>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance:

  • PII +6.2%, HAL +2%, KMB +1.8%

M&A news:

  • ARII +50.7% (merger agreement with ITE Rail Fund for $70.00/share, or approximately $1.75 bln)
  • FCAU +5% (to sell its automotive components business Magneti Marelli to CK Holdings (KKR) for EUR 6.2 bln)
  • JEC +2.4% (to sell its Energy, Chemicals and Resources segment to WorleyParsons for $3.3 bln)

Select China related names showing strength:

  • MOMO +7.7%, EDU +6.6%, WB +5.8%, CTRP +5%, VIPS +4.7%, SOHU +4%, BABA +3.6%, JD +3.3%, BIDU +3.2%, CMCM +3.1%, AABA +3.1%

Other news:

  • DVAX +20% (reports SD-101 in combination with KEYTRUDA continues to show a 70% overall response rate in advanced melanoma)
  • NCNA +8.4% (presents additional data from Phase I clinical study of NUC-3373 in patients with advanced solid tumors)
  • YNDX +7.1% (issues statement acknowledging recent media speculation about potential changes to their capital structure -- regularly receives various offers and expressions of interest from third parties)
  • PZZA +4.9% (Papa John's founder John Schnatter files amended 13D, issues letter regarding poison pill)
  • ZLAB +3.1% (approval of ZEJULA by the Hong Kong Department of Health)
  • EXEL +2.6% (reports new data for Cabozantinib demonstrating activity in patients previously treated with immune checkpoint inhibitors)
  • DBVT +1.6% (submits BLA to the FDA for Viaskin Peanut for the treatment of peanut allergy in children four to 11 years of age)
  • MRK +1% (reports KEYTRUDA showed a complete response rate of nearly 40% in patients with high-risk non-muscle invasive bladder cancer)
  • AZN +1% (SOLO-1 Phase III trial demonstrates Lynparza maintenance therapy cut risk of disease progression or death by 70% in patients with newly-diagnosed, advanced BRCA-mutated ovarian cancer)

Analyst comments:

  • CFG +12.7% (upgraded to Buy from Underperform at BofA/Merrill)
  • NIO +4.9% (initiated with a Outperform at Credit Suisse)
  • SVMK +2.9% (initiated with a Buy at BofA/Merrill)
  • LEN +1.8% (upgraded to Buy from Hold at Deutsche Bank)
  • INTC +1.6% (upgraded to Buy from Neutral at Nomura)
  • CMG +1.4% (upgraded to Outperform from Sector Perform at RBC Capital Mkts)