InPlay from Briefing.com

1:17 pm BGC Partners announces agreement to acquire Perimeter Markets; terms not disclosed (BGCP) : Perimeter Markets is an independent provider of electronic fixed income and futures trading in Canada, through its CBID platforms.

1:15 pm Notable movers of interest: DG -15% and DLTR -9% after missing Q2 estimates (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

  • WDAY (84.66 +6.29%): Co reports Q2 revenue beat, reported strongest quarter ever in APJ region.
  • MU (16.43 +5.93%): Price target raised to $20 from $16 at Nomura.

Large Cap Losers

  • DG (78.22 -14.78%): Shares drop after Q2 EPS and revenue estimates miss, and FY17 EPS guidance came in below consensus.
  • DLTR (86.61 -8.76%): Reports Q2 EPS and Revenue estimates, and co lowers FY16 revenue guidance.
  • STJ (76.45 -6.63%): Shares fall after Muddy Waters short report.

Mid Cap Gainers

  • TIF (74.5 +8.17%): Reports Q2 EPS beat, reaffirms FY17 EPS and sales guidance.
  • RAX (28.84 +4.68%): Higher amid circulation of a CTFN article in which a 'sector banker' speculated the company could be worth almost twice as much if it were private. 

Mid Cap Losers

  • SIG (83.51 -12.55%): Shares drop following Q2 EPS and revenue estimates miss, Q3 EPS below consensus, and lower FY17 guidance.
  • TECD (74.7 -6.97%): Reports worse than expected Q2 as revenues fell 3.4% y/y on soft demand in Europe, Q3 EPS and revenue guidance was also below market expectations. 

1:04 pm Midday Market Summary: Indices Flat as Market Waits for Yellen (:WRAPX) :

The stock market trades on a flat note at midday as investors continue to favor a cautious approach ahead of tomorrow's remarks from Federal Reserve Chair Janet Yellen. Other focal points impacting today's trade have included a reversal in crude oil and strong sector leadership from the heavily-weighted technology (+0.3%) and financial (+0.3%) sectors. At midday, the Nasdaq Composite (+0.2%) leads the S&P 500 (+0.1%) and the Dow Jones Industrial Average (UNCHF).

The major averages began the day on a lower note as a downturn in global markets and some weaker-than-expected earnings results kept a lid on equities. European markets paced the retreat overnight as a lackluster reading of Germany's IFO Business Climate survey for August pressured regional bourses. On the home front, disappointing quarterly reports from the likes of Dollar Tree (DLTR 86.25, -8.67), Dollar General (DG 78.24, -13.55), and Signet Jewelers (SIG 83.59, -11.91) helped limit early buying interest in retail sub-group and the broader market.

Equity indices staged a reversal in the opening half hour as heavily-weighted health care (UNCHF), financials (+0.3%), and technology (+0.3%) trimmed their opening losses. The reversal took place alongside a similar move in crude oil futures, which has WTI crude trading higher by 0.8% ($47.12/bbl; +$0.35), rebounding from yesterday's 2.9% decline.

The broader market has struggled to maintain traction above its flat line amid light volume and ahead of potentially market-moving remarks from Ms. Yellen.

The S&P 500 (+0.1%) hovers just above its flat line, maintaining technical support near the 2175 price level. Six sectors trade in the green with materials (+0.3%) and telecom services (+0.5%) outperforming while energy (-0.1%), consumer discretionary (-0.2%), and consumer staples (-0.2%) lag.

The PHLX Semiconductor Index (+0.7%) displays relative strength as component Micron (MU 16.42, +0.91) outperforms. The chipmaker has rallied 6.0% after Nomura raised its price target on the stock to $20 from $16. In the broader technology sector (+0.3%), Salesforce.com (CRM 79.80, +1.98) has gained 2.5% amid takeover rumors. Conversely, top-weighted Apple (AAPL 107.54, -0.49) underperforms, trimming its August advance to 2.4%. 

The economically-sensitive financial sector (+0.3%) demonstrates relative strength as rate-sensitive real estate investment trusts outperform alongside defensively-oriented utilities (+0.2%) and telecom services (+0.4%). The path and speed of interest rate normalization remains in focus as participants look ahead to tomorrow's 10:00 ET remarks from Fed Chair Yellen.

In the health care sector (UNCHF), biotechnology outperforms as Mylan Labs (MYL 44.66, +0.51) rebounds from yesterday's 5.4% decline. The company was under pressure after presidential candidate Hillary Clinton called on the company to lower the price of its EpiPen device. Mylan has since announced initiatives to reduce patient costs associated with that device. On the flipside, St. Jude Medical (STJ 76.29, -5.59) has fallen 6.8% after Muddy Waters Capital disclosed a short position in the stock. The firm cited potential cyber security vulnerabilities for its bearish view on St. Jude.

Treasuries trade on a lower note with yields rising across the curve. The yield on the 10-yr note has risen one basis point to 1.57%. 

Today's economic data included weekly initial claims and Durable Goods Orders for July: 

  • Initial jobless claims for the week ending August 20 slipped to 261,000 (Briefing.com consensus 265,000) from the prior week's unrevised reading of 262,000.
    • Continuing claims for the week ending August 13 were 2.145 million, down 30,000 from the prior week's unrevised reading.
  • Continuing claims for the week ending August 13 were 2.145 million, down 30,000 from the prior week's unrevised reading.
  • Durable goods orders increased 4.4% in July (Briefing.com consensus +3.5%) on the back of a 10.5% increase in transportation equipment orders, which was fueled by an 89.9% increase in nondefense aircraft and parts orders.
    • Orders for the manufacturing sector have picked up again after declining in both May and June.
    • Excluding transportation, orders were up 1.5% (Briefing.com consensus +0.4%), paced by gains in nearly all categories.
  • Orders for the manufacturing sector have picked up again after declining in both May and June.
  • Excluding transportation, orders were up 1.5% (Briefing.com consensus +0.4%), paced by gains in nearly all categories.

For further details on these economic releases, be sure to visit Briefing.com's Economic Calendar page.

1:00 pm Teladoc announces the USPTO has invalidated the major elements of a telemedicine patent held by American Well Corporation (TDOC) :  

1:00 pm Index Changes Reminder: EnerSys (ENS) will replace DreamWorks Animation (DWA) in the S&P MidCap 400, and Wabash Natl (WNC) will replace ENS in the S&P SmallCap 600 after the close of trading (:INDXCH) :  

12:45 pm GameStop Q2 Earnings Preview (GME) :

GameStop (GME) is set to report Q2 results after the bell today (released results last quarter at 4:15pm ET). The company has a conference call scheduled to follow at 5pm ET. Cap IQ Consensus estimates Q2 EPS of $0.27 (-12%) w/revs of $1.72 bln (-2%).

Guidance

  • Last quarter, the company guided for Q2 EPS of $0.28-0.35, which was in-line with the $0.33 Capital IQ Consensus at the time, with comps down 4-7% vs. +8% last year
  • Guidance for FY16 calls for EPS of $3.90-4.05 with comps flat to down 3%.

Gamestop reported Q1 EPS and comps above guidance but sales are down because of a lack of recent blockbuster releases from the video game industry. In addition, the video game industry is known to be cyclical as console releases and the financial success of new game releases are hard to predict. Gamestop currently generates ~70% of operating earnings from the sale of physical video games and hardware, with re-owned sales accounting for ~48% of co's gross profit. Concerns remain about the future sustainability of the GameStop's business long-term as the market shift towards digital offerings, and currently GameStop's digital business only accounts for 2% of revenue. Currently investors share similar concerns as the stock currently trades at an attractive valuation on the surface, with a forward P/E of 8, a current dividend yield of 4.67% with a TTM payout ratio of ~39.3%. However, investors remain skeptical that the co can achieve 50% of their earnings from businesses beyond physical games by 2019 as the short interest for Gamestop is ~30%. 

Highlights from Last Quarter

  • Reports Q1 earnings of $0.66 per share vs. Capital IQ Consensus of $0.61 compared to guidance of $0.58-0.63 per share.
  • Revenues fell 4.3% y/y to $1.97 bln vs the $1.97 bln Capital IQ Consensus compared to guidance for revenue to decline -7 to -4%.
  • Comparable store sales declined 6.2% y/y vs. down 7-9% guidance
    • In Q1, comparable store sales declined 6.6% in the U.S. and declined 4.9% internationally.
  • In Q1, comparable store sales declined 6.6% in the U.S. and declined 4.9% internationally.
  • Video game sales were adversely impacted by a 28.8% decline in new hardware sales and the overlap of several strong new software titles launched in Q1 2015.
    • Pre-owned sales declined 3.7% y/y compared to 1Q15.
  • Pre-owned sales declined 3.7% y/y compared to 1Q15.
  • Transformation Plan:
    • Goal is to have 50%+ of earnings from businesses beyond physical games by 2019
    • Projects +3-5% earnings growth CAGR through 2019
  • Goal is to have 50%+ of earnings from businesses beyond physical games by 2019
  • Projects +3-5% earnings growth CAGR through 2019

Options Activity

  • Based on GME options, the current implied volatility stands at ~ 47%, which is 44% higher than historical volatility (over the past 30 days). Based on the GME Weekly Aug26 $32 straddle, the options market is currently pricing in a move of ~8% in either direction by weekly expiration (Friday).

Technical Take

  • Technically, GME has been range-bound over the last 9-months between the $25 and 33 zone. In the last few weeks, its been steadily improving to the upper end of that range around the 30/32 zone, successfully clearing its 200-day simple moving average (29.64) for the first time since last gapping below it last November. In response to earnings, Buyers will try for the breakout above multi-month resistance along the $33-area. With a High Short Interest at +30% of its float, the potential for a "squeeze" back to the November bearish gap around $38/40 remains on the table. If earnings disappoint, expect Sellers to drop price quickly back below the August lows along $29/28 and press towards the lower end of the multi-month range along the $25-level.

Analyst Commentary

  • Upgraded to Buy from Neutral at BofA/Merrill as they see a number of under-appreciated catalysts during the next few years including the upgrade of mid-cycle consoles from Sony (SNE) and Microsoft (MSFT) in addition to the new Nintendo (NTDOY) console, virtual reality, a favorable view of the software base, and a growing collectible business (July 11).
  • Initiated with an Outperform at Macquarie, price target of $36 (July 1).
  • Target lowered to $24.99 from $26.33 at The Benchmark Company (May 27).

12:19 pm LiqTech International will hold a conference call on August 30, 2016 to discuss its recent announcement of a joint venture in China (LIQT) : See 8:45 AM ET Wires post from this morning. 

12:14 pm Procter & Gamble announces a federal court has entered a permanent injunction barring a private label manufacturer from infringing its Crest Whitestrips intellectual property rights (PG) : Following a preliminary injunction hearing on July 28, 2016, Onuge agreed to a consent judgment in which the Court ordered a permanent injunction. This Order is not appealable and ends the case.

12:01 pm Atossa Genetics announces a reverse split of its common stock at a ratio of 1-for-15, effective August 26 (ATOS) :  

11:54 am European Markets Closing Prices (:SUMRX) : European markets are now closed; stock markets across Europe performed as follows:

  • UK's FTSE: -0.3%
  • Germany's DAX: -0.9%
  • France's CAC: -0.7%
  • Spain's IBEX: -0.7%
  • Portugal's PSI: -0.5%
  • Italy's MIB Index: -1.1%
  • Irish Ovrl Index: + 0.0%
  • Greece ASE General Index: -0.4%

11:38 am Whirlpool to recall/replace microwave hood combinations b/c it may pose a fire hazard (WHR) :  

11:02 am Dollar General Q2 Call Notes (DG) :

  • Co is pleased with double-digit earnings per share growth even as same-store sales performance fell short of co's expectations. 
  • Co is making aggressive pricing, labor, and marketing investments in certain market areas that the co see as opportunities to be proactive as the co looks to improve same-store sales in market share.
    • Focus is on the consumable categories to drive traffic and units. Co has taken retail price reductions on average of 10% on about 450 of co's best-selling SKUs across 2200 stores, which represents ~17% of total store base. 
  • Focus is on the consumable categories to drive traffic and units. Co has taken retail price reductions on average of 10% on about 450 of co's best-selling SKUs across 2200 stores, which represents ~17% of total store base. 
  • Co is focused on initiatives to capture growth opportunities and as previously announced, co remains on track to accelerate square footage growth in 2016 to about 7% with 900 new stores and increase this growth to 7.5% in 2017 with about 1000 new stores.
  • Co is utilizing a smaller footprint store that allows co to capture growth opportunities and more densely populated metropolitan areas.
    • Co is currently operating more than 80 of these new stores with selling space of less than 6000 square ft which is about 20% smaller than co's traditional store.
    • Co reports that sales productivity and returns of the small format stores are very encouraging.
  • Co is currently operating more than 80 of these new stores with selling space of less than 6000 square ft which is about 20% smaller than co's traditional store.
  • Co reports that sales productivity and returns of the small format stores are very encouraging.
  • Co's reports that zero-base budgeting process is currently working as the co is currently successfully leveraging ARC expenses on same-store sales growth significantly below co's 2.5%-3% SG&A leverage target.

11:01 am Eros International announces a deal between Eros Now & Reliance Jio, financial terms were not disclosed (EROS) : Eros Now is a digital over-the-top platform and entertainment network. Eros is currently focused on monetization and achieving a target of one mln paying subscribers by the end of FY17.

