InPlay from Briefing.com – Yahoo Finance


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5:43 pm This week’s biggest % gainers/losers (:WRAPX) : The following are this week’s top 20 percentage gainers and top 20 percentage losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week’s top 20 % gainers

  • Healthcare:MDCO (45.96 +31.62%),MNTA (19.3 +27.39%),CARA (16.65 +19.96%),EPZM (12.1 +19.21%),TRVN (7.72 +17.15%),IDXX (142.02 +16.74%),ATRS (2.25 +15.98%),DPLO (15.26 +15.61%)
  • Materials:RIC (9.3 +24.83%),OLN (30.83 +15.51%)
  • Information Technology:CARB (20.4 +22.52%),BRKS (20.75 +17.43%),FTNT (37.72 +15.07%),DATA (55.28 +14.83%),AMD (12.24 +14.71%)
  • Financials:ALLY (22.71 +15.22%)
  • Energy:OKS (54.4 +23.08%),DHT (4.91 +14.99%)
  • Consumer Staples:MJN (84.08 +18.02%)
  • Telecommunication Services:TEO (22.7 +18.85%)

This week’s top 20 % losers

  • Healthcare:ACET (15.67 -19.81%)
  • Materials:NGD (2.91 -26.52%),RYAM (13.78 -19.56%)
  • Industrials:RRTS (6.96 -40.72%),SSW (7.52 -25.62%),PBI (13.18 -16.95%),AVH (7.26 -16.93%)
  • Consumer Discretionary:TPX (43.49 -31.18%),UAA (20.7 -28.94%),UA (18.19 -28.72%),DECK (46.62 -20.58%),HBI (18.98 -17.05%),SFLY (44.09 -16.16%)
  • Information Technology:CCRC (12.5 -34.28%),CSGS (40.39 -17.97%)
  • Financials:TBBK (5.18 -29.23%),OPB (21.05 -22.75%)
  • Energy:SDRL (1.85 -35.31%),CCJ (10.67 -17.8%)
  • Consumer Staples:RAD (5.27 -23.95%)

5:11 pm Williams Partners confirms it received FERC certificate authorizing Atlantic Sunrise project (WPZ) : Following the receipt of all necessary regulatory approvals, Williams Partners anticipates beginning construction on the mainline portion of the project facilities in mid-2017. These mainline facilities will create a much-needed path from the northern part of the Transco system to markets along the Eastern Seaboard for a portion of the project capacity in time for the 2017-2018 heating season. Construction on the Central Penn Line, the greenfield portion of the project, is targeted to begin early in the 3rd Quarter of 2017, which would allow the full project capacity to be placed into service in mid-2018.

4:31 pm HHGregg receives continued listing criteria notice from NYSE for market capitalization and stock price (HGG) : During the six month period, the Company’s common stock will continue to trade on the NYSE, subject to the Company’s compliance with other NYSE continued listing requirements. The receipt of the NYSE Letter does not affect the Company’s business operations or its Securities and Exchange Commission reporting requirements.

4:28 pm Closing Market Summary: Stock Market Finishes the Week Strong (:WRAPX) :

Friday’s economic data gave investors the confidence to finally break the week’s sideways trend and push the stock market higher. The major averages hit their session highs within an hour of the opening bell and maintained said levels into the close. The S&P 500 finished with a gain of 0.7%, while the Dow (+0.9%) did modestly better and the Nasdaq (+0.5%) did slightly worse.

The Employment Situation Report for January came in just right; strong enough to keep participants thinking good things about the economy, but not strong enough to convince the market that the Fed is now going to be in a hurry to raise the fed funds rate. The above-consensus 227,000 nonfarm payroll additions (Briefing.com consensus 170,000) and the lower than expected 0.1% increase in average hourly earnings (Briefing.com consensus +0.3%) were the two main metrics driving the optimistic sentiment.

U.S. Treasuries ticked up following the report’s release, but squandered all of those gains in the afternoon following comments from the Federal Reserve Bank of San Francisco President John Williams. Mr. Williams reiterated the Fed’s expectation of three rate hikes in 2017, but more notably, he expressed his belief that a rate hike in March is on the table. His comments were consistent with remarks made by Chicago Fed President Charles Evans, who said he would be comfortable with three hikes in 2017. Mr. Evans is a voting FOMC member this year while Mr. Williams is an alternate FOMC member.

Treasuries fell back to their flat lines in the wake of the comments from the two policymakers. The 2-yr yield, which is most susceptible to FOMC rate decisions, closed the day one basis point lower at 1.20% after posting a session low at 1.17%. The benchmark 10-yr yield ended flat at 2.48%.

Financials (+2.0%) provided strong sector leadership, leading Friday’s session from the open to the close. The sector’s tenacity took root before the market even opened after The Wall Street Journal reported that President Trump would reduce regulatory burdens on the financial sector through an executive order aimed at scaling back the Dodd-Frank Act and reversing the Fiduciary Rule. Mr. Trump did just that following a White House meeting with business executives led by Blackstone’s (BX 30.74, -0.05) Steve Schwarzman.

At the opposite end of the day’s leaderboard, consumer discretionary (-0.1%) was the only sector to finish the day lower. The space took several shots from the likes of Chipotle (CMG 404.08, -19.22), Hanesbrands (HBI 18.98, -3.73), and AutoNation (AN 49.77, -2.00) after investors reacted negatively to the latest earnings reports from the three companies.

The discretionary sector could not climb out of the red as top component Amazon (AMZN 810.20, -29.75) weighed. The internet retail giant retreated 3.5% after reporting worse than expected revenues, coupled with disappointing guidance on Thursday evening. 

Technology (+0.7%) finished the day in line with the benchmark index. Visa (V 86.08, +3.78) was the sector’s top performer thanks to better than expected earnings and revenue. However, lackluster performances from large-cap components like Apple (AAPL 129.08, +0.55), Facebook (FB 130.98, +0.14), and Alphabet (GOOGL 820.13, +1.87) held the sector’s gains in check.

On the countercyclical side, the health care, consumer staples, telecom services, and real estate sectors gained between 0.4% and 0.6%, while utilities (+0.1%) closed just a step behind.

Defensive spaces dominated the week with four of the five logging weekly gains. Comparatively, the financial (+0.2%) and technology (unch) sectors were the only cyclical groups to close the week higher.

Today’s economic data included January Employment Situation Report, January ISM Services, and December Factory Orders:

  • January Employment Situation Report
    • January nonfarm payrolls came in at 227,000 while the Briefing.com consensus expected a reading of 170,000. The prior month’s reading was revised to 157,000 from 156,000. Nonfarm private payrolls added 237,000 while the Briefing.com consensus expected an increase of 175,000. The unemployment rate increased to 4.8% (Briefing.com consensus 4.7%).
    • Average hourly earnings increased 0.1% (Briefing.com consensus +0.3%), while the previous month’s reading was revised to 0.2% (from 0.4%). The average workweek was reported at 34.4 while the Briefing.com consensus expected a reading of 34.3. The previous month’s reading was revised to 34.4 (from 34.3).
    • The key takeaway is that this is one of those so-called “Goldilocks” reports since it is strong enough to keep participants thinking good things about the economy, but not strong enough to convince the market to think it means the Fed is now going to be in a hurry to raise the fed funds rate. The tempered growth in average hourly earnings, which dialed back year-over-year growth to 2.5% from 2.8% in December, is the focal point as it relates to the market’s perspective on the Fed.
  • The ISM Services Index for January decreased to 56.5 while the Briefing.com consensus expected a downtick to 57.0. The prior month’s reading was revised down to 56.6 from 57.2.
    • The key takeaway from the report is that growth in the services sector, which accounts for a much bigger slice of economic activity than the manufacturing sector does, persisted for the 85th straight month.
  • The Factory Orders Report for December showed an increase of 1.3% while the Briefing.com consensus expected a increase of 1.4%. The November reading was revised up to -2.3% from -2.4%.
    • The key takeaway from the report is that the December increase was led entirely by orders for nondurable goods (+3.1%). Paced by a 2.5% decline in transportation equipment orders, durable goods orders fell 0.5% in December.

Investors will not receive any economic data on Monday.

  • Nasdaq Composite +5.3% YTD
  • S&P 500 +2.6% YTD
  • Dow Jones Industrial Average +1.6% YTD
  • Russell 2000 +1.5% YTD

Week in Review: Holding Steady

After enjoying a solid 1.0% gain two weeks ago, the stockmarket returned to its range-bound ways. The S&P 500 spent the week insidea 31-point range, ending the week higher by 0.1%.

The past week was rife with earnings, economic data, andcommentary from two major central banks, but the market shrugged off the busyevent calendar, remaining near record levels.

Most notably, the Federal Open Market Committee concludedits latest two-day meeting on Wednesday. The central bank maintained its policystance and gave little indication that a rate hike could be announced at the nextpolicy meeting in May.

Wednesday’s FOMC announcement followed the release of astronger than expected ADP Employment Report for January (246,000; Briefing.comconsensus 165,000). Friday’s release of the Employment Situation report alsoshowed above-consensus headline growth (227,000; Briefing.com consensus170,000), but average hourly earnings increased just 0.1% (Briefing.comconsensus 0.3%) and last month’s growth was revised down to 0.2% from 0.4%. Asa result, the year-over-year average hourly earnings growth rate slowed to 2.5%from 2.8% in December.

The combination of solid job growth and lackluster wagegrowth was welcomed by the stock market, considering it did not foreshadow aninflationary spike that would prompt a hawkish response from the Fed.

Rate hike expectations saw a moderate downtick. On Friday afternoon, thefed funds futures market pointed to a 63.5% implied likelihood of a June hike,down from last week’s 69.2%.

On the earnings front, investors received a set of resultsfrom heavyweights like Amazon (AMZN), Apple (AAPL), Facebook (FB), Visa (V),UPS (UPS), and others. Amazon and UPS missed estimates while Apple, Facebook,and Visa surpassed expectations. However, it is worth noting that while Applereported above-consensus results, the company faced reduced competition duringthe quarter after the recall of Samsung’s Note 7 in early October.

4:14 pm Atwood Oceanics misses by $0.04, reports revs in-line (ATW) :

  • Reports Q1 (Dec) earnings of $0.15 per share, $0.04 worse than the Capital IQ Consensus of $0.19; revenues fell 48.8% year/year to $157.56 mln vs the $156.61 mln Capital IQ Consensus.
  • During the quarter ended December 31, 2016, the Company did not recognize any impairment.

2:59 pm Pulmatrix prices 950k common stock offering at $3.50/share –shares halted– (PULM) :  

2:55 pm MYOS RENS Tech. commences $2.125 common stock offering; to sell 500k shares at $4.25/share (MYOS) : Co intends to use the net proceeds for general corporate purposes.

1:24 pm MiMedx Group comments on the FDA’s recently published 2017 calendar year guidance agenda (MDXG) :

The tissue-related Guidances to be finalized in calendar year 2017 do not include Guidances on Human Cells, Tissues, and Cellular and Tissue Based Products (HCT/Ps), including minimal manipulation and homologous use of HCT/Ps.

  • Co states, “There was a tremendous amount of data and scientific evidence presented to the FDA at last year’s hearings on HCT/Ps. The absence of any planned finalized Guidances on the key HCT/P guidance related documents is encouraging. Their absence on this year’s calendar gives us confidence that, when eventually finalized, these Guidances will have taken into consideration the valuable input of industry, academia, practitioners, patients, and the scientific community.”

1:06 pm Lockheed Martin confirms DoD agreement for 90 F-35 aircraft; agreement represents $728 mln in savings and a nearly 8% reduction in price over our last contract (LMT) :

  • “We’re pleased to have reached an agreement with the U.S. Department of Defense for the next 90 F-35 aircraft. The agreement represents $728 million in savings and a nearly 8 percent reduction in price over our last contract for the air vehicle delivered by Lockheed Martin and our industry partners. The increase in the number of aircraft in this agreement enables us to reduce costs by taking advantage of economies of scale and production efficiencies”

12:59 pm Midday Market Summary: Averages Hold Early Gains at Midday (:WRAPX) :

The market has forged solid gains in the first half of Friday’s session on the foundation of appeasing economic data and strong sector leadership. The S&P 500 holds a 0.7% gain at midday.

