sales of $224.4 million for the second quarter of 2014, up one percent from $223.2 million in the same period of the prior year.
- The North America/Europe segment reported sales of $311.1 million for the second quarter of 2014, up four percent from $297.9 million in the second quarter of 2013.
7:35 am Kimberly-Clark misses by $0.01, reports revs in-line; lowers high end of FY14 EPS guidance (KMB) : Reports Q2 (Jun) earnings of $1.49 per share, $0.01 worse than the Capital IQ Consensus Estimate of $1.50; revenues rose 1.4% year/year to $5.34 bln vs the $5.32 bln consensus.
- Organic sales rose 5%, with increased sales volumes of 3% and higher net selling prices of 2%. Foreign currency exchange rates were unfavorable by 2% and lower sales in conjunction with European strategic changes and pulp and tissue restructuring actions reduced sales by 1%.
- Inflation in key cost inputs is expected to be toward the high end of the previously estimated range of $150 to $250 million. This takes into account additional inflation in some international markets and a bit firmer virgin pulp market. Net income from equity cos is expected to be down year-on-year compared to the prior assumption for net income to be similar to, or up slightly, versus the prior year. The updated assumption is driven by expectations for lower net income from K-C de Mexico as a result of a difficult macro-economic environment.
7:34 am Domino's Pizza beats by $0.02, beats on revs (DPZ) : Reports Q2 (Jun) earnings of $0.67 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.65; revenues rose 8.8% year/year to $450.5 mln vs the $441.28 mln consensus.
- Domestic same store sales grew 5.4% during the quarter versus the year-ago period, continuing the positive sales momentum in the Company's domestic business.
- The international division also posted strong results with same store sales growth of 7.7% during the quarter, marking the 82nd consecutive quarter of international same store sales growth.
- The Company had global net store growth of 133 stores in the second quarter of 2014.
7:34 am TD Ameritrade reports EPS in-line, revs in-line (AMTD) : Reports Q3 (Jun) earnings of $0.34 per share, in-line with the Capital IQ Consensus Estimate of $0.34; revenues rose 5.2% year/year to $763 mln vs the $755.44 mln consensus.
- Net new client assets of ~$13.4 bln, an annualized growth rate of 9 percent.
- Average client trades per day of ~401,000, an activity rate of 6.5 percent.
- Investment product fee revenues of $79 mln, up 22 percent year-over-year. EBITDA of $362 mln, or 47 percent of net revenues.
- "TD Ameritrade's earnings per share is up 21 percent year-to-date, driven primarily by strong revenue growth. We're seeing strong demand for guidance-based solutions, increased adoption of mobile platforms and our distribution channels continue to perform well resulting in more than $40 bln in net new client assets, a 10 percent annualized growth rate."
7:33 am Allegheny Tech misses by $0.04, beats on revs (ATI) : Reports Q2 (Jun) loss of $0.03 per share, $0.04 worse than the Capital IQ Consensus Estimate of $0.01; revenues fell 1.3% year/year to $1.12 bln vs the $1.06 bln consensus.
- Second quarter 2014 results include $4.0 million pre-tax, or $2.8 million, net of tax, of Hot-Rolling and Processing Facility (:HRPF) start-up costs, and $11.4 million pre-tax, or $8.1 million, net of tax, of costs related to the Rowley titanium sponge facility Premium Quality (PQ) qualification process.
- "Cost reduction remains a strategic focus and we have targeted a minimum of $100 million in new gross cost reductions for 2014. We achieved $41 million in gross cost reductions across ATI's operations during the second quarter 2014, bringing our year to date total to over $71 million. These cost reductions are expected to benefit ATI operations over the rest of 2014 and beyond. Managed working capital was reduced to 33.2% of annualized sales at the end of June 2014 from 39.4% at year-end 2013 due primarily to improved business activity levels.
7:32 am MoSys beats by $0.01, beats on revs (MOSY) : Reports Q2 (Jun) loss of $0.12 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of ($0.13); revenues rose 56.2% year/year to $1.75 mln vs the $1.63 mln consensus.
- Gross margin for the second quarter of 2014 was 42%, compared with 57% in the first quarter of 2014 and 93% for the second quarter of 2013.
- The sequential decrease in gross margin reflects increased IC product sales, which carry a lower gross margin than the Company's licensing and royalty revenue
7:31 am Lockheed Martin beats by $0.10, beats on revs; raises FY14 EPS, in-line, reaffirms revs (LMT) : Reports Q2 (Jun) earnings of $2.76 per share, $0.10 better than the Capital IQ Consensus Estimate of $2.66; revenues fell 0.9% year/year to $11.31 bln vs the $11.15 bln consensus.
Co issues in-line guidance for FY14, raises EPS to $10.85-11.15 from $10.50-10.80 vs. $10.98 Capital IQ Consensus; reaffirms FY14 revs $44.0-45.5 bln vs. $44.77 bln Capital IQ Consensus; reaffirms orders $41.5-43 bln; raises cash flow guidance to > $4.8 bln from > $4.7 bln.
7:30 am Primoris Services announces new underground awards valued at over $80 mln (PRIM) : Co announced new pipeline awards valued over $80 million:
- The new contracts were secured by Primoris Rockford Corporation, part of the West Construction Services segment.
- This work starts immediately and is scheduled to be completed in 2014.
7:21 am On The Wires (:WIRES) :
- Descartes Systems (DSGX) announced that Aetna Forwarding is streamlining shipment management and US customs entry submission with Descartes' OneView Forwarder Enterprise and Customs House Brokerage solution.
- Antares Pharma (ATRS) announced that the first patient has been dosed in a double-blind, multiple-dose, phase 3 study to evaluate the efficacy and safety of QuickShot Testosterone administered subcutaneously once each week to testosterone-deficient adult males.
- Engility (EGL) has been awarded a $10.1 mln contract to provide technical advisory services to the Guatemala office of the U.S. Agency for International Development and the Guatemalan government to support the development and implementation of a low emissions development strategy. The five-year contract represents new work and is a cost plus fixed fee award.
- Garmin International, a unit of Garmin (GRMN), announced additional enhancements and new features for the GTN touchscreen avionics. New capabilities include Connext cockpit connectivity, which supports wireless flight plan transfer between the GTN 750/650 series navigators and Garmin Pilot.
- SunEdison (SUNE) has signed a 20-year power purchase agreement with the Southern Nevada Water Authority. The power purchase agreement enables SNWA to lock in a significant portion of its energy costs at a fixed rate, providing an effective hedge against future increases. As part of the agreement, SunEdison will develop, construct, own and operate a 14 MW AC solar photovoltaic power plant, located in Clark County, Nevada.
- inContact (SAAS) announced that a new enterprise customer is moving more than 900 agents to the co's cloud software platform.
- Attunity (ATTU) is offering a free trial of Attunity CloudBeam for Amazon (AMZN) Redshift, its cloud data loading solution, on AWS Marketplace. The 30-day Express trial works with the Amazon Redshift free trial.
- ARRIS (ARRS) announced that its E6000 Converged Edge Router will power enhanced voice, video, and data experiences for Cable TV of East Alabama subscribers. Also, Comporium has begun migrating its ARRIS based network to the ARRIS E6000 Converged Edge Router.
- Sequenom (SQNM) announced its subsidiary, Sequenom Laboratories, will soon begin reporting on the presence of three additional clinically relevant subchromosomal microdeletions as part of the Enhanced Sequencing Series for its MaterniT21 PLUS laboratory-developed test. The microdeletions added include 11q deletion (Jacobsen syndrome), 8q deletion (Langer-Giedion syndrome), and 4p deletion (Wolf-Hirschhorn syndrome) and will be reported as an additional finding when a positive result is detected.