10:41 am Resource America stockholders approve merger with subsidiary of C-III Capital Partners, transaction expected to close Sept 8 (REXI) :  

10:27 am Lonestar Resources appoints Director John Pinkerton as Chairman effective immediately (LONE) : Pinkerton became a director of Range Resources in 1988 and was elected Chairman in 2008. He joined Range Resources as President in 1990 and was appointed Chief Executive Officer in 1992. In 2012, Pinkerton retired as CEO and stepped down as Chairman on Jan 1, 2015 and as a Director on April 11, 2016.

10:15 am Express Scripts displays relative weakness as price sinks -4.25% with a breakdown below August support along $75-area (ESRX) : Next area of interest lies near the June low of 72.81, followed by the May low of 71.41.

10:08 am Dollar Tree - - Earnings Mover hit -8% as price gaps down to its late-May bullish gap and 200-day exponential moving average (DLTR) : A disappointing reaction to earnings as price drops below the $88-level to challenge its May bullish gap range. Note the lower end of that gap lines up near its 200-day exponential ma near the 85-vicinity.

10:04 am Dollar General - - Earnings Mover collapses -13% this morning to challenge its May low/March bullish gap near 78.91/79.50 (DG) :  

9:57 am Dollar Tree Q2 Call Notes (DLTR) :

  • Co reports 34th consecutive quarter of same store sales growth. 
  • Same store sales on a constant currency basis increased 1.2% y/y vs. 2.7% y/y increase in Q215. The increase was driven by both traffic and ticket.
  • In the second quarter co opened the total of 99 new Dollar Tree stores. 
  • Total Dollar Tree banner selling square footage increased 10.4% y/y and co ended Q2 with a total of 6,184 Dollar Tree stores across North America.
  • Co is on track to achieve previously announced target of 200 new Family Dollar stores in 2016.
  • Co's updated outlook for fiscal 2016 includes the following assumptions that co's same store sales calculation excludes Family Dollar stores and excludes stores rebannerred. The acquired stores will be included in co's same store sales calculation beginning in Q4. 
  • Co's price point remains at $1 and operating margin continues to grow and lead the discount sector. 

9:54 am Chembio Diagnostics awarded up to $13.2 mln US government contract to develop and commercialize point-of-care tests for Zika Virus (CEMI) :

  • Co has been awarded a contract for up to $13.2 million in total funding from the U.S. Department of Health and Human Services; Office of the Assistant Secretary for Preparedness and Response; BARDA for the development and commercialization of the Company's rapid POC Zika test and Zika-related products. The award includes an initial commitment of $5.9 million allocated specifically to the DPP Zika IgM/IgG Assay and DPP Micro Reader, as well as an option for an additional $7.3 million to fund the development, clinical trial and regulatory submissions related to the Company's DPP Zika/Chikungunya/Dengue IgM/IgG Combination Assay.
  • This project has been funded in whole or in part with Federal funds from the Department of Health and Human Services; Office of the Assistant Secretary for Preparedness and Response; Biomedical Advanced Research and Development Authority, under Contract No. HHSO100201600022C.

9:44 am Opening Market Summary: Consumer Discretionary Under Pressure at Open (:WRAPX) :

The stock market began the day on a lower note with the Nasdaq Composite (-0.2%) and the S&P 500 (-0.2%) trading slightly behind the Dow Jones Industrial Average (-0.1%).

Seven sectors trade in the red with consumer discretionary (-0.3%) and energy (-0.4%) demonstrating relative weakness. The remaining decliners show losses between 0.1% (telecom services) and 0.2% (technology). On the flipside, utilities (+0.1%), financials (+0.1%), and materials (+0.1%) trade in the green.

In the consumer discretionary space (-0.3%), retail names demonstrate relative weakness as Dollar Tree (DLTR 88.15, -6.78), Signet Jewelers (SIG 24.73, -10.77), and Dollar General (DG 81.12, -10.66) weigh on the sub-group. Each name disappointed investors with their quarterly results and/or guidance. The three show losses between 7.0% and 11.8%.

The influential technology sector (-0.2%) trades in-line with the broader market as HP (HPQ 13.68, -0.72) underperforms. The company beat estimates for the quarter, but offered disappointing fourth-quarter guidance.

On the commodities front, WTI crude trades lower by 0.4% ($46.59/bbl; -$0.18) while gold has slipped 0.5% to $1,323.40/ozt.

9:38 am HP - - Earnings Mover gaps down -5.5% to challenge its 50-day simple moving average along 13.65 area (HPQ) :  

9:30 am Provectus Pharma prices $6 mln 'best efforts' public offering (PVCT) : The co announced the pricing of a "best efforts" public offering of 240,000 shares of Series B Convertible Preferred Stock (which are initially convertible into an aggregate of 24,000,000 shares of common stock) and warrants initially exercisable to purchase an aggregate of 24,000,000 shares of common stock with a public offering price of $25.00 for a combination of one share of Series B Convertible Preferred Stock and a warrant to purchase one share of common stock. The warrants have an exercise price of $0.275 per share, are exercisable immediately, and will expire on August 30, 2021.

9:24 am On The Wires (:WIRES) :

  • Tecogen (TGEN) announces the sale of three InVerde 100 kW units to a multi-family residential building in the Coney Island section of Brooklyn, NY. Worth over half a million dollars, the efficient cogeneration equipment will come fitted with Tecogen's patented Ultera ultra-low emissions technology as well as exclusively licensed CERTs microgrid control software.
  • Inventergy Global (INVT) announces it has successfully amended its debt agreement with Fortress Investment Group. As part of the amendment, Inventergy was provided a moratorium on monthly debt amortization payments until September 30, 2016. Inventergy will also not be required to maintain a minimum cash balance of $1 million until September 30, 2016 and was allowed to retain the majority of the cash from a recently received license installment payment.
  • MannKind Corporation (MNKD) announces that the United States District Court for the Central District of California has dismissed the class action that was pending against MannKind Corporation and two of its executives. The Court granted the defendants' motion to dismiss the plaintiffs' amended class action complaint without leave to amend, thereby closing the case.
  • Net Element (NETE) announces that its subsidiary PayOnline, has entered into a transaction processing agreement with OOO Bank Round ("Round Bank"), a Russian Federation licensed commercial bank. The agreement includes transaction clearing, draft capture and settlement of bankcard transactions in the Russian Federation.
  • NF Energy Saving Corporation (NFEC) announces that it recently signed a $670,000 sales contract with Sinkiang Jinlong Electric Power to supply a project with 6 sets of welded ball valves.

9:21 am Intelsat +10% after confirming the successful launch of Intelsat 36 and Intelsat 33e - see 4:05 comment (I) :

  • Co announced the successful launch of the Intelsat 36 satellite. Intelsat 36 was launched from French Guiana aboard an Ariane 5 launch vehicle. Liftoff occurred at 6:16 p.m. EDT. The satellite separated from the rocket's lower stage at 6:57 p.m. EDT, and the Intelsat launch team has confirmed signal acquisition.
  • Co announced that Intelsat 33e, the second of seven planned Intelsat EpicNG high throughput satellites, was launched successfully from French Guiana aboard an Ariane 5 launch vehicle. Liftoff occurred at 6:16 p.m. EDT. The Intelsat 33e satellite separated from the rocket's upper stage at 6:44 p.m. EDT, and signal acquisition has been confirmed. Intelsat 33e, manufactured by Boeing, will bring high throughput capacity in both C- and Ku-band to the Africa, Europe, Middle East and Asia regions from 60E. The satellite will join Intelsat 29e, the first Intelsat EpicNG satellite, which was launched in January 2016 over the Americas and North Atlantic Ocean region, to form a high throughput overlay to Intelsat's fleet of enterprise-grade, wide beam satellites. Intelsat 33e is equipped with the sector's most advanced digital payload on a commercial spacecraft and combines wide beams and spot beams with frequency reuse technology.
  • Intelsat EpicNG is optimized to provide satellite connectivity for applications including the Internet of Things, enterprise, wireless infrastructure, aeronautical and maritime mobility and government, which are expected to provide a combined $3.3 billion incremental industry-wide revenue opportunity between 2015-2021.

9:13 am S&P futures vs fair value: -3.00. Nasdaq futures vs fair value: -8.10. (:WRAPX) :

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

Equity futures on the benchmark index maintained a narrow seven-point trading range overnight as participants eyed a negative bias in global markets. European bourses lead to the downside, responding to a below-consensus reading of the German Ifo Business Climate survey for August, which fell to 106.2 from 108.3 in July. The cautious posture can also be attributed to apprehension ahead of tomorrow's remarks from Federal Reserve Chair Janet Yellen.

The Fed Chair will address other central bank officials at the Jackson Hole symposium on Friday at 10:00 ET. Participants will be looking for further clues as to whether or not at least one rate hike remains on the table before the end of the year. On that note, Kansas City Fed President, and FOMC voter, Esther George stated after yesterday's close that the time appears right for a rate hike. Ms. George remains one of the more hawkish members of the FOMC.

In company specific news, Dollar General (DG 84.00, -7.79) trades lower by 8.5% after missing top- and bottom-line estimates for the quarter. The retailer also lowered its full-year earnings estimates below consensus. Fellow discount retailer Dollar Tree (DLTR 89.00, -5.93) has slipped 6.3% after missing analysts' estimates for the quarter and disappointing investors with its full-year revenue guidance. Separately, Guess? (GES 17.30, +2.40) has rallied 16.1% after beating bottom-line estimates for the quarter and raising its full-year earnings outlook above consensus.

9:02 am Amazon unveils Amazon Vehicles (AMZN) :

The co announced Amazon Vehicles, a car research destination and automotive community that makes it easy for customers to get the information they need when shopping for vehicles, parts, and accessories.

  • With Amazon Vehicles, customers can now view specifications, images, videos, and customer reviews for thousands of new and classic car models on Amazon.com, including everything from the 2016 Jeep Wrangler and 2014 Tesla Model S to the 2000 Chevrolet Corvette and 1965 Ford Mustang.
  • Potentially Related: TrueCar (TRUE)

8:55 am S&P futures vs fair value: -3.20. Nasdaq futures vs fair value: -7.60. (:WRAPX) :

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

Equity markets across the Asia-Pacific region ended Thursday on a mostly lower note, but once again, trading ranges were relatively narrow. The cautious posture was attributed to apprehension ahead of tomorrow's speech from Federal Reserve Chair Janet Yellen, who will speak before other central bank officials in Jackson Hole, Wyoming.

  • In economic data:
    • Japan's Corporate Services Price Index +0.4% year-over-year (consensus 0.1%; last 0.2%)
    • Hong Kong's July trade deficit narrowed to HKD33.30 billion from HKD45.60 billion
  • Japan's Corporate Services Price Index +0.4% year-over-year (consensus 0.1%; last 0.2%)
  • Hong Kong's July trade deficit narrowed to HKD33.30 billion from HKD45.60 billion

---Equity Markets---

  • Japan's Nikkei shed 0.3% with seven sectors ending in the red. Energy (-0.9%), consumer staples (-0.7%), and materials (-0.7%) lagged while financials (+0.3%) outperformed. Sumitomo Metal Mining, Shiseido, Mitsubishi Logistics, Shin-Etsu Chemical, Mitsubishi Electric, and Isuzu Motors lost between 1.8% and 4.9%.
  • Hong Kong's Hang Seng settled just above its flat line. China Mengniu Dairy surged 11.1% after reporting better than expected sales. Tingyi followed with a 2.6% gain while financials were mixed. HSBC, Hang Seng Bank, and Bank of China added between 0.3% and 0.5% while Bank of East Asia shed 0.4%.
  • China's Shanghai Composite trimmed its loss ahead of the close, but still lost 0.6%. Gemdale, Hundsun Technologies, Langfang Development, and AVIC Capital lost between 4.1% and 4.6%.

Major European indices trade lower across the board with Germany's DAX (-1.0%) leading the retreat after the release of a disappointing Ifo Business Climate survey for August (106.2; expected 108.5). The euro has climbed 0.3% against the dollar to 1.1294 while the pound has ticked down 0.3% to 1.3192.

  • In economic data:
    • Germany's August Ifo Business Climate Index 106.2 (expected 108.5; last 108.3). August Current Assessment 112.8 (expected 114.9; previous 114.8) and August Business Expectations 100.1 (consensus 102.5; last 102.1)
    • UK's August CBI Distributive Trades Survey rose to 9 from -14 (expected -5)
    • France's Q3 Industrial Investments +6.0% (last 7.0%) and August Business Survey slipped to 101 from 103 (expected 103)
    • Spain's Q2 GDP +0.8% quarter-over-quarter (expected 0.7%; last 0.7%); +3.2% year-over-year, as expected (previous 3.2%). PPI -4.6% year-over-year (last -4.7%)
  • Germany's August Ifo Business Climate Index 106.2 (expected 108.5; last 108.3). August Current Assessment 112.8 (expected 114.9; previous 114.8) and August Business Expectations 100.1 (consensus 102.5; last 102.1)
  • UK's August CBI Distributive Trades Survey rose to 9 from -14 (expected -5)
  • France's Q3 Industrial Investments +6.0% (last 7.0%) and August Business Survey slipped to 101 from 103 (expected 103)
  • Spain's Q2 GDP +0.8% quarter-over-quarter (expected 0.7%; last 0.7%); +3.2% year-over-year, as expected (previous 3.2%). PPI -4.6% year-over-year (last -4.7%)

---Equity Markets---

  • Germany's DAX has given up 1.0% with exporters pacing the retreat. Volkswagen, Daimler, and BMW are down between 2.1% and 2.3%. Financials have also struggled with Deutsche Bank retreating 1.8% and Commerzbank falling 1.1%. Henkel is the top performer, rising 0.2%.
  • France's CAC is down 0.8% with all but two names in negative territory. ArcelorMittal and Valeo are both down near 2.7% while automakers Peugeot and Renault hold respective losses of 2.2% and 1.3%. Financials have kept pace with the broader market as BNP Paribas, Societe Generale, and Credit Agricole surrender between 0.9% and 1.0%.
  • UK's FTSE outperforms with a loss of 0.3%. Drugmakers Hikma Pharmaceuticals and Shire are both down near 4.0% while select consumer names like ITV, SKY, Imperial Brands, Unilever, and Diageo are up between 0.7% and 1.6%.