The Employment Situation Report, which was released at 8:30 am ET this morning, came in just right; strong enough to keep participants thinking good things about the economy, but not strong enough to convince the market that the Fed is now going to be in a hurry to raise the fed funds rate. The 227,000 additions to nonfarm paryrolls (Briefing.com consensus 170,000) and the slight 0.1% uptick in average hourly earnings (Briefing.com consensus +0.3%) were the two main metrics driving the optimistic sentiment.

U.S. Treasuries ticked up immediately following report’s release and still hold those gains this afternoon. The benchmark 10-yr yield is three basis points lower at 2.45%.

The financial sector (+1.9%) continues to provide solid sector leadership. The space’s advance has stemmed from reports suggesting that President Trump will be acting on plans to reduce regulatory burdens on the financial sector today. Specifically, the movement will be aimed at scaling back the Dodd-Frank Act and reversing the Fiduciary Rule. This combination should improve the earnings prospects of the influential sector.

Conversely, the consumer discretionary sector sits at the bottom of today’s leaderboard in the wake of a tough stretch of reports. The first blow came yesterday evening after Amazon (AMZN 814.46, -25.56), the sector’s biggest component by market cap, reported worse than expected revenues and issued downbeat guidance. Elsewhere in the sector, Hanesbrands (HBI 19.30, -3.41), Chipotle (CMG 406.28, -17.01), and AutoNation (AN 50.77, -0.99) have also seen negative reactions to their latest earnings reports, while Macy’s (M 32.50, +1.81) has spiked 5.9% on reports that Canada’s Hudson’s Bay has approached the company about a possible takeover.

The top-weighted technology sector has performed in line with the broader market thus far. Visa (V 86.34, +4.07) represented the sector on the earnings front last night, beating on the top and bottom lines. The company’s shares have added 4.9% on the above-consensus results. The tech sector is fighting to end the week above its flat line, as the space currently holds a 0.1% week-to-date loss.

Today’s economic data included January Employment Situation Report, January ISM Services, and December Factory Orders:

  • January Employment Situation Report
    • January nonfarm payrolls came in at 227,000 while the Briefing.com consensus expected a reading of 170,000. The prior month’s reading was revised to 157,000 from 156,000. Nonfarm private payrolls added 237,000 while the Briefing.com consensus expected an increase of 175,000. The unemployment rate increased to 4.8% (Briefing.com consensus 4.7%).
    • Average hourly earnings increased 0.1% (Briefing.com consensus +0.3%), while the previous month’s reading was revised to 0.2% (from 0.4%). The average workweek was reported at 34.4 while the Briefing.com consensus expected a reading of 34.3. The previous month’s reading was revised to 34.4 (from 34.3).
    • The key takeaway is that this is one of those so-called “Goldilocks” reports since it is strong enough to keep participants thinking good things about the economy, but not strong enough to convince the market to think it means the Fed is now going to be in a hurry to raise the fed funds rate. The tempered growth in average hourly earnings, which dialed back year-over-year growth to 2.5% from 2.8% in December, is the focal point as it relates to the market’s perspective on the Fed.
  • The ISM Services Index for January decreased to 56.5 while the Briefing.com consensus expected a downtick to 57.0. The prior month’s reading was revised down to 56.6 from 57.2.
    • The key takeaway from the report is that growth in the services sector, which accounts for a much bigger slice of economic activity than the manufacturing sector does, persisted for the 85th straight month.
  • The Factory Orders Report for December showed an increase of 1.3% while the Briefing.com consensus expected a increase of 1.4%. The November reading was revised up to -2.3% from -2.4%.
    • The key takeaway from the report is that the December increase was led entirely by orders for nondurable goods (+3.1%). Paced by a 2.5% decline in transportation equipment orders, durable goods orders fell 0.5% in December.

12:55 pm Earnings Calendar for the week of February 6 (:SUMRX) :

  • Friday (February 3)
    • After-Hours: ATW       
  • Monday (February 6)
    • Pre-Market: SYY, TSN, NWL, CNA, HAS, MCY, DO, BWP, FGL, HAE, AINV, NAT, SALT, AMSC, IRMD, L
    • After-Hours: FOXA, TSO, JLL, NOV, RE, YRCW, FMC, RBC, CTLT, ALSN, PINC, MOD, FN, TLLP, HMN, MAC, KN, PAHC, OTTR, etc…
  • Tuesday (February 7)
    • Pre-Market: BP, GM, CAH, ADM, CNC, ARW, PAG, OMC, ACM, ARMK, WCG, CDW, EMR, FIS, TEN, AGCO, MOS, ABG, KORS, SPGI, ICE, GPK, AME, VMC, etc…
    • After-Hours: DIS, GILD, MDLZ, GNW, ORLY, AIZ, FTV, CSRA, PXD, CNO, SCSC, MCHP, ATO, PNRA, TTWO, AKAM, BWLD, EEFT, NUAN, HCSG, WAIR, NTGR, JKHY, KFRC, COHR, LITE, etc…
  • Wednesday (February 8)
    • Pre-Market: HUM, SNY, ABB, EXC, TWX, PFGC, AGN, CTSH, JEC, VOYA, ALK, OC, AXTA, BR, BCO, ARCB, CG, LPX, FLOW, GWR, etc…
    • After-Hours: PRU, SU, WFM, CTL, YUM, PPC, NSIT, FISV, CINF, CAA, GPRE, LGF.A, BGC, EFX, KS, UHAL, AHL, TBI, WGL, TTMI, BHE, ENS, HNI, TRMB, AEL, DNB, FLT, etc… 
  • Thursday (February 9)
    • Pre-Market: CVS, MFC, KO, BAM, CMI, TU, VIAB, TRI, OXY, DTE, COTY, BWA, WLTW, SEE, MAS, THS, NLSN, FAF, DAN, UFS, SON, ROP, GCI, TWTR, VSTO, CLF, BGCP, WOOF, TKR, TDC, etc…
    • After-Hours: ATVI, AGU, MHK, NWSA, NVDA, EXPE, NCR, WU, CERN, LPLA, CCJ, RGC, COLM, KMPR, ATR, ZAYO, BFAM, NE, P, CATM, VRSN, NUVA, VVI, JCOM, UBNT, YELP, ZNGA, etc…
  • Friday (February 10)
    • Pre-Market: CBG, AON, IPG, CPN, AXL, VTR, BPL, G, FSV, ESNT
    • After-Hours: KNL

12:16 pm Areva SA approve terms of capital increases of AREVA SA and NewCo (ARVCF) :

  • The capital increase of 3 billion euros of NewCo has been authorized by the General Meeting of NewCo, also held today.
  • The State will subscribe to the reserved capital increases of AREVA SA and of NewCo in the amounts of 2 billion euros and of a maximum of 2.5 billion euros respectively, once the two preconditions laid down in the European Commission’s decision have been fulfilled.

11:55 am European Markets Closing Prices (:SUMRX) : European markets are now closed; stock markets across Europe performed as follows:

  • UK’s FTSE:+0.7%
  • Germany’s DAX:+0.2%
  • France’s CAC:+0.7%
  • Spain’s IBEX:+0.7%
  • Portugal’s PSI:+2.8%
  • Italy’s MIB Index:+1.2%
  • Irish Ovrl Index:+0.6%
  • Greece ASE General Index: +0.9%

11:49 am Currency Commentary: DXY Struggles to Hold 100 Post-Jobs (:SUMRX) :

  • The Dollar Index rallied in early trade, running as high as 100.26 following the release of the latest jobs numbers. But we would see it reverse course back below 100 as markets started to digest the miss on Hourly Earnings. The market saw a slew of inflation misses this week with PCE, Employment Cost, and Unit Labor also missing and the FOMC providing a relatively dovish statement compared to expectations. This has led to some weakness in the greenback which was already in a downward trend following some verbal jaw boning by the Trump Administration. BUt of note, Chicago Fed President Charles Evans, who is viewed as one of the most dovish members of the Fed, was the first member of the committee to speak and provided a surprisingly hawkish (for him) round of comments as he sees two rate hikes in 2017 and is comfortable with a third. 
  • The euro was able to rally back to the 1.08 level on the dollar weakness. Markets continue to watch the trend line in the euro as it slowly climbs back from its recent multi-year lows. The 100-sma (1.0788) is showing some signs of holding resistance. 
  • The pound saw a quick 60 pip drop in reaction to a miss in its Services PMI survey. Sterling was able to stabilize in the 1.2450-1.25 area. Sterling is seeing a potential downward swing after failing to break above 1.27.
  • The yen continues to hold in the 112-113 area. Overnight market participants were surprised to see yields in the 10-year bond move to 0.15% which suggested the central bank was not in buying. Markets will continue to watch these developments closely as it moves further away from the targfeted zero bound.
  • China was back open for business and saw its offshore (:CNH) yuan move to the high end of its recent range, touching 6.7929, a two week high. The mainland rate held steady at 6.83 (BONDX, FOREX). 

11:33 am Notable movers of interest: DATA +16.6% on Q4 EPS and revenue beats, guidance (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

  • V (86.75 +5.41%): Reports Q1 earnings and revenues beat; reaffirms outlook while increasing FX headwind.
  • CLX (125.66 +4.51%): Shares rise on Q2 EPS beat.
  • AMGN (166.61 +4.41%): Reports Q4 EPS and revenue beats; reports positive Repatha data.

Large Cap Losers

  • CMG (410.59 -3%): Shares drop despite Q4 EPS beat; reaffirms outlook.
  • MMP (78.8 -1.52%): Shares fall despite Q4 EPS and revenue beats; co guides FY17 EPS below consensus.
  • TWTR (17.62 -0.9%): Shares drop after rising yesterday on report form Fox’s Gasparino that his banking sources think Twitter will be sold this year, but at a lower level.

Mid Cap Gainers

  • DATA (56.23 +16.64%): Beats on Q4 EPS and revenue; guides Q1 and FY17 revenues above consensus. 
  • MDCO (44.31 +16.61%): Trades higher following Amgen (AMGN) positive Repatha data from last night.
  • FTNT (37.57 +13.23%): Shares rise on Q4 EPS and revenue beats; guides FY17 EPS above consensus.

Mid Cap Losers

  • FEYE (10.88 -16.11%): Reports Q4 revenue miss; guides Q1 EPS and revs below consensus; CFO resigns.
  • HBI (19.41 -14.53%): Shares fall on Q4 EPS and revenue misses; guides Q1 EPS and revenue below consensus.
  • ATHN (113.42 -10.44%): Reports Q4 revenue miss.

11:10 am MacQuarie Infrastructure expects that Free Cash Flow per share will increase by an average of between 10% and 15%, per year for 2017 and 2018, consistent with the previous outlook (MIC) :

  • Additionally, the co notes Senior MIC personnel added an aggregate 23,500 shares to their personal shareholdings this week.
    • Five individuals including Hooke and Chairman Martin Stanley acquired shares of MIC at Monday’s volume-weighted average price of $74.15 in purchases from the Company’s Manager.

11:07 am FibroGen announces results from its Phase 1/2 study of pamrevlumab in pancreatic cancer were published in the Journal of Cancer Clinical Trials; ‘results support a dose-related increase in survival in advanced pancreatic cancer’ (FGEN) :

In the 028 trial, the safety and efficacy of increasing doses of pamrevlumab were evaluated in combination with two chemotherapy agents, gemcitabine and erlotinib, in 75 patients with previously untreated Stage III or Stage IV pancreatic ductal adenocarcinoma.

  • Pamrevlumab was well tolerated with no dose-limiting toxicity observed and no dose-related trends observed in type or incidence of serious adverse events.
  • Plasma CTGF showed potential as a prognostic biomarker, as low baseline CTGF levels (

11:03 am Beasley Broadcast to sell radio stations in the Greenville-New Bern-Jacksonville, North Carolina market, for $11 million in cash to Curtis Media Group (BBGI) :

Co intends to use proceeds from the divestiture to reduce debt. CMG Coastal Carolina, which is affiliated with Curtis Media Group, intends to spin-off WNCT-FM to Inner Banks Media, LLC.

  • The sale of the six Greenville-New Bern-Jacksonville stations, expected to be completed in 2Q17, is subject to FCC approval and other customary closing conditions.

11:02 am Daiichi Sankyo and Charleston Laboratories confirm that the FDA has issued a Complete Response Letter regarding the NDA for CL-108; letter stated that the NDA in its present form was not approved and provided guidance on information needed to resolve matters identified (DSNKY) : Charleston Laboratories, Inc. and Daiichi Sankyo, Inc. intend to work closely with the FDA to address the points raised in this action.