- The U.S. Department of Treasury has awarded Accenture (ACN) Federal Services a five-year, $48 mln task order for IT and financial management services across the Department's bureaus and offices to improve technologies and service levels.
- Pressure BioSciences (PBIO) and Parabase Genomics have entered into a strategic research and development agreement. Under the terms of the collaboration, PBI will develop a front-end, sample preparation method for Parabase's enhanced neonatal molecular diagnostics and newborn confirmatory testing process. The sample preparation method will be based on PBI's patented and enabling Pressure Cycling Technology platform.
7:20 am Euro Nears Nine-Month Low: 10-yr: -06/32..2.491%..USD/JPY: 101.52..EUR/USD: 1.3481 (:SUMRX) :
- The Dollar Index trades on session highs near 80.75 as trade fights for its best close in more than five months.
- EURUSD is -40 pips @ 1.3480 as action contends with its lowest print since November. The single currency has come under pressure following a EuroStat report suggesting EU government debt increased to 93.9% of GDP in the euro area. Click here to see a daily EURUSD chart.
- GBPUSD is -5 pips @ 1.7070 as sellers look to remain in control for a fifth session. The light selling comes following mixed data out of the UK that saw public sector net borrowing (GBP9.5 bln actual v. GBP10.3 bln expected) beat and CBI Industrial Order Expectations (2 actual v. 9 expected) miss. Support in the 1.6950/1.7000 area is helped by the 50 dma.
- USDCHF is +30 pips @ .9010 as trade flirts with its best close since the beginning of February. A narrower than anticipated Swiss trade balance (CHF1.38 bln actual v. CHF2.97 bln expected) got the buying started, but the bid is more a result of the weakness in EURUSD.
- USDJPY is +15 pips @ 101.55 as buyers look to maintain the upper hand for a third day. Today's weakness comes after the Japanese government lowered its 2014 growth forecast to 1.2% (1.4% previous), attributing the downgrade to weak demand from emerging markets. The 101.50 area provides the first look at resistance.
- AUDUSD is +15 pips @ .9385 following comments from Reserve Bank of Australia Governor Glenn Stevens. Mr. Stevens reiterated the RBA's view that a period of stable rates is likely, and that animal spirits are needed to help the real economy. Action remains trapped in a tight range between .9350/.9400, as it has for much of the past three weeks.
- USDCAD is +10 pips @ 1.0750 as a light bid develops for a second session. A run through 1.0760 puts resistance near 1.0800 and both the 50 and 200 dma in play.
7:20 am Hubbell reports EPS in-line, revs in-line; reaffirms FY14 revs guidance (HUB.B) : Reports Q2 (Jun) earnings of $1.51 per share, in-line with the Capital IQ Consensus Estimate of $1.51; revenues rose 6.8% year/year to $855.8 mln vs the $857.66 mln consensus.
- Co reaffirms guidance for FY14, sees FY14 revs of +5-6% to ~$3.34-3.37 bln vs. $3.38 bln Capital IQ Consensus Estimate.
- "The second quarter results reflect good operational execution on improving order trends. After a slower than planned start to the year, we were encouraged by the broad based strengthening of underlying demand experienced during the quarter. We increased our earnings per diluted share by 10% in the second quarter compared to 2013 as improving market conditions and solid execution of productivity initiatives drove higher profitability."
- Guidance Details: "Based on our first half performance, we continue to expect overall sales to increase in the 5 to 6% range with balanced growth from acquisitions and organic volume. From a profitability standpoint, operating margins are expected to expand in the 20 to 30 basis points range."
7:16 am State Street beats by $0.13, beats on revs (STT) : Reports Q2 (Jun) earnings of $1.39 per share, $0.13 better than the Capital IQ Consensus Estimate of $1.26; revenues rose 4.7% year/year to $2.68 bln vs the $2.61 bln consensus.
- Net interest revenue of $575 million increased from $572 million in the first quarter of 2014 and decreased from $582 million in the second quarter of 2013. Operating-basis net interest revenue excluded discount accretion on former conduit securities of $28 million, $27 million and $47 million for the second quarter of 2014, the first quarter of 2014, and the second quarter of 2013, respectively.
- Expenses of $1.82 billion decreased from $1.92 billion in the first quarter of 2014 and increased from $1.75 billion in the second quarter of 2013.
- ROE of 11.9% increased from 8.8% in the first quarter of 2014 and from 11.3% in the second quarter of 2013.
- Tier 1 common ratio as of June 30, 2014 was 11.3%. (Basel III)
7:07 am Evogene and Marrone Bio Innovations (MBII) sign multi-year collaborative agreement; joint discovery efforts to lead to novel insect control solutions (EVGN) : Co and Marrone Bio Innovations (MBII) announced the signing of a multiyear collaborative agreement targeting the joint discovery of novel modes of biological action for insect control, followed by the development and commercialization of new insect control products by each of the companies.
- The partnership will leverage the expertise and distinct assets and capabilities of each company in its respective field, namely MBI's expertise in microbial-based solutions for pest control and plant health, and Evogene's computational gene discovery capabilities.
- Integrating these industry leading discovery capabilities, the companies will utilize the collaboration's joint assets to separately develop and commercialize products. Specifically, Evogene will develop biotechnology insect resistance seeds, while MBI will develop biologically-based insecticides. The parties have agreed on revenue sharing from all insect control products developed through the collaboration.
7:06 am Altria misses by $0.01, reports revs in-line; narrow FY14 EPS guidance; announces new $1 bln share repurchase program (MO) : Reports Q2 (Jun) earnings of $0.65 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of $0.66; revenues net excise tax rose 1.6% year/year to $4.6 bln vs the $4.59 bln consensus.
- Co narrows guidance for FY14 to EPS of $2.54-2.59, prior $2.52-2.59 vs. $2.57 Capital IQ Consensus Estimate. Altria expects stronger adjusted diluted EPS growth in the second half of the year, particularly in the fourth quarter, driven by various factors. These include lower fourth-quarter costs in the smokeable products segment due to the end of the quota buy-out payments and a significantly lower fourth-quarter effective tax rate on operations compared to the fourth quarter of 2013 resulting from Altria's 2013 debt tender offer.
- Co announces a new $1 billion share repurchase program to be completed by the end of 2015.
- Co announced the expansion of synthetic immuno-oncology programs in conjunction with Intrexon Corporation (XON) to include chimeric antigen receptor T-cell therapy.
- Further preclinical work is underway in this promising area of study, and the co and Intrexon expect to provide a progress update in the second half of 2014.
- With respect to the Ad-RTS-IL-12 clinical programs, the co continues to conduct Phase II studies in melanoma and breast cancer using Ad-RTS-IL-12 as a monotherapy.
- Additionally, the company is evaluating future trials with IL-12 in potential combination therapies with other immune-targeting agents in various cancers including melanoma and breast.
- The co also plans to initiate a Phase I trial to evaluate Ad-RTS-IL-12 as a single agent in the treatment of patients with Glioblastoma Multiforme in the second half of 2014.
7:05 am Mueller Industries beats by $0.14, beats on revs (MLI) : Reports Q2 (Jun) earnings of $0.62 per share, $0.14 better than the Capital IQ Consensus Estimate of $0.48; revenues rose 11.6% year/year to $649.7 mln vs the $620.24 mln consensus.
