Major European indices trade higher across the board with
Italy's MIB (+2.0%) pacing the advance. The relative strength
should not be that surprising considering the International
Monetary Fund said the European Central Bank may need to extend its
quantitative easing program past September of next year and may
have to boost the total amount if the Greek situation causes a
spike in regional yields.
------
Greece, 10-yr note: +12 bps to 11.64%
Italy, 10-yr BTP: -1 bp to 1.89%
Portugal, 10-yr note: +1 bp to 2.53%
Spain, 10-yr ODE: -1 bp to 1.92%
U.K., 10-yr Gilt: +1 bp to 1.97%
8:19 am Egalet prices its ~6.67 mln share public offering at
$11.25/share (
EGLT): Co announced the pricing of an
underwritten public offering of 6,666,667 shares of its common
stock at a public offering price of $11.25 per share. The gross
proceeds to Egalet from this offering are expected to be ~$75
million.
Co anticipates using the net proceeds from the offering to fund
research and development, including life cycle management for SPRIX
(ketorolac tromethamine) Nasal Spray and OXAYDO (oxycodone HCI,
USP), to expand commercial sales and marketing efforts, and for
general corporate purposes, including potential business
development opportunities
8:18 am European Markets Update: FTSE +0.7%, CAC +1.3%, DAX
+1.5%, MIB +2.0% (:SUMRX): Major European indices trade higher
across the board with Italy's MIB (+2.0%) pacing the advance. The
relative strength should not be that surprising considering the
International Monetary Fund said the European Central Bank may need
to extend its quantitative easing program past September of next
year and may have to boost the total amount if the Greek situation
causes a spike in regional yields.
In economic data:
UK's Q2 GDP expanded 0.7% quarter-over-quarter, as expected
(prior 0.4%); +2.6% year-over-year, as expected (prior 2.9%).
Separately, Index of Services +0.4% (consensus 0.5%; last
0.5%)
Italy's July Consumer Confidence fell to 106.5 from 109.3
(expected 109.0) while Business Confidence slipped to 103.6 from
103.9, as expected
------
UK'sFTSE is higher by 0.7% with RSA Insurance surging 14.0%
amid reports the company may be acquired by Zurich Insurance.
Consumer names also display strength with Burberry, Next,
InterContinental Hotels, and Marks & Spencer up between 1.6%
and 2.4%.
In France, the CAC trades up 1.3% with all but four
components in the green. Consumer names are also among the leaders
in France with Carrefour, Kering, and LVMH up between 1.9% and
7.0%. On the downside, Michelin has surrendered 5.9% after
reporting disappointing results.
Germany'sDAX is higher by 1.5% with all but one name in the
green. Exporters BMW, Continental, Daimler, and Volkswagen have
gained between 1.4% and 2.3%. Financials also outperform with
Deutsche Bank and Commerzbank up 2.0% and 1.6%, respectively.
Italy'sMIB leads the region with a 2.0% gain amid broad
strength. Fiat Chrysler has climbed 3.7% while Banco Popolare, UBI
Banca, Intesa Sanpaolo, and Unicredit show gains between 2.3% and
3.0%.
8:16 am Peabody Energy also decided to suspend the company's
quarterly dividend on shares (
BTU): As part of the plan to maximize
liquidity, the board of directors decided to suspend the company's
quarterly dividend on shares of its common stock, and will evaluate
whether to reinstate the dividend in the future as circumstances
warrant. The board of directors also authorized a reverse split of
common stock, subject to shareholder approval. If the reverse stock
split is implemented, the number of authorized, issued and
outstanding shares of common stock would be reduced in accordance
with the exchange ratio selected by the company, among five
alternative ratios between 1-for-8 and 1-for-20 as approved by
shareholders.
8:12 am PACCAR also approved 9% increase to the regular
quarterly dividend to $0.24 per share; provides European Commission
update (
PCAR): DAF is cooperating with the European
Commission and is preparing its response to the Statement of
Objections issued in November 2014. The Statement expressed the
Commission's preliminary view that all major European medium- and
heavy-duty truck manufacturers had participated in anticompetitive
practices in the European Union. The Commission indicated that it
will seek to impose significant fines on the manufacturers. The
Commission will review the manufacturers' responses before issuing
a decision. Any decision would be subject to appeal. The company is
unable to estimate the potential fine at this time.