10:56 am Meridian Bioscience launches TruQuick rapid tests for the diagnosis of tropical, infectious, sexually transmitted, respiratory, gastrointestinal, cancer, and cardiac diseases in Asia Pacific (VIVO) :  

10:40 am Goldman Sachs edges higher this morning towards last week’s high of 240.79 (GS) :  

10:12 am Other retailers catching a bid on headline that Hudson’s Bay could be interested in possible Macy’s (M) acquisition (XRT) :

  • M spiked 5% on the headlines; others moving higher include SHLD, KSS, JWN, ANF, GPS, TIF, JCP, BBY all moving higher.

9:55 am Fortinet (FTNT +14%) leading security stocks higher (HACK +0.6%) after strong report/guidance (FTNT) :

  • FTNT +13.77% PANW +2.75% PFPT +2.65% ZIXI +1.69% QLYS +1.38% RPD +1.14% CUDA +1.12% SYMC +1.10% SCWX +1.04% MIME +0.75% HACK +0.56% CHKP +0.28% QQQ +0.14% IMPV -0.47% VRNS -0.34%
  • FEYE -16.62% hit an all time low after another disappointing quarter.

9:46 am 22nd Century Group ‘prevails again’ in the most recent phase of the lawsuit filed by Crede (XXII) :

Crede filed the lawsuit after the Company terminated its failed China joint venture arrangement with Crede and its principal, Terren Peizer, due to non-performance and other serious breaches by Crede and its principals.

  • The SDNY Court has now transferred the above-described portion of the case to the WDNY Court.
  • The SDNY Court has also scheduled a pre-trial conference with Crede and the Company to be held on February 21, 2017 to schedule the next steps forward in the claims relating to the Tranche 1-A warrant.
  • Co states, “We are very pleased that we continue to prevail against Crede in this matter and we look forward to a successful resolution of the cases in favor of 22nd Century. If the cases continue, however, the Company intends to file substantial counterclaims against Crede, against Terren Peizer, personally, and against their affiliates.”

9:45 am Opening Market Summary: Averages Open Friday Higher (:WRAPX) :

The stock market opened Friday’s session higher with all three major averages posting gains. The S&P 500 is up 0.5%.

Financials (+1.3%) are the early leader, by a sizable margin, following reports that President Trump will be issuing an executive action to scale back the Dodd-Frank Act today. The move is expected to increase the earnings prospects for companies in the financial space.

Conversely, the consumer discretionary sector is at the bottom of the leaderboard after a negative reaction to Amazon’s (AMZN 812.99, -26.85) quarterly earnings report. The company, which is the sector’s largest component by weight, is down 3.2% in early action.

U.S. Treasuries are higher this morning following the release of the Employment Situation Report for January. The benchmark 10-yr yield is down three basis points at 2.45%.

9:29 am On The Wires (:WIRES) :

  • Freeport-McMoRan (FCX) that its subsidiary, PT Freeport Indonesia (PT-FI), continues to seek approval from Indonesian authorities for the export of its copper concentrates, consistent with its rights under its Contract of Work (COW). To date, this approval has not been granted.  Richard C. Adkerson, FCX President and Chief Executive Officer, and Chappy Hakim, PT-FI President Director, said: “We have been actively engaged with Indonesian governmental authorities to enable full operations at PT-FI to continue without disruption. This would be in the best interests of all stakeholders, including the Government of Indonesia, our large work force, the local community, local suppliers and Freeport’s shareholders. We are disappointed that this matter remains unresolved and are concerned about the negative impacts for all stakeholders, especially for our workforce and the local economy. We encourage the Government to enable our full operations to continue without disruption and to provide the required assurances to support our long-term investment programs so these negative impacts can be avoided.”
  • The Board of Directors of Intesa Sanpaolo (ISNPY) passed a resolution authorising the sale of a stake representing a total of around 4.88% of the Bank of Italy’s share capital. The stake will be sold at its nominal value, which is equal to its carrying value, for an amount of around 366 million.
  • Energy XXI Gulf Coast (EGXG) announced that Michael S. Reddin has been appointed interim Chief Executive Officer and President, effective immediately. This follows the decision by John D. Schiller to depart from his roles as Director, CEO and President of EGC. Mr. Schiller has agreed to serve as an advisor to the Board during the transition. Further, EGC’s Chief Financial Officer Bruce Busmire will be departing to pursue other interests. Chief Accounting Officer Hugh Menown will become the interim CFO.

9:13 am S&P futures vs fair value: +7.50. Nasdaq futures vs fair value: +1.10. (:WRAPX) :

The stock market is poised for a higher open as the S&P 500 futures trade eight points (0.4%) above fair value.

The Employment Situation Report for January was released this morning and it was mixed as nonfarm payrolls beat consensus estimates, but average hourly earnings fell short of expectations.

Nonfarm payrolls came in at 227,000 while the Briefing.com consensus expected a reading of 170,000. The prior month’s reading was revised to 157,000 from 156,000. Nonfarm private payrolls added 237,000 while the Briefing.com consensus expected an increase of 175,000. The unemployment rate increased to 4.8% (Briefing.com consensus 4.7%).

Additionally, average hourly earnings increased 0.1% (Briefing.com consensus +0.3%), while the previous month’s reading was revised to 0.2% (from 0.4%). The average workweek was reported at 34.4 while the Briefing.com consensus expected a reading of 34.3. The previous month’s reading was revised to 34.4 (from 34.3).

U.S. Treasuries have ticked up following the jobs report, while the U.S. Dollar Index (99.71, -0.12) has slipped 0.1%. The benchmark 10-yr yield is down four basis points at 2.43%.

On the earnings front, Amazon (AMZN 806.20, -33.75) has headlined this morning’s earnings activity after the company reported worse than expected earnings per share results and issued disappointing guidance after yesterday’s close. Shares of AMZN have retreated 3.8% in pre-market trade.

Conversely, banks are ticking up this morning after The Wall Street Journal reported that President Trump plans to sign an executive order to scale back the Dodd-Frank Act today. The action is part of a broader plan to reduce some of the regulations put in place following the financial crisis. JPMorgan Chase (JPM 86.23, +1.64), Wells Fargo (WFC 56.75, +1.00), and Bank of America (BAC 23.18, +0.46) are all up between 1.8% and 2.0%.

Friday’s economic data will also include December Factory Orders (Briefing.com consensus 1.4%) and ISM Services (Briefing.com consensus 57.0). Both reports will be released at 10:00 am ET.

9:01 am Interpace Diagnostics prices 1,200,000 share offering at $3.00/share (IDXG) : Interpace intends to use the net proceeds of the offering for working capital, repayment of indebtedness and other liabilities, and general corporate purposes.

9:01 am Dollar General intends to create approximately 10,000 new jobs in 2017 as the result of 1,000 planned new store openings and two new state-of-the-art distribution centers (DG) :  

9:00 am On The Wires (:WIRES) :

  • Amyris (AMRS) provides an update on certain aspects of its business and financial results for 2016. “We are pleased to have achieved a record year of revenue growth, and of having completed all of the 2016 strategic milestones we set out to, and we continue to make good progress on our debt structure by having resolved our near-term debt maturity issues in pushing out approximately $44 million in debt as announced just before year end,” said John Melo, Amyris President & CEO. “Also, we are meeting our expectations in securing collaborations that will result in future product sales and this is accelerating our growth rate.”
  • The Carlyle Group (CG) has acquired a minority interest in FS, a provider of value-added services, mobile applications and content in Brazil and Latin America. The funds for the investment came from the Carlyle South America Buyout Fund and the Carlyle Peru Fund. Terms of the transaction, which was completed on December 29, 2016, were not disclosed.
  • Ecopetrol S.A. (EC) hereby reports that representatives of the minority shareholders with the largest holdings of the Company’s shares have submitted a “Shareholders’ Agreement”, subscribed by five pension and retirement funds, in which such minority shareholders have nominated Mr. CARLOS GUSTAVO CANO SANZ as an independent member of the Board of Directors of the Company. Pursuant to the Majority Shareholder’s Declaration, the nomination of Mr. CANO as an independent member of the Board of Directors and selected by the minority shareholders is to be included as the ninth item in the program that will be submitted for consideration at the Extraordinary Shareholders’ Meeting. 

8:55 am Standex International beats by $0.05, misses on revs; provides outlook (SXI) :

  • Standex reports Q4 diluted adj EPS from continuing operations of $1.01 vs. the $0.96 Capital IQ Consensus; revs were $173.9 mln, vs the $175.75 mln Capital IQ Consensus.
    • Organic sales decreased 4.9%, acquisitions contributed positive 4.1%, and the U.S. Roll, Plate and Machinery divestiture had a negative effect of 2.7% y/y.
    • “Second-quarter organic sales were primarily affected by soft refrigeration end market conditions as expected, as well as customer project push-outs in Engineering Technologies and Engraving,” said President and Chief Executive Officer David Dunbar. “At the same time, our continued focus on operational excellence mitigated the effect on our bottom line performance. GAAP operating profit declined by 120 basis points on the sales decline, and non-GAAP operating profit was essentially flat. In our Electronics business, we announced yesterday our intention to acquire OKI Sensor Device Corporation, a world-renowned Japanese manufacturer of reed switches. The acquisition expands our global reach in our Electronics business, and increases our ability to capitalize on new sensor opportunities in Asia.”
  • Outlook:
    • “We believe that we are now at the trough in Refrigeration and expect sales in the second half of the fiscal year to increase,” said Dunbar. “We also anticipate renewed growth at Engraving in the third and fourth quarters as a result of North American automotive program launches and growth in Europe and Asia. We will continue to capitalize on aviation opportunities in Engineering Technologies and focus on growth laneways in Hydraulics. In Electronics, we are focused on completing the new OKI Sensor Device acquisition. As we look to the future, our balance sheet is well positioned to fund growth, CAPEX and acquisitions as we continue to deploy the Standex Value Creation System.”

8:50 am S&P futures vs fair value: +8.30. Nasdaq futures vs fair value: +3.60. (:WRAPX) :

The S&P 500 futures trade eight points above fair value.

Equity indices in the Asia-Pacific region ended the week on a mixed note. The overnight session was fairly quiet, but the yen slumped to 113.15 against the dollar after the Bank of Japan intervened in the bond market to keep the 10-yr Japanese Government Bond yield below 0.11%. This marked the first intervention since the central bank stated its desire to keep the 10-yr yield around 0.0%. In China, the People’s Bank of China raised short-term interest rates at the conclusion of the Chinese Lunar New Year Golden Week.

  • In economic data:
    • China’s January Caixin PMI 51.0 (consensus 51.8; last 51.9)
    • Hong Kong’s January Manufacturing PMI 49.9 (last 50.3). December Retail Sales -2.9% year-over-year (last -5.5%)
    • South Korea’s December Current Account surplus expanded to KRW8.57 billion from KRW7.05 billion
    • New Zealand’s ANZ Commodity Price Index -0.1% month-over-month (last 0.7%)
    • India’s Nikkei Services PMI 48.7 (last 46.8)

—Equity Markets—

  • Japan’s Nikkei settled just above its flat line, ending the week lower by 2.8%. Apple supplier Fujikura surged 12.4% while Sony, Furukawa, Chiba Bank, Shinsei Bank, Suzuki Motor, and Komatsu climbed between 1.3% and 5.0%.
  • Hong Kong’s Hang Seng shed 0.2%, extending this week’s decline to 1.0%. Want Want China was the weakest performer, falling 1.7%. Financials were among the laggards with Bank of East Asia, BoC Hong Kong, HSBC, ICBC, and Ping An Insurance posting losses between 0.4% and 1.1%. China Life Insurance bucked the trend, climbing 1.7%.
  • China’s Shanghai Composite reopened after a week-long closure, surrendering 0.6%. Sinomach Automobile, Shanghai Material Trading, Jiangxi Copper, and Giti Tire lost between 2.9% and 3.9%.
  • India’s Sensex added 0.1%, extending its weekly gain to 4.5%. Most financials displayed strength with SBI, AXIS Bank, and HDFC Bank rising between 0.6% and 1.7% while ICICI Bank fell 1.5%.

Major European indices trade in the green with France’s CAC (+1.0%) showing relative strength. A pair of European Central Bank members, Peter Praet and Benoit Coeure, spoke about monetary policy, but neither gave much thought to the recent uptick in inflation. The euro (1.0742) and the pound (1.2490) are down 0.2% and 0.3%, respectively, against the dollar.