Sales were positively impacted by a 15.9 percent increase in unit volumes, partially offset by a 4.6 percent reduction in copper prices in the second quarter of 2014 compared with the same period of the prior year. Copper prices averaged $3.10 per pound in the second quarter of 2014 compared with $3.25 per pound in the same period of 2013.
7:05 am Galena Biopharma enters into definitive agreement to license U.S. rights for Zuplenz (ondansetron) oral soluble film (GALE) :
- Co announced it has entered into a definitive agreement to license the U.S. rights for the commercial product Zuplenz (ondansetron) oral soluble film. The asset was licensed from MonoSol Rx, LLC, the developer of the oral soluble film technology, PharmFilm, and manufacturer of the product.
- Galena has entered into an exclusive license and supply agreement with MonoSol Rx, the effectiveness of which is subject to the court approval of a settlement that MonoSol Rx has reached with a former licensee of Zuplenz.
- Under the terms of the license agreement, upon effectiveness of the license and transfer to Galena of the New Drug Application (:NDA) for Zuplenz, Galena will pay MonoSol Rx a total of $5,000,000 in cash and stock.
- The license agreement also provides for fixed double-digit royalties on net sales and pre-specified, one-time sales milestones. Zuplenz has issued and pending U.S. patent applications with an anticipated expiration date of 2029. Galena expects to launch Zuplenz in early 2015.
7:05 am PacWest Bancorp beats by $0.02 (PACW) : Reports Q2 (Jun) earnings of $0.64 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.62.
- Net interest margin at 6.24%
- Loan and lease production of $881.3 million; $143.0 million of organic loan and lease growth in the quarter
- "PacWest Bancorp is a very strong and well-positioned company. Our second quarter adjusted return on assets and adjusted return on tangible equity stood at 1.70% and 16.05%. Our tangible common equity ratio was 12.14% at June 30, well above the 10% target we set when we initiated the CapitalSource merger. The strengths of these financial metrics position us to support asset growth and produce solid earnings."
7:04 am Harley-Davidson beats by $0.16, reports revs in-line; lowers FY14 shipment guidance to +3.5-5.5% from +7-9% (HOG) : Reports Q2 (Jun) earnings of $1.62 per share, $0.16 better than the Capital IQ Consensus Estimate of $1.46; revenues rose 12.4% year/year to $1.83 bln vs the $1.84 bln consensus.
- Dealers worldwide sold 90,218 new Harley-Davidson motorcycles in the second quarter of 2014 compared to 90,193 motorcycles in the year-ago quarter. In the U.S., dealers sold 58,225 new Harley-Davidson motorcycles in the quarter, compared to sales of 58,241 motorcycles in the year-ago period. The Company believes second-quarter U.S. retail sales were adversely affected by prolonged poor weather across parts of the U.S. and soft Sportster motorcycle sales ahead of the highly anticipated arrival of Street motorcycles in dealer showrooms.
- In international markets, dealers sold 31,993 new Harley-Davidson motorcycles during the second quarter, compared to 31,952 motorcycles in the year-ago period, with sales up 7.0 percent in the EMEA Region and 1.5 percent in the Asia Pacific Region, and down 10.4 percent in the Latin America Region and 18.0 percent in Canada.
- "U.S. retail Harley-Davidson sales fell short of our expectations in the second quarter," said Wandell. "Because we are committed to managing supply in line with demand, we are reducing our full-year shipment plan and now expect shipment growth of ~3-1/2 to 5-1/2 percent over last year." The co previously had forecast full-year shipment growth of ~7 to 9 percent.
- Harley-Davidson is revising its full-year guidance for new motorcycle shipments, reflecting its commitment to manage supply in line with demand, and now expects to ship 270,000 to 275,000 motorcycles to dealers and distributors worldwide in 2014, an ~3-1/2 percent to 5-1/2 percent increase from 2013. The Company previously had provided full-year shipment guidance of 279,000 to 284,000 motorcycles.
- In Q3, the co expects to ship 49,000 to 54,000 motorcycles, compared to shipments of 54,025 motorcycles in the year-ago period. The Company continues to expect full-year 2014 operating margin of 17.5 percent to 18.5 percent in the Motorcycles segment. The co also continues to expect capital expenditures of $215 million to $235 million in 2014.
7:04 am Astec Industries beats by $0.01, beats on revs; Co is cautious regarding its short-term prospects, particularly as they relate to infrastructure spending (ASTE) : Reports Q2 (Jun) earnings of $0.63 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.62; revenues rose 11.8% year/year to $277.3 mln vs the $261.74 mln consensus.
- Both domestic and international sales increased during the quarter compared to our second quarter last year. Our total backlog is up 7% over June 30 of last year. We grew revenues and profits in each of our manufacturing segments on a quarterly and year-to-date basis."
- "While we are up on sales and profit versus last year, we are cautious regarding our short-term prospects, particularly as they relate to infrastructure spending."
- "Washington continues to pursue short-term extensions in lieu of a long-term funding bill that would provide visibility to our customers for their capital spending. We are seeing improved private markets for our customers and some states have new policies in place to help with funding of highway projects. That being said, we look forward to improving market conditions as our energy, aggregate, and mining businesses see stable to slightly better business in the near term."
7:03 am Comverse expands relationship with Telecom Italia (TI) group for enterprise billing, business transformation; new release of the Comverse Kenan FX billing solution (CNSI) : Co announced the recent successful migration of fixed-line customers in an extension of its relationship with Telecom Italia (TI), the leading Italian ICT group. The consolidation of the BSS ecosystem with Kenan FX will more efficiently support the rating and billing of fixed and mobile consumer and corporate customers in Italy.
- Comverse recently announced a new release of the Comverse Kenan FX billing solution, with additional capabilities that enable service provider customers to extend their BSS environments to meet evolving business needs and unlock value for both consumers and businesses.
7:02 am Comcast beats by $0.04, beats on revs (CMCSA) : Reports Q2 (Jun) earnings of $0.76 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.72; revenues rose 22.0% year/year to $19.84 bln vs the $16.97 bln consensus.
- Cable Communications Revenue Increased 5.4% and Operating Cash Flow Increased 5.3%
- High-Speed Internet Customers Increased by 203,000; The Best Second Quarter Net Additions in Six Years
- Video Customer Net Losses Declined to 144,000; The Best Second Quarter Result in Six Years
- NBCUniversal Revenue Increased 0.3% and Operating Cash Flow Increased 20.4%, as Operating Cash Flow Margins Expanded to 23.8% from 19.9% in the Prior Year Period
- "We continue to see strong momentum across our cable and content businesses. In Cable, we posted the best second quarter customer results for both video and high-speed Internet in six years and saw tremendous demand for our X1 product, which is a truly transformative experience. We are also pleased with the continued rapid growth of business services, which has quickly become an important engine for the company. NBCUniversal had another excellent quarter with double-digit operating cash flow growth driven by solid results in each segment and a first place finish for NBC for the 2013/2014 broadcast television season."
7:01 am Covidien announced that Bryan Hanson, currently group president Medical Devices & US, will be elevated to newly created position of group president Covidien, effective Oct 1 (COV) :
7:01 am BBCN Bancorp increases quarterly dividend by 33.3% to $0.10 from $0.075/share (BBCN) :
7:01 am Waters beats by $0.01, beats on revs (WAT) : Reports Q2 (Jun) earnings of $1.22 per share, $0.01 better than the Capital IQ Consensus Estimate of $1.21; revenues rose 6.9% year/year to $482 mln vs the $476.16 mln consensus.
