WSJ : Financier in Apparent Suicide Had Been in a Dispute Over Trades

Financier in Apparent Suicide Had Been in a Dispute Over Trades
Swiss Asset Manager Said Thierry Leyne’s Leyne Strauss-Kahn & Partners Made ‘Totally Unauthorized’ Trades

Thierry Leyne, the Franco-Israeli financier who died last week in an apparent suicide, was in a dispute with a Swiss asset manager that alleged Mr. Leyne’s firm made “totally unauthorized” trades with its money.

Mr. Leyne, who according to an Israeli official committed suicide in Tel Aviv Oct. 23, was the business partner of former International Monetary Fund chief Dominique Strauss-Kahn and chief executive of Paris-listed Leyne Strauss-Kahn & Partners.

According to letters sent by Swiss hedge-fund firm Insch Capital Management SA to Luxembourg and Swiss financial regulators earlier this year and seen by The Wall Street Journal, an LSK unit had used money in Insch’s bank account to buy shares in a small Swiss insurance company without Insch’s knowledge. According to emails reviewed by The Wall Street Journal, employees of LSK said Insch instructed them to buy shares in the Swiss insurance firm.

The Swiss insurance company in question, Firstcaution SA, is thinly traded and majority-owned by LSK.

The accusation of unauthorized trading comes as LSK regroups following Mr. Leyne’s death. A person familiar with the matter said Wednesday that Mr. Strauss-Kahn has left his role as chairman of the firm, while trading in its shares was halted on Euronext after they fell sharply following news of Mr. Leyne’s death.

An LSK spokesman didn’t respond to requests for comment. A spokeswoman for Mr. Strauss-Kahn didn’t respond to a request for comment.

On Tuesday, Assya Asset Management Luxembourg SA, the fund-management arm of LSK, filed an application for suspension of payments to creditors with the Luxembourg district court, according to a filing on the website of the Luxembourg financial regulator. Most of LSK’s website, including details of its operations and employees, had been removed by this past Tuesday.

Insch isn’t the only firm to make a complaint against LSK. Insurer Bâloise Luxembourg, part of the Swiss insurance group Bâloise Holding AG , also filed a complaint in the Luxembourg court against LSK over the failure to return a €2 million ($2.5 million) portfolio that had been invested by Assya, a spokesman said.

Insch Capital wrote it complained about the actions of Assya after discovering Firstcaution shares in its fund’s account.

According to a letter from Insch to the Luxembourg regulator, dated March 28 of this year and reviewed by the Journal, Assya had made “totally unauthorized purchases” of shares in Firstcaution and made a “false market for the FC shares.”

According to data from Euronext, on most of the days when trades occurred in 2011, only 10 shares of the little-trafficked firm typically changed hands per day, while there were no trades at all in 2012 or the first two months of 2013.

But volumes then spiked last year, with hundreds of thousands of shares changing hands on single days over the course of 2013, amounting to €6.6 million worth for the year.

Part of this trading included a transaction worth more than $400,000 from Insch’s account at VP Bank, a Luxembourg-based private bank, according to Insch’s letter.

LSK itself was just-over-30%-owned by Mr. Leyne, while Mr. Strauss-Kahn owns just over 20%.

A spokesman for Firstcaution said Wednesday that the firm is “currently putting together a group of investors (management & Swiss investors close to the company) to buy out the stake currently held by LSK Partners.” Firstcaution declined to comment about the trading patterns in its shares.

In his letter to the Luxembourg regulator, Insch CEO Chris Cruden said Assya had tried to persuade Insch to buy shares in Firstcaution in September last year, but Insch declined.

However, in October, Mr. Cruden wrote he asked Assya to transfer $350,000 of a credit line his fund had with VP Bank, only to discover that more than $400,000 had been spent on Firstcaution shares.

Mr. Cruden repeatedly asked LSK in October and November to sell the shares and refund his fund’s money, but this didn’t happen, according to the letter.

The dispute between Insch and Assya centers on whether Insch instructed Assya to make the trades.

Although the two firms already had an agreement in place that allowed Assya to buy and sell shares in Insch’s account, LSK employees say in emails reviewed by the Journal that Insch specifically instructed them to buy the Firstcaution shares. Insch disagrees in the emails and says the firm repeatedly didn’t act on its instructions to reverse the trade.

