Блог компании DayTraderClub | Америка сегодня. Инфляция, розничные продажи и складские запасы.

 

Asian Econ data Japan Jan Final Industrial Production: +3.7% vs +3.2% prelim Jan Final Capacity Utilization: +0.1% vs +0.6% prelim Aus Mar Westpac Consumer Conf Index: 99.7 vs 99.6 in Feb

 

On The Wires Cypress Semiconductor Corporation (CY) announced that Institutional Shareholder Services (ISS) has recommended that Cypress stockholders consent FOR management's proposal to eliminate cumulative voting. SemGroup (SEMG) announced that its previously announced cash tender offer to purchase any and all of its 7.50% senior notes due 2021 expired at 5:00 p.m., New York City time, on March 14. As of the Expiration Time, $290,007,000 aggregate principal amount of the 2021 Notes (96.67%) were validly tendered

 On The Wires

• Realty Income (O) announced its Board of Directors has declared an increase in the company's common stock monthly cash dividend to $0.211 per share from $0.2105 per share.
• Ensco plc (ESV) announced that it has extended the expiration date for its previously announced offer to exchange any and all of its $332,048,000 outstanding principal amount of 8.00% Senior Notes due 2024 for an equal amount of new 8.00% Senior Notes due 2024. This registered exchange offer, which was initially scheduled to expire on March 14, has been extended until March 21

 On The Wires

• Accenture (ACN) announced an expansion of its capabilities in Oregon, including a new office that is now home to 100 Accenture employees who work with clients in Washington County. Accenture will focus on serving clients across the retail, information technology, hospitality and government sectors
• Brightcove (BCOV) announced the launch of the Brightcove Agency Program. The program is designed to enable agencies to deliver advanced video technology and expertise through Brightcove's industry-leading video platform.

 On The Wires

• Accenture (ACN) has launched a Liquid Studio in Singapore to help clients around the region take advantage of new innovations and accelerate software application development cycles. The Liquid Studio features an open environment where clients work with highly skilled Accenture engineers to turn concepts into applications and solutions with speed and agility.
• ACI Worldwide (ACIW) announced that Peach Payments, a fast-growing South African payment service provider, will offer merchants a seamless mobile checkout solution with the ACI Mobile Commerce Software Development Kit
• STMicroelectronics (STM) and iFLYTEK have introduced the market's first IoT development platform that enables voice-recognition cloud services in Chinese. The new platform combines ST's SensorTile multi-sensor module, STM32 ODE, and Open.software package with iFLYTEK's voice-recognition technology.

 

On The Wires Total (TOT) has started up production from the Moho Nord deep offshore project, located 75 kilometers offshore Pointe-Noire in the Republic of the Congo. Operated by the Group, the project has a production capacity of 100,000 barrels of oil equivalent per day. Amec Foster Wheeler (AMFW) announced that it has been awarded a contract extension by Centrica for its Morecambe Bay onshore and offshore gas production assets. The Engineering, Construction and Project Support contract includes work for operations and maintenance, minor modifications and projects. The original contract awarded to Amec Foster Wheeler in 2011 is now extended for a further three years to the end of 2019. Around 200 jobs will be secured as a result of the contract extension. SecureWorks (SCWX) is bolstering its Cloud Guardian portfolio with a new service that automates the application of strong cloud security policies for organizations embracing digital transformation.

 H&M reports Feb sales including VAT increased 3% YoY  (5.47)

• The H&M group's sales including VAT increased by 3% in local currencies adjusted for negative calendar effects in the month of February 2017 compared to the same month last year. The negative calendar effect amounted to ~4 percentage points since February 2017 had one day less than February 2016, which was a leap year.
• First quarter 2017
  • In the first quarter of 2017, i.e. during the period Dec 1 to Feb 28, the H&M group's sales including VAT amounted to SEK 54,369 mln, an increase of 7%.
  • Sales excluding VAT amounted to SEK 46,985 mln, an increase of 8%. In local currencies, sales including VAT increased by 4%.

 On The Wires

• Premier (PMOIY) announces that the final Schuldschein loan holder has entered into the lock up agreement with respect to the terms of the proposed refinancing. As a result of this, the lock up agreements entered into by the Private Lenders (comprising the RCF, FLS Term Loan, US Private Placement notes and Schuldschein loans) and the convertible bondholders have now become effective, committing the parties who have locked up to vote in favour of the refinancing.
• Sports Direct International (SDISY) issued a media statement correcting what it described as 'fake news' about the Company's chief executive-to-average employee pay, which was attributed to a list compiled by Pensions & Investment Research Consultants. A spokesman for the Company said that the Sports Direct figure in the table of data published by City AM, and attributed to PIRC, was incorrect. The table incorrectly claims that Sports Direct had a chief executive-to-average employee pay ratio of 400:1, the second highest in the FTSE 350.
• Schneider Electric (SBGSY) announced the introduction of the Ecoflair Indirect Air Economizer cooling solution, which uses a proprietary polymer heat exchanger technology to provide a cost-effective, highly energy efficient approach to data centre cooling
• Cognizant (CTSH) announced that the United Kingdom's Financial Services Compensation Scheme has selected Cognizant as its technology partner to help FSCS enhance customer experience using digital technologies.
• Semiconductor Manufacturing International (SMI) has executed a technology transfer and license agreement for Invensas' Direct Bond Interconnect technology.
• Arrow Electronics (ARW) held an Internet of Things Innovations event in Shenzhen, China to connect Hong Kong innovation startups with technology companies in China. As part of Arrow's vision of guiding and connecting innovators, entrepreneurs, customers and suppliers in the IoT design-to-production journey, the event attracted over 500 attendees from all sections of the IoT ecosystem in Hong Kong and China.

 

Asian MarketsNikkei...19577...-32.10...-0.20%.  Hang Seng...23793...-35.10...-0.20%.

 

European MarketsFTSE...7379.28...+21.40...+0.30%.  DAX...12006...+17.10...+0.10%.

 

S&P futures vs fair value: +5.00. Nasdaq futures vs fair value: +9.10.

 Netflix upgraded to Hold from Underperform at Jefferies; tgt raised to $135 from $95  (143.19)

 

Mueller Water downgraded to Market Perform from Outperform at Cowen  (12.29)

 

Molina Healthcare initiated with a Market Perform at Cowen  (44.23)

 WebMD Health downgraded to Market Perform from Outperform at Cowen  (52.65)

 

Finisar upgraded to Buy from Hold at Jefferies  (25.69)

 

Ventas downgraded to Sell from Neutral at Goldman  (59.36)

 

T2 Biosystems downgraded to Underweight from Equal-Weight at Morgan Stanley  (6.07)

 

Snap initiated with a Underweight at Cantor Fitzgerald; tgt $18  (20.58)

 

Pattern Energy initiated with a Neutral at Goldman; tgt $21  (19.59)

 

Mobileye N.V. downgraded to Neutral from Buy at Goldman  (60.96)

 

Apple target raised to $155 at RBC Capital Mkts; Primer on services & path for multiple expansion  (138.99)RBC Capital Mkts raises their AAPL tgt to $155 from $140. There has been increased focus on AAPL's services business during last 12+ months and recently the company noted that they intend to double the business in the next 4 years ($48-50B revenue target by FY20). While firm thinks the growth of install base and replacement cycles remain key drivers for AAPL stock, the services model could provide several tailwinds — 1) Gross-margin annual tailwind of 40-60bps, 2) Accelerate ARPU as AAPL is better able to monetize their iOS platform and 3) Create a better valuation narrative for AAPL. Firm moves tgt higher as they see three distinct catalysts ahead: 1) Capital allocation and cash repatriation, 2) iPhone 8 cycle and 3) Services tailwind; Outperform.

 

AMC Entertainment downgraded to Underperform from Neutral at Credit Suisse  (30.55)

 Amec Foster Wheeler upgraded to Outperform from Mkt Perform at Raymond James  (6.16)

 Sanchez Energy target lowered to $15 at FBR & Co.  (9.60)FBR & Co. lowers their SN tgt to $15 from $18 after updating their model for the latest financial and operations data, including a recent 10-K filing and an acquisition closing. The drop was driven by marked-to-market commodity prices, which offset a lower adjusted purchase price for co's Comanche acquisition in the Eagle Ford. Capital efficiency remains core to their investment thesis on SN, and, as expected, the company demonstrated dramatic improvements on this metric during 2016. Firm maintains Outperform rating as they continue to believe that Sanchez's leading position in the western Eagle Ford is not fully appreciated by the market.

 

PPG Industries upgraded to Overweight from Neutral at Atlantic Equities  (101.73)

 

American Water Works downgraded to Hold from Buy at HSBC Securities  (76.01)

 

ClearOne initiated with a Buy at B. Riley & Co.  (10.65)

 Rubicon Project downgraded to Neutral from Buy at B. Riley & Co.  (8.39)

 On The Wires

• Amazon Inc. (AMZN) announced its Prime Now one and two-hour delivery service adds wine and beer to its product offerings available for superfast delivery in Cincinnati and Columbus. The company adds hundreds of alcohol-related products to its inventory from popular name brands such as Chateau Ste. Michelle, Bud Light and Veuve Clicquot as well as local favorites like Great Lakes Brewing Company, Rhinegeist and MadTree Brewing.
• Edgewell Personal Care (EPC) amends credit facility. The amendment and the supplement increased the amount of the revolving credit facility available to Edgewell and Brands under the Credit Agreement by an additional $75,000,000 to a total aggregate revolving facility of $725,000,000, and made certain other changes to the Credit Agreement, including allowing Edgewell to enter into receivables sales facilities for up to $150,000,000 of receivables.

 

Invesco added to Conviction Buy List at Goldman  (31.58)

 

CSX upgraded to Overweight from Neutral at Atlantic Equities  (47.83)

 

Healthcare Realty upgraded to Outperform from Market Perform at BMO Capital Markets  (30.15)

 

Citrix Systems downgraded to Neutral from Buy at BofA/Merrill  (82.02)

 

Everi upgraded to Outperform at Telsey Advisory Group; tgt raised to $6 from $2.50  (3.24)Telsey Advisory Group upgrades EVRI to Outperform from Market Perform and raises their tgt to $6 from $2.50. Firm notes irrespective of the severe volatility in the shares over the past couple of years, they have indicated throughout that there a few key elements of change to the story that would cause us to change their view. They believe the company has bolstered key leadership roles, launched games effectively and set and met expectations. Therefore their degree of confidence is improved in the 2017 guidance being reasonably achievable and the modestly accelerating cash flow generation being a fair basis of valuation. Although they concede that the volatility could continue, the upside potential is far greater than the downside risk

 Hikma shares higher by 7% following FY16 results  (26.50)

• FY16 Group core basic earnings per share of 118.5 cents, down 18% and down 5% in constant currency following the issuance of 40 million additional shares in February 2016 in relation to the West-Ward Columbus acquisition; Group revenue of $1,950 million, up 35% and up 39% in constant currency.
• Group revenue in 2017 expected to be around $2.2 billion in constant currency.
• «We made significant strategic progress in 2016. The acquisition of West-Ward Columbus is transforming our Generics business and the Group as a whole. This is our largest acquisition to date and the integration process has been both challenging and exciting. We expect the Generics business to achieve significant growth in revenue and profitability in the coming years as we focus on pipeline execution and portfolio optimisation.»