  • In economic data:
    • Eurozone December Retail Sales -0.3% month-over-month (expected 0.3%; last -0.6%); +1.1% year-over-year (consensus 1.8%; previous 2.5%). January Services PMI 53.7 (consensus 53.6; last 53.6)
    • Germany’s January Services PMI 53.4 (expected 53.2; last 53.2)
    • UK’s January Services PMI 54.5 (expected 55.8; previous 56.2)
    • France’s January Services PMI 54.1 (consensus 53.9; last 53.9)
    • Spain’s January Services PMI 54.2 (expected 54.8; previous 55.0)
    • Italy’s January Services PMI 52.4 (consensus 52.5; previous 52.3). January CPI +0.2% month-over-month, as expected (last 0.4%); +0.9% year-over-year, as expected (last 0.5%)

—Equity Markets—

  • Germany’s DAX is higher by 0.5%. Continental leads with a 4.2% gain while Deutsche Bank is up 1.8% after announcing plans to cut staff. Allianz and Munich Re are both up near 1.0% while Lufthansa, Daimler, and BASF lag. The three names are down between 0.1% and 0.3%.
  • UK’s FTSE has climbed 0.6% amid strength in financials. Barclays, Prudential, RBS, Lloyds Banking, RSA Insurance, and Standard Life are up between 1.2% and 3.1%. Miners trade in negative territory with Glencore, Rio Tinto, Antofagasta, and BHP Billiton down between 2.1% and 3.4%.
  • France’s CAC outperforms with a gain of 1.0%. Michelin has jumped 3.0% after announcing plans to raise European tire prices. Financials like AXA, BNP Paribas, Credit Agricole, and Societe Generale have added between 0.4% and 2.2%. ArcelorMittal lags, trading lower by 1.2%.

8:37 am FORM Holdings acquires Excalibur Integrated Systems as a bolt on to its Group Mobile subsidiary; Excalibur shareholders will receive 888,573 shares of FORM Holdings common stock (FH) :

Excalibur Integrated Systems is an end-to-end solutions provider of mobile hardware devices, wireless network security, data networking, mobile solutions application development and software solutions.

  • In 2016, Excalibur generated over $5 million in revenue. 
  • Under the terms of the agreement, Excalibur shareholders will receive 888,573shares of FORM Holdings common stock.

8:36 am Berry Plastics beats by $0.05, misses on revs; reaffirms FY17 cash flow from operations & adj free cash flow guidance (BERY) :

  • Reports Q1 (Dec) earnings of $0.50 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus of $0.45; revenues fell 6.8% year/year to $1.5 bln vs the $1.56 bln Capital IQ Consensus.
    • The net sales decrease of $110 mln from the prior year quarter is primarily attributable to a $98 mln negative impact from the extra days in the prior year quarter, an unfavorable impact from currency translation, and a decline in selling prices.
  • “Our results this quarter were driven by growth in our Health, Hygiene, and Specialties division and strong operating performance in our Engineered Materials division.”
  • FY17 guidance:
    • Co reaffirms fiscal year 2017 projected cash flow from operations of $925 mln and adj free cash flow of $550 mln.
      • Estimates include the recent acquisition of AEP completed on Jan 20, 2017, the $60 mln tax receivable payment that was made in the first fiscal quarter and assumes net capex of $315 mn.
    • Cash interest expense is forecasted to be $275 mln for FY17. Co is also assuming $80 mln of cash used for other taxes within guidance, primarily related to state and international jurisdictions, and other cash uses of $60 mln related to items such as acquisition integration expenses and costs to achieve synergies.
    • “Looking ahead, we will continue our focus on reducing our leverage ratio to a goal of below 4, on or before the end of fiscal 2017. Additionally we remain excited about our recent acquisition of AEP, which closed on Jan 20th and believe our synergy targets are very achievable. The improvements as a result of the acquisition of AEP, we believe, will not only positively impact our Engineered Materials division but will also add scale benefits to each of our three operating divisions.”

8:34 am IntercontinentalExchange reports January 2017 ADV for futures was 5.6 million contracts, -11% Y/Y, Commodities ADV -11% Y/Y vs record volume in January 2016, NYSE cash equities ADV -32% Y/Y (ICE) :  

8:33 am Nathan’s Famous EPS $0.17 vs. $0.10 last year; revenue -3% to $20 mln (no estimates) (NATH) :  

8:33 am Jobs Report Beats Estimates … S&P futures vs fair value: +2.00. Nasdaq futures vs fair value: -9.00. (:WRAPX) :

The S&P 500 futures trade two points above fair value.

Just in, January nonfarm payrolls came in at 227,000 while the Briefing.com consensus expected a reading of 170,000. The prior month’s reading was revised to 157,000 from 156,000. Nonfarm private payrolls added 237,000 while the Briefing.com consensus expected an increase of 175,000. The unemployment rate increased to 4.8% (Briefing.com consensus 4.7%).

Average hourly earnings increased 0.1% (Briefing.com consensus +0.3%), while the previous month’s reading was revised to 0.2% (from 0.4%). The average workweek was reported at 34.4 while the Briefing.com consensus expected a reading of 34.3. The previous month’s reading was revised to 34.4 (from 34.3).

8:31 am Insignia Solutions announces that in connection w/ its proposed sale of Novatel Wireless, the parties have voluntarily withdrawn and re-filed the Joint Voluntary Notice; co still expects the closing of the Sale to occur in 1Q17 (INSG) :

The Parties and the Committee have been working cooperatively to finalize the terms of a National Security Agreement.

  • However, due in part to government personnel changes resulting from the recent change of Presidential administrations, the Committee and the Parties were unable to complete and execute the NSA within the time remaining in the initial investigation period.
  • Accordingly, with CFIUS’s consent, the Parties withdrew and re-filed the JVN, which will initiate a new period of review under the regulations.
  • During the renewed period, the Company expects that the Parties and CFIUS will diligently and in good faith negotiate to finalize a definitive mitigation agreement.
  • Co still expects the closing of the Sale to occur in 1Q17, subject to the timing and successful completion of the CFIUS process and assuming satisfaction or waiver of all other applicable conditions.

8:31 am Neos Therapeutics prices 5,000,000 share offering at $5.00/share (NEOS) :  

8:30 am Gapping down (SCANX) :

Gapping down
In reaction to disappointing earnings/guidance
:

  • DECK -20.7%, FEYE -18.3%, GIMO -14.3%, GPRO -13.7%, HBI -9.7%, ELY -8.9%, ATHN -8%, ACET -5.2%, AMZN -4.3%
  • MWA -3.9%, (Increases diviend 33%, Announces up to $250 mln share repurchase (Included prior repurchase); Names J. Scott Hall CEO)
  • GFI -2.8%, PMT -2.5%, VR -1.9%, HIG -1.7%, AN -1.7%, RTEC -1.5%, WY -1.4%, BRS -0.9%, PSX -0.7%, WETF -0.5%

Select metals/mining stocks trading lower:

  • VALE -4%, RIO -3.6%, BBL -3.4%, BHP -3%, CLF -2.2%, X -1.8%, MT -1.7%, FCX -1.5%, AKS -1.5%, AG -1.4%, SLW -1.4%, GOLD -1.2%, PAAS -1%, ABX -1%

Other news:

  • IDXG -21.3% (commences common stock offering)
  • XGTI -12.7% (intends to offer for sale shares of its common stock and warrants to purchase its common stock in an underwritten public offering; size not disclosed), NEOS -10.3% (provides corporate update in conjunction with today’s common stock offering; co sees Q4 revs just short of estimates; commences common stock offering; size not disclosed)
  • RUBI -6.3% (indicated lower following block trade pricing)
  • SBGL -4.2% (reports H1 gold production in-line with LY; also expressed its intention to raise a between a minimum of $750 mln and $1 bln dollars in the equity capital markets)
  • HTBX -4.1% (files prospectus supplement pursuant to which it may sell shares of its common stock having an aggregate offering price of up to $17.5 mln)
  • AMBA -2.6% (following GPRO earnings)
  • VOD -1% (continued weakness following yday’s earnings)

Analyst comments:

  • CLVS -6.1% (downgraded to Sell at Chardan Capital Markets)
  • ARRY -2% (downgraded to Neutral from Overweight at JP Morgan)
  • LULU -1.5% (downgraded to Sector Weight from Overweight at KeyBanc Capital Mkts)
  • RL -1% (downgraded to Neutral from Buy at UBS)
  • PRXL -0.8% (downgraded to Neutral from Buy at Citigroup; downgraded to Sell from Hold at Deutsche Bank)

8:28 am On The Wires (:WIRES) :

  • Iron Compass issued a statement saying that, as a meaningful stockholder of Simpson Manufacturing (SSD), it remains highly concerned about the actions taken by the Board of Directors of the Company over the last six months and its reactive tactics in response to our efforts to improve corporate governance.
  • Inspired Entertainment (INSE) expects to begin to deploy its Virtual Sports products in Greece, following OPAP’s reiteration of an agreement first announced in September 2016. Inspired will work as a technology supplier, deploying its Virtual Sports products both online and across OPAP’s extensive retail network. The rollout, currently expected to commence in the 1H17, will initially focus on Virtual Football (soccer), with other sports planned to follow.
  • PriceSmart (PSMT) announced that on February 1, 2017, it acquired approximately 242,000 square feet (22,500 square meters) of land in Santa Ana, Costa Rica upon which the Company plans to construct a new warehouse club. This new warehouse club is currently planned to open in the fall of 2017.
  • Bluebird bio (BLUE) announced treatment of the first patient under the amended study protocol in HGB-206, the company’s Phase 1 study of its LentiGlobin Drug Product in patients with severe sickle cell disease. This study now incorporates several changes to the study protocol with the goal of increasing production of therapeutic anti-sickling hemoglobin.
  • DigitalGlobe (DGI) announced that the WorldView-4 satellite successfully completed in-orbit testing and calibration and began serving its first direct access customer on Feb. 1. Additional direct access customers will be added to WorldView-4 service throughout 2017.

8:23 am Gapping up (SCANX) :

Gapping up
In reaction to strong earnings/guidance
:

  • PXLW +19.4%, DATA +15.1%, FTNT +13%, PCTY +8.5%, BPY +7.7%, PFSI +5.6%, AVIR +5%, ESL +4.6%, IXYS +4.2%, V +3.9%, CY +3.6%, CLX +2.9%
  • HMC +2.9%, CENT +2.7%, AMGN +2.5%, AIV +1.7%, ESS +1.6%, XPLR +1.2%, THG +1.2%

M&A news:

  • CERU +13.9% (likely on continued M&A sepculation (strategic alternatives announced Feb 1))

Select financial names showing strength amid headlines that President Trump will begin acting today on plans to reduce regulatory burdens on the financial sector, with the review review Dodd-Frank and reversal of the Fiduciary Rule:

  • BCS +2.5%, BAC +1.7%, GS +1.6%, C +1.4%, CS +0.7%, ING +0.7%

Other news:

  • MDCO +10.5% (following Amgen’s Repatha update and earnings)
  • IPCI +10.4% (announces FDA acceptance for filing of NDA for Rexista (oxycodone hydrochloride extended release), an abuse deterrent opioid analgesic for the treatment of moderate to severe pain)
  • ESPR +10% (following Amgen’s Repatha update and earnings)
  • SDRL +6.1% (modestly rebounding following recent weakness)
  • AMGN +2.5% (announces Repatha significantly Reduced the risk of cardiovascular events in FOURIER Outcomes Study — Landmark Repatha Cardiovascular Outcomes Study meets primary and key secondary endpoint)
  • PANW +1.7% (in sympathy with FTNT earnings
  • MA +1.3% (in sympathy with V earnings)
  • REGN +1% (following Amgen’s Repatha update and earnings)

Analyst comments:

  • RIG +1.3% (upgraded to Outperform from Neutral at Credit Suisse )
  • AMTD +1.3% (upgraded to Outperform from Neutral at Credit Suisse)
  • F +0.9% (upgraded to Overweight from Equal Weight at Barclays )
  • FCAU +0.7% (upgraded to Equal Weight at Barclays)

8:10 am Pfizer commences $5 bln accelerated share repurchase (PFE) : This agreement is part of Pfizer’s existing share repurchase authorization. The share repurchase is assumed in co’s 2017 financial guidance issued on Jan 31, 2017.