8:45 am Gapping down (SCANX) :

Gapping down
In reaction to disappointing earnings/guidance
:

  • SIG -13.4%, DG -8.5%, DLTR -7.3%, HPQ -5.6%, JKS -5.6%, SBGL -5.5%, EURN -4.4%
  • SHLD -4.1%, MOV -4.1%, FLWS -1.1%, ORPN -1.1%, TECD -0.8%

Other news:

  • XGTI -8.9% (files for ~833.3K share common stock offering by selling shareholders)
  • CRC -4% (light volume - S&P downgrades California Resources Corp. to 'SD')
  • REN -2% (light volume, announces that Nicholas J. Sutton will retire as CEO, Richard F. Betz Named Successor CEO Effective January 1, 2017)
  • MNTA -1.6% (following late strength on Copaxone ruling; Mylan confirms invalidates two of Teva's Copaxone 40 mg/mL Patents Via U.S. Patent and Trademark Office's Inter Partes Review proceeding)

Analyst comments:

  • INFN -3.9% (downgraded to Sell from Neutral at Citigroup)
  • OZM -3% (downgraded to Sell from Neutral at Citigroup)
  • S -1.5% (downgraded to Underperform from Neutral at Buckingham Research)
  • EXPR -0.6% (downgraded to Sell from Neutral at UBS)

8:45 am On The Wires (:WIRES) :

  • Standard Motor Products (SMP) announces the addition of 155 new part numbers to its Intermotor import line. The release spans 34 product categories and expands coverage through the 2016 model year with more than 70 mln additional VIO.
  • Crossroads Capital (XRDC) announces the engagement of Setter Capital, a Toronto-based secondary market advisory firm, to assist the co in identifying prospective buyers for the co's portfolio investments. The co's Board of Directors recently resolved to monetize the co's portfolio holdings at the earliest practicable date in connection with the co's investment objective to preserve capital and maximize stockholder value by pursuing the sale of the co's portfolio investments, limiting expenses and deploying surplus cash as appropriate.
  • Vivint Solar (VSLR) announces its expansion into Florida, with availability beginning in the Tampa Bay area.
  • LiqTech International (LIQT) and Kailong High Technology announce that they have entered into a letter of intent to establish a diesel particulate filter co in China. The agreement includes a technology transfer fee of $1.5 mln, payable upon achievement of certain milestones, and a royalty of $2.25 per liter of diesel particulate filters, which could generate $2.25 mln in royalty revenue in 2018 and $4.5 mln in royalty revenue in 2019 if the joint venture company achieves Kailong's projections. Kailong believes the market potential for high quality emission control systems is significant in China and together with LiqTech could scale to a capacity of 2 mln liters in Silicon Carbide DPF to serve the Chinese and international market.
  • Baxter International (BAX) and Satellite Healthcare announce a four-year agreement to provide patients with the latest advancements in peritoneal dialysis, hemodialysis and continuous renal replacement therapy. 

8:41 am Gapping up (SCANX) :

Gapping up
In reaction to strong earnings/guidance
:

  • GES +17.8%, TLYS +14.4%, WDAY +8.9%, EDAP +7.4%, SFUN +6.9%, TIF +4.3%, CRH +4.1%, SDRL +4%
  • BURL +3.8%, PDCO +3.2%, REX +2.1%, HEI +1.2%, WSM +0.8%, PVH +0.5%

M&A news:

  • PTX +7.6% (ticking higher; stock has been mentioned in takeover speculation earlier this week)
  • KZ +3.6% (receives a revised non-binding proposal letter to be acquired for $7.18/share in cash), .

Select metals/mining stocks trading higher: MUX +1.9%, GFI +1.8%, AU +0.9%, AG +0.6%, GOLD +0.5%, AUY +0.5%

Other news:

  • XCOM +23% (after closing more than 50% higher on the day Wednesday)
  • NYMX +15.5% (after closing more than 80% higher on the day Wednesday)
  • PBMD +11.6% (receives European patent grants for its IMP731 antibody)
  • BLDP +10.6% (received notification from the U.S. Department of Commerce that its family of fuel cell propulsion systems are now designated as EAR99 compliant, creating a path for commercial export and deployment in a variety of civilian unmanned vehicle applications)
  • MNGA +6.6% (announces that the Pinellas County Fire Department's teams of emergency responders have chosen MagneGas2, and the MagneTote as their preferred metal cutting tool)
  • TOPS +4.3% (after 20% move higher Wednesday)
  • CSIQ +3.6% (in sympathy with peer SFUN (earnings))
  • MYL +3.3% (announces that the EMA has accepted for review Mylan's Marketing Authorization Application for a proposed biosimilar Trastuzumab; also announces initiatives to ease access to EpiPens)
  • HMY +3% (announced that an application for a special mining lease for the Wafi-Golpu project was submitted today to the Mineral Resources Authority in Papua New Guineag)
  • SEED +2.4% (continued strength after strong move yesterday)
  • BLRX +2.1% (establishes JV with I-Bridge Capital, a Chinese venture capital fund focused on developing innovative therapies in China)
  • GEO +1.3% (Geo Group executes Letter of Offer with HSBC Bank Australia providing for a bank guarantee line and bank guarantee/standby sub-facility in an aggregate amount of $76.8 mln )
  • VRX +1% (continued strength)
  • CRM +0.9% (following WDAY results)

Analyst comments:

  • NFLX +1.4% (upgraded to Outperform from Market Perform at William Blair)
  • RIG +0.7% (upgraded to Neutral from Sell at Citigroup)
  • CREE +0.5% (initiated with a Buy at ROTH Capital)

8:36 am Limoneira avocado sales above guidance; reaffirms lemon guidance; reaffirms FY16 EPS ex-gain from sale of Calavo (CVGW) (LMNR) :

  • For the fiscal year ending October 31, 2016, the Company sold ~11.0 million pounds of avocados at ~$0.95 per pound, which exceeded the upper end of its previous fiscal 2016 guidance range. The Company continues to expect to sell between 2.7 million and 3.0 million cartons of fresh lemons at an average price of ~$23.00 per carton.
  • For fiscal year 2016, the Company expects GAAP operating income for fiscal year 2016 to be ~$8.6 million to $9.1 million. Including ~$3.4 million gain on sale of stock in Calavo Growers (CVGW), fiscal year 2016 EBITDA is now expected to be in the range of $18.9 million to $19.4 million and fiscal year 2016 earnings per diluted share are expected to be in the range of $0.45 to $0.50. Excluding $1.2 million of transaction costs incurred in connection with the Limoneira/Lewis joint venture and the gain on sale of Calavo Growers Inc. stock, fiscal year 2016 EBITDA and earnings per diluted share are expected to be in the range of $16.7 million to $17.2 million and $0.33 to $0.38, respectively.

8:34 am Akorn relaunches Ofloxacin Otic Solution 0.3% for otic use (AKRX) :

  • Ofloxacin Otic Solution is indicated for the treatment of infections caused by susceptible isolates of the designated microorganisms in the specific conditions.
  • According to IMS Health, sales of Ofloxacin Otic Solution were ~$33 mln for the twelve months ended June 30, 2016.

8:33 am Pingtan Marine Enterprise announces that a Federal Court in New York dismissed a putative federal securities class action against the co, its officers, & directors filed in Jan 2015 (PME) : The court ruled the plaintiffs failed to identify a material misrepresentation or omission and failed to plausibly allege loss causation against the co, and dismissed all claims against the co, its directors, and officers on July 19, 2016.

8:33 am Durable Goods Orders Jump in July...S&P futures vs fair value: -2.20. Nasdaq futures vs fair value: -5.60. (:WRAPX) :

Equity futures trade little changed with the S&P 500 futures trading two points below fair value.

Just released, July durable goods orders increased 4.4% while the Briefing.com consensus expected an uptick of 3.5%. This comes after the prior month's revised decline of 4.2% (from -4.0%). Excluding transportation, durable orders rose 1.5% (Briefing.com consensus +0.4%) to follow the prior month's revised decline of 0.3% (from -0.5%).

Separately, the latest weekly initial jobless claims count totaled 261,000 while the Briefing.com consensus expected a reading of 265,000. Today's tally was below the unrevised prior week's count of 262,000. As for continuing claims, they fell to 2.145 million from 2.175 million.

8:32 am Crossroads Capital engages Setter Capital to assist the Company in identifying prospective buyers for its portfolio investments (XRDC) : Co's Board recently resolved to monetize the Company's portfolio holdings at the earliest practicable date in connection with the Company's investment objective to preserve capital and maximize stockholder value by pursuing the sale of the Company's portfolio investments, limiting expenses and deploying surplus cash as appropriate.

8:22 am NQ Mobile updates on its FL Mobile Divestment; Shenzhen Prince will acquire the entire stake of FL Mobile for a consideration consisting of cash to the co and its newly issued common stock (NQ) :

Shenzhen Prince, Dr. Shi, Jinxin Hengrui, Xinjiang NQ, Xinjiang Yinghe, Jinxin Haoyue, Jinxin Huatong and Tibet Zhuohua have entered into a share purchase agreement, pursuant to which Shenzhen Prince will acquire the entire stake of FL Mobile for a consideration consisting of cash to the co and its newly issued common stock to other parties.

  • Pursuant to the Agreement, Shenzhen Prince will acquire 45.34% equity interest in FL Mobile beneficially owned by the Company for a cash consideration of RMB 2,267 mln.
    • Shenzhen Prince will purchase the remaining equity interest in FL Mobile held by other parties by issuing its common stock to them.
  • Shenzhen Prince will purchase the remaining equity interest in FL Mobile held by other parties by issuing its common stock to them.
  • The Transaction values the entire FL Mobile business at RMB 5 bln.
  • Concurrently with the execution of the Agreement, the share purchase agreement announced on May 17, 2016 among Shenzhen Prince, Dr. Shi, Jinxin Hengrui and Xinjiang NQ was terminated in light of the new deal structure.
  • Shenzhen Prince plans to fund the Transaction by equity financing and entered into share subscription agreements with potential investors in connection with the equity financing on the same date.
    • Pursuant to the Agreement, the Company will receive 95% of the cash consideration within 10 business days of the closing of such equity financing
  • Pursuant to the Agreement, the Company will receive 95% of the cash consideration within 10 business days of the closing of such equity financing

8:15 am On The Wires (:WIRES) :

  • Bridgeline Digital (BLIN) announces that one of the nation's top financial services companies selected iAPPS to power its insurance portal.
  • Aoxin Tianli Group (ABAC) signs a sales agreement with Wuhan Fengyu Agricultural Development ("Fengyu") to sell the co's Tianli-Xiduhei black hog pork products through Fengyu's online stores on Taobao.com, Meituan.com and the mobile app platform Wechat. The Agreement has a one year term, effective August 24, 2016, and can be automatically extended for successive one-year periods.
  • IBM (IBM) announces the opening of a new IBM Cloud Data Center in Korea, in collaboration with SK Holdings C&C. Located outside of Seoul in Pangyo, the new data center is designed to support growing cloud adoption and customer demand across the country.

8:05 am Zillow (ZG): US home values rise for 48th straight month; up 5% Y/Y to a median home value of $187,300 (ITB) :

National home values appreciated for the 48th straight month this July to a Zillow Home Value Indexi (:ZHVI) of $187,300, according to the Zillow Real Estate Market Reports.

  • Home values are up 5 percent over the past year and have been consistently climbing since August 2012, but still remain 4.7 percent below peak, which was hit in April 2007 when the median home value was $196,600.
    • Portland, Dallas and Denver reported the highest year-over-year home value appreciation among the 35 largest metros across the country. In Portland, home values rose almost 15 percent to a median value of $334,900. Home values in Dallas and Denver appreciated 11.9 and 11.3 percent, respectively. In notoriously expensive San Francisco, home values have been slowing down since the beginning of the year. In January, home values were up almost 12 percent year-over-year and are now appreciating at about half that pace, up 6.6 percent over the past year.
  • Portland, Dallas and Denver reported the highest year-over-year home value appreciation among the 35 largest metros across the country. In Portland, home values rose almost 15 percent to a median value of $334,900. Home values in Dallas and Denver appreciated 11.9 and 11.3 percent, respectively. In notoriously expensive San Francisco, home values have been slowing down since the beginning of the year. In January, home values were up almost 12 percent year-over-year and are now appreciating at about half that pace, up 6.6 percent over the past year.
  • Rents across the country rose 2 percent over the past year, to a Zillow Rent Indexiii (:ZRI) of $1,408 -- this is the 47th straight month rents have appreciated.