 

Pfizer executive in interview says co is considering acquisitions in the antibiotic/anti-infection space — Bloomberg TV  (34.22)Antibiotic stocks: AKAO TTPH PRTK NBRV CEMP CDTX SCYX RDHL TBPH AXDX

 

Southwestern Energy upgraded to Buy from Neutral at Citigroup  (7.38)

 

Mobileye N.V. downgraded to Equal Weight from Overweight at Barclays  (60.96)

 

Axalta Coating Systems target raised to $35 at RBC Capital Mkts  (31.13)RBC Capital Mkts raises their AXTA tgt to $35 from $33. Given the coatings group multiple expansion post the PPG/Akzo offer, they raise their AXTA target multiple to 11.5x from 11.0x, and apply it to their $960M 2017 EBITDA estimate

 Overnight Summary — World markets sleepwalk through the overnight session

• The global equity markets had another very quiet overnight session, doing little more than treading water ahead of the FOMC meeting. S&P Futures are trading about 4 points higher, however volume was considerably light, so lack of liquidity may have played a minor role in what looks like a modest rebound following yesterday's decline.
• Asia had an extremely tight trading session, with Japanese equities closing down 0.2%, while China managed to gain 0.1%. News flow out of the region was light, providing traders with little reason to step out in front of the Fed's policy meeting later today. Although there was nothing that sparked a catalyst in the markets, there were a couple of items to make note of. The People's Conference officially came to a close today, with Premier Li's concluding speech offering no surprises. Also, there was a modest upward revision to Japan's Feb Industrial Production, coming in at +3.7%, up from the preliminary reading of +3.2%.
• European bourses are echoing the tone of Asia with minor net changes across the regional landscape. The rebound in Crude has helped the Energy sector outperform this morning, and also lending to the FTSE's leadership against its EU peers with heavyweights Shell and BP both trading 1% higher.

Market Updates:

• S&P Futures vs Fair Value: +4.00 
• 10 yr Note: 2.5857% 
• USD/JPY: 114.68 -0.07 
• EUR/USD: 1.0621 +0.0017
• Europe: FTSE -0.2% DAX Unch CAC -0.1% 
• Asia: Hang Seng +0.2% Shanghai +0.1% Nikkei -0.2% 
• Commodities: Gold (1201.60 -1.00) Silver (16.91 -0.01) crude (48.63 +0.91) 

US Econ Data

• February CPI, February Retail Sales, March Empire Manufacturing (8:30am)
• January Business Inventories (10am)
• Crude Inventories (10:30am)
• FOMC Decision (2pm)
• Fed Chair Yellen Press Conference (2:30pm)
• March Net Long-Term TIC Flows (4pm)

 

DSW target lowered to $23 at Telsey Advisory Group  (20.01)Telsey Advisory Group lowers their DSW tgt to $23 from $24. Expectations had fallen sharply heading into the quarter, so DSW's beat on the EPS line — despite the sales shortfall — was a positive surprise. Similarly it looks as though 2017 will continue to be a tough year for the top line, though traction on the cost savings and better-managed expenses should enable the company to meet expectations for EPS. They are reducing their 2017 and 2018 EPS estimates to $1.52 and $1.62, respectively. While they are modestly encouraged by the execution in 4Q16, the top line still remains weak and they think the co needs to show more consistency before they get more favorable

 

Benitec Biopharma: California Capital Equity raises active stake to 28.6% (prior 16.7%)  (2.45)

 

Aurinia Pharma: Capital raise increases the chances for inking an economically lucrative partnership deal — FBR & Co. yesterday  (7.90)FBR & Co yesterday noted AUPH strengthened its bargaining position at a prospective table of would-be partners and/or acquirers with the secondary. They estimate AUPH could net $138M in proceeds, which could be sufficient to fully fund the completion of the planned AURORA Phase III trial with voclosporin (VCS) in lupus nephritis (LN) patients (est. start 2Q17). They look for the signing of a partnership deal worth in the range of $500M to $700M in up-front and milestone payments to AUPH. They look for AUPH to sign with a Big Pharma company in the next three to six months, which could be a positive catalyst for the stock. They think a partnership is more likely than an acquisition, however, as they project VCS could achieve >$2B in annual peak sales; they could see a bid in the next six to nine months.

 

Harley-Davidson upgraded to Neutral from Underperform at Longbow  (60.10)

 

National Cinemedia upgraded to Neutral from Underperform at Credit Suisse  (12.68)

 

Asian Markets Close: Nikkei -0.2%, Hang Seng -0.2%, Shanghai +0.1% Equity indices in the Asia-Pacific region ended the midweek session on a mixed note, but trading ranges were narrow once again, as investors awaited the latest rate decision and policy statement from the Federal Reserve. The Bank of Japan will follow, releasing its own policy update on Thursday. China's Premier Li Keqiang called for an improvement in Sino-US relations. Mr. Li added that China's 6.5% GDP growth target is ambitious given external risks. In economic data: Japan's January Industrial Production -0.4% month-over-month (expected -0.8%; last -0.8%) and January Capacity Utilization +0.1% month-over-month (last 0.6%) Australia's February New Motor Vehicle Sales -2.7% month-over-month (last 0.6%) and March Westpac Consumer Sentiment 0.1% (last 2.3%) New Zealand's Q4 Current Account as % of GDP -2.7% (expected -2.8%; last -2.9%) South Korea's February Unemployment Rate 4.0% (expected 3.7%; last 3.6%) Singapore's Q4 Unemployment Rate 2.2% (last 2.2%) ---Equity Markets--- Japan's Nikkei shed 0.2%. Toshiba plunged 12.2% after submitting its internal controls report to the Tokyo Stock Exchange. Nippon Sheet Glass, Nisshin Steel Holdings, SUMCO, Furukawa Electric, Nitto Denko, Advantest, and Kobe Steel lost between 1.5% and 4.3%. Hong Kong's Hang Seng slipped 0.2% amid losses in more than half of its components. Cathay Pac Air fell 1.4% while financials like Hang Seng Bank, ICBC, Bank of China, China Life Insurance, Bank of East Asia, and China Construction Bank lost between 0.3% and 0.9%. China's Shanghai Composite added 0.1%. Xinjiang Yilite Industry, Long Yuan Construction, Chongqing Wanli New Energy, and Hangxiao Steel Structure all gained near 4.0% apiece. India's Sensex ended lower by 0.2%. Tech consultants Tata Consultancy, Infosys, and Wipro lost between 1.4% and 2.4% while financials were mixed. ICICI Bank lost 0.6%, AXIS Bank added 0.2%, and HDFC Bank rose 0.5%. ---FX--- USDJPY -0.1% to 114.66 USDCNY UNCH at 6.9124 USDINR -0.1% to 65.689

 

Clovis Oncology: Chardan reiterates Sell — [+] SOLO-2 data (AZN) highlights competitive risks in PARPi   (66.95)Chardan notes positive Lynparza (AZN) results in ovarian cancer maintenance raise competitive risks for Rubraca. While they understand that success for a second PARPi in the setting of ovarian cancer maintenance therapy arguably further de-risks PARPi as a class in the indication, this de-risking needs to be balanced by the competitive pressures generated by multiple effective PARPis in the ovarian cancer space. In addition, positive results for competitors in the second-line maintenance setting puts pressure on Rubraca's approved indication of third line or later therapy since significant market penetration by niraparib (TSRO) and/or Lynparza in second-line maintenance therapy could restrict the market for Rubraca in the third line through PARPi cross-resistance. Finally, the positive SOLO-2 result raises the possible risk that ARIEL3 could fail in an absolute sense (e.g. trial failure) or in a relative sense (e.g. trial success with efficacy inferior to niraparib and/or Lynparza). Competitor androgen receptor (AR) inhibitor combinations will likely limit Rubraca utility in prostate cancer; $36 tgt.

 

Overseas Research Calls Upgrades:  Adidas AG (ADDYY) upgraded to Buy from Hold at Commerzbank Glencore Intl plc (GLNCY) upgraded to Buy from Neutral at Goldman Lonmin plc (LNMIY) upgraded to Neutral from Sell at UBS Amec Foster Wheeler (AMFW) upgraded to Neutral from Underperform at Exane BNP Paribas John Wood Group plc (WDGJF) upgraded to Buy from Hold at Canaccord Genuity John Wood Group plc (WDGJF) upgraded to Add from Hold at Numis Downgrades:  Prudential (PRU) downgraded to Hold from Buy at S&P Global Hikma (HKMPF) downgraded to Hold from Strong Buy at S&P Global Amec Foster Wheeler (AMFW) downgraded to Hold from Buy at S&P Global Amec Foster Wheeler (AMFW) downgraded to Hold from Buy at Numis Salvatore Ferragamo (SFRGF) downgraded to Hold from Buy at Kepler Miscellaneous:  None of note

 

Alere discloses the co will not be able to file its annual report on form 10-K without 'unreasonable effort or espense'  (37.01)The Company will be unable to file its 2016 Form 10-K within the extension period because it is continuing to review certain aspects of revenue recognition at its Korean and Japanese locations, including inappropriate conduct at the Company's subsidiary in South Korea, Standard Diagnostics, Inc. As previously reported in the Form 12b-25, the Company continues to expect that this review will result in the following revenue adjustments: (i) revenue for fiscal year 2013 will change by an amount approximately between $0 and $5.0 million, (ii) revenue for fiscal year 2014 will change by an amount approximately between $0 and $5.0 million, (iii) revenue for fiscal year 2015 will decrease by an amount approximately between $5.0 million and $10.0 million and (iv) revenue for the nine months ended September 30, 2016 will increase by an amount approximately between $5.0 million and $10.0 million. As also previously reported in the Form 12b-25, the Company does not expect that these misstatements will impact the total amount of revenue reported related to any transaction but correction of these revenue amounts will result in a shift of revenue between accounting periods. The Company is also currently evaluating fiscal year 2011 and 2012 to determine if any misstatements related to revenue recognition occurred in such earlier periods at its Japanese location and its subsidiary in South Korea, Standard Diagnostics, Inc.

