>>> US Gapping down


Gapping down
In reaction to disappointing earnings/guidance
: PSO -16.4%, VMW -11.3%, (EMC and VMware announce plans to form a new cloud services business, by combining their respective cloud capabilities under the Virtustream brand), BDR -8.2%, (thinly traded, says it continued to experience lower than anticipated sales during Q3, liquidity position has not improved), CMG -7.3%, WSCI -6%, IRBT -5.1%, CLS -3.2%, EMC -2.6%, CS -2%, YHOO -1.6%, NTRS -1.5%, IBKR -1%, PII -0.9%, RUSHA -0.8%, CSL -0.6%, FTI -0.5%, KO -0.4%

M&A news: LRCX -3.6% (KLAC to be acquired by LRCX for value of ~$67.02/share, or ~$10.6 bln), WDC -2.6% (SanDisk to be acquired by WDC for $86.50/share, or ~$19 bln; also reported earnings)

Select metals/mining stocks trading lower: SBGL -1.6%, HMY -1.5%, GFI -1.4%, SLV -0.8%

Other news: SNTA -59.3% (terminates Phase 3 GALAXY-2 trial of ganetespib and docetaxel), FWM -2.6% (following intraday spike higher on increased volume--ended the day +30%), EMC -2.6% (EMC and VMware announce plans to form a new cloud services business, by combining their respective cloud capabilities under the Virtustream brand), HSBC -2% (in symp with CS), GBSN -1.6% (received a notice from Nasdaq for non-compliance with the exchange's minimum market cap and $1 minimum price bid standards), JD -1.6% (Shanghai -3.1% overnight), AMD -1% (S&P downgraded Advanced Micro Devices to 'CCC+' from 'B-' on weak operating performance; Outlook Negative), QIHU -0.8% (Shanghai -3.1% overnight), DB -0.8% (in symp with CS)

Analyst comments: HOG TWTR -4% (downgraded to Underweight from Equal-Weight at Morgan Stanley), MU -1% (downgraded to Underperform at BofA/Merrill), -0.5% (downgraded to Neutral from Overweight at JP Morgan)