>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: JCP +21.2%, (Nov/Dec comps +3.7%, narrows fourth quarter sales guidance to upper end of range), PKT +21.2%, GBX +9.5%, SONC +7.1%, SVU +3.3%, HALO +2%, MON +1.9%, SIRI +0.9%, SHLM +0.5%

M&A news: PEP +2.3% (3G Capital discusses that 3G Capital may consider targets such as PEP, CPB, K, KRFT , according to reports), CPB +2.1%.

Select oil/gas related names showing strength: SDRL +2.6%, PBR +1.8%, TOT +1.5%, RIG +1.4%, RDS.A +1%, HAL +1%

Other news: FRO +10.1% (still checking), MTW +6.5% (announces Execution of Senior Management Succession Plan) LGF +5.9% (announced the Hunger Games Mockingjay -- Part 1, will be released in China on February 8), ALKS +5.7% (announces positive topline results from the 12-week phase 2 study of ALKS 3831), NDRM +5.4% (cont momentum after yesterdays 8% move higher), WYY +4% (announced that it has received a Task Order under a previously awarded Federal Government Blanket Purchase Agreement), GOL +3.8% (announces a codeshare agreement with Korean Air), GMCR +3.2% (partners with Dr. Pepper (DPS) to sell soda capsules, according to reports), BLUE +3.2% (favorable commentary on Tuesday's Mad Money), TRVN +2.6% (announces the initiation of a Phase 2b clinical trial of TRV130 for acute postoperative pain in patients following abdominoplasty surgery ), TTM +2.5% (rebounding from yday's sell off), ADXS +2.4% (Advaxis and the GOG Foundation to collaborate on global Phase 3 clinical trial of ADXS-HPV in cervical cancer), MTG +2.3% (disclosed it is is implementing changes for bonuses to be paid in 2015 and modified change in control agreements), GPRO +2% (following JP Morgan Tech Forum), OCLS +2% (announces new dermatology division, IntraDerm Pharmaceuticals), GEVA +1.9% (prices 3.0 mln shares of common stock at $94.19 per share), ISIS +1.9% (favorable commentary on Tuesday's Mad Money), UUUU +1.9% (Energy Fuels and Uranerz (URZ) announce conference call and webcast hosted January 8), TWTR +1.8% (moving higher with futures), CERS +1.6% (prices ~12.7 mln share at $5.50/share for expected gross proceeds of $70 mln), INTC +1.3% (presented at CES), CLR +1.2% (following FastMoney mention (Brian Kelly buyer)), RAD +1% (favorable commentary on Tuesday's Mad Money).

Analyst comments: NLST +22.4% (upgraded to Buy at Needham; tgt $1.50), JNS +3.2% (upgraded to Overweight from Underweight at JP Morgan), FSLR +2.8% (upgraded to Neutral from Sell at Goldman), RMTI +1.9% (initiated with an Outperform at Oppenheimer), AXP +1.7% (upgraded to Buy from Neutral at Goldman), MANH +1.6% (upgraded to Strong Buy from Outperform at Raymond James), OUBS +1.3% (upgraded to Overweight at Barclays), AEO +1% (upgraded to Market Perform from Underperform at Cowen)

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: LIQT -40.2%, MERU -4.1%, MDCO -3.4%, (to offer $300 mln of Convertible Senior Notes due 2022; disclosed that it expects on a preliminary basis that its net revenue for 2014 will remain within the range of its previously announced guidance of $720-735 million, but expects it to be at the lower end of that range), MU -2%, LLY -1.6%,RPM -1.3%

Select metals/mining stocks trading lower: AG -2.5%, AUY -2%, AEM -1.8%, GDX -1.6%, SLV -1.1%, GOLD -0.9%, NEM -0.9%

Other news: KBIO -64.5% (reports top-line data for Phase 2 Study of KB001-A to treat pseudomonas aeruginosa lung infections in cystic fibrosis patients -- primary endpoint was not met), PT -8.4% (follow through from yday - Portugal authorities starting to investigate fraud at Portugal Telecom SGPS, according to report), HLF -7.9% (light volume - Bill Ackman (who is short) on CNBC says HLF will miss Q4 estimates and lower FY15 guidance due to deterioration in business (after he shined light on co's issues) and FX headwinds), WLT -6.3% (still checking), CDR -1.9% (will issue and sell 5 mln shares of its common stock in a public offering ), WG -1.5% (co made a payment of $32.75 mln to West African Gas Pipeline Company Limited on December 30, 2014; has now paid in full all sums due under the March 29, 2012 Settlement Agreement)