 On The Wires

• Soligenix (SNGX) announced that Oreola Donini, PhD, Senior Vice President and Chief Scientific Officer of Soligenix will present preclinical and clinical results on the use of dusquetide (SGX94) in the treatment of emerging and antibiotic resistant infectious diseases at Superbugs & Superdrugs — A Focus on Antibacterials. The conference is being held in London March 20-21, 2017.
• Corindus Vascular Robotics (CVRS) announced WakeMed Health & Hospitals purchased three CorPath GRX Systems to develop a vascular robotics program.
• On Mar 14, 2017, Revance Therapeutics (RVNC) entered into a Technology Transfer, Validation and Commercial Fill/Finish Services Agreement with Ajinomoto Althea a contract development and manufacturing organization. Althea has agreed, among other things, to provide the co with a future source of commercial fill/finish services for the co's neuromodulator products. The services agreement provides the co expanded capacity and a second source of drug product manufacturing to support a global launch of DaxibotulinumtoxinA for Injection. The services agreement also mitigates supply chain risk by giving the Company a different manufacturing location than its current site and reduces future capital and operating expenditures required in the co's primary manufacturing facility by outsourcing to an experienced partner.
• Prima BioMed (PBMD) announces that the second cohort comprising six patients has now been fully recruited for its TACTI-mel clinical trial being conducted in Australia. Patients with unresectable or metastatic melanoma that have had a suboptimal response to Keytruda were dosed with the higher 6 mg dose of IMP321 in combination with Keytruda.

 

Henry Schein, Patterson Companies (PDCO) both initiated with Hold ratings at Deutsche Bank  (171.25)

 

Applied Genetic Technologies initiated with a Buy at Rodman & Renshaw; tgt $16  (7.50)Rodman & Renshaw initiates AGTC with a Buy and price target of $16. AGTC's AAV (adeno-associated virus) platform is based on a proprietary viral composition and manufacturing process that are backed by strong intellectual property positions. AGTC has the capability to target specific tissue types and drive gene expression appropriate for that tissue. Firm believes that there is great potential to treat an array of disorders that are monogenic (single gene) and autosomal recessive or X-linked. Co is currently targeting orphan ophthalmological indications with the goal of addressing the underlying biology of the disorder.

 

Aralez Pharma target lowered to $5.50 from $10 at Chardan Capital Markets following the Q4 results  (2.09)

 

Flowserve upgraded to Neutral at Robert W. Baird; tgt $43  (45.49)Robert W. Baird upgrades FLS to Neutral from Underperform and sets target price at $43 following recent under-performance. Though downside risk still remains, risk/reward appears more balanced, order trends should improve yoy in 1Q17 (positive for sentiment), estshave likely bottomed, and firm sees less differentiated downside moving forward.

 

Express Scripts downgraded to Underperform from Market Perform at Wells Fargo  (66.84)

 

REV Group initiated with a Outperform at BMO Capital Markets; tgt $32  (26.21)

 

Occidental Petro upgraded to Buy from Neutral at BofA/Merrill  (63.04)

 

Achaogen target raised to $28 at Stifel — Manufacturing disclosure creates both volatility & opportunity  (25.25)Stifel raises their AKAO tgt to $28 from $27. Management's 4Q16 earnings announcement/call included a surprising number of incremental updates given the proximity to the recent R&D Day Event — including positive regulatory feedback on a development path forward for C-Scape, the departure/transition of the Chief Medical Officer, and the issuance of a FDA Warning Letter to one of the co's manufacturing/supply chain constituents (Pfizer/Hospira, a fill-site facility for plazomicin). And while they understand investor perception of the latter is likely negatively influenced by recent manufacturing impediments experienced by a number of sponsors (including antibiotic sponsors), they're inclined to believe management's confidence in unchanged plazomicin regulatory submission timelines and lack of urgency around the need to initiate the technology transfer process required to bring an additional fill-site online implies this was really more of an attempt at full disclosure. They'd look to be opportunistic on any related weakness.

 

Agilent upgraded to Overweight from Equal-Weight at Morgan Stanley  (52.21)

 

Penn Virginia initiated with a Buy at Johnson Rice  (43.94)

 Windstream resumed with a Neutral at JP Morgan  (6.07)

 

Consumer Price Index Preview The Consumer Price Index for February will be released at 8:30 a.m. ET, providing the Federal Reserve with a final consumer inflation data point before the Federal Open Market Committee (FOMC) makes its interest rate decision. According to the Briefing.com consensus estimates, total CPI is expected to be up 0.1% while core CPI, which excludes food and energy, is expected to increase 0.2%. Economists' expectations for CPI are on the low side due in large part to an expected drag from gasoline prices; meanwhile, core CPI is anticipated to be propped up by owners' equivalent rent and medical costs, but to decelerate some from the stronger January pace. The consensus estimates were tabulated before the release of the February PPI report, which, like the month before, produced upside surprises for total PPI and core PPI, stirring some thoughts that the February CPI report might do the same. If the consensus estimates are accurate, CPI would be up 2.5% year-over-year (versus 2.5% in January) on a nonseasonally adjusted basis and core CPI would be up 2.0% (versus 2.3% in January). It is extremely unlikely that this report will convince the FOMC to refrain from raising the target range for the fed funds rate at today's meeting.

 Retail Sales Preview

The Retail Sales Report for February will be released at 8:30 a.m. ET. It will be watched closely to see if high levels of consumer confidence are translating into actual spending activity.

According to the Briefing.com consensus estimates, total retail sales and retail sales, excluding autos, are both expected to be up 0.1%. That would be a marked slowdown from the 0.4% and 0.8% increases, respectively, registered in January.

• Lower gasoline prices, some softening auto sales, and a delay in tax refunds are thought to have been a drag on retail sales in February.

• Economists in general are anticipating a slowdown in sales activity from the strong pace in January, which also included an upward revision to the retail sales data for December.

• The pickup in job growth and wages is expected to keep retail sales moving up month-over-month.

• Core retail sales, which exclude auto, gasoline station, building materials, and food services sales, will be a focal point since they will factor into the computation of the goods component for personal consumption expenditures for the Q1 GDP report.

 RE/MAX Holdings initiated with a Neutral at Wedbush; tgt $60 — details  (55.15)Wedbush initiates RMAX with a Neutral and price target of $60 based on 1) a positive bias toward the underlying fundamentals including the recurrent nature of rev streams, high profitability of the franchise model, and growth potential from accretive M&A; balanced against 2) somewhat limited expectations to share in gains from recovering housing markets and mainly, firm's view of limited upside potential given current guidance absent a catalyst to sharply raise earnings growth.

 

Pacific Mercantile Bancorp initiated with a Market Perform at Hovde Group; tgt $8.25  (7.50)Hovde Group initiates PMBC with a Market Perform and price target of $8.25 noting PMBC is headquartered in Costa Mesa, California with $1.1 billion in assets, $1.0 billion in deposits, and a market cap of $174 million. The company operates 9 offices in Southern California. A new mgmt team was brought in during 2012 which resulted in an increased focus on commercial loans and relationship banking. Shares trades at 1.73x tangible book, 28.8x firm's 2017 EPS estimate and 16.7x their 2018 EPS estimate. This compares to the West peer medians of 2.01x, 19.0x, and 16.4x, respectively. The P/TBV for PMBC is overstated to some degree because of the significant DTA valuation, and earnings are also higher because of a zero tax rate est through 2018. They are utilizing their 4Q18 TBV est of $5.88, which includes a DTA recapture, for their valuation.

 

Cognex downgraded to Hold at Needham; Upside potential may not be enough  (79.64)Needham downgrades CGNX to Hold from Buy. With CGNX shares near record levels and bumping up against firm's target, they have been looking at various scenarios to gauge potential upside to their ests. After applying more aggressive growth expectations for this year and 2018, and having much of the upside flow through to the bottom line, they are frankly hard pressed to see a sufficiently attractive risk-reward to support a meaningfully higher PT. Based on Street ests, CGNX shares are trading at 43x and 35x respective 2017 and 2018 ests. They can see a scenario where growth in 2017 could be solidly above Street ests, reflecting strong growth in the consumer electronics (Apple) and broader factory automation businesses, but firm expects comparisons to get more challenging in Q4 and 2018.

 

Tesaro target lowered to $164 at Wedbush after Lynparza demonstrates similar top-line efficacy in maintenance therapy SOLO-2 study  (153.65)Wedbush lowers their TSRO tgt to $164 from $200. AZN's SOLO-2 results surpassed their expectations, demonstrating similar top-line efficacy for Lynparza as that achieved by niraparib in the NOVA study. They see the investigator-assessed PFS as the more relevant comparison given this more closely matches the NOVA study assessment protocol, but have reduced their market share expectations for niraparib in the gBRCA setting to account for expected competition. However, they estimate niraparib gaining a competitive market share in the gBRCAmut maintenance setting, given first-to-market and dosing advantages.

 

On The Wires Kratos Defense & Security Solutions (KTOS) announced that its Unmanned Systems Division recently received an initial $1.6 mln single award contract related to a new, in development, High Performance Jet Powered Unmanned Aerial Drone System. Under the contract for this new UAS, USD will be providing system engineering, avionics, data links and ground systems. Work under this contract award will be performed in a secure Kratos manufacturing facility. Due to customer related and other considerations, no additional information will be provided related to this contract award. Tonix Pharmaceuticals Holding (TNXP) will present at Oppenheimer's 27th Annual Healthcare Conference on March 21. Tonix will commence in this month the «HONOR» study, a 12-week placebo-controlled Phase 3 clinical study evaluating TNX-102 SL 5.6 mg, in military-related PTSD. The interim analysis of the HONOR study is expected in the first half of 2018 and topline results are expected in the second half of 2018.

 

Seacoast Banking initiated with a Neutral at Guggenheim  (23.60)

 

Everi upgraded to Buy from Hold at Craig Hallum  (3.24)

 European Markets Update: DAX +0.1%, CAC +0.1%, FTSE +0.2%

Major European indices trade near their flat lines while Italy's MIB (+0.7%) and Spain's IBEX (+0.5%) outperform. Today's mostly range-bound action comes ahead of the latest FOMC rate decision and today's general election in the Netherlands. In Scotland, a YouGov Times survey showed that 57.0% of voters support remaining in the United Kingdom. Also of note, French presidential candidate Francois Fillon was placed under a formal investigation for diversion of public funds.