8:04 am SouFun Holdings beats by $0.03, beats on revs; reaffirms FY16 guidance (SFUN) :

  • Reports Q2 (Jun) loss of $0.08 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus of ($0.11); revenues rose 34.2% year/year to $286.98 mln vs the $267.81 mln Capital IQ Consensus.
    • Revenue from e-commerce services was $189.5 mln for the three months ended June 30, 2016, a 77.4% increase from $106.8 mln for the same period in 2015
    • Revenue from marketing services was $51.4 mln for the three months ended June 30, 2016, a decrease of 15.2% from $60.6 mln for the corresponding period in 2015
    • Revenue from listing services was $26.9 mln for the three months ended June 30, 2016, a decrease of 22.3% from $34.6 mln for the corresponding period in 2015.
    • Revenue from internet financial services was $11.1 mln for the three months ended June 30, 2016, an increase of 176.4% from $4.0 mln for the corresponding period in 2015
    • Revenue from value-added services and other services was $8.0 mln for the three months ended June 30, 2016, which is higher than the $7.8 mln for the corresponding period in 2015.
  • Revenue from e-commerce services was $189.5 mln for the three months ended June 30, 2016, a 77.4% increase from $106.8 mln for the same period in 2015
  • Revenue from marketing services was $51.4 mln for the three months ended June 30, 2016, a decrease of 15.2% from $60.6 mln for the corresponding period in 2015
  • Revenue from listing services was $26.9 mln for the three months ended June 30, 2016, a decrease of 22.3% from $34.6 mln for the corresponding period in 2015.
  • Revenue from internet financial services was $11.1 mln for the three months ended June 30, 2016, an increase of 176.4% from $4.0 mln for the corresponding period in 2015
  • Revenue from value-added services and other services was $8.0 mln for the three months ended June 30, 2016, which is higher than the $7.8 mln for the corresponding period in 2015.
  • Co reaffirms rev guidance for FY16, sees FY16 revs of $1.15 bln vs. $1.16 bln Capital IQ Consensus Estimate.

8:04 am S&P futures vs fair value: -2.00. Nasdaq futures vs fair value: -7.50. (:WRAPX) :

U.S. equity futures trade on a modestly lower note with the S&P 500 futures floating two points below fair value. Index futures inched lower as investors eyed a negative bias in global bourses and favored a cautious approach ahead of commentary from Fed Chair Janet Yellen. Ms. Yellen will address other central bank officials at the Jackson Hole symposium tomorrow at 10:00 ET. 

Asia-Pacific markets slipped overnight as participants ruminated over commentary from the People's Bank of China. The central bank sparked minor liquidity concerns when they urged lenders in China to spread out loan tenors, which would help reduce risks to short-term lending. Across the pond, Germany's DAX (-0.8%) underperforms after the release of a disappointing German Ifo Business Climate survey for August. The reading came in at 106.2 (expected 108.5), slipping from July's 108.3.

Treasuries trade on a higher note with the back end of the curve enjoying a modest bid. The yield on the 30-yr bond is lower by one basis point at 2.24%.

On the economic front, data will include weekly initial claims (Briefing.com consensus 265k) and Durable Goods Orders for July (Briefing.com consensus 3.5%), which will each cross the wires at 8:30 ET.

In U.S. corporate news of note:

  • Tiffany & Co (TIF 72.00, +3.13): +4.5% after beating bottom-line estimates for the quarter and reaffirming FY17 earnings and sales guidance
  • Signet Jewelers (SIG 83.48, -12.02): -12.6% following the company missing top- and bottom-line estimates for the quarter and guiding Q3 EPS estimates below consensus
  • Mylan Labs (MYL 44.40, +1.25): +2.9% after announcing initiatives to make access to the company's EpiPen device easier
  • HP (HPQ 13.35, -1.05): -7.3% following the company topping analysts' estimates for the quarter, but guiding Q4 EPS estimates below consensus

Reviewing overnight developments: 

  • Asia-Pacific equity markets ended on a mostly lower note with China's Shanghai Composite (-0.6%) underperforming Japan's Nikkei (-0.3%) and Hong Kong's Hang Seng (UNCHF). 
    • In economic data:
      • Japan's Corporate Services Price Index +0.4% year-over-year (consensus 0.1%; last 0.2%)
      • Hong Kong's July trade deficit narrowed to HKD33.30 billion from HKD45.60 billion
    • In news: 
      • The cautious posture was attributed to apprehension ahead of tomorrow's speech from Federal Reserve Chair Janet Yellen.
      • Ms. Yellen will speak before other central bank officials in Jackson Hole, Wyoming.
  • In economic data:
    • Japan's Corporate Services Price Index +0.4% year-over-year (consensus 0.1%; last 0.2%)
    • Hong Kong's July trade deficit narrowed to HKD33.30 billion from HKD45.60 billion
  • Japan's Corporate Services Price Index +0.4% year-over-year (consensus 0.1%; last 0.2%)
  • Hong Kong's July trade deficit narrowed to HKD33.30 billion from HKD45.60 billion
  • In news: 
    • The cautious posture was attributed to apprehension ahead of tomorrow's speech from Federal Reserve Chair Janet Yellen.
    • Ms. Yellen will speak before other central bank officials in Jackson Hole, Wyoming.
  • The cautious posture was attributed to apprehension ahead of tomorrow's speech from Federal Reserve Chair Janet Yellen.
  • Ms. Yellen will speak before other central bank officials in Jackson Hole, Wyoming.
  • European indices trade lower across the board with Germany's DAX (-0.8%), France's CAC (-0.7%), and the U.K.'s FTSE (-0.2%). 
    • In economic data:
      • Germany's August Ifo Business Climate Index 106.2 (expected 108.5; last 108.3). August Current Assessment 112.8 (expected 114.9; previous 114.8) and August Business Expectations 100.1 (consensus 102.5; last 102.1)
      • UK's August CBI Distributive Trades Survey rose to 9 from -14 (expected -5)
      • France's Q3 Industrial Investments +6.0% (last 7.0%) and August Business Survey slipped to 101 from 103 (expected 103)
      • Spain's Q2 GDP +0.8% quarter-over-quarter (expected 0.7%; last 0.7%); +3.2% year-over-year, as expected (previous 3.2%). PPI -4.6% year-over-year (last -4.7%)
    • In news: 
      • Germany's DAX (-0.8%) leads the retreat after the release of a disappointing Ifo Business Climate survey for August (106.2; expected 108.5).
      • The euro has climbed 0.2% against the dollar to 1.1290 while the pound has ticked down 0.3% to 1.3190.
  • In economic data:
    • Germany's August Ifo Business Climate Index 106.2 (expected 108.5; last 108.3). August Current Assessment 112.8 (expected 114.9; previous 114.8) and August Business Expectations 100.1 (consensus 102.5; last 102.1)
    • UK's August CBI Distributive Trades Survey rose to 9 from -14 (expected -5)
    • France's Q3 Industrial Investments +6.0% (last 7.0%) and August Business Survey slipped to 101 from 103 (expected 103)
    • Spain's Q2 GDP +0.8% quarter-over-quarter (expected 0.7%; last 0.7%); +3.2% year-over-year, as expected (previous 3.2%). PPI -4.6% year-over-year (last -4.7%)
  • Germany's August Ifo Business Climate Index 106.2 (expected 108.5; last 108.3). August Current Assessment 112.8 (expected 114.9; previous 114.8) and August Business Expectations 100.1 (consensus 102.5; last 102.1)
  • UK's August CBI Distributive Trades Survey rose to 9 from -14 (expected -5)
  • France's Q3 Industrial Investments +6.0% (last 7.0%) and August Business Survey slipped to 101 from 103 (expected 103)
  • Spain's Q2 GDP +0.8% quarter-over-quarter (expected 0.7%; last 0.7%); +3.2% year-over-year, as expected (previous 3.2%). PPI -4.6% year-over-year (last -4.7%)
  • In news: 
    • Germany's DAX (-0.8%) leads the retreat after the release of a disappointing Ifo Business Climate survey for August (106.2; expected 108.5).
    • The euro has climbed 0.2% against the dollar to 1.1290 while the pound has ticked down 0.3% to 1.3190.
  • Germany's DAX (-0.8%) leads the retreat after the release of a disappointing Ifo Business Climate survey for August (106.2; expected 108.5).
  • The euro has climbed 0.2% against the dollar to 1.1290 while the pound has ticked down 0.3% to 1.3190.

8:03 am KongZhong receives a revised non-binding proposal letter to be acquired for $7.18/share in cash from a buyer group that includes its chairman and CEO Leilei Wang (KZ) : The letter, dated August 25, 2016, from Mr. Leilei Wang, chairman and CEO of the co, and IDG-Accel China Growth Fund II, who, together with certain other parties, formed a buyer group to acquire all of the outstanding ordinary shares of the co not owned by them or their affiliates for $7.18 in cash per American depositary share ("ADS", each representing forty ordinary shares), or ~$0.1795 per ordinary share.

8:02 am Teligent receives three Abbreviated New Drug Submission approvals from Health Canada for Baclofen Injection 0.05mg/mL, Baclofen Injection 0.5mg/mL and Baclofen Injection 2mg/mL (TLGT) : Co is preparing for the launch of these three products in early 2017

8:01 am Magnegas announces that the Pinellas County Fire Department's teams of emergency responders have chosen MagneGas2, and the MagneTote as their preferred metal cutting tool (MNGA) :  

7:59 am On The Wires (:WIRES) :

  • Applied Optoelectronics (AAOI) announces that it has received initial orders for its market-leading 40 Gbps QSFP+ and 100 Gbps QSFP28 optical transceiver modules from a new hyper-scale datacenter customer. 
  • Starwood's Aloft (HOT) today debuts the first-ever voice activated hotel room. Each Aloft Voice-Activated Hotel Room is equipped with an iPad running a custom Aloft app used for controlling the in-room guest experience, with HomeKit-enabled accessories including room temperature, lighting options and more.

7:55 am Galectin Therapeutics announces interim results from an exploratory, open-label, Phase 2a clinical trial with GR-MD-02 in patients with moderate-to-severe plaque psoriasis (GALT) :

In May, the company announced significant improvement in PASI (Psoriasis Area and Severity Index) scores at the 12-week mark for all four patients in the study (7 infusions of 8 mg/kg every other week). These results prompted an extension of treatment for an additional 12 weeks at the same dose and dosing interval (13 total infusions).

  • Four patients have now completed 24 weeks of therapy with GR-MD-02, and a fifth patient has completed 12 weeks. Despite the extension of treatment, the original four patients have experienced minimal additional improvement in their psoriasis beyond that first reported in May.
  • "While the improvement among the patients is significant, we have to consider the extent of improvement in the context of biological agents for psoriasis currently on the market or in development. The primary endpoint for these existing agents is a 75% improvement in PASI, and none of our patients reached that level of improvement at the dose level and duration administered in the study. There are potential advantages which GR-MD-02 might have over biological agents, such as safety and cost, and the current safety profile of GR-MD-02 does support the possibility of studying higher doses or a more frequent dosing regimen for psoriasis. However, without much more study, these potential advantages remain untested."
  • Galectin Therapeutics conducted this small psoriasis study because of an unexpected positive effect on the psoriasis of a NASH patient in the Company's Phase 1 trial in liver disease. Given the Company's focus on the phase 2 program in NASH with advanced fibrosis and cirrhosis, additional studies to develop GR-MD-02 as a psoriasis treatment will not occur at this time. The Company may later conduct additional studies in psoriasis either directly or through a partner who may wish to take this forward.

7:40 am Nomad Foods beats by EUR 0.02, misses on revs (NOMD) :

  • Reports Q2 (Jun) earnings of 0.19 per share, excluding non-recurring items, 0.02 better than the Capital IQ Consensus of 0.17; revenues fell 6.6% year/year to 455.9 mln vs the 464.89 mln Capital IQ Consensus.
    • The decline in sales was driven by the Company's three largest markets, namely the UK, Italy and to a lesser extent Germany, although each of these markets again showed reduced rates of decline year-on-year compared to the prior quarter.
    • Gross profit margin improved by 0.2% compared to the pro forma as adjusted gross profit margin, driven by favorable pricing impacts, improved trade terms management, and a reduction in input costs.
  • The decline in sales was driven by the Company's three largest markets, namely the UK, Italy and to a lesser extent Germany, although each of these markets again showed reduced rates of decline year-on-year compared to the prior quarter.
  • Gross profit margin improved by 0.2% compared to the pro forma as adjusted gross profit margin, driven by favorable pricing impacts, improved trade terms management, and a reduction in input costs.

7:35 am Universal Security receives letter from NYSE stating that it is not in compliance due to its failure to timely file its 10-Q for the fiscal quarter ended June 30, 2016 (UUU) :

  • The Company has now been informed by the Exchange that while the Company is not required to submit an additional Plan with respect to the delayed Quarterly Report on Form 10-Q, the Company may submit, by August 30, 2016, a supplement to the Plan which addresses how the Company intends to regain compliance with Sections 134 and 1101 of the Company Guide with respect to the delayed Quarterly Report on Form 10-Q by October 12, 2016.
  • If the Plan is accepted, the Company will be able to continue its listing during the Plan Period, during which time the Company will be subject to periodic review to determine whether it is making progress consistent with the Plan.