8:11 am Gapping down (:SCANX):
Gapping down
In reaction to disappointing earnings/guidance:
AMKR-17.5%,
BIDU-12.6%,
CKEC-11.7%,
COMM-5.7%,
AVB-5.5%,
AUDC-1.8%,
CR-1.7%,
TACO-1.4%,
PRAH-1.4%,
ALSN-1.3%,
DD-1.2%
Other news:
IMMU-45.6% (Belgium's UCB Phase 3 clinical trial program for
Epratuzumab did not meet primary endpoint; Epratuzumab was licensed
from IMMU),
AMDA-30.3% (announced the FDA has requested co provide
24-month clinical performance data for pending 510(k) submission
for the Valeo C Interbody with CsC Osteo-Conductive Scaffolding;
co also provided in-line Q2 rev guidance),
CARA-6.7% (commenced an underwritten public offering of
shares of its common stock of up to $65 million),
EGLT-5.4% (to offer and sell shares of its common stock in
an underwritten public offering; size not disclosed),
NYMX-1.6% (following 100% move higher yesterday),
ADPT-1.5% (announces an offering of 2.75 mln shares of
common stock; ~1.91 mln shares to be sold by co, ~843K shares to be
sold by Sterling Partners shareholder group),
YOKU-0.8% (following BIDU results),
SINA-0.5% (following BIDU results)
Analyst comments:
YELP-2.9% (downgraded to Hold from Buy at Deutsche Bank)
8:10 am KeyCorp announces the results of its 2015 Dodd-Frank Act
mid-cycle stress test (
KEY):
Results Release
8:10 am AGCO Corp beats by $0.24, reports revs in-line; raised
FY15 EPS guidance, above consensus, revs in-line (
AGCO): Reports Q2 (Jun) earnings of $1.25
per share, excluding non-recurring items,
$0.24 better thanthe Capital IQ Consensus Estimate of $1.01;
revenues fell 24.8% year/year to $2.07 bln vs the $2.07 bln
consensus.
Weaker global demandfor agricultural equipment and the
unfavorable effect of foreign currency translation are expected to
negatively impact AGCO's sales and earnings in 2015.
Sales declined in every region, including North America, South
America, EAME and Asia/Pacific.
Gross and operating margins are expected to be below 2014
levels due to the negative impact of lower sales and production
volumes along with a weaker sales mix.
"Our second quarter results reflect the significant challenges
caused by weaker global industry demand and currency
headwinds."
Co
raised EPS guidancefor FY15, sees EPS of ~3.10 vs. $2.90
Capital IQ Consensus Estimate, up from ~$3.00; sees FY15 revs of
$7.7-7.9 bln vs. $7.7 bln Capital IQ Consensus Estimate.
8:09 am Franklin Electric reports EPS in-line, revs in-line (
FELE): Reports Q2 (Jun) earnings of $0.35
per share, in-line with the Capital IQ Consensus Estimate of $0.35;
revenues fell 13.0% year/year to $247.4 mln vs the $247.38 mln
consensus.
Outlook
"In light of the uncertainty around our top line given the
current headwinds we are facing, we are currently
assuming our second half 2015 sales will decline between eight
and nine percent versus the same period from last
year,consistent with the decline we experienced in the first
half of 2015, and for primarily the same reasons that impacted the
first half: namely, foreign exchange, lower demand for dewatering
equipment that serves the oil and gas end markets and overall
weaker demand for groundwater equipment in the U.S. due to the
lingering impact of unfavorable weather conditions. If our revenues
decline in this range, we believe, because of a more favorable
sales mix, better margins and the cost cutting actions we have
taken to date and will continue to take, our
second half 2015 adjusted operating income and adjusted earnings
per share will be flat to the second half of 2014."