• In economic data:
  • Eurozone Q4 Employment Change +0.3% quarter-over-quarter (expected 0.2%; last 0.2%); +1.1% year-over-year (consensus 1.5%; last 1.2%)
  • UK's January Average Earnings Index + Bonus 2.2% (expected 2.4%; last 2.6%). February Claimant Count Change -11,300 (expected -5,000; last -41,400) and January Unemployment Rate 4.7% (expected 4.8%; previous 4.8%)
  • Italy's February CPI +0.4% month-over-month (expected 0.3%; last 0.3%); +1.6% year-over-year (consensus 1.5%; last 1.5%). January Retail Sales +1.4% month-over-month (expected 0.1%; last -0.5%); -0.1% year-over-year (last -0.2%)
  • France's February CPI +0.1% month-over-month, as expected (last 0.1%)
  • Swiss February PPI -0.2% month-over-month (expected 0.4%; last 0.4%); +1.3% year-over-year (consensus 1.8%; last 0.8%)

---Equity Markets---

• Germany's DAX trades up 0.1%. Commerzbank leads with a gain of 1.8% while Lufthansa, Adidas, Continental, Siemens, BASF, and Merch are up between 0.3% and 1.7%. On the downside, E.On is down 2.7% after showing relative strength yesterday.
• France's CAC has added 0.1%. Growth-sensitive names like TechnipFMC, Schneider Electric, ArcelorMittal, LafargeHolcim, and Total lead with gains between 0.8% and 1.7%. Automakers Peugeot and Renault underperform with respective losses of 1.6% and 3.7% amid accusations that Renault tampered with emissions data.
• UK's FTSE is higher by 0.2%. Hikma Pharmaceuticals has spiked 7.2% after beating earnings expectations while miners Rio Tinto, Antofagasta, Glencore, Anglo American, BHP Billiton, and Fresnillo show gains between 1.1% and 2.3%. Homebuilders Persimmon, Taylor Wimpey, and Barratt Developments lag with losses between 1.1% and 2.1%.
• Italy's MIB outperforms with a gain of 0.7%. Banco Bpm, Mediobanca, UniCredit, Intesa Sanpaolo, and Banca Mediolanum have added between 0.6% and 1.4%.

 

Early premarket gappersGapping up: PIP +28.8%, ARNA +19.7%, AXAS +12.7%, RST +12.2%, TCON +11.1%, GTXI +10.2%, EVRI +7.7%, SLD +6.6%, FOGO +5.7%, AI +3.6%, DRD +3.3%, RIO +3.1%, CLDX +3%, PWE +2.8%, FNSR +2.6%, CBK +2.5%, RAD +2.1%, DBVT +2.1%, AG +1.9%, BHP +1.9%, NEM +1.9%, AU +1.8%, BBL +1.8%, SBGL +1.7%, FCX +1.7%, RIG +1.6%, MT +1.6%, GOLD +1.6%, MRO +1.5%, BBVA +1.4%, PUK +1.4%, KITE +1.3%, CHK +1.3%, X +1.3%, CS +1.2%, GDX +1.2%, TWO +1.1%, AA +1.1%, BP +1.1%, RDS.A +1%, PBR +1%, GG +1% Gapping down: RUBI -25.5%, DRWI -15.8%, NMM -14.4%, NPTN -13.4%, CXRX -8.2%, IMUC -8.1%, IMUC -8.1%, FTD -7.7%, OHAI -6.1%, CNXR -5.8%, INFI -5.1%, AKAO -5%, MU -2.1%, CEL -1.9%, ENDP -1.7%, KURA -1.6%, ERIC -1.2%, TWTR -1%, STM -1%, AZN -0.7%, INTC -0.7%, NVS -0.7%, TOT -0.6%, TWNK -0.5%

 

Rubicon Project downgraded to Hold from Buy at Craig Hallum  (8.39)

 

Intel downgraded to Neutral from Outperform at Credit Suisse  (35.18)

 

Overnight Treasury Summary Treasuries Tick Higher Ahead of Retail Sales and CPI U.S. Treasury yields are falling by one to two basis points across the curve this morning ahead of the most eventful day for the market since at least last December. The FOMC is widely expected to announce that it has decided to hike the target for the Fed funds rate to 0.75-1.00% at 14:00 ET this afternoon but there are many economic data releases before that time. The two big reports are CPI and Retail Sales for February. The S&P 500 is set to open up 0.25% to 2,371 and the U.S. Dollar Index is down 0.12% to 101.58. WTI crude is 2.01% higher at $48.68/bbl. and gold is losing 0.15% to $1,200.8/troy oz. Yield Check: 2-yr: -1 bp to 1.37% 5-yr: -2 bps to 2.11% 10-yr: -2 bps to 2.58% 30-yr: -2 bps to 3.16% International News: In Japan, industrial production fell by 0.4% m/m in January, beating estimates after December's 0.8% decline Australia's current account deficit narrowed more than expected to AUD2.34 bln for the fourth quarter from AUD4.89 bln in Q3 Westpac Consumer Sentiment rose by 0.1% in March after a 2.3% jump in February Korea's unemployment rate jumped to 4.0% in February (3.6% prior), missing expectations In the U.K., the Claimant Count Change for February was -11.3K, lower than expected but higher than January's -41.4K Average earnings including bonuses grew by just 2.2% y/y in January, missing forecasts and slowing from February's 2.6%  The unemployment rate unexpectedly fell to 4.7% in January (4.8% prior) In France, the CPI rose 0.1% m/m in February, meeting estimates and matching January's growth rate Italy's CPI was up 0.4% m/m in February (1.6% y/y), exceeding both estimates and January's 0.3% Italian retail sales jumped by 1.4% m/m in January (-0.1% y/y), handily beating estimates and reversing December's 0.5% slide Switzerland's PPI fell by 0.2% m/m in February (+1.3% y/y), missing forecasts after a 0.4% jump in January Data out Today: MBA Mortgage Index for the week ending 3/11: Actual 3.1% w/w, Prior 3.3% MBA 30-Year Mortgage Rate: Actual 4.46%, Prior 4.36%  February CPI and Core CPI (08:30 ET) February Retail Sales and Retail Sales ex-auto (08:30 ET) March Empire Manufacturing (08:30 ET) January Business Inventories (10:00 ET) Crude Inventories for the week ending 3/11 (10:30 ET) March FOMC Rate Decision (14:00 ET) January Net Long-Term TIC Flows (16:00 ET)

 

Bon-Ton Stores discloses the receipt of a Nasdaq deficiency letter related to the market value of publicly held shares being less than the $15 mln requirement  (1.07) To regain compliance with the MVPHS Rule, the market value of the co's publicly held shares must meet or exceed $15 million for a minimum of ten consecutive business days during the 180 day grace period. Nasdaq has provided the co with 180 calendar days, or until Sept 5, 2017, to regain compliance with the MVPHS Rule. The co is presently evaluating possible courses of action to regain compliance with the MVPHS Rule.

 

NeoPhotonics target lowered to $13 at Needham — China bites outlook — Neo insists it's strictly timing  (8.08)Needham lowers their NPTN tgt to $13 from $17. The lack of orders out of China impacts Neo's outlook. The question is for how long. Neo expects orders over the next month or two and likely in the April time frame. Neo expects its business to be heavily back-half weighted, with 2/3 of the year in CY2H. The good news is it expects the yield issues to be fully resolved during the CY2Q quarter, which is dragging results by $6MM/quarter and costing 200-400BPs to GMs. The costs of the sale of the low speed business should also fall out in CY2Q, helping margins by another 200 BPs. We are disappointed by the China lull but note that Neo, and for that matter the other vendors and their customers the Chinese OEMs, all think there will be strong orders in CY17 and again in CY18; Strong Buy. NPTN -14% near $7/share premarket.

 

Golden Ocean upgraded to Buy at Pareto Securities  (7.02)

 

On The Wires Schneider Electric (SBGSY) introduced the Micro Data Center Xpress line of connected products, making it faster, easier and more cost effective to build and deploy micro data centres at the network edge. Alaska Airlines (ALK) today announced increased investment in Southern California by adding service to six new destinations from San Diego International Airport. New nonstop service includes daily flights to Albuquerque, New Mexico; Austin, Texas; Kansas City, Missouri; Minneapolis/St. Paul; Omaha, Nebraska; and St. Louis. By late August, Alaska will fly 40 daily departures to 28 destinations from San Diego, including the most nonstop flights to Mexico and Hawaii. On Mar 15, 2017, iHeartCommunications, an indirect parent of Clear Channel Outdoor Holdings (CCO) commenced exchange offers to exchange certain series of iHeartCommunication's outstanding debt securities for new securities of iHeartCommunications, iHeartMedia and CC Outdoor Holdings and concurrent consent solicitations with respect to the terms of the existing notes. On Mar 15, 2017, iHeartCommunications also commenced offers to amend or exchange its outstanding Term Loan D and Term Loan E borrowings under its senior secured credit facility for new term loans of iHeartCommunications and/or new securities of iHeartMedia, CC Outdoor Holdings, and Broader Media.

 S&P futures vs fair value: +4.30. Nasdaq futures vs fair value: +7.10.

Crude oil has nudged equity futures higher this morning, but caution ahead of today's official rate decision from the Federal Open Market Committee has kept gains in check. The S&P 500 futures trade four points, or 0.2%, above fair value.

WTI crude trades 1.9% higher at $48.64/bbl this morning after the American Petroleum Institute (API) reported an unexpected draw of 0.531 million barrels on Tuesday evening. The bump puts the energy component on track to break its streak of six consecutive retreats, but that could change later this morning when the Energy Information Administration (EIA) releases its weekly inventory report. The report will cross the wires at 10:30 ET.

The two-day FOMC meeting in Washington will come to a close today with the official rate decision scheduled for 14:00 ET. It's pretty much a given that the U.S. central bank will increase the Fed funds target range by a quarter point, leaving investors more interested in the Fed's dot plot, which shows expectations for future rate changes.

U.S. Treasuries have seen an uptick in buying interest ahead of today's action with the benchmark 10-yr yield trading two basis points lower at 2.58%.

On the data front, the weekly MBA Mortgage Applications Index, which was released earlier this morning, increased 3.1% to follow last week's 3.3% uptick.

In addition, investors will receive February CPI (Briefing.com consensus 0.1%), February Retail Sales (Briefing.com consensus 0.1%), and March Empire Manufacturing (Briefing.com consensus 14.5) at 8:30 ET, with January Business Inventories (Briefing.com consensus 0.3%) and March NAHB Housing Market Index (Briefing.com consensus 65) following at 10:00 ET.

In U.S. corporate news:

• Intel (INTC 35.06, -0.12): -0.3% after the company's stock was downgraded to 'Neutral' from 'Outperform' at Credit Suisse.
• Hostess Brands (TWNK 15.85, -0.08): -0.5% after worse than expected earnings overshadowed better than expected revenues.
• Fogo De Chao (FOGO 14.00, +0.75): +5.7% after beating both top and bottom line estimates.