7:35 am NeuroDerm reports Q2 results; updates upcoming milestones (NDRM) :

  • Co reports Q2 EPS of ($0.32) vs ($0.29) single analyst estimate; co did not report any revs.
  • Upcoming Milestones: ND0612H
    • Efficacy, safety, tolerability and pharmacokinetics study (:US) (trial 006): ongoing; trial completion expected in the second half of 2016.
    • Definitive PK Study (EU) (trial 009): initiation expected at the end of 2016 or beginning of 2017.
    • Phase III efficacy trial (:US) (trial 010): initiation expected at the end of 2016 or beginning of 2017.
  • Efficacy, safety, tolerability and pharmacokinetics study (:US) (trial 006): ongoing; trial completion expected in the second half of 2016.
  • Definitive PK Study (EU) (trial 009): initiation expected at the end of 2016 or beginning of 2017.
  • Phase III efficacy trial (:US) (trial 010): initiation expected at the end of 2016 or beginning of 2017.
  • ND0701: Bioequivalence trial (EU) (trial 101): ongoing, trial completion expected in the fourth quarter of 2016.

"We announced that Trial 005, evaluating ND0612H to DUODOPA in a head-to-head pilot pharmacokinetic study, achieved comparable results in patients with severe Parkinson's disease. In addition, we have commenced enrolling patients in three important clinical trials: our first clinical trial for ND0701 (trial 101), our continuous, subcutaneously delivered liquid apomorphine-base formulation; a Phase II trial of ND0612H (trial 006) for severe Parkinson's disease; and a Phase III trial of ND0612L in patients with moderate Parkinson's disease. We look forward to meeting with the FDA in late October to discuss our clinical development program and plan to hold a similar meeting with the EMA later this year,"

7:32 am Sanderson Farms beats by $0.19, misses on revs (SAFM) :

  • Reports Q3 (Jul) earnings of $2.42 per share, $0.19 better than the Capital IQ Consensus of $2.23; revenues fell 1.6% year/year to $728 mln vs the $740.93 mln Capital IQ Consensus. 
  • "Sanderson Farms' financial results for the third quarter of fiscal 2016 reflect a continued favorable balance of the supply and demand for fresh chicken sold to retail grocery store customers," said Joe F. Sanderson, Jr., chairman and chief executive officer of Sanderson Farms, Inc. "That balance was reflected in a Georgia Dock whole bird price that, while lower on average than during last year's third fiscal quarter, remained strong during the current third fiscal quarter. Market prices for products from our plants that process a larger bird were mixed during the quarter when compared with last year's third fiscal quarter. Bulk leg quarter prices came under pressure during last year's third fiscal quarter as a result of weak export demand due to bans on United States poultry products related to the discovery of avian influenza in the United States, a relatively strong United States dollar and lower oil revenue in countries with oil-based economies. Market prices for bulk leg quarters were higher this year as all avian influenza-related import bans have been lifted except for China's, but prices remain below historical averages as the other headwinds remain. Food service traffic and demand in the United States remain stubbornly static, and flat demand combined with additional industry production and higher domestic poultry supplies as a result of lower exports kept a lid on market prices for boneless breast meat during our third fiscal quarter. However, market prices for boneless breast meat have moved significantly higher during August."

7:31 am Viking Therapeutics enters into a $12.5 mln common stock purchase agreement with Aspire Capital Fund (VKTX) :

  • Under the terms of the agreement, Aspire Capital has made an initial purchase of $500,000 of Viking common stock at $1.50 per share, which represents a 15% premium over the August 24 closing price of $1.31.
  • Additionally, after the SEC declares the registration statement related to the transaction effective, Aspire Capital has committed to purchase up to an additional $12.0 mln in shares of common stock over the next 30 months at prices based on the market price at the time of each sale.
  • Under the terms of the common stock purchase agreement, Viking will control the timing and amount of any sale of shares of common stock to Aspire Capital.

7:30 am Dollar Tree misses by $0.01, misses on revs; guides Q3 EPS above consensus, revs in-line; raises FY16 EPS & lowers rev guidance (DLTR) :

  • Reports Q2 (Jul) earnings of $0.72 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus of $0.73; revenues rose 66.0% year/year to $5 bln vs the $5.08 bln Capital IQ Consensus.
  • Co issues guidance for Q3, sees diluted EPS of $0.76-0.82, vs. $0.77 Capital IQ Consensus Estimate; sees Q3 revs of $5.02-5.1 bln, vs. $5.13 bln Capital IQ Consensus Estimate.
  • Co raises EPS & lowers rev guidance for FY16, sees diluted EPS of $3.67-3.82 (prior $3.58-3.80), vs. $3.79 Capital IQ Consensus Estimate; sees FY17 revs of $20.69-20.87 bln (prior $20.79-21.08 bln) vs. $20.97 bln Capital IQ Consensus Estimate. The guidance is based on a low single-digit increase in same-store sales, and 4.0% square footage growth.

7:30 am Mallinckrodt plc announces the FDA has granted its request for a Fast Track designation for its IND application for Synacthen Depot in the treatment of Duchenne muscular dystrophy (MNK) : First patients dosed in initial Phase 1 clinical trial

7:24 am European Markets Update: DAX -1.1%, CAC -1.0%, FTSE -0.3% (:SUMRX) :

Major European indices trade lower across the board with Germany's DAX (-1.1%) leading the retreat after the release of a disappointing Ifo Business Climate survey for August (106.2; expected 108.5). The euro has climbed 0.2% against the dollar to 1.1290 while the pound has ticked down 0.2% to 1.3199.

  • In economic data:
    • Germany's August Ifo Business Climate Index 106.2 (expected 108.5; last 108.3). August Current Assessment 112.8 (expected 114.9; previous 114.8) and August Business Expectations 100.1 (consensus 102.5; last 102.1)
    • UK's August CBI Distributive Trades Survey rose to 9 from -14 (expected -5)
    • France's Q3 Industrial Investments +6.0% (last 7.0%) and August Business Survey slipped to 101 from 103 (expected 103)
    • Spain's Q2 GDP +0.8% quarter-over-quarter (expected 0.7%; last 0.7%); +3.2% year-over-year, as expected (previous 3.2%). PPI -4.6% year-over-year (last -4.7%)
  • Germany's August Ifo Business Climate Index 106.2 (expected 108.5; last 108.3). August Current Assessment 112.8 (expected 114.9; previous 114.8) and August Business Expectations 100.1 (consensus 102.5; last 102.1)
  • UK's August CBI Distributive Trades Survey rose to 9 from -14 (expected -5)
  • France's Q3 Industrial Investments +6.0% (last 7.0%) and August Business Survey slipped to 101 from 103 (expected 103)
  • Spain's Q2 GDP +0.8% quarter-over-quarter (expected 0.7%; last 0.7%); +3.2% year-over-year, as expected (previous 3.2%). PPI -4.6% year-over-year (last -4.7%)

---Equity Markets---

  • Germany's DAX has given up 1.1% with exporters pacing the retreat. Volkswagen, Daimler, and BMW are down between 2.1% and 2.3%. Financials have also struggled with Deutsche Bank retreating 1.8% and Commerzbank falling 1.1%. Henkel is the top performer, rising 0.2%.
  • France's CAC is down 1.0% with all but two names in negative territory. ArcelorMittal and Valeo are both down near 2.7% while automakers Peugeot and Renault hold respective losses of 2.2% and 1.3%. Financials have kept pace with the broader market as BNP Paribas, Societe Generale, and Credit Agricole surrender between 0.9% and 1.0%.
  • UK's FTSE outperforms with a loss of 0.3%. Drugmakers Hikma Pharmaceuticals and Shire are both down near 4.0% while select consumer names like ITV, SKY, Imperial Brands, Unilever, and Diageo are up between 0.7% and 1.6%.

7:23 am Navios Maritime misses by $0.04, misses on revs (NM) :

  • Reports Q2 (Jun) loss of $0.29 per share, excluding non-recurring items, $0.04 worse than the Capital IQ Consensus of ($0.25); revenues fell 11.8% year/year to $105.73 mln vs the $109.23 mln two analyst estimate.
  • Revenue from dry bulk vessel operations for the three months ended June 30, 2016 was $47.0 million as compared to $53.6 million for the same period during 2015.
  • Revenue from the logistics business was $58.8 million for the three months ended June 30, 2016 as compared to $66.2 million for the same period during 2015.
  • Notes $2 mln of cash as of June 30, 2016.

7:13 am Destination XL Group beats by $0.01, misses on revs; reaffirms FY17 EPS guidance, lowers rev guidance (DXLG) :

  • Reports Q2 (Jul) net of breakeven, $0.01 better than the two analyst estimate of ($0.01); revenues rose 3.3% year/year to $117.9 mln vs the $120.23 mln Capital IQ Consensus.
    •  Total comparable sales increased +2.4% on top of +6.7% in prior-year quarter
  •  Total comparable sales increased +2.4% on top of +6.7% in prior-year quarter
  • Co updates guidance for FY17, reaffirms EPS of ($0.05)-$0.00 vs. ($0.02) Capital IQ Consensus Estimate; now sees FY17 revs of $457-463 mln vs. $469.19 mln Capital IQ Consensus Estimate, down from prior guidance of $465.0 to $472.0 mln.
    • Sees total comparable sales increase in the range of 2.0% to 4.0% (compared with the Company's previous guidance of 4.8% to 5.5%).
  • Sees total comparable sales increase in the range of 2.0% to 4.0% (compared with the Company's previous guidance of 4.8% to 5.5%).
  • "Our belief in the DXL transformation has never been stronger. The DXL customer is buying more and spending more per transaction, while our average sales per square foot continue to climb. Despite these improvements, we started to see a slowdown in traffic in the second quarter. Due to the macro headwinds in the current environment, we are taking a more cautious view of sales in the second half of the year. However, we are confident in our ability to leverage our operating model, and we are maintaining our guidance in earnings and EBITDA." 

7:13 am NanoViricides has acquired several Zika virus strains in its BSL-2 certified virology laboratory, but later clinical trials can only be undertaken if external non-dilutive funding becomes available (NNVC) :

Co's co-founder reported to Senator Chris Murphy during his visit to the co's new campus., "The Company can leverage its progress in developing a broad-spectrum drug candidate against dengue viruses to rapidly develop a clinically viable drug candidate against the Zika virus."

  • He added that the Dengue project has become a low priority project for the Company due to its strategic focus on the HerpeCide project, and that further work towards finding a drug candidate against Zika virus, its pre-clinical development, and later clinical trials could only be undertaken if external non-dilutive funding becomes available.
  • Dr. Diwan stressed that finding a clinically viable drug candidate against the Zika virus could take as little as three to six months, leveraging upon its broad-spectrum dengue drug development work, if a virus-binding ligand from our anti-dengue library works against the Zika virus.
  • Dr. Diwan further reported that the Company has acquired several Zika virus strains in its BSL-2 certified virology laboratory, and that Dr. Brian Friedrich, the co's Virologist, has already developed the cell culture assays that can help determine if a ligand is active against the Zika virus.
    • Dr. Friedrich has performed drug screening of hundreds of candidates against several viruses including alphaviruses, bunyaviruses, and filoviruses (namely, Ebola and Marburg), to discover potential therapeutics, while he was at United States Army Medical Research Institute of Infectious Diseases (:USAMRIID).
    • Dengue viruses as well as the Zika virus belong to the Flavivirus family.
  • Dr. Friedrich has performed drug screening of hundreds of candidates against several viruses including alphaviruses, bunyaviruses, and filoviruses (namely, Ebola and Marburg), to discover potential therapeutics, while he was at United States Army Medical Research Institute of Infectious Diseases (:USAMRIID).
  • Dengue viruses as well as the Zika virus belong to the Flavivirus family.

7:12 am Signet Jewelers misses by $0.32, misses on revs; guides Q3 EPS below consensus; lowers FY17 guidance, Leonard Green & Partners commit to a $625 mln convertible preferred investment (SIG) :

  • Reports Q2 (Jul) earnings of $1.14 per share, excluding non-recurring items, $0.32 worse than the Capital IQ Consensus of $1.46; revenues fell 0.8% year/year to $1.4 bln vs the $1.44 bln Capital IQ Consensus.
    • Same store sales down 2.3% vs. guidance between +1-2%
  • Same store sales down 2.3% vs. guidance between +1-2%
  • Co issues downside guidance for Q3, sees EPS of $0.17-0.25, excluding non-recurring items, vs. $0.50 Capital IQ Consensus Estimate. Sees same store sales growth between (5.0%) to (3.0%)
  • Co lowers guidance for FY17, sees EPS of $7.25-7.55 (prior $8.25-8.55), excluding non-recurring items, vs. $8.23 Capital IQ Consensus Estimate. Sees same store sales growth between (2.4%) to (1.0%) vs. guidance for comps +2-3.5%
  • On track to deliver cumulative synergies of $158 mln to $175 mln by end of this fiscal year and $225 mln to $250 mln by end of next fiscal year.
  • "We are disappointed by our Q2 results and market conditions have been challenging particularly in the energy-dependent regions. This has contributed to a downward revision in our annual guidance."
  • Leonard Green & Partners committed to a $625 mln convertible preferred investment in Signet.
  • The co is reviewing a range of options from optimizing the current in-house credit biz to outsourcing the function to a partner and enabling Signet to gain greater financial flexibility. Signet is in the early stages and has thus far both identified opportunities to enhance the existing credit biz and is also pleased with the level of interest in purchasing or partnering on its credit book. Signet will update investors as appropriate over the coming months.