8:08 am Intrepid Potash misses by $0.09, misses on revs (
IPI): Reports Q2 (Jun) loss of $0.08 per
share, excluding non-recurring items,
$0.09 worse thanthe Capital IQ Consensus Estimate of $0.01;
revenues fell 33.6% year/year to $73.65 mln vs the $76.74 mln
consensus. Adjusted EBITDA1 was $15.0 million, compared with $28.6
million a year ago.
Second quarter potash sales volume of 147,000 tons, decreased
from last year's second quarter.
Intrepid`s average net realized sales price per ton was $358,
which is $29 per ton higher than the comparable period in 2014 and
slightly less than the first quarter of 2015.
The second quarter per ton cash operating cost of $224, a $36
increase from last year`s second quarter, is expected to be the
high point for 2015.
Pot Ash Outlook
Production (tons) 440-460k
Sales (tons) 425-445k
Cash operating costs ($/ton) $190-205
Total Cogs ($/ton) $275-290
8:08 am CryoLife beats by $0.03, reports revs in-line; reaffirms
FY15 EPS guidance, revs guidance (
CRY): Reports Q2 (Jun) pro forma earnings
of $0.03 per share,
$0.03 better thanthe Capital IQ Consensus Estimate of
($0.00); revenues rose 2.3% year/year to $35.5 mln vs the $35.57
mln consensus.
Co
reaffirms guidancefor FY15, sees EPS of $0.00 vs. $0.00
Capital IQ Consensus Estimate; sees FY15 revs of $148.5-150.5 mln
vs. $147.33 mln Capital IQ Consensus Estimate.
Co sees FY15 product revenue growth of low single digits vs mid
single digit increase prior guidance. Co reaffirms FY15 gross
margins of ~60%
8:06 am Federal Signal beats by $0.02, reports revs in-line;
reaffirms full year outlook (
FSS): Reports Q2 (Jun) earnings of $0.29
per share,
$0.02 better thanthe Capital IQ Consensus Estimate of $0.27;
revenues fell 1.6% year/year to $230.8 mln vs the $229 mln
consensus.
Co issues
in-line guidancefor FY15, sees EPS of $0.95-1.02 vs. $1.00
Capital IQ Consensus Estimate.
8:06 am NCI is awarded two task orders worth $6 million, under
the TEIS III contract, for IT services in support of U.S. Army IT
systems (
NCIT): The task orders represent both new
and follow-on work for NCI. The Fort Huachuca task order spans a
base period of 13 and a half months. The Fort Detrick task order
consists of a 12-month base period.
8:05 am Peabody Energy reports EPS in-line, misses on revs (
BTU): Reports Q2 (Jun) loss of $0.65 per
share, in-line with the Capital IQ Consensus Estimate of ($0.65);
revenues fell 23.8% year/year to $1.34 bln vs the $1.44 bln
consensus.
OUTLOOK
Peabody's
2015 U.S. production is fully priced with 2016 U.S. production
approximately 30 to 40 percent unpricedbased on 2015 production
levels.
During the second quarter, the company priced 14 million tons
of PRB coal for delivery in 2016, and now has 89 million tons of
PRB priced at $14.23 next year.
U.S. costs per tonare targeted to improve 3 to 5 percent in
2015 as a result of a higher percentage of PRB shipments, lower
fuel costs and ongoing cost containment.
PRB costs are targeted to remain at approximately the same
level as 2014, resulting in a modest PRB margin improvement.
U.S. revenues per tonare targeted to decline 3 to 5 percent
in 2015 as a result of change in mix and roll off of higher sales
contracts compared to 2014, primarily in the Midwest.
Australian costs per tonare targeted to be nearly 20 percent
below 2014 levels due to cost reduction initiatives, sales mix, and
lower currency and fuel expenses.
Selling and Administrative Expensesare targeted to be more
than 20 percent below 2014 levels due to implementation of a leaner
organizational structure and lower third-party spending.