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended the midweek session on a mixed note, but trading ranges were narrow once again, as investors awaited the latest rate decision and policy statement from the Federal Reserve. The Bank of Japan will follow, releasing its own policy update on Thursday. Japan's Nikkei -0.2%, Hong Kong's Hang Seng -0.2%, China's Shanghai Composite +0.1%, India's Sensex -0.2%.
  • In economic data:
    • Japan's January Industrial Production -0.4% month-over-month (expected -0.8%; last -0.8%) and January Capacity Utilization +0.1% month-over-month (last 0.6%)
    • Australia's February New Motor Vehicle Sales -2.7% month-over-month (last 0.6%) and March Westpac Consumer Sentiment 0.1% (last 2.3%)
    • New Zealand's Q4 Current Account as % of GDP -2.7% (expected -2.8%; last -2.9%)
    • South Korea's February Unemployment Rate 4.0% (expected 3.7%; last 3.6%)
    • Singapore's Q4 Unemployment Rate 2.2% (last 2.2%)
  • In news:
    • China's Premier Li Keqiang called for an improvement in Sino-US relations. Mr. Li added that China's 6.5% GDP growth target is ambitious given external risks.

• Major European indices trade near their flat lines while Italy's MIB and Spain's IBEX outperform. Germany's DAX +0.1%, France's CAC +0.1%, UK's FTSE +0.2%, Italy's MIB +0.7%, Spain's IBEX +0.5%.
  • In economic data:
    • Eurozone Q4 Employment Change +0.3% quarter-over-quarter (expected 0.2%; last 0.2%); +1.1% year-over-year (consensus 1.5%; last 1.2%)
    • UK's January Average Earnings Index + Bonus 2.2% (expected 2.4%; last 2.6%). February Claimant Count Change -11,300 (expected -5,000; last -41,400) and January Unemployment Rate 4.7% (expected 4.8%; previous 4.8%)
    • Italy's February CPI +0.4% month-over-month (expected 0.3%; last 0.3%); +1.6% year-over-year (consensus 1.5%; last 1.5%). January Retail Sales +1.4% month-over-month (expected 0.1%; last -0.5%); -0.1% year-over-year (last -0.2%)
    • France's February CPI +0.1% month-over-month, as expected (last 0.1%)
    • Swiss February PPI -0.2% month-over-month (expected 0.4%; last 0.4%); +1.3% year-over-year (consensus 1.8%; last 0.8%)
  • In news:
    • In Scotland, a YouGov Times survey showed that 57.0% of voters support remaining in the United Kingdom.
    • French presidential candidate Francois Fillon was placed under a formal investigation for diversion of public funds.

 

Johnson Controls discloses an underwritten offering of EUR 1 bln 1.00% senior notes due 2023  (40.89)The Notes will mature on Sept 15, 2023 and will bear interest at a rate of 1.000% per annum. The co intends to use the net proceeds from the notes offering for general corporate purposes, which may include, without limitation, acquisitions, additions to working capital, repurchase of ordinary shares, dividends, capex, investments in our subsidiaries and repayment of indebtedness, including repayment of a portion of its outstanding commercial paper.

 European Summary

European Bonds Rally with Treasuries Ahead of FOMC Decision 

• European sovereign debt is trading higher across the board this morning after the U.K. reported a worrying deceleration in wage growth in January. Total earnings rose by just 2.2% y/y, the slowest pace since April 2016. In the eurozone, employment grew faster than expected in the fourth quarter to its highest level since 2008. The unemployment rate is now 9.8%. Eurozone industrial production data for January has been a bit worrisome but that caveat aside, things are looking good for the eurozone economy. Dutch voters go to the polls today and results will start to be released around 15:00 ET. The final result will be known on March 21
• New Issuance:
  • Germany sold EUR815 mln of 30-year bunds with an average yield of 1.18% and a bid-to-cover ratio of 1.41
• Economic Data:
  • In the U.K., the Claimant Count Change for February was -11.3K, lower than expected but higher than January's -41.4K
    
    • Average earnings including bonuses grew by just 2.2% y/y in January, missing forecasts and slowing from February's 2.6%
    • The unemployment rate unexpectedly fell to 4.7% in January (4.8% prior)
  • Eurozone employment grew by 0.3% q/q in the fourth quarter (1.1% y/y) to 153.9M, the highest level since 2008
    • Unemployment is now at seven-year low of 9.8%
  • In France, the CPI rose 0.1% m/m in February, meeting estimates and matching January's growth rate
  • Italy's CPI was up 0.4% m/m in February (1.6% y/y), exceeding both estimates and January's 0.3%
    
    • Italian retail sales jumped by 1.4% m/m in January (-0.1% y/y), handily beating estimates and reversing December's 0.5% slide
  • Switzerland's PPI fell by 0.2% m/m in February (+1.3% y/y), missing forecasts after a 0.4% jump in January
  • Turkish unemployment climbed to 12.7% in December, its highest level since 2010. November's reading was just 12.1%
• Yield Check:
  • France, 10-yr OAT: -2 bps to 1.07%
  • Germany, 10-yr bund: -2 bps to 0.43%
  • Greece, 10-yr note: -2 bps to 7.18%
  • Italy, 10-yr BTP: -4 bps to 2.31%
  • Portugal, 10-yr PGB: -1 bp to 3.94%
  • Spain, 10-yr ODE: -4 bps to 1.83%
  • U.K., 10-yr gilt: unch at 1.15%

 Gapping up

Gapping up
In reaction to strong earnings/guidance:

• PIP +28.8%, ARNA +23.2%, RST +12.2%, AXAS +11.5%, GTXI +10.2%, EVRI +8.3%, SLD +6.6%
• PWE +6.3%, FOGO +5.7%, ARCO +4.7%, CLDX +3.3%, DBVT +2.1%, QURE +1.3%, FAC +0.8%, FRAC +0.5%

M&A news:

• MSCI +11.6% (report that S&P Global might be considering a GBP 9 bln takeover of the company)

Select metals/mining stocks trading higher:

• DRD +3.3%, RIO +3.1%, CLF +3%, MT +2%, NEM +1.9%, BBL +1.8%, SBGL +1.7%, FCX +1.7%
• BHP +1.6%, GOLD +1.3%, AA +1.3%, AU +1.2%, GDX +1%, GG +1%

Select oil/gas related names showing strength:

• SDRL +3.9%, WFT +3.3%, WLL +2.1%, CHK +1.9%, MRO +1.8%, PBR +1.8%, RIG +1.7%, BP +0.9%, RDS.A +0.9%

Other news:

• TCON +11.1% (Announced that it entered into a Common Stock Purchase Agreement of up to $21 mln with Aspire Capital)
• CPRX +10.3% (positive results in a seven-patient trial evaluating Firdapse as a treatment for myasthenia gravis patients with anti-MuSK antibodies)
• CALL +9.5% (names Don Carlos Bell III as Chief Executive Officer, announces dual track approach to maximize shareholder value through strategic alternatives process and the execution of new business strategy )
• KITE +2.9% (Highlighted the publication of results in the Journal of Clinical Oncology from a National Cancer Institute study of anti-CD19 chimeric antigen receptor T-cell therapy in patients with relapsed/refractory non-Hodgkin lymphoma)
• AI +2.1% (Affirmed an unchanged quarterly dividend of $0.625/share)
• TWO +1.1% (Increased its quarterly dividend to $0.25/share from $0.24/share)

Analyst comments:

• GOGL +9.3% (upgraded to Buy at Pareto Securities)
• SWN +5% (upgraded to Buy from Neutral at Citigroup)
• OXY +1.6% (upgraded to Buy from Neutral at BofA/Merrill)
• REVG +1.5% (initiated with a Outperform at BMO Capital Markets)
• FNSR +1.4% (upgraded to Buy from Hold at Jefferies)
• AMFW +1.3% (upgraded to Outperform from Mkt Perform at Raymond James)
• NFLX +0.8% (upgraded to Hold from Underperform at Jefferies)

 

On The Wires Pingtan Marine Enterprise Ltd. (PME) announced that Global Deep Ocean Fishing (Pingtan) Industrial Limited Company, in which Pingtan has an equity investment, has begun development of a new processing factory in Pingtan Comprehensive Experimental Area, Fujian, PRC. Sigma Labs (SGLB) announced that it has signed a commercial alliance with Jaguar Precision Machine Corporation («Jaguar») to expand its suite of integrated, advanced manufacturing services recently strengthened by the commercial alliance with Morf3D of El Segundo, CA. The addition of Jaguar allows Sigma Labs to provide end-to-end 3D advanced component manufacturing capabilities, including: computer aided design (CAD); engineering (CAE); manufacturing (CAM); and inspection (CAI). Jaguar is a precision prototype machining facility located in Albuquerque, NM. Leveraging Sigma Labs' 3D printing capability and PrintRite3D quality assurance software, Jaguar will be able to provide increased production rates while ensuring consistent part quality. The two companies will also work together to manufacture 3D printed parts requiring exacting precision to demanding specifications, with contracts expected in 2017. Materialise (MTLS) announces FDA clearance for 3D-printed patient-specific radius and ulna osteotomy guides for children as young as seven years.  Varonis Systems (VRNS) announced an agreement with immixGroup, an Arrow company that helps technology companies do business with the government. In an effort to align public and private sector IT initiatives, this agreement allows federal, state and local government agencies to purchase Varonis' innovative data security platform to analyze the behavior of the people and machines that access their data, alert on misbehavior and enforce a least privilege model. Orbital ATK (OA) announced that it recently received a contract modification from General Dynamics Ordnance and Tactical Systems for the purchase of M257 (visible) and M278 (infrared) illuminating flares for the Hydra-70 family of rockets.

 Gapping down

Gapping down
In reaction to disappointing earnings/guidance:

• RUBI -23.7%, CXRX -15.1%, NPTN -11.9%, IMUC -8.1%, OHAI -7.8%, FTD -7.7%, CNXR -5.8%
• INFI -5.1%, AKAO -5%, CBK -4.2%, TWI -4.2%, CELP -3%, CEL -1.9%, KURA -1.6%

Other news:

• DRWI -13.2% (announces it is raising approx. $1.79 mln in gross proceeds in an at-the-market registered direct offering and a concurrent private placement to institutional investors in the United States)
• NMM -11.2% (Agreed to sell approximately 47.6 mln common units in a registered direct offering at $2.10/unit)
• IMUC -8.1% (Confirmed that its Annual Report on Form 10-K for the year ended December 31, 2016 contained an audit opinion from its independent registered public accounting firm that included a going concern emphasis of matter paragraph)
• ENDP -1.9% (Continued weakness following late day selloff on negative Advisory Committee vote)
• MU -1.7% (still checking)
• TWTR -1% (Early investor and long-time advocate Chris Sacca in series of tweets says no longer a shareholder, 'love the service, hate the stock')

Analyst comments:

• TTOO -3.6% (downgraded to Underweight from Equal-Weight at Morgan Stanley)
• SNAP -2.3% (initiated with a Underweight at Cantor Fitzgerald)
• ESRX -2.2% (downgraded to Underperform from Market Perform at Wells Fargo)
• INTC -0.7% (downgraded to Neutral from Outperform at Credit Suisse)

 Economic Data Generally In Line to Slightly Better Than Expected… S&P futures vs fair value: +4.50. Nasdaq futures vs fair value: +6.60.