7:00 am GreenHunter Resources intends form Master Limited Partnership (GRH) : Co has filed with the Internal Revenue Service a request for a ruling that income derived by a newly formed limited partnership for the handling of fluid storage, treatment and disposal services, frac tank rental, water monitoring services, and environmental remediation services that constitute a part of the exploration, developmental, mining, processing, refining, and transportation of natural resources will in fact constitute "Qualified Income" under certain sections of the Internal Revenue Code of 1986, as amended.
- Due to substantial growth experienced over the last couple of years, as well as the anticipated future growth from the various projects planned by the Company over the next three years, management and the board have determined that utilizing a MLP structure will be the most cost efficient way to fund our future capital needs.
7:00 am Teleflex receives FDA clearance for ARROW-ClarkTM VectorFlow Chronic Hemodialysis Catheter (TFX) : Co announced it has received FDA 510(k) clearance to market its ARROW-Clark VectorFlow Chronic Hemodialysis Catheter.
- The Catheter features a symmetrical tip design that allows ease of placement and sustained high flows with minimal recirculation.
- The ARROW-Clark VectorFlow Catheter is the only catheter with an innovative tip designed to produce a helical, three-dimensional transition of blood entering and leaving the catheter.
6:49 am Scorpio Tankers purchased 6,327,861 common shares in the open market, average price of $9.74/share; recently taken delivery of four product tankers under its Newbuilding Program (STNG) : Co announced an update on its Stock Buyback Program, Newbuilding vessel deliveries, and second quarter 2014 earnings release date.
- The Company has purchased 6,327,861 of its common shares in the open market at an average price of $9.74 per share since July 1, 2014 under its $150 mln Stock Buyback Plan that was announced on June 30, 2014 and has $88.1 mln remaining under the Plan.
- The Company has recently taken delivery of four product tankers under its Newbuilding Program:
- STI Powai, an MR product tanker, was delivered in July 2014 from Hyundai Mipo Dockyard of South Korea ("HMD"). Upon delivery the vessel began a time charter for up to 120 days at ~$18,000 per day.
- STI Aqua, an MR product tanker, was delivered in July 2014 from SPP Shipyard of South Korea ("SPP"). Upon delivery the vessel began a time charter for up to 120 days at ~$18,000 per day.
- STI Pimlico, a Handymax Ice Class 1A product tanker, was delivered from HMD in July 2014. Upon delivery, this vessel began a time charter for up to 120 days at ~$15,000 per day.
- STI Elysees, an LR2 product tanker, was delivered from Hyundai Samho Heavy Industries ("HSHI") in July 2014.
6:46 am S&P futures vs fair value: +3.50. Nasdaq futures vs fair value: +11.50. :
6:46 am European Markets : FTSE...6783.68...+55.20...+0.80%. DAX...9694.87...+82.80...+0.90%.
6:46 am Asian Markets : Nikkei...15343.28...+127.60...+0.80%. Hang Seng...23782.11...+395.00...+1.70%.
6:39 am Verizon beats by $0.01, beats on revs; reaffirms FY14 guidance (VZ) : Reports Q2 (Jun) adj. earnings of $0.91 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.90; revenues rose 5.7% year/year to $31.48 bln vs the $31.09 bln consensus.
Co reaffirms guidance for FY14, sees FY14 revs +4% to ~$125.4 bln vs. $125.41 bln Capital IQ Consensus, adj. consolidated EBITDA margin expansion in 2014, with positive contributions to profitable growth from both wireless and wireline.
- Verizon continues to target 2014 investments in the range of $16.5 billion to $17 billion, with a decrease in capital spending as a%age of total revenues for the full year.
In Q2, Verizon Wireless delivered strong growth in retail postpaid net connections and revenues, co-record tablet additions, an increase in smartphone penetration, and continued high segment EBITDA margin on service revenues (non-GAAP).
- Wireless Financial Highlights
- Total revenues were $21.5 billion in second-quarter 2014, up 7.5% year over year. Service revenues in the quarter totaled $18.1 billion, up 5.9% year over year. Retail service revenues grew 5.3% year over year, to $17.3 billion. Retail postpaid ARPA (average revenue per account) increased 4.7% over second-quarter 2013, to $159.73 per month. In second-quarter 2014, wireless operating income margin was 32.5% and segment EBITDA margin on service revenues was 50.3%. This compares with 32.4% and 49.8%, respectively, in second-quarter 2013.
- Wireless Operational Highlights
- Verizon Wireless added 1.4 million retail net connections, all of which were postpaid, in the second quarter. These additions exclude acquisitions and adjustments. At the end of the second quarter, the company had 104.6 million retail connections. This includes 98.6 million retail postpaid connections, a 4.6% increase year over year. Verizon Wireless had 35.2 million retail postpaid accounts at the end of the second quarter, up 0.7% over second-quarter 2013, and 2.80 connections per account, up 3.7% year over year. During second-quarter 2014, the company added 304,000 postpaid phone net additions and 1.15 million postpaid tablets. Verizon's wireline segment reported continued strong results for consumer services, where year-over-year quarterly revenues now have grown by more than 4% for eight consecutive quarters.
- In Q2, consumer revenues were $3.9 billion, up 5.3% compared with second-quarter 2013, with FiOS revenues representing 75% of the total. Consumer ARPU for wireline services increased to $122.57 in second-quarter 2014, up 11.0% compared with second-quarter 2013. Total FiOS revenues grew 14.4%, to $3.1 billion, comparing second-quarter 2014 with second-quarter 2013.
- Verizon added 139,000 net new FiOS Internet connections and 100,000 net new FiOS Video connections. Verizon had totals of 6.3 million FiOS Internet and 5.4 million FiOS Video connections at the end of the second quarter, representing year-over-year increases of 9.3% and 7.6%, respectively.
6:38 am Lexmark beats by $0.06, beats on revs; guides Q3 EPS below consensus, revs above consensus; guides FY14 EPS in-line, raises FY14 revs above consensus (LXK) : Reports Q2 (Jun) earnings of $0.99 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus Estimate of $0.93; revenues rose 0.6% year/year to $891.8 mln vs the $867.85 mln consensus.
- Co issues guidance for Q3, sees EPS of $0.85-0.95, excluding non-recurring items, vs. $0.96 Capital IQ Consensus Estimate; sees Q3 revs of flat to (2%) to ~$872.5-890.3 mln vs. $866.89 mln Capital IQ Consensus Estimate.
- Co issues guidance for FY14, sees EPS of $3.95-4.15, excluding non-recurring items, vs. $3.96 Capital IQ Consensus Estimate; raises FY14 revs of flat to (2%) from prior guidance of a decline of 2-4% to ~$3.610-3.684 bln vs. $3.58 bln Capital IQ Consensus Estimate.
- "In the second quarter, our higher value solutions portfolio revenue, comprised of Managed Print Services and Perceptive Software, grew 11 percent, accounted for nearly 30 percent of Lexmark's total revenue and is expected to exceed $1 billion this year...This growth is fueled by the disciplined execution of our capital allocation framework, which funds the company's transformation while concurrently rewarding our shareholders with both a 20 percent dividend increase and share repurchases, returning $41 million this past quarter."
6:37 am Banco Bilbao Vizcaya Argentaria wins auction for Catalunya Banc for EUR1.187 bln (BBVA) : Co has acquired Catalunya Banc through an auction held by the Orderly Bank Restructuring Fund (known as FROB). The move doubles BBVA's market share in Catalonia. The acquisition will have a positive impact on the Group's results in 2016.
- BBVA will pay the FROB EUR1.187 bln for Catalunya Banc and the deal is expected to be closed in the first quarter of next year. Catalunya Banc has 1.5 mln customers and EUR63 bln in assets. The auction was held after an extensive cleanup process of Catalunya Banc by the FROB.