Mr. Leyne wrote an undated letter to Insch, reviewed by the Journal, promising to buy the Firstcaution shares by Feb. 24. However, this didn’t happen.

“I need more few days [sic]. You can be sure that you are a priority for us,” wrote Mr. Leyne in an email sent that day to Mr. Cruden and seen by the Journal.

LSK bought back the bulk of the shares in March this year, according to Insch’s letter to the Luxembourg regulator, and also transferred just under €40,000 from LSK to the Insch fund’s account.

The Luxembourg regulator replied to Insch’s letter in April, asking for further details. The Swiss regulator wrote back to Insch in May, saying it “does not comment on its ongoing supervisory activities.”

A spokeswoman for the Commission de Surveillance du Secteur Financier, the Luxembourg regulator, declined to comment. Fimna, the Swiss financial regulator, declined to comment.

VP Bank also declined to comment.

>>> US After Hours SMSI +15.8%, TTWO +6.4%, DWA +4.8%, V +4.1%, AFOP -17.2%, GLU

After Hours Summary: SMSI +15.8%, TTWO +6.4%, DWA +4.8%, V +4.1%, AFOP -17.2%, GLUU -16.8%, WTW -11.8% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: SMSI +15.8%, MOBL +11.7%, CJES +10.7%, LOPE +9.9%, FORM +8.2%, QTM +8%, HOS +7.6%, TTWO +6.4%, ISNS +5.3%, RNG +5.1%, DWA +4.8%, SLCA +4.7%, PPC +4.6%, HDSN +4.3%, V +4.1%, JDSU +3.9%, ESV +3.9%, CAVM +3.8%, ACHC +3.8%, ALDW +3.6%, UIHC +3.6%, CEMP +3%, ARRS +3%, CAR +2.9%, NCIT +2.9%, CLD +2.6%, VPRT +2.6%, FFIV +2.5%, CALX +2.4%, CRUS +2.2%

Companies trading higher in after hours in reaction to news: PDII +92.0% (Digirad (DRAD) delivers letter to PDI expressing willingness to acquire the company at a premium to current market price in combination of cash and stock), LAKE +24.4% (co provided an update on business activity relating to Ebola crisis: co has been experiencing significant interest globally for its ChemMAX and MicroMAX protective suit lines), LOPE +9.9% (Board formed an independent committee to explore options aimed at enhancing stockholder value), NVAX +8.9% (co's H7N9 Influenza virus-like particle vaccine candidate adjuvanted with Matrix-M granted fast track designation by FDA), FORM -8.2% (announced Mike Slessor will become CEO starting fiscal 2015), HOS +7.6% (Board authorized $150 mln share repurchase program), CBSO +5.5% (co's Board has approved a special dividend on the company's common stock of ~$547.7 million, or $4.56 per share), V +4.1% (announced a new $5 mln share repurchase program), LVLT +2.9% (to replace JBL in the S&P 500)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: AFOP -17.2%, GLUU -16.8%, PRXL -12.7%, WTW -11.8%, PEIX -10.8%, ISIL -10.3%, ARAY -9.7%, RGR -8.7%, TRLA -6.6%, ASGN -6.4%, WSTL -4.8%, TGB -4.3%, SFLY -4.1%, ATML -3.9%, AKAM -3.7%, TEX -3.5%, SIMO -3.1%, OII -3%, RRC -2.8%, KRFT -2.8%, HBI -2.7%, AUY -2.6%, FMC -2.6%, RRTS -2.3%, WLL -2%, AEM -1.7%, BGC -1.4%, RJF -1.1%, MDAS -1%, CGI -1%

Companies trading lower in after hours in reaction to news: WES -4.2% (announced public offering of 7.5 mln common units), CMRX -3.3% (filed for $150 mln offering of common stock), OII -3.0% (filed for offering of senior debt securities), SWHC -2.8% (trading lower following weak earnings for peer RGR), TWTR -1.4% (seeing reports that two engineers plan to resign from the company) 

>>> Asian Update

Asian Market Update: USD rallies as Fed completes QE3; RBNZ moves to more neutral stance; Brazil surprises with a rate hike