8:10 am Leap Therapeutics will present data from its clinical trial of DKN-01 combination therapy in patients with biliary tract cancers at the Cholangiocarcinoma Foundation 2017 Annual Meeting (LPTX) :

Data from the study showed that Leap’s DKN-01 monoclonal antibody, an inhibitor of Dickkopf-1 (DKK1), in combination with gemcitabine and cisplatin resulted in statistically significant changes in inflammatory and anti-angiogenic biomarkers consistent with the anticipated mechanism of action of DKK1 inhibition.

  • In the study to date, at the selected 300mg DKN-01 dose level, 7 of 21 evaluable patients (33%) experienced a partial response and 20 patients experienced a partial response or stable disease, representing a disease control rate of 95%.
  • The study has recently been expanded to enroll an additional 20 patients to confirm the activity of the combination.

8:03 am Nxstage Medical appoints Allan Collins, M.D., FACP, as Chief Medical Officer (NXTM) :

  • Dr. Collins is a Professor of Medicine at the University of Minnesota.
    • He is the Director of the Chronic Research Disease Group.

8:02 am Mountain Province Diamonds appoints Perry Ing to CFO effective February 6 (MPVD) : Mr. Ing’s previous positions include Chief Financial Officer of Kirkland Lake Gold (2015 – 2016), Chief Financial Officer of McEwen Mining (2008 – 2015), Consultant to Barrick Gold (2005 – 2008) and Corporate Controller of Goldcorp (2003 – 2005).

8:02 am NMI Hldgs CFO Glenn Farrell to retire on July 31, 2017; Adam Pollitzer has been named to succeed Farrell as its next CFO effective May 2, 2017 (NMIH) :

  • As of May 2, 2017, Farrell will step down as chief financial officer but will remain executive vice president and chief accounting officer until his retirement.
  • Adam Pollitzer was most recently a managing director in J.P. Morgan’s Corporate and Investment Banking division

8:02 am Natera appoints Mike Brophy as CFO effective February 1 (NTRA) :

  • Brophy replaces Herman Rosenman, who joined the Company’s board of directors effective February 1, 2017
  • Brophy has served as Natera’s senior vice president of Finance and Investor Relations since September 2016, and served as the Company’s vice president of Corporate Development and Investor Relations since September 2015.

8:02 am Gencor Industries reports Q1 EPS of $0.10 vs. $0.11 in prior year; revs rose $19% YoY to $15.8 mln – no estimates (GENC) :

  • The Company’s backlog was $40.8 million at December 31, 2016 compared to $31.2 million at December 31, 2015.
  • “Gencor began fiscal 2017 with the largest backlog of asphalt plants and components in the company’s history. Many of our clients placed orders earlier in anticipation of 2017 construction work which has resulted in an increase in demand for our products. Federal funds from the FAST ACT are being dispersed to state departments of transportation and should result in an increase in bidding activity for our domestic customers.”

8:01 am Pernix Therapeutics provides update on arbitration with GlaxoSmithKline (GSK); the arbitration tribunal issued opinions in favor of GSK, awarding it damages and fees in the amount of approximately $35 mln (shares halted) (PTX) :

The co provided an update on the Company’s arbitration with GlaxoSmithKline (GSK). Pernix and GSK had been in arbitration regarding claims related to the Treximet asset purchase agreement and supply agreement.

  • On January 31, 2017, the arbitration tribunal issued opinions in favor of GSK, awarding it damages and fees in the amount of approximately $35 million, plus interest (estimated to be approximately $2 to $5 million). The tribunal also denied Pernix’s claim that GSK breached its obligations under the supply agreement.
  • Pernix has already paid to GSK, or into an escrow account, an aggregate of $16.5 million, which will offset the total award. Pernix is reviewing the opinions, including the amount of interest, and intends to work with GSK to conclude the matter.
  • As of February 1, 2017, Pernix’s unaudited cash balance was approximately $26 million, after making the scheduled payment of interest and principal in respect of its Treximet secured notes on such date.

8:01 am Portola Pharma signs $150 mln royalty agreement with HealthCare Royalty Partners (PTLA) :

Under the terms of the agreement, Portola received $50 million at closing and may receive an additional $100 million upon U.S. Food and Drug Administration (:FDA) approval of AndexXa (andexanet alfa) in exchange for a tiered, mid-single-digit royalty based on worldwide sales of the agent. The agreement is subject to a maximum total royalty payment of 195 percent of the $150 million funded by HCR, at which time the agreement would expire.

  • Portola will use the proceeds for continued clinical and regulatory activities and for planned development and commercialization of andexanet alfa, an FDA-designated Breakthrough Therapy. Andexanet alfa is in development as a potential antidote for Factor Xa inhibitors. Portola received a Complete Response Letter from the FDA regarding its Biologics License Application for andexanet alfa in August 2016, and expects to resubmit the application in the first half of 2017. In the EU, the European Medicines Agency is reviewing the Marketing Authorization Application for andexanet alfa.

8:00 am S&P futures vs fair value: +1.80. Nasdaq futures vs fair value: -8.60. (:WRAPX) :

Equity futures are modestly higher this morning as investors eye the release of the January Employment Situation Report (Briefing.com consensus 170k), which will cross the wires at 8:30 am ET. The S&P 500 futures trade two points above fair value. 

Banks are up in pre-market trade after a Wall Street Journal report that President Trump plans to sign an executive action to scale back the Dodd-Frank Act today. The action is part of a broader plan to dismantle much of the regulatory system put in place following the financial crisis.

U.S. Treasuries are currently under modest pressure after finishing yesterday’s session flat. The benchmark 10-yr yield is one basis point higher at 2.48%. 

Crude oil holds a slim gain this morning, up 0.3% at $53.68/bbl. The energy component’s uptick may be attributed to, at least in part, the possibility of new sanctions on Iran after the country’s latest missile test launch.

In addition to the Employment Situation Report for January, Friday’s economic data will include December Factory Orders (Briefing.com consensus 1.4%) and ISM Services (Briefing.com consensus 57.0). Both reports will be released at 10:00 am ET.

In U.S. corporate news:

  • Amazon (AMZN 809.00, -30.95): -3.7% after missing revenue estimates and issuing disappointing guidance.
  • Visa (V 85.25, +2.95): +3.6% after beating top and bottom line estimates.
  • Amgen (AMGN 163.20, +3.62): +2.3% after reporting better than expected earnings and revenue.
  • Chipotle Mexican Grill (CMG 424.00, +0.70): +0.2% after beating earnings estimates and reporting in-line revenues.
  • Hanesbrands (HBI 20.40, -2.31): -10.2% after missing top and bottom line estimates and issuing below-consensus guidance. 
  • GoPro (GPRO 9.54, -1.43): -13.0% after reporting worse than expected revenues and providing disappointing guidance.

Reviewing overnight developments: 

  • Equity indices in the Asia-Pacific region ended the week on a mixed note. Japan’s Nikkei unch, Hong Kong’s Hang Seng -0.2%, China’s Shanghai Composite -0.6%, India’s Sensex +0.1%.
    • In economic data:
      • China’s January Caixin PMI 51.0 (consensus 51.8; last 51.9)
      • Hong Kong’s January Manufacturing PMI 49.9 (last 50.3). December Retail Sales -2.9% year-over-year (last -5.5%)
      • South Korea’s December Current Account surplus expanded to KRW8.57 billion from KRW7.05 billion
      • New Zealand’s ANZ Commodity Price Index -0.1% month-over-month (last 0.7%)
      • India’s Nikkei Services PMI 48.7 (last 46.8)
    • In news:
      • The yen slumped to 113.15 against the dollar after the Bank of Japan intervened in the bond market to keep the 10-yr Japanese Government Bond yield below 0.11%. This marked the first intervention since the central bank stated its desire to keep the 10-yr yield around 0.0%.
      • In China, the People’s Bank of China raised short-term interest rates at the conclusion of the Chinese Lunar New Year Golden Week.
  • Major European indices trade in the green with France’s CAC showing relative strength. Germany’s DAX +0.3%, UK’s FTSE +0.4%, France’s CAC +0.9%.
    • In economic data:
      • Eurozone December Retail Sales -0.3% month-over-month (expected 0.3%; last -0.6%); +1.1% year-over-year (consensus 1.8%; previous 2.5%). January Services PMI 53.7 (consensus 53.6; last 53.6)
      • Germany’s January Services PMI 53.4 (expected 53.2; last 53.2)
      • UK’s January Services PMI 54.5 (expected 55.8; previous 56.2)
      • France’s January Services PMI 54.1 (consensus 53.9; last 53.9)
      • Spain’s January Services PMI 54.2 (expected 54.8; previous 55.0)
      • Italy’s January Services PMI 52.4 (consensus 52.5; previous 52.3). January CPI +0.2% month-over-month, as expected (last 0.4%); +0.9% year-over-year, as expected (last 0.5%)
    • In news:
      • A pair of European Central Bank members, Peter Praet and Benoit Coeure, spoke about monetary policy, but neither gave much thought to the recent uptick in inflation.

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

  • Wells Fargo & Company (WFC) announced it had entered into an agreement with Intuit (INTU), which allows Wells Fargo customers who use financial management tools such as QuickBooks Online, Mint, and TurboTax Online to use an innovative application-programming interface when importing their bank account information.
  • Qualcomm Incorporated (QCOM) and TDK Corporation announced the completion of the previously announced joint venture under the name RF360 Holdings Singapore PTE. Ltd.. The joint venture will enable Qualcomm’s RFFE Business Unit to deliver RF front-end (:RFFE) modules and RF filters into fully integrated systems for mobile devices and fast-growing business segments, such as Internet of Things, automotive applications, connected computing, and more. The business being transferred constitutes a part of the TDK SAW Business Group activities.

7:47 am Allergan’s Board is proceeding with its previously announced cash dividend of $0.70/share in 1Q17; expects to increase its dividend ‘on an annual basis over time’ (AGN) :  

7:33 am Madison Square Garden beats by $0.43, reports revs in-line (MSG) :

  • Reports Q2 (Dec) earnings of $2.39 per share, $0.43 better than the Capital IQ Consensus of $1.96; revenues rose 8.4% year/year to $445.2 mln vs the $441.01 mln Capital IQ Consensus. Adj. operating cinome +17% to $96 mln.
  • MSG Entertainment revenues of $192.5 million increased 6%; adjusted operating income of $63.7 million increased 30%.
  • MSG Sports revenues of $252.7 million increased 10%; adjusted operating income increased by $1.5 million to $47.2 million.
  • “For the fiscal 2017 second quarter, we delivered robust top-line and adjusted operating income growth – driven by broad-based strength across our Entertainment and Sports businesses. In addition to a strong quarter for our core operations, we took an important step in expanding our live offerings with our purchase of a majority interest in TAO Group, which adds a complementary world-class entertainment dining and hospitality group that generates substantial adjusted operating income, with significant growth potential.”

7:33 am Kimbell Royalty Partners (:NYSE) prices 5 mln unit IPO at $18.00, below the expected $19.00-21.00 range (KRP) :  

7:32 am Bellatrix Exploration announces an extension of the continued listing and trading of its common shares on the NYSE until its Annual Meeting of Shareholders currently planned for May 17, 2017 (BXE) :  

7:32 am Saia misses by $0.02, beats on revs; expects FY17 capex of about $200 mln (SAIA) :

  • Reports Q4 (Dec) GAAP earnings of $0.40 per share, $0.02 worse than the Capital IQ Consensus of $0.42; revenues rose 4.4% year/year to $300.2 mln vs the $295.22 mln Capital IQ Consensus.
  • LTL shipments per workday increased 2.1%, LTL tonnage per workday increased 1.4%, & LTL revenue per hundredweight increased 5.1%.
  • “We continue to see productivity improvements across the network offset some of the ongoing cost challenges in the business. On the cost side, the year-over results were impacted by a couple of trends. First of all, depreciation and amortization expense was up 17.2% in the fourth quarter, a reflection of the significant investments we are making in our fleet, real estate and information technology. The benefits of a newer fleet accrue to us in the form of lower maintenance costs, better reliability, advanced safety technology in our tractors and better fuel mileage. The other significant expense item was our claims and insurance line, which increased by more than $4 million in the fourth quarter versus the prior year. The increase was not the result of one or two major accidents, rather it reflects the general inflationary trends in the costs of settlement and litigation in the trucking industry.”
  • The co currently plans net capital expenditures in 2017 of approximately $200 million.