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

Just in, total CPI rose 0.1% (Briefing.com consensus +0.1%) in February while core CPI, which excludes food and energy, increased 0.2% (Briefing.com consensus +0.2%). On a year-over-year basis, total CPI is up 2.7% and core CPI has increased 2.2%.

Separately, February retail sales increased 0.1%, which is in line with the Briefing.com consensus. The prior month's reading was revised higher to 0.6% from 0.4%. Excluding autos, retail sales rose 0.2% while the consensus expected an uptick of 0.1%. The prior month's reading was revised higher to 1.2% from 0.8%.

The Empire Manufacturing Survey for March rose to 16.4 from the prior month's reading of 18.7. The Briefing.com consensus estimate was pegged at 14.5.

 

United Continental raises capacity, cuts unit cost guidance for FY17 at J.P. Morgan Conf.  (66.55) Raises FY17 capacity to +2.5-3.5% from +1.0-2.0% (raising domestic and international). Lowers FY17 unit op-ex (CASM): +5.6-7.2% from +6.6-8.2%; non fuel +2.5-3.5% from +3.-4.5% Focused on Investor day earnings improvement targets, plans to close margin gap by 2020. Reaffirms Q1 PRASM -1% to +1%; sees positive Q2 PRASM CEO Munoz is presenting at 12:00.

 Gapping up/down: FOGO +6% after earnings, MSCI +12% after M&A spec, NFLX +1% after upgrade; FTD -8%, CBK -4% and TWI -4% after earnings, INTC -0.7% after dg

Gapping up
In reaction to strong earnings/guidance:

• PIP +28.8%, ARNA +23.2%, RST +12.2%, AXAS +11.5%, GTXI +10.2%, EVRI +8.3%, SLD +6.6%
• PWE +6.3%, FOGO +5.7%, ARCO +4.7%, CLDX +3.3%, DBVT +2.1%, QURE +1.3%, FAC +0.8%, FRAC +0.5%

M&A news:

• MSCI +11.6% (report that S&P Global might be considering a GBP 9 bln takeover of the company)

Select metals/mining stocks trading higher:

• DRD +3.3%, RIO +3.1%, CLF +3%, MT +2%, NEM +1.9%, BBL +1.8%, SBGL +1.7%, FCX +1.7%
• BHP +1.6%, GOLD +1.3%, AA +1.3%, AU +1.2%, GDX +1%, GG +1%

Select oil/gas related names showing strength:

• SDRL +3.9%, WFT +3.3%, WLL +2.1%, CHK +1.9%, MRO +1.8%, PBR +1.8%, RIG +1.7%, BP +0.9%, RDS.A +0.9%

Other news:

• TCON +11.1% (Announced that it entered into a Common Stock Purchase Agreement of up to $21 mln with Aspire Capital)
• CPRX +10.3% (positive results in a seven-patient trial evaluating Firdapse as a treatment for myasthenia gravis patients with anti-MuSK antibodies)
• CALL +9.5% (names Don Carlos Bell III as Chief Executive Officer, announces dual track approach to maximize shareholder value through strategic alternatives process and the execution of new business strategy )
• KITE +2.9% (Highlighted the publication of results in the Journal of Clinical Oncology from a National Cancer Institute study of anti-CD19 chimeric antigen receptor T-cell therapy in patients with relapsed/refractory non-Hodgkin lymphoma)
• AI +2.1% (Affirmed an unchanged quarterly dividend of $0.625/share)
• TWO +1.1% (Increased its quarterly dividend to $0.25/share from $0.24/share)

Analyst comments:

• GOGL +9.3% (upgraded to Buy at Pareto Securities)
• SWN +5% (upgraded to Buy from Neutral at Citigroup)
• OXY +1.6% (upgraded to Buy from Neutral at BofA/Merrill)
• REVG +1.5% (initiated with a Outperform at BMO Capital Markets)
• FNSR +1.4% (upgraded to Buy from Hold at Jefferies)
• AMFW +1.3% (upgraded to Outperform from Mkt Perform at Raymond James)
• NFLX +0.8% (upgraded to Hold from Underperform at Jefferies)

Gapping down
In reaction to disappointing earnings/guidance:

• RUBI -23.7%, CXRX -15.1%, NPTN -11.9%, IMUC -8.1%, OHAI -7.8%, FTD -7.7%, CNXR -5.8%
• INFI -5.1%, AKAO -5%, CBK -4.2%, TWI -4.2%, CELP -3%, CEL -1.9%, KURA -1.6%

Other news:

• DRWI -13.2% (announces it is raising approx. $1.79 mln in gross proceeds in an at-the-market registered direct offering and a concurrent private placement to institutional investors in the United States)
• NMM -11.2% (Agreed to sell approximately 47.6 mln common units in a registered direct offering at $2.10/unit)
• IMUC -8.1% (Confirmed that its Annual Report on Form 10-K for the year ended December 31, 2016 contained an audit opinion from its independent registered public accounting firm that included a going concern emphasis of matter paragraph)
• ENDP -1.9% (Continued weakness following late day selloff on negative Advisory Committee vote)
• MU -1.7% (still checking)
• TWTR -1% (Early investor and long-time advocate Chris Sacca in series of tweets says no longer a shareholder, 'love the service, hate the stock')

Analyst comments:

• TTOO -3.6% (downgraded to Underweight from Equal-Weight at Morgan Stanley)
• SNAP -2.3% (initiated with a Underweight at Cantor Fitzgerald)
• ESRX -2.2% (downgraded to Underperform from Market Perform at Wells Fargo)
• INTC -0.7% (downgraded to Neutral from Outperform at Credit Suisse)

 Gold and silver futures fall to new lows for the day following this batch of econ data (CPI, retail sales, Empire Manu)… although the moves were small (gold fell about $2 to $1198/oz)

• Apr gold futures are now -0.3% at $1198.50/oz
• May silver is -0.3% at $16.88/oz

Other commodities such as copper, oil and natural gas showed muted price action following

• Apr crude oil rose following the API data/IEA report
• Apr crude is now +2% at $48.65/barrel

 

Ideal Power discloses the separation of the roles of Chairman & CEO; elects Lon Bell as Interim Chairman, Brdar continues role as CEO  (3.15)On Mar 9, 2017, the Board of Ideal Power determined that it was in the best interest of the co to separate the role of Chairman from the role of CEO. To this end, the Board elected Lon Bell as Interim Chairman of the Board. Dr. Bell has been a director of the Board since Nov 2012. Mr. Brdar will continue in his role as Chief Executive Officer and President of the Company and as a member of the Board.

 S&P futures vs fair value: +4.80. Nasdaq futures vs fair value: +7.10.

The S&P 500 futures trade five points (0.2%) above fair value.

Equity indices in the Asia-Pacific region ended the midweek session on a mixed note, but trading ranges were narrow once again, as investors awaited the latest rate decision and policy statement from the Federal Reserve. The Bank of Japan will follow, releasing its own policy update on Thursday. China's Premier Li Keqiang called for an improvement in Sino-US relations. Mr. Li added that China's 6.5% GDP growth target is ambitious given external risks.

• In economic data:
  • Japan's January Industrial Production -0.4% month-over-month (expected -0.8%; last -0.8%) and January Capacity Utilization +0.1% month-over-month (last 0.6%)
  • Australia's February New Motor Vehicle Sales -2.7% month-over-month (last 0.6%) and March Westpac Consumer Sentiment 0.1% (last 2.3%)
  • New Zealand's Q4 Current Account as % of GDP -2.7% (expected -2.8%; last -2.9%)
  • South Korea's February Unemployment Rate 4.0% (expected 3.7%; last 3.6%)
  • Singapore's Q4 Unemployment Rate 2.2% (last 2.2%)

---Equity Markets---

• Japan's Nikkei shed 0.2%. Toshiba plunged 12.2% after submitting its internal controls report to the Tokyo Stock Exchange. Nippon Sheet Glass, Nisshin Steel Holdings, SUMCO, Furukawa Electric, Nitto Denko, Advantest, and Kobe Steel lost between 1.5% and 4.3%.
• Hong Kong's Hang Seng slipped 0.2% amid losses in more than half of its components. Cathay Pac Air fell 1.4% while financials like Hang Seng Bank, ICBC, Bank of China, China Life Insurance, Bank of East Asia, and China Construction Bank lost between 0.3% and 0.9%.
• China's Shanghai Composite added 0.1%. Xinjiang Yilite Industry, Long Yuan Construction, Chongqing Wanli New Energy, and Hangxiao Steel Structure all gained near 4.0% apiece.
• India's Sensex ended lower by 0.2%. Tech consultants Tata Consultancy, Infosys, and Wipro lost between 1.4% and 2.4% while financials were mixed. ICICI Bank lost 0.6%, AXIS Bank added 0.2%, and HDFC Bank rose 0.5%.

Major European indices trade near their flat lines while Italy's MIB (+0.7%) and Spain's IBEX (+0.7%) outperform. Today's mostly range-bound action comes ahead of the latest FOMC rate decision and today's general election in the Netherlands. In Scotland, a YouGov Times survey showed that 57.0% of voters support remaining in the United Kingdom. Also of note, French presidential candidate Francois Fillon was placed under a formal investigation for diversion of public funds.

• In economic data:
  • Eurozone Q4 Employment Change +0.3% quarter-over-quarter (expected 0.2%; last 0.2%); +1.1% year-over-year (consensus 1.5%; last 1.2%)
  • UK's January Average Earnings Index + Bonus 2.2% (expected 2.4%; last 2.6%). February Claimant Count Change -11,300 (expected -5,000; last -41,400) and January Unemployment Rate 4.7% (expected 4.8%; previous 4.8%)
  • Italy's February CPI +0.4% month-over-month (expected 0.3%; last 0.3%); +1.6% year-over-year (consensus 1.5%; last 1.5%). January Retail Sales +1.4% month-over-month (expected 0.1%; last -0.5%); -0.1% year-over-year (last -0.2%)
  • France's February CPI +0.1% month-over-month, as expected (last 0.1%)
  • Swiss February PPI -0.2% month-over-month (expected 0.4%; last 0.4%); +1.3% year-over-year (consensus 1.8%; last 0.8%)

---Equity Markets---

• Germany's DAX trades flat. Commerzbank leads with a gain of 2.3% while Lufthansa, Adidas, Continental, Siemens, BASF, and Merck are up between 0.3% and 1.7%. On the downside, E.On is down 2.2% after showing relative strength yesterday.
• France's CAC has added 0.1%. Growth-sensitive names like TechnipFMC, Schneider Electric, ArcelorMittal, LafargeHolcim, and Total lead with gains between 1.0% and 1.4%. Automakers Peugeot and Renault underperform with respective losses of 0.8% and 2.3% amid accusations that Renault tampered with emissions data.
• UK's FTSE is higher by 0.2%. Hikma Pharmaceuticals has spiked 7.0% after beating earnings expectations while miners Rio Tinto, Antofagasta, Glencore, Anglo American, BHP Billiton, and Fresnillo show gains between 0.7% and 2.6%. Homebuilders Persimmon, Taylor Wimpey, and Barratt Developments lag with losses between 0.5% and 1.4%.
• Italy's MIB outperforms with a gain of 0.7%. Banco Bpm, Mediobanca, UniCredit, Intesa Sanpaolo, and Banca Mediolanum have added between 0.2% and 1.7%.