Sales Volume 225-245 mln tons, prior guidance 235-255 mln
8:05 am Gapping up (:SCANX):
Gapping up
In reaction to strong earnings/guidance:
ACPW+13.6%,
KN+10.2%,
GIG+9.6%,
MSTR+7.8%, (announced the appointment of Phong Le as CFO
effective on or about August 24, 2015; co also reported earnings),
MZOR+6.8%,
CMI+4.2%,
SIRI+3.4%,
RCII+3.1%,
STO+2.9%,
F+2.5%,
VLRS+2.4%,
BP+2.3%,
MPWR+2.1%,
UPS+2%,
LH+1.9%,
PFE+1.8%,
NTLS+1.7%,
ORAN+1.4%,
CIT+1.3%,
DHI+1.3%,
WYN+1%,
MRK+0.9%
Select metals/mining stocks trading higher:
FCX+2.6%,
BP+2.2%,
MT+2.2%,
BHP+2.1%,
RIO+1.7%,
GOLD+1.2%,
NUE+1.1%,
AA+1.0%
Fan Favorites showing strength with futures markets:
NFLX+1.2%,
TSLA+1.1%,
AMZN+1%,
AAPL+0.7%
Other news:
SAEX+17.3% ( awarded a contract for ocean-bottom marine
seismic data acquisition services, valued at ~$47 million ),
DO+16.3% (still checking, may be in sympathy with STO
earnings),
SD+8.4% (announces receipt of notice from NYSE regarding
continued listing standards - intends to consider available
alternatives, potentially including a reverse stock split),
JKS+3.8% (signs a three-year RMB3 billion line of credit
agreement to support its PV project developments),
REGN+3.7% (Regeneron Pharms and Sanofi (
SNY) agree to jointly advance PD-1 and other
new immuno-oncology antibodies),
ASTI+3.4% (disclosed the mutual termination of its May
agreement regarding the purchase and sale contract of its Thornton,
Colorado headquarters building),
SDRL+3.4% (in sympathy with STO earnings),
SPWR+3% (announced that it has acquired 1.5 gigawatts of
U.S. solar power plant development assets from Australia-based
Infigen Energy),
HZNP+1.6% (announced a collaboration with Fox Chase Cancer
Center to study ACTIMMUNE in combination with PD-1/PD-L1 inhibitors
in various forms of cancer including advanced urothelial carcinoma
and renal cell carcinoma),
ACI+1.4% (announced that for administrative purposes it is
postponing the previously announced one-for-ten reverse stock split
of common stock),
RDS.A+1.4% (in symp with BP),
GILD+1.2% (ahead of earnings today)
Analyst comments:
ITEK+4.7% (target raised to $29 from $9 at Piper Jaffray),
BBRY+3% (upgraded to Equal-Weight from Underweight at Morgan
Stanley),
AEGR+2.1% (upgraded to Buy from Hold at Jefferies),
PHG+1.5% (upgraded to Buy from Hold at Societe Generale),
FB+0.6% (target raised to $117 at Axiom Capital ahead of
earnings tomorrow afternoon)
8:05 am KEMET beats by $0.03, misses on revs (limited coverage)
(
KEM): Reports Q1 (Jun) earnings of $0.01
per share, excluding non-recurring items,
$0.03 better thanthe Capital IQ two est avg of ($0.02);
revenues fell 11.9% year/year to $187.6 mln vs the $192.31 mln
consensus.
Freeport-McMoRan (FCX) Stock Pops Amid Rallying Copper Prices
TheStreet q 20 mins ago Miner Freeport to review all costs, output
cuts; shares jump Reuters 32 mins ago
"We believe we are well positioned to see an improved
year-over-year comparison of our bottom line financial results. NEC
TOKIN continues to perform well and it should be noted that if we
were to include our share of their net income into our Non-GAAP
results as we do our GAAP results the Non-GAAP earnings per share
would increase to $0.05 cents per basic share and $0.04 cents per
diluted share this quarter."
8:04 am Cynosure beats by $0.01, beats on revs (
CYNO): Reports Q2 (Jun) earnings of $0.30
per share, excluding non-recurring items,
$0.01 better thanthe Capital IQ Consensus Estimate of $0.29;
revenues rose 15.3% year/year to $83.7 mln vs the $82.7 mln
consensus.