7:30 am On The Wires (:WIRES) :

  • Asterias Biotherapeutics (AST) announced the company is extending the expiration date of certain warrants. The decision to extend the warrants takes into consideration Asterias’ recent announcement of positive interim efficacy results from its ongoing SCiStar Phase 1/2a clinical trial that showed additional motor function improvement at 6 months and 9 months following administration of 10 million AST-OPC1 cells in patients with complete cervical spinal cord injuries (AIS-A patients). Further data will become available in the third quarter of 2017 evaluating 12-month safety and efficacy results for this AIS-A 10 million cell cohort, as well as 6-month efficacy and safety data for the currently-enrolling AIS-A 20 million cell and AIS-B 10 million cell cohorts. In addition, Asterias announced that as of December 31, 2016, the company’s cash and cash equivalents totaled $19.8 million (unaudited) and its cash, cash equivalents and available-for-sale securities totaled $35.1 million (unaudited).
  • Oxford Performance Materials announced that it has closed on an additional round of strategic investment from Hexcel Corporation (HXL). In May 2016, OPM and Hexcel announced an initial strategic investment from Hexcel of $15 million. The second round of investment from Hexcel is $10 million, for a total equity investment of $25 million to date.

7:23 am Financials showing early relative strength (XLF) :

  • Financials are also showing relative strength in early U.S. trading, with Bank of America (BAC), Citigroup (C), Wells Fargo (WFC) and JP Morgan (JPM) all up in the 1-2% range.
  • The early strength comes amid headlines that President Trump will begin acting today on plans to reduce regulatory burdens on the financial sector, with the review review Dodd-Frank and reversal of the Fiduciary Rule.
  • Trump is expected to meet with a group of executives led by Blackstone’s (BX) Steve Schwarzman and sign orders to act on these initiatives mid-day today. 

7:21 am European Markets Update: DAX +0.3%, FTSE +0.4%, CAC +0.9% (:SUMRX) :

Major European indices trade in the green with France’s CAC (+0.9%) showing relative strength. A pair of European Central Bank members, Peter Praet and Benoit Coeure, spoke about monetary policy, but neither gave much thought to the recent uptick in inflation. The euro (1.0732) and the pound (1.2489) are both down about 0.3% against the dollar.

  • In economic data:
    • Eurozone December Retail Sales -0.3% month-over-month (expected 0.3%; last -0.6%); +1.1% year-over-year (consensus 1.8%; previous 2.5%). January Services PMI 53.7 (consensus 53.6; last 53.6)
    • Germany’s January Services PMI 53.4 (expected 53.2; last 53.2)
    • UK’s January Services PMI 54.5 (expected 55.8; previous 56.2)
    • France’s January Services PMI 54.1 (consensus 53.9; last 53.9)
    • Spain’s January Services PMI 54.2 (expected 54.8; previous 55.0)
    • Italy’s January Services PMI 52.4 (consensus 52.5; previous 52.3). January CPI +0.2% month-over-month, as expected (last 0.4%); +0.9% year-over-year, as expected (last 0.5%)

—Equity Markets—

  • Germany’s DAX is higher by 0.3%. Continental leads with a 4.0% gain while Deutsche Bank is up 1.1% after announcing plans to cut staff. Allianz and Munich Re are both up near 0.8% while Lufthansa, Daimler, and BASF lag. The three names are down between 0.4% and 0.7%.
  • UK’s FTSE has climbed 0.4% amid strength in financials. Barclays, Prudential, RBS, Lloyds Banking, RSA Insurance, and Standard Life are up between 1.2% and 3.0%. Miners trade in negative territory with Glencore, Rio Tinto, Antofagasta, and BHP Billiton down between 2.9% and 3.8%.
  • France’s CAC outperforms with a gain of 0.9%. Michelin has jumped 2.8% after announcing plans to raise European tire prices. Financials like AXA, BNP Paribas, Credit Agricole, and Societe Generale have added between 0.4% and 2.4%. ArcelorMittal lags, trading lower by 1.7%.

7:16 am Apollo Global Management beats by $0.21, beats on revs (APO) :

  • Reports Q4 (Dec) economic net income of $0.98 per share, $0.21 better than the Capital IQ Consensus of $0.77; revenues rose 253.8% year/year to $685.4 mln vs the $564.83 mln Capital IQ Consensus. 
  • Generated $0.55 of Distributable Earnings after taxes and related payables per share of common & equivalent during the quarter.
  • Apollo declared a quarterly distribution of $0.45 per Class A share to holders of record as of February 21, 2017, which is payable on February 28, 2017.
  • Robust Economic Income driven by strong net carried interest income primarily generated by traditional and natural resources private equity funds, as well as higher Fee Related Earnings. Private Equity fund appreciation during the quarter of 5.9% was driven by appreciation in private and public portfolio company holdings.
  • Strong Economic Income driven by an increase in the fair value of Athene and solid investment performance across the platform, partially offset by lower FRE due to increased fund placement fees. Credit gross and net returns of 2.1% and 1.8%, respectively, for the quarter due to strong appreciation across fund categories.
  • Year-over-year growth in management fees driven by both the real estate equity and debt businesses. Real estate U.S. equity fund combined gross return of 5.3% for the quarter due to strong operating results and valuation increases throughout the portfolio

7:10 am Adient beats by $0.06, misses on revs; reaffirms FY17 revs guidance (ADNT) :

  • Reports Q1 (Dec) earnings of $2.12 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus of $2.06; revenues fell 4.6% year/year to $4.04 bln vs the $4.23 bln Capital IQ Consensus.
  • Co reaffirms guidance for FY17, sees FY17 revs of $16.8-17 bln vs. $16.76 bln Capital IQ Consensus Estimate.

7:06 am Asterias Biotherapeutics extends the expiration date of certain warrants from February 15, 2017 to 5 PM ET on September 29, 2017; also provides update on its cash position, believes sufficient to fund ops thru 1Q18 (AST) :

The decision to extend the warrants takes into consideration its recent announcement of positive interim efficacy results from its ongoing SCiStar Phase 1/2a clinical trial.

  • Further data will become available in 3Q17 evaluating 12-month safety and efficacy results for this AIS-A 10 million cell cohort, as well as 6-month efficacy and safety data for the currently-enrolling AIS-A 20 million cell and AIS-B 10 million cell cohorts.

As of December 31, 2016, the co’s cash and cash equivalents totaled $19.8 million (unaudited) and its cash, cash equivalents and available-for-sale securities totaled $35.1 million (unaudited).

  • Co states, “Management believes the company’s cash, cash equivalents and available-for-sale securities will be sufficient to fund operations through at least the first quarter of 2018.”

7:04 am Hershey Foods beats by $0.09, reports revs in-line; guides FY17 EPS above consensus, revs in-line (HSY) :

  • Reports Q4 (Dec) earnings of $1.17 per share, excluding non-recurring items, $0.09 better than the Capital IQ Consensus of $1.08; revenues rose 3.2% year/year to $1.97 bln vs the $1.98 bln Capital IQ Consensus. Excluding the effect of foreign currency translation, a 0.5 point headwind, net sales increased 3.7% versus the year ago period.
  • Volume was a 3.4 point contribution and in line with estimates. Net price realization was off 0.6 points, as anticipated, due to slightly higher levels of direct trade supporting increased in-store merchandising and display activity. The barkTHINS brand acquisition was a 0.9 point benefit in the fourth quarter of 2016.
  • Adjusted gross margin was 44.5% in the fourth quarter of 2016, compared to 45.0% in the fourth quarter of 2015. The 50 basis point decline was primarily driven by unfavorable supply chain costs and trade, partially offset by supply chain productivity and costs savings initiatives.
  • Co issues guidance for FY17, sees EPS of $4.72-4.81, excluding non-recurring items, vs. $4.64 Capital IQ Consensus Estimate; sees FY17 revs +2-3% to ~$7.59-7.66 bln vs. $7.62 bln Capital IQ Consensus Estimate. 
  • “In 2017, our North America business is focused on the continued rollout of Hershey’s Cookie Layer Crunch bars, barkTHINS chocolate distribution gains and other exciting new products such as Reese’s Crunchers candy and Krave meat bars and sticks.” We anticipate these investments and related consumer marketing plans will accelerate our North America sales growth versus 2016 performance, which should enable us to outpace the broader food group in this challenging operating environment. International macroeconomic challenges persist, especially in China, and we expect a slow start to the year in that segment. 

7:04 am AutoNation reports EPS in-line, misses on revs (AN) :

  • Reports Q4 (Dec) earnings of $0.95 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.95; revenues rose 2.6% year/year to $5.48 bln vs the $5.59 bln Capital IQ Consensus.
    • Domestic – Domestic segment income was $64 million compared to year-ago segment income of $78 million, a decrease of 18%.
    • Import – Import segment income was $67 million compared to year-ago segment income of $71 million, a decrease of 6%.
    • Premium Luxury – Premium Luxury segment income  was $93 million compared to year-ago segment income of $102 million, a decrease of 9%.

7:03 am WisdomTree misses by $0.03, reports revs in-line (WETF) :

  • Reports Q4 (Dec) earnings of $0.03 per share, excluding non-recurring items, $0.03 worse than the Capital IQ Consensus of $0.06; revenues fell 33.6% year/year to $50.8 mln vs the $50.85 mln Capital IQ Consensus.
  • U.S. listed ETF assets under management were $40.2 billion at December 31, 2016, up 6.5% from September 30, 2016 primarily due to $2.3 billion of market appreciation. U.S. listed AUM was down 22.2% from December 31, 2015 primarily due to net outflows in 2016. Net outflows were primarily in our two largest funds, HEDJ and DXJ. European listed AUM was $1.0 billion at December 31, 2016, largely unchanged from September 30, 2016 as market appreciation was offset by net outflows. European listed AUM was up 32.4% from December 31, 2015 primarily due to net inflows.
  • “In evaluating the performance of our U.S. listed equity, fixed income and alternative ETFs against actively managed and index based mutual funds and ETFs, 95% of the $37.1 billion invested in our ETFs and 69% (52 of 75) of our ETFs outperformed their comparable Morningstar average since inception as of December 31, 2016.”

7:02 am Envestnet resolves the patent case brought by Envestnet| Yodlee (ENV) :

  • The Co resolved the patent case brought by Envestnet | Yodlee in the United States District Court for the District of Delaware, the counterclaims brought by Plaid in the District Court, and the inter partes and Covered Business Method review petitions brought by Plaid before the Patent Office.
  • As part of the agreement, Plaid will license Envestnet | Yodlee’s worldwide patent portfolio, which currently numbers 78 issued patents.

7:01 am Axovant Sciences enters into a $55.0 million debt financing agreement; in connection, the co issued Hercules Capital (HTGC) a warrant to purchase up to 274,086 of its common shares at an exercise price of $12.04/share (AXON) :  

6:59 am On The Wires (:WIRES) :

  • ReneSola Ltd (SOL) will provide EPC service for solar rooftop projects in Shandong, Anhui and Zhejiang Provinces with a combined capacity of 32 MW. The Company will also supply 32MW of solar modules for these projects.
  • On January 27, 2017, Marathon Patent Group (MARA) entered into a sales agreement with Northland Securities, Inc., as agent, pursuant to which the Company may offer and sell, from time to time through Northland, up to 750,000 shares of the Company’s common stock in an “at the market offering” as defined in Rule 415 promulgated under the Securities Act of 1933, as amended. As of January 31, 2017, the Company sold all 750,000 shares of common stock under the Sales Agreement for gross proceeds of approximately $1,301,923 and no further shares are available under the terms of the Sales Agreement as filed on January 27, 2017.
  • Investel Capital Corporation, a Vancouver-based developer of the social media posting gateway called iFramed, today announced it filed a lawsuit in U.S. federal court against Snap Inc. (Pending: SNAP) to invalidate a patent that is central to its revenue model of its flagship product, Snapchat. Investel said it invented and owns the rights to location-based filters that Snap calls “Geofilters.” Investel in August 2016 filed a patent infringement lawsuit against Snap Inc. in the Federal Court of Canada, and the court has ruled in favor of Investel on sufficiency of the claim to proceed.

6:58 am Asian Markets Close: Nikkei UNCH, Hang Seng -0.2%, Shanghai -0.6% (:SUMRX) :

Equity indices in the Asia-Pacific region ended the week on a mixed note. The overnight session was fairly quiet, but the yen slumped to 113.15 against the dollar after the Bank of Japan intervened in the bond market to keep the 10-yr Japanese Government Bond yield below 0.11%. This marked the first intervention since the central bank stated its desire to keep the 10-yr yield around 0.0%. In China, the People’s Bank of China raised short-term interest rates at the conclusion of the Chinese Lunar New Year Golden Week.