- BBVA will acquire Catalunya Banc without having to resort to a capital increase. BBVA's capital ratio, which stood at 10.8% in March, will drop by around 55 basis points as a result of this deal.
- Catalunya Banc has a net equity of EUR2.5 bln and the estimated net present value of the synergies exceeds EUR1.2 bln. This acquisition will have a positive impact on the Group's results as of 2016.
- With this purchase, BBVA's loan portfolio in Spain will grow 14%, deposits 23% and its customer base 18%. Catalunya Banc holds EUR25 bln in retail deposits, EUR28 bln in gross loans and 773 branch offices.
- The price will be reduced in an amount equal to EUR267 mln provided that, prior to the effective closing of the transaction, FROB and Catalunya Banc do not obtain a confirmation issued by the Spanish tax authorities of the application of the deferred tax assets regime to some losses recorded in Catalunya Banc's consolidated financial statements for 2013 which were originated as a consequence of the transfer of assets by Catalunya Banc to the Management Company for Assets Arising from the Banking Sector Reorganization.
6:34 am CIT Group Board of Directors approves repurchase of up to $500 mln of common stock through June 30, 2015 (CIT) : Co announced that its Board of Directors approved the repurchase of up to $500 million of common stock through June 30, 2015. As of June 30, 2014, the co has repurchased $745 million of common stock since May 30, 2013. The co also has ~ $55 million remaining under its previously authorized programs.
6:33 am CIT Group beats by $0.31; Credit metrics remain at or near cycle lows (CIT) :
- Reports Q2 (Jun) earnings of $1.02 per share, excluding items, $0.31 better than the Capital IQ Consensus Estimate of $0.71.
- Credit metrics remain at or near cycle lows. Non-accrual loans declined to $190 mln, or 1.02% of finance receivables, at June 30, 2014 from $218 mln (1.18%) at March 31, 2014 and $279 mln (1.53%) at June 30, 2013, reflecting the sale of the Small Business Lending portfolio. Net charge-offs were $21 mln, or 0.45% of average finance receivables (:AFR), versus $29 mln (0.63%) in the year-ago quarter and $36 mln (0.76%) in the prior quarter. Recoveries of $8 mln were lower than the $19 mln recorded in the year-ago quarter and essentially flat with the prior quarter.
6:32 am World Acceptance beats by $0.03, reports revs in-line (WRLD) : Reports Q1 (Jun) earnings of $2.19 per share, $0.03 better than the Capital IQ Consensus Estimate of $2.16; revenues rose 3.4% year/year to $150.3 mln vs the $150.54 mln consensus.
- The provision for loan losses rose 7.6% to $30.9 million in the first quarter of fiscal 2015 compared with average net loan growth of 4.0%.
- Gross loans outstanding increased 3.5% to $1.2 billion at June 30, 2014, up from $1.1 billion at June 30, 2013.
- The increase in the provision exceeded the increase in loans outstanding due to a higher level of loans 90 days past due, partially offset by a decrease in net charge-offs for the quarter.
- The charge-off ratio improved on a quarter over quarter basis. Annualized net charge-offs as a percent of net loans were 12.7% for the three month period ended June 30, 2014 compared to 13.5% during the prior year quarter.
- Total general and administrative expenses as a percent of revenue decreased slightly to 51.7% compared with 51.8% during the first quarter of the prior fiscal year.
- Key return ratios for the first quarter included a 12.1% return on average assets and a 32.6% return on average equity for a trailing 12 month period ended June 30, 2014.
6:32 am CIT Group to acquire IMB Holdco, the parent co of OneWest Bank, for $3.4 bln in cash and stock; transaction is immediately accretive to CIT's earnings per share (CIT) : Co announced that it has entered into a definitive agreement and plan of merger with IMB Holdco LLC, the parent co of OneWest Bank, for $3.4 bln in cash and stock.
- OneWest Bank is a privately owned regional bank formed in 2009 that operates 73 retail branches in Southern California, with approximately $23 bln in assets, including commercial and residential mortgage loans, and $15 bln in deposits. Following the close of the transaction, CIT Bank, CIT's banking subsidiary, will merge with OneWest Bank under the "CIT Bank" name and CIT will have assets of $67 bln and $28 bln in deposits.
- CIT expects the transaction to be 20% accretive to earnings per share in 2016 generating an internal rate of return (IRR) of 15%.
6:30 am SAGE Therapeutics receives fast track designation for lead compound SAGE-547 to treat status epilepticus (SAGE) : Co announced that the FDA has granted fast track designation to the SAGE-547 development program. SAGE-547 is an allosteric modulator of GABAA receptors in development for the treatment of adult patients with refractory status epilepticus who have not responded to standard regimens (super-refractory status epilepticus, or SRSE). SAGE is currently evaluating SAGE-547 in a Phase 1/2 clinical trial for the treatment of SRSE.
- Preliminary data indicate that the first four patients enrolled in the clinical trial met the key efficacy endpoint, in that each was successfully weaned off his or her anesthetic agent while SAGE-547 was being administered.
- There have also been no reported drug-related serious adverse events in these four patients to date.
6:30 am Asbury Automotive beats by $0.10, beats on revs (ABG) : Reports Q2 (Jun) earnings of $1.19 per share, excluding non-recurring items, $0.10 better than the Capital IQ Consensus Estimate of $1.09; revenues rose 11.7% year/year to $1.5 bln vs the $1.47 bln consensus.
- New vehicle retail revenues up 12%; gross profit up 15%
- Used vehicle retail revenues up 12%; gross profit up 7%
- Finance and insurance revenues up 11%
- Parts and service gross profit up 11%
- Total gross profit up 12% with increases from all business lines
- Record operating margin of 4.8%
6:28 am On The Wires (:WIRES) :
- YuMe (YUME) announces Ngage, a global, first-to-market, multi-screen advertising opportunity for brand marketers. The Ngage series is comprised of an extensive set of multi-screen video ad units for connected TV, tablet, smartphone, and PC.
- AOL (AOL) announces that it is putting 100% of its reserved inventory from all its owned and operated sites into AOL's proprietary Demand Side Platform.
- China TechFaith Wireless Communication Technology (CNTF) announced it will launch its 6th generation ruggedized smartphone, the "A6", targeted to the mass market in the fourth quarter of 2014.
6:22 am Advaxis and AstraZeneca's (AZN) MedImmune partner on immuno-oncology combination clinical trial (ADXS) : Co has entered into a clinical trial collaboration with MedImmune, the global biologics research and development arm of AstraZeneca (AZN). The Phase I/II immunotherapy study will evaluate the safety and efficacy of MedImmune's investigational anti-PD-L1 immune checkpoint inhibitor, MEDI4736, in combination with Advaxis' lead cancer immunotherapy vaccine, ADXS-HPV, as a treatment for patients with advanced, recurrent or refractory human papillomavirus (:HPV)-associated cervical cancer and HPV-associated head and neck cancer.
- Under the terms of the agreement, MedImmune and Advaxis will evaluate the combination as a treatment for HPV-associated cervical cancer and squamous cell carcinoma of the head and neck. The Phase I part of the trial is expected to establish a recommended dose regimen of MEDI4736 with ADXS-HPV, and the Phase II portion will assess the safety and efficacy of the combination. The study will be funded and conducted by Advaxis. Results from the study will be used to determine whether further clinical development of this combination is warranted.
- Under the terms of the deal, MedImmune has a non-exclusive relationship with respect to HPV-driven tumour types. MedImmune has first right of negotiation for future development of combinations involving MEDI4736 and ADXS-HPV.