"Our North American business posted another quarter of
double-digit growth, as revenues increased 47 percent
year-over-year and selling prices remained stable...While our
international results reflected the economic slowdowns in Europe
and China, as well as unfavorable foreign currency fluctuations,
our solid domestic performance enabled us to generate 15% overall
revenue growth."
"We continued to allocate capital to the long-term growth of
our business, with sales and marketing investments in the MonaLisa
Touch laser for vaginal health and in the upcoming planned launch
of SculpSure, our new hyperthermic laser system for non-invasive
lipolysis...In its first six months in the U.S. market, MonaLisa
Touch experienced a high level of demand, and we are pleased with
the progress of the launch."
8:04 am IPG Photonics beats by $0.04, beats on revs; guides Q3
EPS in-line, revs above consensus (
IPGP): Reports Q2 (Jun) earnings of $1.15
per share,
$0.04 better thanthe Capital IQ Consensus Estimate of $1.11;
revenues rose 22.3% year/year to $235.1 mln vs the $222.05 mln
consensus. "
In Q2, our book-to-bill ratio continued to be significantly
better than one. As we enter the second half of 2015, we remain
focused on establishing partnerships with new OEMs and end-users,
deepening our relationships with existing customers and developing
the next generation of fiber laser-based products to address new
markets and applications."
Co issues
in-line EPS guidancefor Q3, sees EPS of $1.15-1.30 vs. $1.16
Capital IQ Consensus Estimate; sees Q3 revs of $235-250 mln vs.
$230.85 mln Capital IQ Consensus Estimate.
8:04 am Seabridge Gold announces that initial results from 2015
core drilling program at its KSM Project in northwestern British
Columbia points towards a sizeable expansion of the Mitchell
Deposit at depth (
SA):
The size and orientation of the drill intercepts support the
potential for an expansion of the cost-effective block cave
operation planned for the reserves above these new intercepts. Hole
M-15-130's 174 meters of 0.55 g/T gold and 0.28% copper is more
than 200 meters to the southwest of M-15-131's 167 meters of 0.81
g/T gold and 0.25% copper; these results appear to represent a
large, continuous zone amenable to block cave mining.
"Although we are excited about where this discovery could lead,
we have
decided to scale back this year's Mitchell program by about $2.2
millionuntil we have completed our analysis of all the
available data. The balance of the program will concentrate on
expanding the block cave shapes associated with the Deep Kerr
deposit."
8:03 am TeleComm Sys wins a second year task order from the
Defense Information Systems Agency, worth $14.2 mln (
TSYS): The co announced that the Defense
Information Systems Agency has exercised its second year task order
option for TCS to continue to provide Ku satellite bandwidth,
terrestrial support and 24-hour support services for the U.S.
Marine Corps' Tactical Satellite Communications Network. The
additional $14.2 million funding covers the period from August 1,
2015 through July 31, 2016.
8:03 am Affiliated Managers beats by $0.07, misses on revs (
AMG): Reports Q2 (Jun) earnings of $3.08
per share, excluding non-recurring items,
$0.07 better thanthe Capital IQ Consensus Estimate of $3.01;
revenues rose 1.6% year/year to $646.6 mln vs the $667.6 mln
consensus.
8:03 am Stillwater Mining announces that union members at its
Stillwater Mine and Columbus processing facilities, have failed to
ratify the tentative labor agreement reached in May of this year (
SWC): Co stated: "Following this latest
decision by the union members and in light of the current metal
price environment, Company management continues to consider all
alternatives to create a situation that will best promote the
long-term economic viability of operations at the Stillwater Mine
and Columbus processing facilities. The represented employees
continue to work under the terms of the expired contract."
8:03 am PACCAR beats by $0.11, misses on revs; updates 2015
Class 8 industry retail sales guidance (
PCAR):
Reports Q2 (Jun) earnings of $1.26 per share,
$0.11 better thanthe Capital IQ Consensus Estimate of $1.15;
revenues rose 12.2% year/year to $4.79 bln vs the $4.85 bln
consensus. Truck, Parts and Other gross margins of 15.1%.