 

Filings, Offerings and Pricings Filings: First Industrial Realty (FR) files for $1.5 bln mixed securities shelf offering NexPoint Residential Trust (NXRT) files for $200 mln mixed securities shelf offering Penumbra (PEN) files for mixed securities shelf offering; size not disclosed Quanta Services (PWR) files for offering of 2,104,594 shares of common stock by selling securityholders uniQure (QURE) files for $250 mln mixed securities shelf offering by the co and/or selling shareholders Offerings: Golden Ocean (GOGL) commences equity offering for issue of new shares for gross proceeds of the NOK equivalent of ~$60 mln Pricings: DragonWave (DRWI 1.50) announces it is raising approx. $1.79 mln in gross proceeds in an at-the-market registered direct offering and a concurrent private placement to institutional investors at $1.50/share Navios Maritime Partners (NMM 2.50) agrees with investors to sell ~47.6 million common units in a registered direct offering at $2.10 per common unit ON Semiconductor (ON 15.35) prices offering of $500 mln of 1.625% Convertible Senior Notes due 2023

 

Capital Bank shares higher by 7% pre-market following report that company is considering sale  (40.90)

 

On The Wires On March 9, 2017, Mitel Networks (MITL) completed a refinancing of its long-term senior debt The Credit Agreement consists of a US$350 mln revolving credit facility, of which US$95 mln was drawn on the Closing Date and a fully drawn US$150 mln term loan facility. Proceeds from the New Credit Facilities were used to repay the approximately US$239.4 mln outstanding under Mitel's existing credit facilities, as well as fees and expenses related to the foregoing. Tempur Sealy International (TPX) announced that its Board of Directors has amended and restated its previously adopted Rights Plan to add a qualified offer stockholder exemption provision. CGI (GIB) announced its selection by the State of Colorado to lead the next two phases of the modernization of its Trails system, the state automated child welfare information system used primarily by employees with the CDHS divisions of child welfare and youth corrections and 64 county human and social services departments serving at-risk populations statewide. Digimarc Corporation (DMRC) announced that NCR Corporation, a global leader in omni-channel solutions, has enabled Digimarc Barcode support to its new high performance NCR RealScan 79e all-imaging bi-optic scanner for easier and more efficient retail checkout. Immersion (IMMR) announced that Lenovo PC HK Ltd. has adopted Immersion's TouchSense technology in its new Lenovo A12 2-in-1 Android tablet. With TouchSense technology, consumers can now experience a highly interactive input experience with the sensation of keys in Lenovo's industry-leading keyless keyboard. Ecopetrol S.A. (EC) reported that on March 14, 2017, rating agency Fitch Ratings improved the outlook for the company's rating from a negative to a stable outlook. At the same time it maintained the local and foreign currency long-term risk rating at BBB. NeoPhotonics (NPTN) announced general availability of high power 1310 nm lasers and laser arrays qualified for use with low-cost, non-hermetic packages for 100G silicon photonics based QSFP28 modules in data center applications.

 GTX +10.2% pre-market after reporting Q4 results & providing a corporate update  (5.28)

• GTX reported Q4 GAAP EPS of ($0.44), vs the ($0.57) single analyst estimate.
• As of Dec 31, 2016, cash and short-term investments were $21.9 million compared to $29.3 million at Dec 31, 2015.
• Corporate update:
  • AR+TNBC: The co expects to have sufficient data from Stage 1 of the trial by the second quarter of 2017 to determine if patient enrollment should continue into Stage 2 of the trial.
  • Stress Urinary Incontinence: The co expects to have top-line results from the trial in the third quarter of 2017.
  • Castration-Resistant Prostate Cancer: It is anticipated that a first in human clinical trial of a SARD will be initiated during the second half of 2017.

 

Norfolk Southern downgraded to Peer Perform from Outperform at Wolfe Research  (118.35)

 

S&P futures vs fair value: +6.00. Nasdaq futures vs fair value: +10.90. A jump in the price of crude oil has nudged equity futures higher this morning, but caution ahead of the Federal Open Market Committee's rate decision has kept gains in check. The S&P 500 futures trade six points (0.3%) above fair value. The two-day FOMC meeting will come to a conclusion this afternoon with the Fed announcing its rate decision at 14:00 ET. However, given that a rate hike is widely expected, investors will be more interested in the central bank's dot plot, which shows expectations for future rate changes. Crude oil has reversed its bearish ways this morning following the API's latest crude oil inventory report, which showed an unexpected draw of 0.531 million barrels. If the EIA's inventory reading shows a similar figure later this morning at 10:30 ET, the energy component will be poised to break its streak of six consecutive retreats. WTI crude currently trades higher by 1.7% at $48.54/bbl. In U.S. corporate news, airlines trade lower in pre-market action after Winter Storm Stella caused a mass of flight cancellations on Tuesday. United Continental (UAL 64.80, -1.75) leads the retreat with a loss of 2.6%. Investors received several important economic reports earlier this morning, however, the response has been minimal as the data came in roughly as expected. Total CPI rose 0.1% (Briefing.com consensus +0.1%) in February while core CPI, which excludes food and energy, increased 0.2% (Briefing.com consensus +0.2%). On a year-over-year basis, total CPI is up 2.7% and core CPI has increased 2.2%. Separately, February retail sales increased 0.1%, which is in line with the Briefing.com consensus. The prior month's reading was revised higher to 0.6% from 0.4%. Excluding autos, retail sales rose 0.2% while the consensus expected an uptick of 0.1%. The prior month's reading was revised higher to 1.2% from 0.8%. The Empire Manufacturing Survey for March rose to 16.4 from the prior month's reading of 18.7. The Briefing.com consensus estimate was pegged at 14.5. Investors will also receive January Business Inventories (Briefing.com consensus 0.3%) and the March NAHB Housing Market Index (Briefing.com consensus 65) on Wednesday. Both reports will cross the wires at 10:00 ET.

 

Brazilian Equities downgraded to Market Weight from Overweight at Credit Suisse  (36.65)

 

Nucor among stocks with favorable commentary on Tuesday's Mad Money  (60.73) Stocks with favorable mention: AAPL, CHKP, CSCO, CYBR, FB, NUE, PLD, SYY, TSLA Stocks with unfavorable mention: JEC, SGEN

 

WGL Holdings downgraded to Underperform from Neutral at Hilliard Lyons  (82.60)

 

Air Methods downgraded to Equal Weight from Overweight at a boutique firm  (43.00)

 

Laureate Education: Melvin Capital Management discloses 7.1% passive stake  (12.80)

 

On The Wires SkyPeople Fruit Juice (SPU) announced that on March 13, 2017, Hedetang Foods, a wholly-owned subsidiary of SkyPeople Fruit Juice, signed a one-year business agreement with the Jiangsu Nongmuren Agricultural Products e-commerce Platform. Earlier this month, Hedetang Foods joined the China Aigo O2O Technology Inc.'s Aigo Integrity Alliance and is receiving orders from that platform now. Mango Health announced a long term operating partnership with Express Scripts (ESRX) which will include a new daily health management platform to improve health outcomes. Through the partnership, Mango Health's innovative patient-facing mobile applications will be available to Express Scripts' clients, representing more than 85 million Americans. In addition to the operating partnership, Express Scripts has made a strategic investment in Mango Health. MoneyGram (MGI) confirmed that it has received an unsolicited proposal from Euronet Worldwide to acquire all of the outstanding shares of MoneyGram Common Stock and Preferred Stock for $15.20 per share in cash on an as-converted basis. Consistent with its fiduciary duties, MoneyGram's Board of Directors, in consultation with its legal and financial advisors, will carefully review and consider the proposal to determine the course of action that it believes is in the best interests of the Company and its stockholders. The Missouri Supreme Court yesterday handed down an opinion in a case important to Missouri American Water (AWK) and other entities across the state, dismissing an argument about a fee the company had been issuing in St. Louis County, but leaving the state legislature to clarify a question on population-based laws.  Missouri American Water had been issuing the Infrastructure System Replacement Surcharge to customers in St. Louis County through Feb. 2016. The fee, which averaged just more than $3 per residential customer per month, helped pay for infrastructure investment in the county. The Supreme Court, in its opinion, ruled the argument about the fee moot because the company had already recouped ISRS-related costs during its most recent rate case with the Missouri Public Service Commission. Aptevo Therapeutics Inc. (APVO) announced the successful manufacture of a recent bulk drug substance batch of IXINITY. Consequently, Aptevo anticipates that new supply will be available beginning in May 2017, after the completion of routine final drug product manufacturing activities. CVS Health (CVS) announced that, in 2016, its pharmacy benefit management clients achieved the lowest drug trend in the past four years, despite rising drug prices. CVS Caremark clients saw their prescription drug trend drop to an average of 3.2% compared to 5.0% in 2015. In addition, 38 percent of CVS Caremark commercial clients achieved a negative trend — which means they actually spent less on their prescription benefit in 2016 than they did in 2015, despite rising drug prices. Out-of-pocket costs for members also dropped 3.0% compared to the previous year. Related: Express Scripts (ESRX)

 Hearing Veritiv was initiated premarket with a Market Perform at Wells Fargo  (56.15 +0.20)

 

Hearing FTD Companies was downgraded to Neutral from Buy at Sidoti  (20.06 -3.33)

 

Hearing South Jersey Industries was upgraded to Long-term Buy from Neutral at Hilliard Lyons  (33.53 +0.73)

 Opening Market Summary: Equity Indices Start Wednesday in the Green

The S&P 500 opens Wednesday's session with a modest gain of 0.2%.

The materials (+0.6%) and energy (+0.6%) sectors lead with the latter space benefiting from crude oil's advance. The energy component trades 1.4% higher at $48.41/bbl after the API's latest inventory report showed an unexpected draw of 0.531 million barrels. 

Meanwhile, the top-weighted technology group (unch) underperforms as chipmakers weigh; the PHLX Semiconductor Index trades lower by 0.2%.