6:21 am Brown & Brown misses by $0.03, beats on revs; approves $200 mln stock repurchase program (reported last night) (BRO) : Reports Q2 (Jun) earnings of $0.38 per share, excluding non-recurring items, $0.03 worse than the Capital IQ Consensus Estimate of $0.41; revenues rose 22.1% year/year to $397.8 mln vs the $384.94 mln consensus.
- In the second quarter we completed our $25 mln stock buyback that was approved by the Board of Directors in January of this year. The objective of this buyback was to help manage our share increase attributable to stock incentive plans. Consistent with our historical disciplined approach to managing capital, the Board of Directors has approved the purchasing of up to an additional $200 mln worth of the Company's outstanding shares.
- During the quarter, we also funded our new Credit Facility in conjunction with the acquisition of Wright and repaid $230 mln of existing term loan debt. The Credit Facility includes a Term A Loan of $550 mln and a Revolving Loan Facility with a drawing capacity of $800 mln. To facilitate the activities above, we drew $375 mln on the Revolving Loan. As of June 30, our total debt outstanding was $1,175 mln.
6:14 am New Oriental Education & Technology beats by $0.02, beats on revs; guides Q1 revs below consensus (EDU) : Reports Q4 (May) earnings of $0.30 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.28; revenues rose 20.0% year/year to $287.5 mln vs the $281.59 mln consensus.
- Total student enrollments in academic subjects tutoring and test preparation courses increased by 4.0% year-over-year to ~581,400 from ~559,000 in the same period of the prior fiscal year.
Co issues downside guidance for Q1, sees Q1 revs of $412-427.5 mln vs. $463.36 mln Capital IQ Consensus Estimate.
- This lower-than-normal projected revenue growth rate reflects the anticipated impact on the Company's top-line performance of margin expansion initiatives in fiscal year 2014, the transition to a new POP Kids program, changes in product mix and business seasonality, as well as certain macroeconomic factors. Co states it is in the process of reducing our previous learning center opening plan of 10 to 12 per quarter in light of the slower than expected revenue growth outlook for our first quarter of 2015.
6:11 am DuPont reports EPS in-line with conssens & pre-announcement, revs in-line; guides Q3 EPS below consensus; reaffirms FY14 EPS guidance; raises quarterly div 4% (DD) : Reports Q2 (Jun) earnings of $1.17 per share (co pre-announced EPS of lower than $1.28 on Jun 26), excluding non-recurring items, in-line with the Capital IQ Consensus Estimate of $1.17; net revenues fell 1.4% year/year to $9.71 bln vs the $9.75 bln consensus.
- Co issues downside guidance for Q3, sees EPS of 40% of 1.25-1.35 or ~$0.50-0.54 vs. $0.60 Capital IQ Consensus Estimate.
- Co reaffirms guidance for FY14, sees EPS of $4.00-4.10 vs. $4.02 Capital IQ Consensus Estimate.
- Agriculture -- Operating earnings of $836 mln declined $105 mln, or 11 percent, on lower corn seed volumes, lower North America herbicide volumes and higher seed inventory write-downs. This was partially offset by higher seed prices, higher insecticide volumes, higher soybean volumes and lower seed input costs.
- Performance Materials -- Operating earnings of $303 mln decreased $29 mln, or 9 percent. Gains from strong Performance Polymers volumes into global automotive markets were offset by a scheduled maintenance shutdown at the company's Orange, Texas ethylene unit. Absent that shutdown, segment operating earnings would have increased.
- The Performance Chemicals separation remains on track for mid-2015.
- The company also announced a 4% increase in its 3Q 2014 dividend, its third increase in the past 27 months.
- Guidance Details: The company reaffirms its recently updated outlook for full-year 2014 operating earnings of $4.00-$4.10 per share, an increase of 3 to 6 percent from $3.88 per share earned in 2013, based on expected growth in global industrial market demand. The company anticipates a strong second half in 2014 with operating earnings per share of $1.25 - $1.35, about 40 percent of which is expected in the third quarter.
6:11 am Del Frisco's Restaurant misses by $0.01, misses on revs; lowered FY14 EPS below consensus (DFRG) : Reports Q2 (Jun) earnings of $0.20 per share, $0.01 worse than the Capital IQ Consensus Estimate of $0.21; revenues rose 11.6% year/year to $67.4 mln vs the $69.1 mln consensus.
- On a fiscal quarter basis, which includes a one-week calendar shift in the comparison due to the 53rd week in fiscal 2013, sales in the same restaurants increased 5.4%. On a calendar basis, comparable restaurant sales increased 0.9% at Sullivan's Steakhouse. On a fiscal quarter basis, which includes a one-week calendar shift in the comparison due to the 53rd week in fiscal 2013, sales in the same restaurants increased 0.7%. Blended comparable restaurant sales, on a calendar basis, increased 2.2% across all three concepts. On a fiscal quarter basis, sales in the same restaurants increased 2.3% across all three concepts.
- Co lowered guidance for FY14 to EPS of $0.90 -0.94, prior $0.94-0.98 vs. $0.96 Capital IQ Consensus Estimate.
- The remaining guidance for the 52-week fiscal year 2014 ending on December 30, 2014 includes the following: Total comparable restaurant sales increase of 1.5% to 2.5% (on a comparable 52-week basis); Cost of sales of 30.1% to 30.4% of consolidated revenues (previously 29.9% to 30.4%); Restaurant-level EBITDA of 22.6% to 23.1% of consolidated revenues (previously 22.9% to 23.4%); Gross capital expenditures (before tenant allowances) of $38 million to $40 million
6:10 am On The Wires (:WIRES) :
- Ur-Energy (URG) announced a recently completed uranium resource analysis identified 8,816,000 pounds U3O8 of Measured and Indicated Resources, averaging 0.230% eU3O8 for its Shirley Basin Project, in Carbon County, Wyoming.
- IGT's (IGT) famed MegaJackpots game, Wheel Of Fortune made payed out $1,784,972 at the California Hotel & Casino Las Vegas on July 11, 2014.
- Consumers Energy, the principal subsidiary of CMS Energy (CMS), is taking steps to diversify its energy supply and help the environment by selecting four Michigan farms to produce renewable energy with anaerobic digesters.
- DayNine Consulting, a global Workday (WDAY) services partner, and Pamlico Capital announced that Pamlico has completed a significant equity investment in the Company.
- Quest Resource Management Group, a wholly-owned subsidiary of Quest Resource Holding (QRHC) announced that NPC International has selected Quest to manage its landfill diversion and municipal solid waste management programs.
6:10 am Polaris Inds beats by $0.03, beats on revs; raises FY14 EPS and revs guidance (PII) : Reports Q2 (Jun) earnings of $1.42 per share, $0.03 better than the Capital IQ Consensus Estimate of $1.39; revenues rose 20.0% year/year to $1.01 bln vs the $1 bln consensus.
Co issues in-line guidance for FY14, sees EPS of $6.48-6.58 vs. $6.49 Capital IQ Consensus Estimate; sees FY14 revs of +16-18% YoY to ~$4.38-4.58 vs. $4.38 bln Capital IQ Consensus Estimate. Prior guidance was for EPS of $6.30-6.45 and revs of +14-16% YoY to $3.83-4.38 bln
- Off-Road Vehicle sales increased 13% from the second quarter 2013 to $701.5 million. This increase reflects increased demand and North American market share gains for both ATVs and side-by-side vehicles. Polaris North American ORV unit retail sales were up low-double digits% from the second quarter last year, with consumer purchases of side-by-side vehicles climbing low-teens%, ATV retail sales increasing mid-single digits% and the new Sportsman ACE category continuing to gain retail momentum. The Company estimates the North American industry ORV retail sales increased high-single-digits% from the second quarter of 2013.