7:09 am Movado Group misses by $0.04, misses on revs; lowers FY17 guidance below consensus (MOV) :

  • Reports Q2 (Jul) earnings of $0.27 per share, $0.04 worse than the Capital IQ Consensus of $0.31; revenues fell 12.0% year/year to $128.1 mln vs the $135.92 mln Capital IQ Consensus. Net sales on a constant dollar basis decreased 11.2%.
  • Gross profit was $70.3 million, or 54.9% of sales, compared to $79.0 million, or 54.3% of sales, in the second quarter last year. The increase in gross margin percentage was primarily the result of the favorable impact of channel and product mix, and certain sourcing improvements, as well as changes in FX, partially offset by the reduced leverage of certain fixed costs as a result of lower net sales.
  • Co issues downside guidance for FY17, lowers EPS to $1.40-1.55 from $1.55-1.70, excluding non-recurring items, vs. $1.60 Capital IQ Consensus Estimate; lowers FY17 revs to $550-560 mln from $565-580 mln vs. $571.80 mln Capital IQ Consensus Estimate. 
  • During Q2, the Company repurchased ~85,500 shares under its share repurchase program.
  • "During the quarter, our Movado and licensed brands continued to outperform the watch category at retail. Given the challenging marketplace, we still see a number of headwinds and feel it is prudent to lower our full year outlook."

7:07 am 1-800-FLOWERS reports EPS in-line, beats on revs; guides FY17 EPS below consensus, revs above consensus (FLWS) :

  • Reports Q4 (Jun) loss of $0.14 per share, in-line with the Capital IQ Consensus of ($0.14); revenues rose 2.7% year/year to $234.4 mln vs the $228.09 mln Capital IQ Consensus.
  • Gross profit margin for the quarter was 42.9%, compared with 43.0% in the prior year period.
  • "During the fiscal fourth quarter, the Company attracted 922,000 new customers. Approximately 2.0 million customers placed orders during the quarter, of whom 53.8 percent were repeat customers. For the year, the Company attracted 3.5 million new customers. Approximately 6.8 million customers placed orders during the year, of whom 49.0 percent were repeat customers."
  • Co issues mixed guidance for FY17, sees EPS of ~$0.45-0.47 (+5-10%) vs. $0.52 Capital IQ Consensus Estimate; sees FY17 revs of ~$1.22-1.23 bln (+4-5%) vs. $1.22 bln Capital IQ Consensus Estimate; co sees EBITDA growth in a range of 8-10% compared with Adjusted EBITDA of $85.8 reported for fiscal 2016.

7:07 am Michaels Stores reports EPS in-line, revs in-line; guides Q3 and FY17 EPS mid-points above consensus (MIK) :

  • Reports Q2 (Jul) earnings of $0.17 per share, in-line with the Capital IQ Consensus of $0.17; revenues rose 7.7% year/year to $1.06 bln vs the $1.05 bln Capital IQ Consensus.
    • Comparable store sales increased 0.7%, or 1.0% on a constant currency basis;in-line with guidance
  • Comparable store sales increased 0.7%, or 1.0% on a constant currency basis;in-line with guidance
  • Co issues guidance for Q3, sees EPS of $0.42-0.44 vs. $0.42 Capital IQ Consensus Estimate. 
    • Sees comparable store sales growth of 0.5% to 1.5%;
  • Sees comparable store sales growth of 0.5% to 1.5%;
  • Co issues guidance for FY17, sees EPS of $1.92-1.98 vs. $1.94 Capital IQ Consensus Estimate.
    • Sees comparable store sales +1.0% to +1.5%;
  • Sees comparable store sales +1.0% to +1.5%;
  • "We are pleased that our team delivered second quarter results within our expectations, despite a retail environment which continues to be choppy. As anticipated, the quarter was uniquely challenged by the impact of investments we are making to support our Vision 2020 strategy, including the integration of Lamrite West and initiatives to reduce long-term product acquisition costs, as well as the unfavorable timing of distribution expenses," said Chuck Rubin, Chairman and Chief Executive Officer. "As we move into the second half of the year and into fiscal 2017, we expect to see the benefits of our strategic investments on sales and profitability."

7:06 am Patterson Companies beats by $0.01, reports revs in-line; reaffirms FY17 EPS guidance (PDCO) :

  • Reports Q1 (Jul) earnings of $0.51 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.50; revenues rose 15.7% year/year to $1.32 bln vs the $1.33 bln Capital IQ Consensus.
  • Co reaffirms guidance for FY17, sees EPS of $2.60-2.70 vs. $2.63 Capital IQ Consensus Estimate.
  • "We anticipate that our range of initiatives, from our enterprise resource planning system deployment, to our optimization efforts in Dental, to our ongoing integration efforts in the Animal Health segment will further enhance our competitiveness and shareholder value....The fiscal 2017 annual financial outlook and adjusted earnings guidance: Assumes stable North American and international markets...Includes $25 million step up in operating expense associated with the ERP implementation"

7:04 am BioLineRx establishes JV with I-Bridge Capital, a Chinese venture capital fund focused on developing innovative therapies in China (BLRX) :

The JV, named iPharma, will develop innovative clinical and pre-clinical therapeutic candidates originating primarily in Israel to serve the Chinese and global healthcare markets.

  • Under the terms of the JV agreement, each partner will provide seed capital of one million dollars to the venture.
  • Co will screen and identify promising early-stage drug candidates originating primarily in Israel with emphasis on therapeutic indications that are of special interest for the Chinese population.
    • These therapeutic candidates will then be in-licensed by iPharma for further development and commercialization in China and possibly in other countries as well.
    • After a critical mass of in-licensed projects is reached, iPharma intends to raise additional funds from Chinese investors to accelerate further development activities.
  • These therapeutic candidates will then be in-licensed by iPharma for further development and commercialization in China and possibly in other countries as well.
  • After a critical mass of in-licensed projects is reached, iPharma intends to raise additional funds from Chinese investors to accelerate further development activities.
  • Each partner is protected from dilution for a five-year period and the first project is expected to join iPharma's pipeline within the next few months.

7:02 am Dollar General misses by $0.01, misses on revs; guides FY17 EPS below consensus (DG) :

  • Reports Q2 (Jul) earnings of $1.08 per share, $0.01 worse than the Capital IQ Consensus of $1.09; revenues rose 5.7% year/year to $5.39 bln vs the $5.5 bln Capital IQ Consensus.
  • Co reaffirms guidance for FY17, sees diluted EPS between $3.88-3.93 vs. $4.65 Capital IQ Consensus Estimate.
  • Capex for fiscal 2016 are now expected to be in the range of $580 mln to $630 mln to reflect the purchase of 42 Walmart Express stores, compared to the prior forecast of $550 mln to $600 mln.
  • On Aug 24, 2016, the Board of Directors authorized an additional $1.0 bln for share repurchases, increasing the total authorization for future repurchases to approximately $1.4 bln.
  • "For the second half of the year, we have action plans across both merchandising and store operations intended to drive same-store sales while maintaining strict expense control discipline. Looking ahead, we remain focused on our long-term strategy to invest for growth while also returning cash to shareholders through consistent share repurchases and anticipated quarterly dividends."

7:02 am Michaels Stores names Denise Paulonis CFO effective August 29, 2016 (MIK) :

  • Ms. Paulonis, currently Senior Vice President -- Finance, succeeds Chuck Sonsteby, Vice Chairman and CFO. Mr. Sonsteby will continue to serve as Vice Chairman and will retain executive responsibility for the growth and integration of Lamrite West and the management of Aaron Brothers stores.
  • Ms. Paulonis joined The Michaels Companies in 2014 as Vice President-Investor Relations, Treasury and Corporate Finance and was named Senior Vice President -- Finance in November 2015. Prior to joining the Company, Ms. Paulonis held various senior positions with PepsiCo and McKinsey & Company.

7:01 am JinkoSolar Holding reports Q2 (Jun) results, revs in-line; guides Q3 shipments; reaffirms FY16 shipments; contines to work on spinning off downstream business (JKS) :

  • Reports Q2 (Jun) non-GAAP earnings of $2.04 per ADS, may not be comparable to the Capital IQ Consensus of $1.74; rev +74% to $896 mln vs. $903.7 mln consensus.
  • Total solar module shipments in Q2 amounted to 1,716 MW vs. 1.6-1.7 GW guidance, including 204 MW used in the Company's downstream projects.
  • Gross margin was 20.4% in the second quarter of 2016, compared with 21.3% in the first quarter of 2016 and 20.7% in the second quarter of 2015. The sequential decrease was mainly due to an increase in tariffs paid for solar modules produced in the Company's Chinese production facilities and shipped to US market.
  • Third Quarter and Full Year 2016 Guidance
    • For the third quarter of 2016, the Company estimates total solar module shipments to be in the range of 1.5 GW to 1.7GW, which includes 1.40 GW to 1.65 GW module shipments to third parties. Revenues will not be recognized for the modules shipped to the Company's own downstream projects as required by U.S. GAAP.
    • For the full year 2016, the Company estimates total solar module shipments to be in the range of 6 GW and 6.5 GW, which includes 5.4 GW to 5.7 GW module shipments to third parties. Full year newly-added solar power project development scale is expected to be in the range of 600 MW to 800 MW. 
  • For the third quarter of 2016, the Company estimates total solar module shipments to be in the range of 1.5 GW to 1.7GW, which includes 1.40 GW to 1.65 GW module shipments to third parties. Revenues will not be recognized for the modules shipped to the Company's own downstream projects as required by U.S. GAAP.
  • For the full year 2016, the Company estimates total solar module shipments to be in the range of 6 GW and 6.5 GW, which includes 5.4 GW to 5.7 GW module shipments to third parties. Full year newly-added solar power project development scale is expected to be in the range of 600 MW to 800 MW. 
  • "We expect global demand to remain robust despite recent industry headwinds and are confident that we will be able to carry this strong growth momentum throughout the second half of the year." "Electricity output from our domestic projects improved substantially to 327 GWh, an increase of 55.8% sequentially while generating RMB285 million in revenue. This solid increase was mainly due to a number of our projects ramping up to full capacity, increased seasonal sunlight hours, and reduced curtailment in China's western regions. We remain on track to hit our project development guidance with the addition of 123 MW of projects this quarter, bringing our total project capacity to 1,130 MW as of June 30, 2016. We continue to work on spinning off our downstream business, which we believe has enormous potential in the long-run to maximize shareholder value and deleverage our balance sheet from this asset-heavy business."
  • "Demand during the quarter was strong, especially from the US and China which accounted for the majority of our shipments. While the industry is facing a challenging period, we have already built a strong book of orders for the second half of 2016. Demand in China is expected to soften in the third quarter due to the June 30th FiT cut but is expected to pick up again in the fourth quarter of 2016. The geographic mix of our shipments is also expected to balance out during the second half of this year with other markets such as Latin America, India and Japan expected to grow rapidly."

7:01 am AEP Industries to be acquired by Berry Plastics Group (BERY) for $110/share, or approximately $765 mln (AEPI) :

Each AEP shareholder will elect to receive either $110 in cash or 2.5011 shares of Berry common stock per AEP share in the transaction, subject to an overall 50/50 proration to ensure that 50% of the total outstanding AEP shares are exchanged for the cash consideration. Upon closing, AEP shareholders will own approximately 5 percent of Berry on a fully diluted basis.

  • Berry expects to realize cost synergies of $50 million or more annually, in line with previous Berry acquisitions of a similar nature. Berry also expects to realize these cost savings through procurement initiatives, operational improvements, sharing of best practices, improved asset utilization, and logistics optimization across the combined plant network.
  • The transaction is expected to be accretive to Berry's adjusted net income and adjusted free cash flow by more than 10 percent, after expected synergies. On a pro forma basis, Berry's four quarters ended June 2016 adjusted free cash flow would increase by approximately $85 million to $560 million. The transaction will be deleveraging to Berry's balance sheet after synergies.
  • The transaction is expected to be completed in the December 2016 quarter

7:00 am Mylan Labs announces initiatives to ease access to EpiPens; to cover up to $300 of out-of-pocket cost at pharmacy, reducing patient cost by 50% off co list price (MYL) :

  • Co is reducing the patient cost of EpiPen Auto-Injector through the use of a savings card which will cover up to $300 for their EpiPen 2-Pak.
    • For patients who were previously paying the full amount of the company's list price for EpiPen, this effectively reduces their out-of-pocket cost exposure by 50%.
  • For patients who were previously paying the full amount of the company's list price for EpiPen, this effectively reduces their out-of-pocket cost exposure by 50%.
  • Co also is doubling the eligibility for its patient assistance program, which will eliminate out-of-pocket costs for uninsured and under-insured patients and families as well.
  • Co also is opening a pathway so that patients can order EpiPen Auto-Injector directly from the company, thereby reducing the cost.