 

Sector Summary: Technology (XLK -0.04%) trading slightly lower today, behind the broader market The tech sector — XLK — trades behind the broader market. Semiconductors, meanwhile, display relative weakness as the SOX index trades -0.04%. Within the SOX index, TER (+1.30%) outperforms, while AMD (-2.77%) lags. Among other major indices, the SPY is trading 0.30% higher, while the QQQ +0.02% and the NASDAQ +0.44% trade modestly higher on the session. Among tech bellwethers, AMX (+1.02%) is showing relative strength, while NTES (-0.79%) lags. Notable gainers following earnings: EVRI (+17.9%) reported Q4 revenues which beat market expectations; guided FY17 adj EBITDA, RST (+9.4%) Notable laggards following earnings: RUBI (-24.7%) reported better than expected Q4 EPS and revs; guided Q1 EPS and revs worse than expected, NPTN (-7.1%) Gainers on news: RST (+9.4%) co announced SOURCENEXT has been granted a perpetual, exclusive license to sell and develop products and services in Japan using the Rosetta Stone brand and trademark. SMI (+2.0%) co executed a technology transfer and license agreement for Invensas' (XPER) Direct Bond Interconnect technology. T (+0.5%) The European Commission approved AT&T's pending acquisition of Time Warner (TWX); companies expect to close the transaction by the end of 2017. Laggards on news: RUBI (-24.7%) co, in addition to reporting quarterly results, appointed Michael Barrett as CEO. CNXR (-23.9%) co completed additional $17.5 mln cash investment led by Francisco Partners. DRWI (-19.7%) co announced it is raising approx. $1.79 mln in gross proceeds in an at-the-market registered direct offering and a concurrent private placement to institutional investors in the United States. TWTR (-1.8%) co Early investor and long-time advocate Chris Sacca in series of tweets said no longer a shareholder, 'love the service, hate the stock'. ADS (-0.6%) co provided an update on its Card Services segment for February; reaffirms the net loss rate is consistent with maintaining the Co's full year guidance of $7.7 bln in total revenue, $18.50 in core EPS, and a net loss rate in a mid-5% range. Among notable analyst upgrades: NFLX (+0.6%) upgraded to Hold from Underperform at Jefferies FNSR (+1.4%) to Buy from Hold at Jefferies EVRI (+17.9%) to Outperform from Market Perform at Telsey Advisory Group EVRI (+17.9%) to Buy from Hold at Craig Hallum A (+4.7%) to Overweight from Equal Weight at Morgan Stanley Among notable analyst downgrades: INTC (-0.6%) downgraded to Neutral from Outperform at Credit Suisse WBMD (-1.9%) to Market Perform from Outperform at Cowen MBLY (-0.1%) to Neutral from Buy at Goldman MBLY (-0.1%) to Equal Weight from Overweight at Barclays CGNX (-0.5%) to Hold from Buy at Needham RUBI (-24.7%) to Hold from Buy at Craig Hallum RUBI (-24.7%) to Neutral from Buy at B. Riley & Co. CTXS (+0.2%) to Neutral from Buy at BofA/Merrill Scheduled to report earnings after the bell: ALRM, GSUM, JBL, CALL, ORCL, YRD Scheduled to report earnings tomorrow morning: JASO

 Rite Aid ticking lower in recent trade following new report that FTC might have issues with pending Walgreens (WBA) merger  (4.82 -0.04)Related Stocks: FRED

 

Qorvo upgraded to Buy at Charter Equity; Execution issues behind it, better than expected growth ahead  (67.74 -0.11)Charter Equity upgrades QRVO to Buy from Mkt Perform noting technical discussions at MWC increased firm's confidence that spending on RF components is running ahead of expectations and that more of it is increasingly being directed at Qorvo. In fact, like its two largest competitors, firm believes Qorvo is facing a wave of demand that will drive robust topline growth over the next several years. Unlike Broadcom (AVGO) and Skyworks (SWKS) however, it's developing products in all the primary RF technologies from SAW filters to envelope tracking. It was this avalanche of development that they believe led to last year's execution problems. With so many of its staff devoted to new projects it launched too many new designs on too many new processes for yields not to suffer. With execution issues behind it and strong secular growth ahead, firm expects co to begin converting more of its revenue to EPS, for financial performance to meet or exceed consensus and for the stock's multiple to expand.

 

Early Options Activity Taking an early look at the options market, we found the following names that may be worth watching throughout the day for further indication of investor expectations given their options volume and implied volatility movement. Stocks seeing volatility buying (bullish call buying/bearish put buying): Calls: ARRY Apr 12 calls are seeing interest with 1950 contracts trading vs. open int of 4470, pushing implied vol up around 8 points to ~79% — co reported earnings early February and is expected to report its next quarterly earnings report early May. In September, the FDA accepted the New Drug Application for binimetinib with a target action date under the Prescription Drug User Fee Act of June 30, 2017. Puts: LUV Weekly Mar31 54.5 puts are seeing interest with 1540 contracts trading vs. open int of 1580, pushing implied vol up around 1 points to ~27% — we noted activity in the May 56 calls earlier this month — see 3/10 13:27 OPTNX.  Co is expected to report earnings late April (March traffic data release scheduled for April 10). Stocks seeing volatility selling: NVLN, PPP, ARNA implied vol is lower following earnings/guidance Sentiment: The CBOE Put/Call ratio is currently: 0.93… VIX: (11.98, -0.32, -2.6%). This Week is options expiration — Friday, March 17th is the last day to trade March equity options. *Please use the Talk to Us link at the top of the page to provide feedback on this comment as well as the OPTNX comments.

 

United Tech's Carrier announces a settlement of Carrier's patent infringement lawsuit against Goodman, and Goodman's counterclaims, concerning Carrier's Infinity technology; financial details not disclosed  (112.54 +0.71)

 

NeoPhotonics (+5%) reverses into positive territory following weak guidance; Oclaro (OCLR) also strong following upbeat presentation   (8.53 +0.45)OPtical stocks: OCLR +4.57% NPTN +2.72% LITE +2.03% FNSR +1.87% IPHI +1.24% IIVI +1.06% COHR +0.90% AAOI +0.79% INFN +0.69% FN +0.54% CIEN +0.53% ADTN +0.47% AXTA +0.02% ACIA -0.06%

 

Morning Commodities: Crude retreats from session highs despite EIA reporting draws across the board, remains on track to rebound from yesterday's 3-month low; gold pierces through the $1200/oz support zone ahead of the Fed rate decision Crude oil futures retreated from session highs of +2% despite EIA reporting draws across the board for crude, gasoline, & distillate inventories; remained on track to rebound off of yesterday's 3-month low after closing lower for the past 6 previous sessions April crude oil futures were up about $0.76 (+1.6%) around the $48.45/barrel level Ahead of the release, April 2017 crude oil futures were up about +2% at session highs. See today's post under USO at 7:47 am ET for color on oil prices & IEA data highlights Reminder: Baker Hughes rig count data will be released Friday at 1 pm ET. EIA highlights: Crude oil inventories had a draw of -0.2 mln barrels (consensus called for a build of +3.713 mln barrels). Gasoline inventories had a draw of -3.1 mln barrels (consensus called for a draw of -1.950 mln barrels). Distillate inventories had a draw of -4.2 mln barrels. In precious metals, gold broke through the $1200/oz support zone & remained on track to close lower for 8 out of the past 9 sessions ahead of today's Fed rate decision April gold futures were down about $3.40 (-0.3%) around the $1199.30/oz level Reminder: The Fed began a 2-day meeting yesterday. The interest rate decision will be announced today at 14:00 (along with econ projections). Expectations are for a 25 bps rate increase to 0.75-1.00%. Janet Yellen will hold a press conference at 14:30 ET. May silver futures were down about $0.03 (-0.2%) around the $16.89/oz level The dollar index was -0.1% around the 101.63 level Commodities, as measured by the Bloomberg Commodity Index, were +0.7% around the 84.47 level Natural gas rebounded from yesterday's sell-off, was trading just shy of the $3.00/MMBtu resistance zone ahead of tomorrow's EIA April natural gas futures were up about $0.04 (+1.3%) around the $2.98/MMBtu level EIA natural gas data will be released tomorrow at 10:30 am ET

 

Notable movers of interest: A +4.3% on upgrade to Overweight from Equal-Weight at Morgan Stanley 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 A (54.44 +4.27%): Upgraded to Overweight from Equal-Weight at Morgan Stanley. ANTM (170.31 +3.11%): Reaffirms FY17 adj EPS guidance to be greater than $11.50/share in an 8-K. HOG (61.86 +2.93%): Upgraded to Neutral from Underperform at Longbow. Large Cap Losers TWTR (14.97 -2.32%): Early investor and long-time advocate Chris Sacca in series of tweets says no longer a shareholder, 'love the service, hate the stock'. ESRX (65.65 -1.78%): Downgraded to Underperform from Market Perform at Wells Fargo. NSC (116.96 -1.17%): Downgraded to Peer Perform from Outperform at Wolfe Research. Mid Cap Gainers MSCI (105.76 +9.79%): Reports that S&P Global might be considering a GBP 9 bln takeover of the company. CLVS (72.71 +8.6%): Extends yesterday's strength after Astra-Zeneca's (AZN) positive PARP inhibitor data yesterday. Tesaro's (TSRO) PARP inhibitor was thought to be the best (and a potential prized asset to an acquirer) up until yesterday. AZN's positive data seems to have put the all three PARP assets (CLVS, TSRO and AZN) on somewhat of a level playing field, making CLVS look relatively more attractive. Mid Cap Losers TSRO (150.83 -1.84%): Tesaro target lowered to $164 from $200 at Wedbush after Lynparza demonstrates similar top-line efficacy in maintenance therapy SOLO-2 study. ON (15.09 -1.73%): Prices offering of $500 mln of 1.625% Convertible Senior Notes due 2023. VRX (10.81 -0.73%): Shares trade lower on continued weakness following yesterdays selloff on news that Pershing Square has sold their entire stake.

 MSCI shares resume trading  (98.50 +2.17)

 

China Eastern Airlines discloses February operating data  (29.19 +1.68)In relation to passenger traffic, the Company's passenger transportation data was affected by the Chinese New Year travelling period being earlier than in the previous year. Passenger capacity (measured by available seat-kilometres) of the Company in February 2017 increased by 2.5% year-on-year, passenger traffic (measured by revenue passenger- kilometres) increased by 4.7% year-on-year, and passenger load factor increased by 1.73 percentage points to 82.57% year-on-year. Freight transportation capacity (measured by available freight tonne-kilometres) of the Company in February 2017 decreased by 4.8% year-on-year. Freight traffic volume (measured by revenue freight tonne-kilometres) increased by 17.2% year-on-year, while freight load factor increased by 5.43 percentage points to 28.94% year-on-year.