  • In economic data:
    • China’s January Caixin PMI 51.0 (consensus 51.8; last 51.9)
    • Hong Kong’s January Manufacturing PMI 49.9 (last 50.3). December Retail Sales -2.9% year-over-year (last -5.5%)
    • South Korea’s December Current Account surplus expanded to KRW8.57 billion from KRW7.05 billion
    • New Zealand’s ANZ Commodity Price Index -0.1% month-over-month (last 0.7%)
    • India’s Nikkei Services PMI 48.7 (last 46.8)

—Equity Markets—

  • Japan’s Nikkei settled just above its flat line, ending the week lower by 2.8%. Apple supplier Fujikura surged 12.4% while Sony, Furukawa, Chiba Bank, Shinsei Bank, Suzuki Motor, and Komatsu climbed between 1.3% and 5.0%.
  • Hong Kong’s Hang Seng shed 0.2%, extending this week’s decline to 1.0%. Want Want China was the weakest performer, falling 1.7%. Financials were among the laggards with Bank of East Asia, BoC Hong Kong, HSBC, ICBC, and Ping An Insurance posting losses between 0.4% and 1.1%. China Life Insurance bucked the trend, climbing 1.7%.
  • China’s Shanghai Composite reopened after a week-long closure, surrendering 0.6%. Sinomach Automobile, Shanghai Material Trading, Jiangxi Copper, and Giti Tire lost between 2.9% and 3.9%.
  • India’s Sensex added 0.1%, extending its weekly gain to 4.5%. Most financials displayed strength with SBI, AXIS Bank, and HDFC Bank rising between 0.6% and 1.7% while ICICI Bank fell 1.5%.

—FX—

  • USDJPY +0.3% to 113.15
  • USDCNY -0.2% to 6.8706
  • USDINR +0.1% to 67.321

6:57 am Brookfield Property Partners beats by $0.03, NOI +11.7% y/y; raises quarterly dividend to $0.295/share from $0.28/share (BPY) :

  • Brookfield Property Partners reports Q4 FFO/share of $0.38, vs the $0.35 Capital IQ Consensus.
  • NOI grew +11.7% to $699 mln, compared to $626 mln in the same quarter last year.
  • “We are positioned for further growth in 2017 and, to reflect this, our Board of Directors approved a 5.4% increase to our annual distribution.”

6:50 am LyondellBasell misses by $0.26, beats on revs (LYB) :

  • Reports Q4 (Dec) earnings of $1.94 per share, excluding non-recurring items, $0.26 worse than the Capital IQ Consensus of $2.20; revenues rose 9.6% year/year to $7.75 bln vs the $7.31 bln Capital IQ Consensus.
    • The fourth quarter also included a $58 million lump sum pension settlement and a $61 million non-cash, out-of-period cumulative correction.
    • The correction, which was not material to any reporting period, relates to taxes on our cross-currency swaps for 2014, 2015 and through the third quarter of 2016.
    • Together, the pension settlement and the non-cash, out-of-period correction adversely impacted fourth quarter earnings by $0.24 per share.
    • Share repurchases and dividends totaled $783 million; repurchased 5.2 million shares during the fourth quarter or approximately 1.3% of the shares outstanding on October 1, 2016
  • “LyondellBasell posted good results for 2016 despite the impact of our heavy planned maintenance schedule and several Refining operational upsets. Our continued strong earnings and cash flow enabled us to return cash to shareholders by increasing our dividend per share by 9 percent and purchasing 8 percent of the outstanding shares. Our Olefins and Polyolefins – Europe, Asia and International and Technology segments posted their second consecutive year of record results, demonstrating continued global industry strength. Overall, the global olefins and polyolefins industry benefitted from continued favorable supply and demand balances while low crude oil and fuel prices adversely impacted refining and oxyfuel margins. During the fourth quarter, we completed the final step in our 2 billion pound North American ethylene expansion program, began site preparation for a 1.1 billion pound polyethylene plant, and advanced our new propylene oxide plant design. These projects coupled with the 2016 completion of seven major plant maintenance turnarounds, including four cracker turnarounds, position our company favorably for the coming years,” said Bob Patel, LyondellBasell chief executive officer.

6:50 am TIM Participacoes reports FY16 estimates (TSU) :

  • Co reported FY16 net income of R 750.43 mln vs R 2.085 billion last year; revs R 15.62 bln, -10% YoY
  • The original efficiency program started in 2015 evolved to a larger program in 2016, with additional challenges and targeting savings of R$1.7 billion for the period between 2016-18. The great majority of that savings was conquered along the year of 2016, we closed this period delivering R$1.2 billion in savings. Consequently, despite upward pressures from inflation and other elements, normalized total opex for the year fell 11.5% to R$10.4 billion.

6:48 am Cambrex beats by $0.19, beats on revs; issues 2017 guidance (CBM) :

  • Reports Q4 (Dec) earnings of $1.23 per share, $0.19 better than the Capital IQ Consensus of $1.04; revenues rose 13.9% year/year to $178.7 mln vs the $174.53 mln Capital IQ Consensus.
    • The sales increase primarily reflects higher volumes partially offset by lower pricing. The increase in volumes was primarily due to higher sales of certain branded APIs and clinical phase products partially offset by a decrease in generic APIs.
    • Gross margin increased to 44% from 42% compared to the same quarter last year.
  • 2017 outlook:
    • Expects full year 2017 Net Revenues, excluding the impact of foreign currency, to increase between 7% and 11%. Consensus expectations represent revenue growth of 10.7%.
    • Adjusted EBITDA is expected to be between $168 and $174 million, 9% to 13% higher than 2016.

6:46 am Merck announces the FDA accepted 2 sBLAs for Keytruda for locally advanced or metastatic urothelial cancer in cisplatin-ineligible first-line and second-line post-platinum failure treatment settings (MRK) :

Keytruda is a humanized monoclonal antibody that works by increasing the ability of the body’s immune system to help detect and fight tumor cells. Keytruda blocks the interaction between PD-1 and its ligands, PD-L1 and PD-L2, thereby activating T lymphocytes which may affect both tumor cells and healthy cells.

  • Specifically, the application for first-line use was accepted and granted Priority Review for the treatment of these patients who are ineligible for cisplatin-containing therapy. The application for second-line use was also accepted and granted Priority Review for these patients with disease progression on or after platinum-containing chemotherapy. The PDUFA, or target action, date for both applications is June 14, 2017.

6:42 am Metro AG shares lower by 4% overseas following Q1 results/FY17 outlook (MTTRY) :

  • Co reported Q1 EPS of EUR 1.17 vs 1.12 last year; revs -0.6% YoY to 17.0 billion.
  • In Q1 2016/17, EBIT at METRO GROUP amounted to 733 million (Q1 2015/16: 1,240 million). This decline is primarily due to the fact that the previous year’s figure includes income of 427 million from the sale of METRO Cash & Carry Vietnam. EBIT before special items amounted to 821 million (Q1 2015/16: 828 million). This decline is largely due to earnings developments at METRO Cash & Carry. EBIT was supported by positive currency effects of 5 million.
  • Outlook: For financial year 2016/17, METRO GROUP expects to see a slight rise in overall sales, despite the persistently challenging economic environment. The Real sales line is expected to generate slightly better performance compared with financial year 2015/16. Nonetheless, METRO GROUP expects to achieve another slight improvement in earnings. Aside from operational improvements, METRO GROUP will again closely focus on efficient structures and strict cost management in this context. These measures are expected to result in special items for the last time, marking the successful conclusion of METRO GROUP’s transformation.

6:38 am Clorox beats by $0.03, reports revs in-line; guides FY17 EPS in-line, raises rev, in-line (CLX) :

  • Reports Q2 (Dec) earnings of $1.25 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus of $1.22; revenues rose 4.5% year/year to $1.41 bln vs the $1.41 bln Capital IQ Consensus. 
  • Volume grew 8 %, reflecting increases in all reportable segments. Total co sales grew 5 %, driven by strong volume growth, including 2 points from the RenewLife digestive health business, which was acquired in May 2016, and the benefit of price increases in the company’s International business. These factors were partially offset by slightly less than 2 points of unfavorable foreign currency exchange rates as well as unfavorable mix. On a currency-neutral basis, second quarter sales grew 6 %.
  • Co issues in-line guidance for FY17, sees EPS of $5.23-5.35, excluding non-recurring items, (from $5.23-5.43 due to $0.05 impact from stock compensation rule) vs. $5.32 Capital IQ Consensus; sees FY17 revs +3-4% to ~$5.93-5.99 bln (from +2-4%) vs. $5.97 bln Capital IQ Consensus. 
  • The company’s fiscal year 2017 sales outlook reflects strong sales results in the first half of the fiscal year, robust innovation plans in the second half of the fiscal year and about 2 % points of benefit from the RenewLife acquisition. The co anticipates these factors to be partially offset by 1 % to 2 % of unfavorable foreign currency exchange rates. Excluding the impact of unfavorable foreign currency exchange rates, the company continues to anticipate fiscal year sales growth in the range of 4 % to 6 %. Clorox continues to anticipate EBIT margin expansion for fiscal year 2017 in the range of 25 to 50 basis points, reflecting lower selling and administrative expenses as a %age of sales driven by ongoing productivity initiatives and normalized levels of performance-based incentive compensation costs. 

6:35 am Sibanye Gold also expressed its intention to raise a between a minimum of $750 mln and $1 bln dollars in the equity capital markets (SBGL) :

  • Sibanye expressed its intention to raise a between a minimum of $750 million and $1 billion dollars in the equity capital markets.
  • Taking into account the current strong rand environment, spot precious metals prices, and in response to feedback from certain shareholders regarding the impact of these on the ability of the Company to achieve a more desirable financial leverage ratio, Sibanye is considering increasing the size of the equity component of the Stillwater financing package up to $1.3 billion.

6:35 am Kirklands sees Q4 revs below estimates, lowers FY17 EPS outlook (KIRK) :

  • Co sees Q4 revs of $203.2 mln vs $209.12 mln Capital IQ Consensus Estimate
  • Comparable store sales for the fourth quarter of fiscal 2016, including e-commerce sales, decreased 4.6% compared with an increase of 1.3% in the prior-year quarter.
  • Kirkland’s opened four stores and closed one during the fourth quarter of 2016, bringing the total number of stores to 404 at quarter end.
  • Co now sees FY17 EPS of $0.56-0.61 (Prior $0.70-0.75) vs $0.71 Capital IQ Consensus Estimate

“We were not immune from the broader trends impacting much of the retail industry during the fourth quarter..Trends proved to be more difficult than we anticipated as strong sales on Black Friday were offset by weak pre-holiday traffic in December, and improved post-holiday sales were not enough to overcome December’s softness. Additionally, heightened promotional activity had an impact on merchandise margin for the quarter. On a more positive note, we experienced another quarter of double-digit growth in our e-commerce business, and we managed operating expenses and inventories well throughout the season…We enter 2017 with inventories on plan and a strong balance sheet, and remain confident about the long-term outlook for the business. We’ve enhanced our management team, and we’re focused on improving our pricing and promotional mix, merchandise assortment composition, marketing execution, and in-store experience as part of our long-term strategy. We look forward to outlining these initiatives and our outlook for 2017 on our upcoming earnings conference call in March”

6:33 am W&T Offshore announces year-end proved reserves were 74.0 mln BOE, Q4 production -9.8% vs the same quarter last year; provides update on A-18 well (WTI) :

  • The co’s year-end 2016 SEC proved reserves were 74.0 mln barrels of oil equivalent, or 444.0 bln cubic feet, with 55% comprised of liquids (44% crude oil and 11% natural gas liquids and 45% natural gas. ~64% of our 2016 proved reserves were classified as proved developed producing, 23% as proved developed non-producing and 13% as proved undeveloped. Total production of approximately 15.4 mln Boe in 2016 was substantially offset by upward revisions due to performance despite lower SEC average prices.
  • Production for the fourth quarter of 2016 was 3.7 mln Boe, compared to the fourth quarter 2015 of 4.1 mln Boe. Fourth quarter 2016 production was comprised of 1.7 mln barrels of oil, 0.4 mln barrels of natural gas liquids and 10.0 Bcf of natural gas, at an average realized sales price of $30.83 per Boe or $5.14 per Mcfe.
  • The recently completed Ship Shoal 349 A-18 well recently reached a production rate of 5,217 Boe per day.