- Snowmobile sales totaled $6.1 million for the 2014 second quarter compared to $8.5 million for the second quarter of 2013. Snowmobile sales in the Company's second quarter are routinely low as it is the off-season for snowmobile retail sales and shipments.
- Sales for the Motorcycles division increased 107% to $103.1 million in the 2014 second quarter compared to same period last year due to continued strong demand for the new model year 2014 Indian motorcycles. Consumer retail demand for Polaris motorcycles, driven by Indian Motorcycle retail sales, was up approximately 50% during the 2014 second quarter, while second quarter North American industry heavyweight cruiser and touring motorcycle retail sales were about flat versus the 2013 second quarter.
- International sales totaled $170.5 million for the 2014 second quarter, a 26% increase over the same period in 2013. The increase in second quarter sales resulted from strong sales growth in all international regions. Europe, Middle East and Africa sales increased 22%, Asia Pacific sales were up 40% and Latin America sales increased 36%. Both ORV and Motorcycles gained market share outside of North America during the 2014 second quarter.
6:07 am Carlisle Cos misses by $0.03, reports revs in-line; reaffirms FY14 revs/EBIT leverage guidance (CSL) :
- Reports Q2 (Jun) earnings of $1.15 per share, $0.03 worse than the Capital IQ Consensus Estimate of $1.18; revenues rose 8.4% year/year to $859.5 mln vs the $864.7 mln consensus.
- Co reaffirms guidance for FY14, sees FY14 revs of HSD growth (+7% consensus to $3.17 bln Capital IQ Consensus Estimate).
- "For the full year 2014, we continue to plan for high single-digit percentage sales growth and EBIT leverage from our sales growth. CIT and CCM continue to be the primary drivers of this year's sales growth as the outlook for the aerospace and commercial construction markets remain favorable. Capital expenditures for the year are expected to be approximately $117 million. Our balance sheet continues to be strong and we continue to be solidly positioned to pursue our long-term growth objectives."
6:06 am LM Ericsson chosen as sole supplier of Claro's LTE network in Costa Rica (ERIC) : Co has been selected by Claro as the sole supplier of the operator's LTE network in Costa Rica. Ericsson's full LTE solution will include several core and radio access infrastructure products such as Mobility Management Entity, Home Subscriber Server, the RBS 6000 family, and microwave transmission using the LTE-proven MINI-LINK TN, as well as services and consulting for spectrum refarming, equipment roll-out, systems integration and optimization, in addition to support for field operations, maintenance and the back office.
Claro Costa Rica is the first operator to introduce LTE network services in Central America within AMX group, as well as the first operator in Costa Rica to launch LTE as a value added service for the local market in post-paid plans.
6:05 am Regions Fincl reports EPS in-line, revs in-line (RF) :
- Reports Q2 (Jun) earnings of $0.21 per share, in-line with the Capital IQ Consensus Estimate of $0.21; revenues rose 2.0% year/year to $1.28 bln vs the $1.29 bln consensus.
- Net interest income was positively impacted by loan growth. However, this improvement was offset by lower asset yields and loan spread compression resulting from the persistently low rate environment and competitive pricing pressures. If rates remain at current levels, modest net interest margin compression is expected going forward.
- Overall credit quality improved as net charge-offs declined to 0.35 percent of average loans.
6:04 am Acacia Research subsidiary, Saint Lawrence Communications, enters into royalty-bearing patent license agreement with Tecnotree OYJ (ACTG) :
5:57 am DuPont announced that its board of directors approved a third quarter dividend of $0.47/share a 4% increase over the $0.45/share last quarter (DD) :
5:56 am Signature Bank beats by $0.02 (SBNY) : Reports Q2 (Jun) earnings of $1.44 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $1.42.
- For the 2014 Second Quarter, Loans Increased $1.21 Bln, or 8.5 Percent, to $15.43 Bln. Since the End of the 2013 Second Quarter, Loans Have Increased 39.4 Percent, or $4.36 Bln. Net Interest Margin Decreased to 3.31 Percent, Compared with 3.39 Percent for the 2014 First Quarter and 3.36 Percent for the 2013 Second Quarter.
- The Linked-Quarter Decrease Was Partly Due to a Decline in Loan Prepayment Penalty Income of $2.0 Mln, or Five Basis Points in Margin Core Net Interest Margin Excluding Loan Prepayment Penalty Income Decreased Three Basis Points to 3.22 Percent, Compared with 3.25 Percent for the 2014 First Quarter.
- Net interest income for the 2014 second quarter reached $193.7 mln, up $39.2 mln, or 25.4 percent, when compared with the 2013 second quarter.
5:33 am Credit Suisse beats by CHF 0.01, beats on revs (CS) : Reports Q2 (Jun) loss of CHF 0.46 per share, CHF 0.01 better than the Capital IQ Consensus of (CHF 0.47); revenues fell 8.0% year/year to CHF 6.46 bln vs the CHF 5.74 bln consensus.
- Private Banking & Wealth Management strategic performance reflecting lower revenues but continued efficiency gains:
- 2Q14 resilient profitability in strategic businesses with pre-tax income of CHF 882 million, down 13% from a very strong 2Q13, and a return on capital of 28%
- Further increased cost efficiency of strategic businesses in 6M14 with cost/income ratio of 68%, improved from 71% in 6M13
- Increased Wealth Management Clients net margin to 28 basis points for 6M14, supported by significant progress on cost reduction
- Wealth Management Clients 2Q14 gross margin at 99 basis points, down five basis points compared to 1Q14, reflecting an increase in assets under management, a change in client mix, lower fee-based revenues and slightly lower net interest income p Strong 2Q14 net new assets from strategic businesses of CHF 11.8 billion with annualized growth rate of 4%, notwithstanding continued outflows of CHF 2.9 billion from Western European cross-border business due to substantial progress on regularization of asset base; total net new assets of CHF 10.1 billion with total Western European cross-border outflows of CHF 4.1 billion
- Investment Banking performance reflecting stability of diversified strategic franchise:
- Strategic businesses with pre-tax income of CHF 1,034 million and return on capital of 18%
- strong performance from fixed income yield franchises and underwriting businesses, partly offset by less favorable trading conditions for equity sales and trading and continued weakness in global macro products
- Strong 6M14 return on capital in Investment Banking, with 20% from strategic businesses and solid 13% in total reported results
In May 2014, Credit Suisse entered into a comprehensive and final settlement regarding all outstanding US cross-border matters, including agreements with the US Department of Justice, the New York State Department of Financial Services, the Board of Governors of the US Federal Reserve System and, as previously announced, the US Securities and Exchange Commission (SEC.TO). The final settlement amount was $2,815 million (CHF 2,510 million). In prior quarters, Credit Suisse had taken litigation provisions totaling CHF 892 million related to this matter. As a result, a pre-tax litigation settlement charge of CHF 1,618 million was recognized in 2Q14 in the non-strategic results of the Private Banking & Wealth Management division. The settlement included a guilty plea entered into by the Group's Swiss banking entity, Credit Suisse AG. Other litigation matters. The Group's estimate of the aggregate range of reasonably possible losses that are not covered by existing provisions for certain proceedings for which the Group believes an estimate is possible decreased from a range of zero to CHF 2.4 billion at the end of 1Q14 to a range of zero to CHF 1.0 billion at the end 2Q14.
Capital and leverage.