6:58 am Signet Jewelers announces that affiliates of Leonard Green & Partners will invest $625 mln in the form of convertible preferred shares; Signet to add $625 mln to repurchase program (SIG) :

Signet will use the proceeds from the LGP investment to fund a repurchase of up to $625 mln in common stock either in the open market or through privately negotiated transactions. In conjunction with this transaction, Signet will expand its Board of Directors from ten to eleven and appoint Jonathan Sokoloff to the Signet Board upon the closing of the transaction, which is expected to occur in the third quarter of FY 2017.

  • The investment by Green Equity Investors VI, L.P., an affiliate of LGP, in Signet will include the following terms:
    • $625 mln in convertible preference shares
    • The convertible preference shares accrue a 5% p.a. dividend, payable quarterly in arrears, in cash or by increasing the liquidation preference, at the option of Signet 
    • The preference shares will be convertible into Signet common shares at a premium of 18% to the volume weighted average price of the common shares for the 20 trading days immediately following Signet's second quarter earnings announcement on August 25, 2016, with a maximum conversion price of $100 per share
    • LGP will be subject to a two year lock-up period and Signet will also have the right to force conversion after two years subject to Signet's common shares achieving a specific price threshold
  • $625 mln in convertible preference shares
  • The convertible preference shares accrue a 5% p.a. dividend, payable quarterly in arrears, in cash or by increasing the liquidation preference, at the option of Signet 
  • The preference shares will be convertible into Signet common shares at a premium of 18% to the volume weighted average price of the common shares for the 20 trading days immediately following Signet's second quarter earnings announcement on August 25, 2016, with a maximum conversion price of $100 per share
  • LGP will be subject to a two year lock-up period and Signet will also have the right to force conversion after two years subject to Signet's common shares achieving a specific price threshold
  • As a part of the transaction, Signet is increasing its Board authorized share repurchase program by $625 million, bringing the total authorization to $1.1 billion when combined with the $511 million remaining under the previously authorized repurchase program. The transaction is expected to close in the third quarter of FY 2017, subject to the receipt of customary regulatory approvals.

6:56 am Asian Markets Close: Nikkei -0.3%, Hang Seng UNCH, Shanghai -0.6% (:SUMRX) :

Equity markets across the Asia-Pacific region ended Thursday on a mostly lower note, but once again, trading ranges were relatively narrow. The cautious posture was attributed to apprehension ahead of tomorrow's speech from Federal Reserve Chair Janet Yellen, who will speak before other central bank officials in Jackson Hole, Wyoming.

  • In economic data:
    • Japan's Corporate Services Price Index +0.4% year-over-year (consensus 0.1%; last 0.2%)
    • Hong Kong's July trade deficit narrowed to HKD33.30 billion from HKD45.60 billion
  • Japan's Corporate Services Price Index +0.4% year-over-year (consensus 0.1%; last 0.2%)
  • Hong Kong's July trade deficit narrowed to HKD33.30 billion from HKD45.60 billion

---Equity Markets---

  • Japan's Nikkei shed 0.3% with seven sectors ending in the red. Energy (-0.9%), consumer staples (-0.7%), and materials (-0.7%) lagged while financials (+0.3%) outperformed. Sumitomo Metal Mining, Shiseido, Mitsubishi Logistics, Shin-Etsu Chemical, Mitsubishi Electric, and Isuzu Motors lost between 1.8% and 4.9%.
  • Hong Kong's Hang Seng settled just above its flat line. China Mengniu Dairy surged 11.1% after reporting better than expected sales. Tingyi followed with a 2.6% gain while financials were mixed. HSBC, Hang Seng Bank, and Bank of China added between 0.3% and 0.5% while Bank of East Asia shed 0.4%.
  • China's Shanghai Composite trimmed its loss ahead of the close, but still lost 0.6%. Gemdale, Hundsun Technologies, Langfang Development, and AVIC Capital lost between 4.1% and 4.6%.
  • India's Sensex fell 0.8% amid losses in most components. Vedanta, Wipro, Tata Steel, and Infosys posted losses between 2.0% and 3.2% while Bharat Heavy Electricals and GAIL outperformed with respective gains of 3.0% and 2.0%.

---FX---

  • USDJPY UNCH at 100.42
  • USDCNY -0.1% to 6.6541
  • USDINR -0.1% to 67.043

6:56 am Burlington Stores beats by $0.09, beats on revs (Comps, EPS better than mid-quarter guidance); guides Q3 EPS below consensus, revs above consensus; raises FY17 EPS outlook (BURL) :

Reports Q2 (Jul) earnings of $0.39 per share (Ahead of 7/18 pre-announcement of $0.28-0.30), $0.09 better than the Capital IQ Consensus of $0.30; revenues rose 9.7% year/year to $1.26 bln vs the $1.24 bln Capital IQ Consensus. Comparable store sales increased 5.4% (Ahead of 7/18 pre-announcement of +4.2-4.5%). Merchandise inventories were $745.0 million vs. $802.3 million last year, primarily driven by a comparable store inventory decrease of 7%. Pack and hold inventory represented 27% of inventory at quarter end vs. 28% last year.

  • Co issues mixed guidance for Q3, sees EPS of $0.30-0.32 vs. $0.33 Capital IQ Consensus Estimate; sees Q3 revs of ~$1.32-1.33 bln (+7.1-8.1%) vs. $1.32 bln Capital IQ Consensus Estimate; sees Comparable store sales increasing 2.5-3.5%
  • Co raises guidance for FY17, sees EPS of $2.92-2.96 (Prior $2.68-2.78) vs. $2.88 Capital IQ Consensus Estimate; sees FY17 revs of ~$5.53-5.56 bln (+7.8-8.3%) (Prior +7.1-7.6%) vs. $5.48 bln Capital IQ Consensus Estimate; sees Comparable store sales increasing 3.6-4.1% (Prior +3.0-3.5%)

6:55 am Vista Outdoor announces $100 mln share repurchase program (VSTO) :

  • "We recently completed our previously approved $200 million share repurchase program, and we are committed to creating long-term value for our shareholders by repurchasing shares as part of a balanced capital deployment strategy," said Mark DeYoung, Vista Outdoor Chairman and Chief Executive Officer.
  • Vista Outdoor's share repurchase program expires at the end of Fiscal Year 2018.

6:55 am Medtronic beats by $0.02, reports revs in-line; reaffirms FY17 guidance (MDT) :

  • Reports Q1 (Jul) earnings of $1.03 per share, $0.02 better than the Capital IQ Consensus of $1.01.
    • CVG worldwide rev of $2.518 bln decreased 2 percent, or increased in the mid-single digits on a CCCW basis, driven by strong, balanced growth across all three divisions.
    • MITG worldwide rev of $2.424 bln decreased 1 percent, or increased in the mid-single digits on a CCCW basis, another strong quarter for the group with above market growth.
    • RTG worldwide rev of $1.772 bln decreased 2 percent, or increased in the mid-single digits on a CCCW basis. Group results were driven by strong Brain Therapies and Specialty Therapies growth, as well as by continued improvement in U.S. Spine, offsetting declines in Pain Therapies, all on a CCCW basis.
    • Diabetes Group worldwide rev of $452 mln increased 2 percent, or increased in the high-single digits on a CCCW basis.
  • CVG worldwide rev of $2.518 bln decreased 2 percent, or increased in the mid-single digits on a CCCW basis, driven by strong, balanced growth across all three divisions.
  • MITG worldwide rev of $2.424 bln decreased 1 percent, or increased in the mid-single digits on a CCCW basis, another strong quarter for the group with above market growth.
  • RTG worldwide rev of $1.772 bln decreased 2 percent, or increased in the mid-single digits on a CCCW basis. Group results were driven by strong Brain Therapies and Specialty Therapies growth, as well as by continued improvement in U.S. Spine, offsetting declines in Pain Therapies, all on a CCCW basis.
  • Diabetes Group worldwide rev of $452 mln increased 2 percent, or increased in the high-single digits on a CCCW basis.

  • Co reiterates guidance for FY17 (Apr), sees EPS of 4.60-4.70 vs. $4.66 Capital IQ Consensus Estimate, reaffirms FY17 rev growth between 5-6%.
  • 6:53 am Titan Machinery misses by $0.07, misses on revs; lowers ag comp sales, equipment margin guidance (TITN) :

    • Reports Q2 (Jul) loss of $0.12 per share, $0.07 worse than the Capital IQ Consensus of ($0.05); revenues fell 16.7% year/year to $278.3 mln vs the $291.62 mln Capital IQ Consensus. 
    • Equipment sales were $173.3 million for the second quarter of fiscal 2017, compared to $221.0 million in the second quarter last year. Parts sales were $58.3 million for the second quarter of fiscal 2017, compared to $62.1 million in the second quarter last year. Revenue generated from service was $31.3 million for the second quarter of fiscal 2017, compared to $32.8 million in the second quarter last year. Revenue from rental and other was $15.4 million for the second quarter of fiscal 2017, compared to $18.3 million in the second quarter last year.
    • Guidance
      • Agriculture Same Store Sales Down 17% to 22% (from down 13-18%)
      • Construction Same Store Sales Flat (unch)
      • International Same Store Sales Down 7% to 12% (from flat)
      • Lowers Equipment Margins to between 7.2% and 7.8% from 7.7-8.3%
      • Adjusted Diluted EPS loss in the second half of fiscal 2017 is expected to be less than the loss in the first half of the year.
    • Agriculture Same Store Sales Down 17% to 22% (from down 13-18%)
    • Construction Same Store Sales Flat (unch)
    • International Same Store Sales Down 7% to 12% (from flat)
    • Lowers Equipment Margins to between 7.2% and 7.8% from 7.7-8.3%
    • Adjusted Diluted EPS loss in the second half of fiscal 2017 is expected to be less than the loss in the first half of the year.
    • "We continue to concentrate on our inventory reduction, its positive impact on our balance sheet and expect to achieve the $100 million inventory reduction goal for fiscal 2017. We reduced used inventory in the first half of fiscal 2017 by $39 million or 15%, and through the first six months of this year we exceeded our target by $13 million or 40% on our marketing plan of aged inventory through alternative channels." Mr. Meyer commented, "We continue to expect to generate positive adjusted operating cash flow for fiscal 2017 as we execute on our inventory reduction plan. We are updating our annual modeling assumptions, primarily based on the larger than anticipated crop, its impact on commodity prices and the anticipated effect on our customer's demand."

    6:52 am On The Wires (:WIRES) :

    • Fortis and ITC Holdings (ITC) announce that the Illinois Commerce Commission has approved its application authorizing Fortis to proceed with its acquisition of ITC. The transaction is expected to close by the end of the year.
    • WidePoint Corporation (WYY) announces that WidePoint is approved to issue ECA PIV-I credentials having met the requirements of DoD and GSA, the only company to obtain this approval. 
    • Rexford Industrial Realty (REXR) acquires a 5-property industrial complex for ~$40.1 million. The acquisition was funded using cash on hand.

    6:47 am Tiffany & Co beats by $0.12, reports revs in-line; reaffirms FY17 EPS, sales guidance (TIF) :

    • Reports Q2 (Jul) earnings of $0.84 per share, $0.12 better than the Capital IQ Consensus of $0.72; revenues fell 5.9% year/year to $931.6 mln vs the $931.37 mln Capital IQ Consensus. On a constant-exchange-rate basis that excludes the effect of translating foreign-currency-denominated sales into U.S. dollars, worldwide net sales and comparable store sales declined 6% and 9%, respectively.
      • In the Americas, total sales of $434 million in the second quarter and $837 million in the first half were both 9% below last year, with declines of 9% and 10%, respectively, in comparable store sales.
      • In the Asia-Pacific region, total sales -6% to $230 million and comparable store sales declined 12%.
      • Japan sales +10%; Europe -12%. 
    • In the Americas, total sales of $434 million in the second quarter and $837 million in the first half were both 9% below last year, with declines of 9% and 10%, respectively, in comparable store sales.
    • In the Asia-Pacific region, total sales -6% to $230 million and comparable store sales declined 12%.
    • Japan sales +10%; Europe -12%. 
    • Co reaffirms guidance for FY17, sees EPS down mid-single digits to ~$3.60-3.68 vs. $3.62 Capital IQ Consensus; low single digit sales decline, based on the Company's plans and assumptions, including: (i) worldwide gross retail square footage increasing 2%, net through 11 openings, 6 relocations and 9 closings; (ii) adj. operating margin below the prior year's 19.7% due to an anticipated increase in gross margin (although at a considerably lesser rate in the second half than in the first half of the year) more than offset by SG&A expense growth; (iii) interest and other expenses, net unchanged from 2015; (iv) an effective income tax rate slightly lower than the prior year; (v) the U.S. dollar unchanged from current spot rates for the balance of the year; and (vi) weighted average diluted shares outstanding modestly lower than in fiscal 2015.
    • "The global environment continues to reflect well known challenges that we believe have had broad effects on spending by local customers, as well as foreign tourists, especially from China."

    6:35 am Toronto-Dominion Bank beats by CAD$0.06, beats on revs (TD) :

    • Reports Q3 (Jul) adj. earnings of CC$1.27 per share, CC$0.06 better than the Capital IQ Consensus of CC$1.21; revenues rose 8.7% year/year to CC$8.7 bln vs the CC$8.08 bln Capital IQ Consensus. 
    • Adj. ROE +50 bps Q/Q to 14.5%
    • "TD's results demonstrate the strength of our diversified business model, with adjusted earnings of $2.4 billion, up 6% from the third quarter last year," said Bharat Masrani, Group President and Chief Executive Officer. "Our performance reflects both organic growth and a focus on expense management."