6:31 am Auris Medical announces that it has added a third clinical-stage development program to its pipeline and is expanding into the field of vestibular disorders (EARS) :

  • Under the product code AM-125, the Company will develop betahistine dihydrochloride in a spray formulation for the intranasal treatment of Meniere’s disease and vestibular vertigo.
  • Auris Medical has entered into an agreement with Otifex Therapeutics Pty. Ltd. to purchase various assets related to intranasal betahistine, including preclinical and clinical data as well as certain intellectual property rights.
  • In a Phase 1 trial conducted by Otifex, intranasal betahistine showed good tolerance and a significantly higher bioavailability than reported for oral betahistine administration.
  • Auris Medical plans to initiate a second Phase 1 trial in 2017.
  • Conference call and webcast scheduled for today at 8am ET.
  • “We are excited to add AM-125 to our development pipeline as it addresses important unmet medical needs in vestibular disorders and serves as a strategic fit with our existing projects,” commented Thomas Meyer, Auris Medical’s founder, Chairman and Chief Executive Officer. “While oral betahistine has been a mainstay treatment for Meniere’s disease and vestibular vertigo for many years and in many countries around the world, we expect the novel approach of intranasal delivery to offer significant additional benefits in terms of efficacy and tolerability.”

6:31 am Genesee & Wyoming Chairman Mortimer B. Fuller III has decided to retire following the Company’s annual stockholders’ meeting in May 2017; co’s CEO Jack Hellmann will be appointed Chairman following Fuller’s retirement (GWR) :  

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

  • JAKKS Pacific (JAKK) announced that the Company has agreed with a holder of its Convertible Senior Notes due in 2018 to exchange $11.548 million face amount of such notes for 865,000 shares of its common stock and approximately $7.0 million in cash. After such exchange the balance of the face amount of the 2018 Notes will have been reduced to approximately $54.7 million from approximately $66.3 million.
  • Intesa Sanpaolo (ISNPY) issued a statement saying that with reference to recent news in the press in relation to an upcoming launch of a Public Exchange Offer concerning Assicurazioni Generali, which include presumed relevant conditions, Intesa Sanpaolo – as already stated by a spokesman from the Bank yesterday afternoon – reiterates the contents of its press release of 24 January 2017. Intesa Sanpaolo confirms, therefore, that possible industrial combinations with Assicurazioni Generali continue to be only the subject of a case study, which is part of the various analyses that the Bank’s management regularly carries out about the Group’s options for growth, both internal and external.
  • Randgold Resources’ (GOLD) Tongon gold mine in the Cte d’Ivoire is sustaining its significant performance improvement and is set to achieve its revised production guidance for 2016, chief executive Mark Bristow said here today.
  • Effective January 30, 2017, the Board of Directors of Inspired Entertainment (INSE) approved the appointments of Stewart Baker as Chief Financial Officer of the Company, Steven Holmes as Chief Legal Officer of the Company and Lee Gregory as Chief Commercial Officer (Server Based Gaming Division) of the Company. These individuals were part of the management team of Inspired Gaming Group prior to consummation of the business combination between the Company (formerly known as Hydra Industries Acquisition Corp.) and Inspired Gaming Group on December 23, 2016.
  • NRG Yield (NYLD) disclosed in a regulatory filing that in January 2017, the El Segundo Energy Center began a forced outage on Units 5 and 6 due to increasing vibrations on successive operations at Unit 5. In consultation with the Company’s Operations and Maintenance service provider, a subsidiary of NRG Energy (NRG), the Company elected to replace the rotor on Unit 5. Both Unit 5 and 6 are expected to return to service by the end of February 2017. The Company is reviewing the warranty coverage with the original equipment manufacturer as well as available insurance coverage. The Company estimates the cash impact of the forced outage to be approximately $12 million in 2017 before recovery from any warranty or insurance coverage.

6:03 am Regis misses by $0.02, misses on revs; same store sales -3.6% (RGS) :

  • Reports Q2 (Dec) loss of $0.03 per share, excluding non-recurring items, $0.02 worse than the two analyst estimate of ($0.01); revenues fell 5.9% year/year to $424 mln vs the $440.6 mln two analyst estimate. 
  • Same-store sales decreased 3.6% with same-store service sales decreasing 2.8% and same-store product sales decreasing 6.7%. EBITDA, as adjusted, of $17.4 million compared to $17.2 million in the prior year quarter.
  • “After adjusting for the Christmas calendar shift, same-store sales for our company-owned salons declined 2.4% in the second quarter. Adjusted same-store sales for our non-mall brands were down 1.2% and continued to outperform our mall businesses, which posted adjusted same-store sales declines of 5.8% in the second quarter. For the second quarter, adjusted EBITDA of $17.4 million increased slightly over last year. On a year-to-date basis, adjusted EBITDA increased to $41.5 million versus the $40.3 million we reported for the first six months of fiscal 2016.”

6:00 am Patterson-UTI reports in January 2017 the co had an average of 76 drilling rigs operating in the United States and two rigs in Canada (PTEN) :  

5:58 am Shanghai…-0.60% (FXI) :  

5:58 am S&P futures vs fair value: +0.30. Nasdaq futures vs fair value: -10.00. :

5:58 am European Markets : FTSE…7166.64…+25.90+0.40%.  DAX…11641.44…+13.50+0.10%.

5:58 am Asian Markets : Nikkei…18918…+3.60+0.00%.  Hang Seng…23129…-55.30-0.20%.

5:19 am Sibanye Gold reports H1 gold production in-line with LY (SBGL) :

Sibanye’s Gold Division produced approximately 23,800kg (765,000oz) of gold for H1.

  • This is similar to the amount produced during the six months ended 30 June 2016, but is 7% lower than the comparable period in 2015.
    • The year-on-year decline in production is primarily due to the closure of the Cooke 4 shaft during the period and a number of power outages due to severe thunderstorm activity that occurred during the last quarter.
    • Gold production for the full year of approximately 47,000kg (1.5Moz) 2016 was approximately 2% lower than guidance.
    • Targeted mineral reserve management and limited mining below cut-off grades, resulted in the average underground grade increasing by 4% year-on-year to 5.31g/t.
    • An increased focus on fragmentation and cleaning practices, resulted in the average Mine Call Factor increasing by 2% to 81%.
  • Platinum Division
    • The Platinum Division delivered a solid operating result, with attributable platinum group metal production amounting to approximately 230,000oz (4E) for the December 2016 quarter, which now includes two months from the Rustenburg operations.
    • For the six months, attributable production from Kroondal and Mimosa was ~118,000oz (4E) and 62,000oz (4E) respectively.

4:07 am Bank of Ireland provides update on the resolution strategy for the Group; the Group expects to establish a holding company to become parent of Group (IREBY) :

The Single Resolution Board, acting as the Group Level Resolution Authority, and the Bank of England, working together within the Resolution College, have reached a Joint Decision on the group resolution plan for the Group and have advised the Group that their preferred resolution strategy for the Group consists of a single point of entry bail-in strategy through a group holding company.

  • Pursuant to this strategy, the Group expects to establish a holding company which would become the parent company of the Group.
  • While it is not expected to impact on the Group’s reported CET1 ratios, a HoldCo structure may adversely impact the consolidated Group’s reported Total Capital and Tier 1 capital ratios.
  • This would arise due to the required de-recognition under Articles 85 and 87 of the Capital Requirements Regulation of a proportion of existing subordinated debt.
  • The impact would depend on the timing of a HoldCo establishment, absolute capital levels and the capital structure at the time of establishment, and any mitigating actions the Group may take.
  • Any impact arising would be eliminated as the relevant subordinated debt is redeemed. 

4:03 am Ryanair Hldgs reports Jan traffic increased 17% YoY (RYAAY) :

Co released January traffic statistics as follows:

  • Traffic grew 17% to 8.77 mln customers
  • Load factor rose 2% points to 90%
  • Rolling annual traffic to Jan grew 15% to 118.3 mln customers

3:39 am On The Wires (:WIRES) :

  • NCR Corporation (NCR) announced that Bottomline Technologies (EPAY) has integrated Authentic, NCR’s intelligent transaction processing platform into its Direct Faster Payment Service solution. The technology enables UK-based financial institutions to connect securely to the Faster Payments network.
  • Statoil (STO) has made a new gas discovery on the field, called Valemon West. The discovery is estimated to contain between 20 and 50 million barrels of oil equivalent. The exploration well was drilled from Valemon by the jackup rig West Elara to a vertical depth of 4,337 metres below sea level. Water depth in the area is 133.5 metres. The well is currently being completed and put on stream from the Valemon platform.

3:26 am Premier Oil announces tentative agreement with private lenders to refinance debt (PMOIY) :

Co announced an agreement of representatives of its Private Lenders to a long form term sheet (subject to credit approvals), an agreement of revised key terms between Premier and representatives of its convertible bondholders, and proposed amended terms to its retail bonds

Refinancing overview – The refinancing will provide a solid foundation for Premier to deliver itsstrategic plans through: 

  • Preserving the Group’s debt facilities
  • Resetting financial covenant headroom
  • Extending Premier’s debt maturities to 2021 and beyond
  • In return, the lenders will receive a revisedsecurity and covenant package, enhanced economics and certain governancecontrols. 

Revisedfunding structure allows for debt reduction and growth

  • Year-to-date Premier’s production has averaged around 80 kboepd. A significantstep up in production is expected once Catcher is on-stream later this year,materially enhancing the Group’s cash flows. The Group will prioritise thesecash flows towards reducing its absolute debt levels and leverage ratio to 3xEBITDA. At the same time, Premier and its lenders envisage that the Group willselectively seek to invest in its unsanctioned projects, at the appropriateequity levels, with due regard to the commodity price environment.
  • With rising production and 700 mmboe of discovered but undeveloped reserves andresources, Premier has considerable portfolio optionality. Unsanctionedprojects include infill drilling programmes, incremental developments and newprojects such as Tolmount, Tuna and Sea Lion. Premier also has the potentialfor material value creation through its exploration acreage, including inMexico, with drilling expected to commence in Q2

3:10 am DBV Technologies completes enrollment of Phase IIA study of Viaskin Milk; expects results in 1H18 (DBVT) :

Co announced that enrollment in SMILEE (Study of Efficacy and Safety of the Viaskin MILk in Milk-Induced Eosinophilic Esophagitis in Children), a Phase IIA investigator-initiated clinical trial assessing the safety and efficacy of Viaskin Milk for the treatment of milk-induced Eosinophilic Esophagitis in children ages 4-17 has been completed.

  • In this study, 20 children with milk-induced EoE have been randomized 3:1 to receive Viaskin Milk 500 g or placebo for up to 11 months.
  • Results for the SMILEE study are expected in the first half of 2018.

3:08 am On The Wires (:WIRES) :

  • Advanced Disposal (ADSW) has completed the acquisition of CGS Services. Based in Morristown, Indiana, CGS services a 14 county area in central and eastern Indiana through a vertically-integrated network of solid waste collection, recycling, and disposal assets that generates annual revenue approaching $30 million.
  • Ford (F) has started shipping its all-new 2017 F-150 Raptor — the ultimate high-performance off-road pickup truck — to eager customers in China, marking the first time any U.S.-built F-Series truck has been officially exported to China.

3:04 am Matador Resources reports initial test results from the three Mallon 27 Federal Com; 3 wells flowed 7,856 boepd (MTDR) :

Co announced initial test results from the three Mallon 27 Federal Com wells recently drilled and completed in its Ranger asset area in Lea County, New Mexico.

  • In aggregate, the three wells flowed 7,856 barrels of oil equivalent per day, consisting of 7,172 barrels of oil per day and 4.1 million cubic feet of natural gas per day (91% oil).
  • Matador has just over a 70% working interest in each of the Mallon wells. Owing to a large portion of federal acreage comprising each unit, the Company’s royalty burden in each unit is ~18.5% (as opposed to up to 25% on typical fee leasehold), giving Matador an overall net revenue interest of approximately 58% in each of these wells.
  • As Matador noted at the time of the HEYCO merger, the Company expects to benefit from lesser royalty burdens on wells drilled on the former HEYCO acreage.

2:59 am Boston Beer Co CEO/President to retire in 2018 (SAM) :

Co announced that Martin Roper, President and Chief Executive Officer, plans to retire in 2018 after leading the Company for more than 17 years.

  • The Board of Directors has created a search committee and retained Korn Ferry to assist in identifying and evaluating the best candidates to succeed Roper as CEO



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