As of the end of 2Q14, Credit Suisse reported a Look-through BIS common equity tier 1 (CET1) ratio of 9.5%, compared to 10.0% as of the end of 1Q14. As of the end of 2Q14, the Look-through Swiss total capital ratio was 15.3%, compared to 15.0% as of the end of 1Q14.
4:16 am On The Wires (:WIRES) :
- MobileIron (MOBL) announced the Japanese availability of MobileIron Cloud, the next-generation cloud solution for enterprise mobility management
- Advaxis (ADXS), a clinical-stage biotechnology company developing cancer immunotherapies, has entered into a clinical trial collaboration with MedImmune, the global biologics research and development arm of AstraZeneca (AZN)
- TomTom (TMOAY) has today launched its real-time traffic service in Turkey. The service helps drivers, businesses and governments make smarter decisions when tackling traffic congestion.
- Kofax (KFX) introduced Kofax Mortgage Agility, a solution designed to radically transform and simplify the mortgage application process.
3:15 am BBCN Bancorp reports EPS in-line (BBCN) : Reports Q2 (Jun) earnings of $0.29 per share, in-line with the Capital IQ Consensus Estimate of $0.29.
Net Interest Income and Net Interest Margin.
Net interest income before provision for loan losses totaled $67.5 million for the 2014 second quarter, reflecting a 4% increase over $65.0 million in the preceding first quarter of 2014 and a 9% increase over $62.1 million in the prior-year second quarter.
3:00 am FuelCell Energy German Government supports advancement of clean and efficient fuel cells with EUR4.9 mln in research awards (FCEL) : Co announces the issuance of nearly 5 million in awards by Germany's Federal Ministry for Economic Affairs and Energy to support a three year research and development project between FCES and joint venture partner Fraunhofer IKTS. The project targets further enhancements to the Direct FuelCell technology by increasing power density and operating life of the fuel cells, leading to lower costs. The research is being performed in Germany by FCES at an existing facility in Ottobrunn and by Fraunhofer IKTS at a facility located in Dresden.
2:30 am Crocs beats by $0.05, beats on revs; guides Q3 revs in-line; announces strategic changes (CROX) : Reports Q2 (Jun) earnings of $0.36 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.31; revenues rose 3.6% year/year to $376.9 mln vs the $372.76 mln consensus. Co issues in-line guidance for Q3, sees Q3 revs of ~$300-305 mln vs. $300.54 mln Capital IQ Consensus Estimate.
Gross profit for the second quarter of 2014 increased 0.8% to $202.6 million, or 53.7% as a percentage of sales, compared with $200.9 million, or 55.2% as a percentage of sales in the prior year period. The year-over-year decrease in gross margin was primarily related to increased shipping costs globally offset by a decrease in promotional and clearance activity.
During the quarter, the company repurchased ~2.3 million shares of common stock bringing the total repurchases to 3.2 million shares under its previously announced $350 million stock repurchase program. The company intends to continue to be patient, methodical and opportunistic in the execution of this buyback plan.
Co also announced strategic plans for long-term improvement and growth of the business. These plans comprise four key initiatives, including: (1) streamlining the global product and marketing portfolio, (2) reducing direct investment in smaller geographic markets, (3) creating a more efficient organizational structure including reducing duplicative and excess overhead which will also enhance the decision making process, and (4) closing or converting ~75 to 100 Crocs branded retail stores around the world. The company expects cost savings associated with the reduction in force of $4.0 million in 2014 and $10.0 million in 2015. Further, the company expects store closings will reduce revenue by ~ $35.0 to $50.0 million and reduce SG&A expense by ~$17.0 to $25.0 million with an insignificant impact on future operating income.
2:20 am Dialog Semi. announces termination of merger discussions (DLGNF) : Further to the announcement made on 26 June 2014, Dialog announces that, despite extensive discussions, it has been unable to agree suitable terms for a transaction and has terminated discussions with AMS AG regarding a possible merger of equals of the two companies.
- Dialog will continue to execute on its strategy to become a leading provider of analog mixed signal semiconductors for fast growing market segments including smartphone, tablet, solid state lighting and the emerging wearable and smart home segments.
- Dialog remains committed to exploring opportunities to enhance its product portfolio and expand its addressable market through strategic transactions.
1:55 am On The Wires (:WIRES) :
- NetSuite (N) announced that wealth management and financial services company Yellow Brick Road, has gone live on NetSuite as its business management software platform to support its rapid growth throughout Australia.
- ClickSoftware Technologies (CKSW) announced that KinCare will implement ClickWorkforce. The flexible scheduling solution is available via the Salesforce1 AppExchange, the world's leading business apps marketplace.
- Qualys (QLYS) announced its now supports the Monetary Authority of Singapore Internet Banking Technology Risk Management compliance guidelines to help customers in automated assessment and auditing of the technical requirements of MAS IBTRM.
- An Administrative Law Judge with the CPUC released a Proposed Decision for California Water Service Company's General Rate Case. If adopted, it would approve the Settlement Agreement entered into on October 30, 2013 among Cal Water, a unit of California Water Service (CWT). the Office of Ratepayer Advocates of the CPUC, and other parties to its 2012 General Rate Case.
- RSA, The Security Division of EMC (EMC) announced the latest version of RSA Web Threat Detection designed to provide enterprises with end-to-end visibility into web sessions to help mitigate risks associated with consumer-facing websites including cybercrime activity and business logic abuse.
1:39 am InterOil authorizes $50 mln share buy-back over the next 12 months (IOC) :
1:35 am Samson Oil & Gas provides weekly update (SSN) : Co announces the infill development plan for North Stockyard is to drill 8 middle Bakken wells and 8 Three Forks wells.
- The 4-1/2 inch production liner has been set and cemented successfully in the Bootleg 7-14-15TFH well. Frontier Rig 24 is currently drilling the vertical portion of the wellbore at 8,549 feet on the Bootleg 6-14-15TFH. Once the Bootleg 6-14-15 TFH is drilled the rig will then be moved to the north pad and begin drilling the two Ironbank wells.
- A work over rig completed running the rod string on Matilda Bay 2, and the well is now flowing. The Matilda Bay 1 is currently undergoing a liner repair. Following this work over the fracture stimulation program will be completed.
1:33 am Biglari Holdings provides the terms of a new offering of transferable subscription rights (BH) : Co announces the terms of a new offering of transferable subscription rights. Pursuant to the Rights Offering, the Company will distribute one transferable subscription right for each share of its common stock to shareholders of record at the close of business on August 19, 2014.
- Every five (5) Rights will entitle a shareholder to subscribe for one share of common stock at a price of $250.00 in cash per share.
- The Rights will be transferable and are expected to be admitted for trading on the NYSE (BH RT) during the course of the Rights Offering.
- The subscription period will commence on August 19, 2014 and terminate on September 12, 2014, unless the Rights Offering is extended.
1:29 am Gentiva Health Svcs announces receipt of acquisition proposal from Kindred Healthcare (KND) (GTIV) : Gentiva Health Services (GTIV) announces that it has received a conditional proposal from Kindred Healthcare (KND) to acquire all of the outstanding shares of Gentiva common stock for $17.25 per share. Kindred has indicated that this proposal is subject to "diligence to confirm that such additional value is warranted." Gentiva's Board of Directors, in consultation with its financial and legal advisors, will review the proposal carefully in due course.
- Gentiva stockholders do not need to take any action at this time in relation to this proposal and stockholders are reminded not to tender their shares into Kindred's outstanding partial tender offer for 14.9% of the Company's shares at $16.00 per share.
- Company Earnings