Class 8 industry retail sales for the U.S. and Canada in 2015
are expected to increase to a range of 270,000-290,000 vehicles
compared to 250,000 units last year. Industry sales in the above
16-tonne truck market in Europe this year are estimated to be in
the range of 240,000-260,000 vehicles compared to 227,000 units
last year, continuing the strong rebound which reflects improved
economic growth and increased freight activity.
8:03 am Supervalu is exploring a separation of its Save-A-Lot
business and has begun preparations to allow for a possible
spin-off of Save-A-Lot into a stand-alone, publicly traded company
(
SVU): SUPERVALU has engaged Barclays and
Greenhill to serve as financial advisors, and Wachtell, Lipton,
Rosen and Katz as legal advisor, in connection with this possible
separation.
8:03 am Eclipse Resources provides Q2 operations update;
Production for the second quarter averaged approximately 198.6
MMcfe per day, up 374% y/y (
ECR): Co's operational highlights from the
quarter include the following:
Production for the second quarter averaged approximately 198.6
MMcfe per day, which was approximately 10% above the high end of
its previously issued guidance range for the quarter and
represented a 374% increase relative to the second quarter 2014 and
a 24% sequential increase over the first quarter 2015. For the
second quarter of 2015, the Company's production mix was
approximately 57% natural gas, 23% natural gas liquids and 20%
oil.
Turned 6.3 net wells to sales, including the three-well Sawyers
pad in the Dry Gas type curve area drilled with inter-lateral
spacing of approximately 715 feet.
Drilled a dry gas Utica well in eastern Monroe Country, Ohio
with a 10,220 foot lateral (21,330 foot total measured depth), its
longest lateral and deepest well to date, in just 17 days from Spud
to Total Depth.
Averaged 921 feet per day drilling with an average cost of $261
per foot, a 7% increase in footage and an 18% decrease in cost over
the first quarter 2015.
Averaged 4.4 completion stages per day with an average cost of
$127,600 per stage for the second quarter of 2015, a 33% increase
in stages and a 36% decrease in per stage costs over the first
quarter 2015.
Provided third quarter 2015 production guidance of 205 -- 215
MMcfe per day.
Increased its full year 2015 guidance to 190-200 MMcfe per day
from the previously announced range of 180-190 MMcfe per day, which
equates to a 170% year-over-year growth rate using the midpoint of
the new guidance range. This range assumes the Fuchs/Dietrich pads
are not turned-to-sales until the first quarter of 2016, as
previously discussed.
Realized natural gas price before the impact of cash settled
derivatives and including transportation costs averaged $2.30 per
Mcf, a $0.44 per Mcf discount to NYMEX during the quarter.
Realized natural gas price after the impact of cash settled
derivatives and including transportation costs averaged $3.05 per
Mcf, a $0.31 premium to NYMEX during the quarter.
Realized oil price before the impact of cash settled
derivatives averaged $45.48 per barrel, a $12.19 per barrel
discount to WTI oil price during the quarter.
Realized natural gas liquids price, including transportation
costs, averaged $14.01 per barrel, or approximately 24% of the
average WTI oil price during the quarter.
8:02 am Engility announces that its TASC company has been
awarded a $67 mln contract to provide systems engineering and
integration for the U.S. Air Force GPS Directorate (
EGL): The contract, known as the GPS
SE&I, has a two-year base with options to extend TASC's support
to 6.5 years with a value of more than $200 million. The award
represents new work and was made by the USAF Space and Missile
Systems Center.
8:02 am Supervalu beats by $0.03, reports revs in-line (
SVU): Reports Q1 (May) earnings of $0.23
per share,
$0.03 better thanthe Capital IQ Consensus of $0.20; revenues
rose 2.7% year/year to $5.41 bln vs the $5.39 bln consensus.