Analyst comments: SNY -2.5% (downgraded to Sell from Neutral at Citigroup ), MDSO -1.4% (downgraded to Neutral from Buy at Sun Trust Rbsn Humphrey), TMK -0.9% (downgraded to Hold from Buy at Deutsche Bank), INFA -0.7% (downgraded to Sector Perform at RBC Capital Mkts), SINA -0.6% (downgraded to Sector Perform from Outperform at Pacific Crest ), KMT -0.5% (downgraded to Hold from Buy at KeyBanc Capital Mkts), FOSL -0.5% (downgraded to Underperform from Neutral at BofA/Merrill
)

>>> Monsanto beats by $0.12, beats on revs; confirms FY15 EPS in-line, co lowers

--> MON +2.32% on pre-market very low volume

Monsanto beats by $0.12, beats on revs; confirms FY15 EPS in-line, co lowers seeds and genomics segment gross profit growth p

Reports Q1 (Nov) earnings of $0.47 per share, $0.12 better than the Capital IQ Consensus Estimate of $0.35; revenues fell 8.7% year/year to $2.87 bln vs the $2.8 bln consensus.
  • Co confirms in-line guidance for FY15, sees EPS of $5.75-6.00 vs. $5.87 Capital IQ Consensus Estimate.
  • MON delivered earnings per share for the first quarter of fiscal year 2015 ahead of expectations it outlined at the beginning of the fiscal year. The company also noted the USDA's final Environmental Impact Statement concluding that Monsanto's Roundup Ready® 2 Xtend™ soybeans and Bollgard II® XtendFlex™ cotton should be fully deregulated.
  • Gross profit for the 2015 first quarter also decreased over the prior year period to $1.4 billion. As previewed in the fourth quarter of fiscal year 2014, the decline in gross profit in the quarter is due largely to lower planted acres for corn in South America and in cotton in Australia, combined with a timing shift as the company moves more of its Agricultural Productivity business to branded-product sales that historically occur more in the third quarter.
  • Co lowers seeds and genomics segment gross profit growth
    • With the expectation of lower global corn acres, the seeds and genomics gross profit growth percentage for the year is now expected to be more in the range of high single digits, down from double-digit gross profit

>>> US Early premarket gappers

Early premarket gappers
Gapping up: JCP +20.3%, GBX +9.5%, WLT +9.4%, FRO +8.9%, SONC +5.2%, PBR +2.7%, TRVN +2.6%, ARMH +2.6%, GPRO +2.5%, SDRL +2.5%, TTM +2.5%, FSLR +2.1%, TOT +2%, RIG +1.9%, SHLM +1.9%, TWTR +1.8%, GRPN +1.8%, MTW +1.3%, GMCR +1.3%, OUBS +1.3%, MSFT +1.2%, RDS.A +1.1%, HAL +0.9%

Gapping down: KBIO -62.3%, LIQT -40.2%, PT -14.7%, MU -3.5%, MDCO -3.4%, SNY -2.6%, AUY -2%, CDR -1.9%, WG -1.5%, KPTI -1.4%, CERS -1.4%, SLV -1.2%, OVAS -1%, GOLD -1%, GD -1%, NEM -1%, GFI -1%

>>> Eli Lilly reaffirms FY14 non-GAAP EPS; guides FY15 EPS towards low end of ex

Eli Lilly reaffirms FY14 non-GAAP EPS; guides FY15 EPS towards low end of expectations, rev just below

Co reaffirms guidance for FY14 (Dec), sees EPS of $2.72-2.80, excluding non-recurring items, vs. $2.78 Capital IQ Consensus.

Co issues guidance for FY15 (Dec), sees EPS of $3.10-3.20, excluding non-recurring items, vs. $3.19 Capital IQ Consensus; sees FY15 (Dec) revs of $20.3-20.8 bln vs. $20.83 bln Capital IQ Consensus.
  • The co expects to grow revenue with a first wave of product launches in diabetes, oncology and immunology followed by a second wave of potential launches in cardiovascular disease, Alzheimer's disease, pain and oncology. The company will focus on key geographies including the U.S., Japan, China and other select markets.
  • Lilly will focus its internal research and development on the core areas of diabetes, oncology, neurodegeneration, immunology and pain. Lilly is also progressing with an ambitious effort to reduce significantly the development time required to bring new medicines to patients.
  • The co aims to turn revenue growth into even greater earnings growth by controlling costs and leveraging existing infrastructure. By driving productivity improvements across the value chain, Lilly expects to reduce total operating expenses as a percent of revenue to 50% or less by the end of 2018.
Q4 financial results will be announced on Jan 30, 2015.