    6:32 am Mylan Labs and Biocon announces that the EMA has accepted for review Mylan's Marketing Authorization Application for a proposed biosimilar Trastuzumab (MYL) :

    • This is the second biosimilar submission developed by the partnership that has been accepted for review in Europe. Last month, Mylan's Marketing Authorization Application for the proposed biosimilar Pegfilgrastim was accepted for review by EMA.
    • Mylan and Biocon, which have co-developed this proposed biosimilar, anticipate that this may be the first Marketing Authorization Application for a Trastuzumab biosimilar accepted by the EMA for review.

    6:29 am On The Wires (:WIRES) :

    • RADA Electronic Industries (RADA) will provide its CHR-based RPS-10 radar system to Artis of Herndon, VA for integration and testing with its "Iron Curtain" close-in Active Protection System. The integration and testing is planned for the first quarter of 2017. According to Zvi Alon, RADA's CEO, "After successful integration and testing of the RPS-10 with an Israeli APS, we are very happy with the opportunity to prove its operability as part of the Iron Curtain, and actively look forward to more global APS opportunities."
    • Kone Oyj (KNYJY) will acquire the remaining 20% stake in GiantKONE Elevators from Zhejiang Giant Holdings. The acquisition price is ~180 million. The transaction will be closed after receipt of relevant authority approvals. Following this transaction KONE will increase its shareholding in GiantKONE from 80% to 100%. 

    6:24 am Destination Maternity reports Q2 results with comps -2.7%; lowers FY17 comp guidance; raises gross margin outlook (DEST) :

    • Adj. EPS ($0.14) vs. ($0.12) last year (no estimates); rev -11% to $107.5 mln.
      • The decrease was primarily driven by closure of Sears and Gordmans leased department locations, as well as reductions in Kohl's sales given the planned exit in 2017, and by a decline in comparable sales.
      • Comparable sales decreased 2.7%, compared to a 2.0% increase for the second quarter of fiscal 2015.
    • The decrease was primarily driven by closure of Sears and Gordmans leased department locations, as well as reductions in Kohl's sales given the planned exit in 2017, and by a decline in comparable sales.
    • Comparable sales decreased 2.7%, compared to a 2.0% increase for the second quarter of fiscal 2015.
    • Continued sequential improvement in comparable sales through the year, resulting in slightly negative comparable sales for the full fiscal year
    • Gross margin to increase ~250 to 350 basis points year-over-year, as inventory productivity initiatives continue to generate more profitable sales;

    6:12 am Leju Holdings beats by $0.01; misses on revs; reaffirms FY16 revs guidance (LEJU) :

    Reports Q2 EPS per ADS of $0.11 vs $0.10 Capital IQ consensus; revs rose 0.5% YoY to $158.3 mln vs $179.5 mln consensus.

    • Revenues from e-commerce services increased by 11% year-on-year to $204.3 million
    • Revenues from online advertising services decreased by 3% year-on-year to $56.2 million
    • Revenues from listing services increased by 19% year-on-year to $10.8 million

    Business Outlook

    • The Company maintains its fiscal 2016 total revenue guidance of ~$660-690 mln vs $671.5 mln consensus

    6:08 am Tech Data misses by $0.01, misses on revs; guides Q3 EPS below consensus, revs below consensus (TECD) :

    • Reports Q2 (Jul) earnings of $1.42 per share, $0.01 worse than the Capital IQ Consensus of $1.43; revenues fell 3.4% year/year to $6.35 bln vs the $6.63 bln Capital IQ Consensus.
      • The Americas: Net sales were $2.7 billion (42% of worldwide net sales), a decline of 3% compared to the prior-year quarter. On a constant currency basis, net sales declined 2%.
      • Europe: Net sales were $3.7 billion (58% of worldwide net sales), a decrease of 4% compared to the prior-year quarter. On a constant currency basis, net sales declined 2%.
    • The Americas: Net sales were $2.7 billion (42% of worldwide net sales), a decline of 3% compared to the prior-year quarter. On a constant currency basis, net sales declined 2%.
    • Europe: Net sales were $3.7 billion (58% of worldwide net sales), a decrease of 4% compared to the prior-year quarter. On a constant currency basis, net sales declined 2%.
    • Co issues downside guidance for Q3, sees EPS of $1.20-1.30 vs. $1.39 Capital IQ Consensus Estimate; sees Q3 revs of $6.25-6.45 bln vs. $6.55 bln Capital IQ Consensus Estimate.

    6:05 am Leju Holdings beats by $0.01, misses on revs; reaffirms FY16 revs guidance (LEJU) :

    • Reports Q2 (Jun) earnings of $0.11 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.10; revenues rose 0.3% year/year to $158.3 mln vs the $179.46 mln Capital IQ Consensus.
    • Co reaffirms guidance for FY16, sees FY16 revs of $660-690 mln vs. $671.46 mln Capital IQ Consensus Estimate.
    • Revenues from e-commerce services were $118.2 million, an increase of 1% from $117.4 million for the same quarter of 2015, primarily due to an increase in the average price per discount coupon redeemed, partially offset by the decrease in the number of discount coupons redeemed.

    6:01 am Horizon Global to acquire the Westfalia Group; acquisition expected to be accretive in 2017 (HZN) :

    • As part of the transaction, Horizon Global will acquire Westfalia, Terwa and Siarr from an investor consortium led by DPE Deutsche Private Equity, which will become a shareholder of Horizon Global as part of the transaction.
    • The parties expect to complete the transaction during the fourth quarter of 2016, subject to the satisfaction of customary closing conditions
    • Horizon Global intends to fund the acquisition, comprised of ~89 million cash and assumed net debt of 42 million, which will be refinanced, through an expansion of its existing term loan. In addition, 36 million in Horizon Global common stock will be issued to the sellers.

    5:54 am Shanghai...-0.57% (FXI) :  

    5:54 am S&P futures vs fair value: -0.30. Nasdaq futures vs fair value: -4.40. :

    5:54 am European Markets : FTSE...6819.21...-16.60...-0.20%.  DAX...10555.74...-67.20...-0.60%.

    5:54 am Asian Markets : Nikkei...16556...-41.40...-0.30%.  Hang Seng...22827...+6.10...+0.00%.

    5:19 am On The Wires (:WIRES) :

    • Honda Motor (HMC) began accepting applications in Japan for custom orders of the all-new NSX supercar, which underwent a full redesign for the first time in 26 years since the introduction of the original NSX. The customer delivery will begin on February 27, 2017.
    • Toshiba Corporation's (TOSBF) Storage & Electronic Devices Solutions Company today announced the launch of "TC90175XBG," a new addition to its line-up of video processors for high resolution automotive displays. Sample shipments start today, with mass production scheduled to start in the first half of FY2017.
    • Jamba Juice (JMBA) announced that the Panen Lestari Internusa group has opened the first Jamba Juice location in Indonesia. The store is located in the popular Central Park Mall, in Jakarta. 

    4:35 am Liberty Global Co-CFO to retire at end of the year; Charlie Bracken to assume sole CFO position (LBTYA) :

    Co announcing changes within its finance and accounting organization following the planned retirement of Bernie Dvorak who currently serves as EVP and Co-Chief Financial Officer responsible for accounting, compliance and investor relations.

    • Dvorak will retire at the end of this year, after over three decades of leadership positions in the cable industry, most of which have been with Liberty Global and affiliated companies.
    • Effective January 1, 2017, Charlie Bracken, currently EVP and Co-Chief Financial Officer responsible for finance and treasury operations will assume the sole position of Chief Financial Officer for Liberty Global.

    4:25 am Seadrill Ltd misses by $0.01, misses on revs (SDRL) :

    • Reports Q2 (Jun) earnings of $0.52 per share, $0.01 worse than the Capital IQ Consensus of $0.53; revenues fell 24.3% year/year to $868 mln vs the $887.01 mln Capital IQ Consensus.
    • 98% economic utilization
    • The Seadrill Group achieved 99% economic utilization
    • Seadrill Limited order backlog of ~$3.6 billion; Seadrill Group $8.0 billion
    • Co's Commentary: "There continues to be a significant supply overhang and the market conditions remain challenging, however, there is some volume returning to the spot market, although primarily for short term work. Our priorities for the remainder of the year continue to be delivering safe and efficient operations for our customers whilst concluding on our financing plans."

    4:05 am On The Wires (:WIRES) :

    • Intelsat S.A. (I) announced that Intelsat 33e, the second of seven planned Intelsat EpicNG high throughput satellites, was launched successfully from French Guiana aboard an Ariane 5 launch vehicle. Co also announced the successful launch of the Intelsat 36 satellite. Intelsat 36 was launched from French Guiana aboard an Ariane 5 launch vehicle. Liftoff occurred at 6:16 p.m. EDT. The satellite separated from the rocket's lower stage at 6:57 p.m. EDT, and the Intelsat launch team has confirmed signal acquisition.
    • Dialog Semiconductor (DLGNF) announced and is demonstrating its first gallium nitride power IC product offering, using Taiwan Semiconductor  (TSM) 650 Volt GaN-on-Silicon process technology.  
    • Oi (OIBRQ) clarifies that, immediately upon learning of the news of "Oi Executive Officer is accused of participating in a scheme that harmed clients" in the press, the Company questioned its Chief Legal Officer and was informed that he was not subpoenaed in connection with the prosecution of an alleged criminal action regarding the matter discussed in the news. The Company was also informed that, as far as he was aware, he had already provided all the requested information.
    • Nordea (NRBAY) and DNB (DNBHF) have entered into an agreement to combine their operations in Estonia, Latvia and Lithuania to create a leading main bank in the Baltics with strong Nordic roots.
    • Harmony Gold Mining Company (HMY) announced that an application for a special mining lease for the Wafi-Golpu project was submitted today to the Mineral Resources Authority in Papua New Guinea. Submission of this application follows reviews of the feasibility study for the Wafi-Golpu project by the boards of directors of both Harmony and Newcrest Mining (NCMGY), Harmony's joint venture partner in the project.

    4:00 am Novartis reports phase III results of EXPAND study of BAF312 meets primary end point (NVS) :

    Novartis announced the Phase III EXPAND study, evaluating the efficacy and safety of oral, once-daily, BAF31 in secondary progressive multiple sclerosis, met its primary endpoint of a reduction in the risk of disability progression, compared with placebo.

    • The EXPAND study represents the largest randomized, controlled study in SPMS to date
    • The Phase III EXPAND study of BAF312 (siponimod) in secondary progressive multiple sclerosis met its primary endpoint of reducing the risk of three-month confirmed disability progression versus placebo
    • There are currently very limited treatment options for SPMS, a form of MS associated with gradual worsening of symptoms and accumulation of disability, independent of relapses

    3:23 am Euronav misses by $0.13; beats on revs (EURN) : Reports Q2 EPS of $0.25 vs $0.38 Capital IQ consensus; revs were $189.6 mln vs $177.2 mln consensus.

    3:05 am On The Wires (:WIRES) :

    • Canon (CAJ) announced the new Canon EOS 7D Mark II Kit, featuring the new SD card-sized Wi-Fi Adapter W-E1. This new Wi-Fi adapter, when placed in the camera's SD card slot, provides the EOS 7D Mark II with Wi-Fi capabilitiesi like easy transferring of images and MP4 videos as well as use of the Canon Camera Connect App for remote capture of still images via a compatible smartphone or tablet.
    • HP Inc. (HPQ) today unveiled the world's only PCs with integrated privacy screens. HP Sure View, a new option on the HP EliteBook 1040 and HP EliteBook 840, helps protect against visual hacking with the press of a single button.
    • Technip (TKPPY) announced today that it has signed an exclusive cooperation agreement with BTG BioLiquids B.V. to provide EPC services for its modular pyrolysis plants. The plants will be based on BTL's Fast Pyrolysis Oil technology which converts biomass to oil through a rapid pyrolysis process.

    2:56 am Cesca Therapeutics converted a senior secured three year convertible debenture of $12.5 million of principal and $8.25 million of interest to 6,102,941 shares of its common stock (KOOL) :  

    2:39 am Prima Biomed receives European patent grants for its IMP731 antibody (PBMD) :

    Co announces the granting of patent number 2142210 entitled "Cytotoxic anti-LAG-3 monoclonal antibody and its use in the treatment or prevention of organ transplant rejection and autoimmune disease" by the European Patent Office.

    • The patent relates to Prima's IMP731 antibody. The granted claims provide protection for specific sequences of anti-LAG-3 antibodies and their use in depleting LAG-3+ T cells by complement dependent cytotoxicity and antibody-dependent cell cytotoxicity.
    • Rights for the development of the IMP731 antibody were granted in December 2010 to GSK, which has commenced first-in-human clinical trials of the proprietary antibody (GSK2831781) derived from IMP731.

    2:35 am On The Wires (:WIRES) :

    • Marsh & McLennan (MMC) announced the launch of the Asia Pacific Risk Center in Singapore. The center is MMC's inaugural risk research institute in Asia Pacific, providing insight and analysis to government leaders and corporate executives.
    • MB Financial (MBFI) announced it has completed its merger with American Chartered Bancorp, and its wholly owned bank subsidiary, American Chartered Bank has been merged into MB Financial Bank.