Save-A-Lot network identical store sales were positive 0.6
percent. Identical store sales for corporate stores within the
Save-A-Lot network were positive 2.8 percent. Retail Food segment
identical store sales were negative 0.3 percent. Total sales within
the Independent Business segment increased 1.7 percent.
8:02 am Arrow Elec beats by $0.04, beats on revs; guides Q3 EPS
in-line, revs in-line (
ARW): Reports Q2 (Jun) earnings of $1.54
per share, excluding non-recurring items,
$0.04 better thanthe Capital IQ Consensus Estimate of $1.50;
revenues rose 2.7% year/year to $5.83 bln vs the $5.72 bln
consensus.
Co issues
in-line guidancefor Q3, sees EPS of $1.40-1.52 vs. $1.42
Capital IQ Consensus Estimate; sees Q3 revs of $5.55-5.95 bln vs.
$5.65 bln Capital IQ Consensus Estimate.
8:01 am HollySys signs contract to provide Automatic Train
Protection equipment and system for high-speed trains in
200-250km/h and 300-350km/h respectively, valued at ~$19.4 mln (
HOLI): The delivery of the products is
expected to be finished by October 2015.
8:01 am Teva Pharma announces European Medicines Agency confirms
successful validation of Reslizumab marketing authorization
application (
TEVA): Co announced it has successfully
filed a Marketing Authorization Application with the European
Medicines Agency for reslizumab. Reslizumab is a humanized
anti-interleukin-5 (IL-5) monoclonal antibody for the treatment of
inadequately controlled asthma in adult patients with elevated
blood eosinophils, despite an inhaled corticosteroid-based
regimen.
8:01 am Cytori Therapeutics receives conditional approval from
FDA for Alopecia trial (
CYTX): Co announced that Kerastem
Technologies, a wholly owned subsidiary of Bimini Technologies,
received U.S. Food and Drug Administration conditional
Investigational Device Exemption approval to conduct a clinical
trial studying the safety and feasibility of its technology for the
treatment of female and early male pattern baldness (androgenic
alopecia).
8:00 am Rosetta Genomics announces that OncoGxSelect has been
approved for clinical use by The New Jersey Department of Health (
ROSG): Co announced that OncoGxSelect,
Admera Health's latest next-generation sequencing oncology panel,
has been approved for clinical use by The New Jersey Department of
Health (:NJDH). OncoGxSelect will be the sixth new product
introduced by the co in 2015. Co expects to launch its seventh new
product, a microRNA-based assay for accurate thyroid nodule
classification, by the end of this quarter.
7:59 am Sutron tender offer by Hach Company for $8.50/share
completed; STRN to crease trading (
STRN):
7:55 am S&P futures vs fair value: +13.70. Nasdaq futures vs
fair value: +29.10. (:WRAPX): U.S. equity futures hold solid
pre-market gains with S&P 500 futures up 14 points against fair
value after an overnight rally that took place as China's Shanghai
Composite recovered off its opening low. That being said, the
Shanghai Composite still lost 1.7% after being down as much as 5.1%
in the early going.
Meanwhile, Treasuries have retreated with the 10-yr yield rising
three basis points to 2.26%.
The Case-Shiller 20-city Index for May will be released at 8:30
ET (Briefing.com consensus 5.6%) while July Consumer Confidence
will be reported at 10:00 ET (consensus 100.0).
In U.S. corporate news of note:
Baidu.com(BIDU 173.66, -24.02): -12.1% after missing
bottom-line estimates and guiding Q3 revenue below consensus.
BP(BP 36.90, +0.85): +2.4% after missing bottom-line
estimates on better than expected revenue.
DuPont(DD 55.80, -0.93): -1.6% after reporting
below-consensus results and reducing its outlook for the
agriculture segment.
DR Horton(DHI 27.10, +0.36): +1.4% after beating earnings
and revenue estimates.
Ford Motor(F 14.88, +0.33): +2.3% after beating earnings
estimates on light-revenue.
Pfizer(PFE 34.93, +0.59): +1.7% following better than
expected results.
Reviewing overnight developments:
Asian markets ended mostly lower. China's Shanghai Composite
-1.7%, Japan's Nikkei -0.1%, and Hong Kong's Hang Seng +0.6%
Investors did not receive any economic data
In news:
The People's Bank of China tried calming investors by pointing
out that economic indicators are showing modest improvement.
Furthermore, the central bank injected CNY50 billion through
short-term reverse repurchase operations and reiterated intentions
to maintain "prudent" monetary policy.
Major European indices trade higher across the board. UK's FTSE
+0.7%, France's CAC +1.2%, and Germany's DAX +1.4%. Elsewhere,
Italy's MIB +1.9% and Spain's IBEX +0.9%
In economic data:
UK's Q2 GDP expanded 0.7% quarter-over-quarter, as expected
(prior 0.4%); +2.6% year-over-year, as expected (prior 2.9%).
Separately, Index of Services +0.4% (consensus 0.5%; last
0.5%)
Italy's July Consumer Confidence fell to 106.5 from 109.3
(expected 109.0) while Business Confidence slipped to 103.6 from
103.9, as expected
Among news of note:
The International Monetary Fund said the European Central Bank
may need to extend its quantitative easing program past September
of next year and may have to boost the total amount if the Greek
situation causes a spike in regional yields
7:53 am On the Wires (:WIRES):
Ocean Power Technologies (
OPTT) announced that it has successfully deployed its PB40
PowerBuoy off the coast of New Jersey. The deployment is OPT's
first since late 2013 and is a critical step in its efforts to
commercialize the technology
American Realty Capital Properties, Inc. (
ARCP) announced that it will officially begin business
operations under a new corporate name and will be known as VEREIT,
Inc. effective immediately. Co expects that its common stock and
6.70% Series F Cumulative Redeemable Preferred Stock will begin
trading on the New York Stock Exchange on July 31, 2015, under the
VEREIT name and ticker symbols VER and VER.PFR, respectively
7:51 am UPS beats by $0.08, misses on revs; reaffirms FY15 EPS
guidance (
UPS):
Reports Q2 (Jun) earnings of $1.35 per share,
$0.08 better thanthe Capital IQ Consensus of $1.27; revenues
fell 1.2% year/year to $14.1 bln vs the $14.5 bln consensus.
All three segments improved operating profit and margin, led by
International and Supply Chain and Freight performance. Currency
exchange rates and lower fuel surcharges reduced total reported
revenue growth. Pricing initiatives continue to drive base rates
higher. Total company shipments increased 2.1% over the second
quarter last year to 1.1 billion packages, led by U.S. Deferred Air
products and International Export shipments.
US domestic rev +2% to $8.8 bln; operating profit +3% to $.2
bln; daily deliveries +1.8% due to slower pace of B2C growth.
Co
reaffirms guidancefor FY15, sees EPS of $5.05-5.30 vs. $5.18
Capital IQ Consensus Estimate.
7:49 am Jacobs beats by $0.23, misses on revs; raises FY15 EPS
above consensus; reauthorizes an additional $500 mln share buyback
program (
JEC): Reports Q3 (Jun) earnings of $0.97
per share, excluding non-recurring items,
$0.23 better thanthe Capital IQ Consensus Estimate of $0.74;
revenues fell 10.0% year/year to $2.91 bln vs the $3.02 bln
consensus.
Co issues
raised guidancefor FY15, sees EPS of $3.11-3.31 from
$2.90-3.20 vs. $3.03 Capital IQ Consensus Estimate.
"We expect to see much of the benefit of this year's
restructuring in FY 2016, although some benefits are being realized
in FY 2015, as indicated by our lower G&A figures during the
quarter."
Board of Directors reauthorizes an additional $500 mln share
buyback program
Co also announced continued strength in total backlog of $18.8
bln at June 26, 2015, including a technical professional services
component of $12.2 bln.
7:49 am Cummins -- Follow Up-- Guides for full year revenue
growth of 2-4% (
CMI):
CMI expects Full year revenue growth between 2-4% or approx
$19.60-19.98 bln, Capital IQ consensus is $19.80...
More