***Economic Data***
- (NZ) NEW ZEALAND CENTRAL BANK (RBNZ) LEAVES OFFICIAL CASH RATE UNCHANGED AT 3.50%, AS EXPECTED
- (AU) AUSTRALIA OCT RPDATA/RISMARK HOUSE PRICE INDEX: 1.2% (5th consecutive increase) V 0.1% PRIOR
- (AU) AUSTRALIA Q3 IMPORT PRICE INDEX Q/Q: -0.8% (2nd consecutive decline) V +0.2%E; EXPORT PRICE INDEX Q/Q: -3.9% V -4.7%E
- (AU) AUSTRALIA SEPT HIA NEW HOME SALES M/M: 0.0% V 3.3% PRIOR
- (JP) JAPAN SEPT VEHICLE PRODUCTION Y/Y: -2.6% V -6.7% PRIOR
- (KR) SOUTH KOREA SEPT CYCLICAL LEADING INDEX CHANGE: 0.6 V 0.8 PRIOR
- (KR) SOUTH KOREA SEPT INDUSTRIAL PRODUCTION M/M: 0.1% V 2.1%E ; Y/Y: 1.9% V 2.8%E
- (KR) SOUTH KOREA NOV BUSINESS SURVEY MANUFACTURING: 74 V 78 PRIOR; BUSINESS SURVEY NON-MANUFACTURING: 67 V 74 PRIOR

***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 +0.5%, S&P/ASX +0.4%, Kospi -0.7%, Shanghai Composite +0.4%, Hang Seng -0.2%, Dec S&P500 flat at 1,972,

***Commodities/Fixed Income***
- Dec gold -1.0% at $1,213, Dec crude oil -0.3% at $81.91/brl, Dec copper flat $3.08
- GLD: SPDR Gold Trust ETF daily holdings fall 1.2 tonnes to 742.4 tonnes; Lowest level since Oct 2008
- (CN) PBoC to drain CNY20B in 14-day repos (26th consecutive drain); Net zero position this week (3rd week of neutral position)
- (NZ) RBNZ sold net NZ$30M in Sept v sold net NZ$521M prior month
- (JP) Japan investors bought net ¥40.6B in foreign bonds v sold ¥1.18T in prior week; Foreign investors bought net ¥178.0B in Japan stocks v sold ¥414.2B in prior week

***Market Focal Points/Key Themes/FX***
- As widely anticipated, today's Fed decision marked the end of QE3 with the final $15B taper. Even though the Fed retained the "considerable time" language, the statement was deemed increasingly less dovish, as it noted further improvement in labor market conditions and diminishing underutilization of labor resources. Kocherlakota was the lone dissenter, calling to "commit to keeping the current target range for the federal funds rate at least until the one-to-two-year ahead has returned to 2%" due to sluggishness in the inflation outlook and the recent slide in market-based measures of expectations. The prior two hawkish dissenters Fisher and Plosser voted with the rest of the FOMC. USD was sharply higher (USD/JPY up 100pips above 109), yields rose (10yr at 3-week highs around 2.34%), while precious metals and equities sold off.

- RBNZ kept its rates on hold at 3.5% for the 2nd time but also removed its bias in favor of more tightening in light of the softer than anticipated inflation pressure. On exchange rate, RBNZ stated the NZD rate "has yet to adjust materially to the lower commodity prices.... Its current level remains unjustified and unsustainable." RBNZ also cited "subdued wage inflation, well-anchored inflation expectations, weak global inflation, falls in oil prices, and the high New Zealand dollar" for modest price trends. NZD/USD, already down sharply after the Fed, fell another 50pips after RBNZ to $0.7770 - down about 160pips overall on the day.

- Brazil central bank surprised with a 25bp hike of its SELIC rate against unanimous analyst expectations of another hold. The vote was 5-3 in favor of the hike, as board members noted "intensification of increases in relative prices with the balance of inflation risks becoming less favorable since last meeting."

- China Premier Li called for a boost in private consumption, the opening of financial services, and support of green industries. Separately, Moody's research noted that property sector sales are improving in Q4.

- Japan PM Abe was reported to have submitted an order for the cabinet to draft an extra budget for November. Separate press report speculated Tokyo may cut effective corporate tax rate by 2-3% for FY15, implying the recent improvement in retail and output data may have shifted the bias in favor of another sales tax increase.

- Australia housing data was mixed - Oct RpData price index rose 1.2% and resident economist called the market "relatively strong", while Sept HIA new home sales were flat on the month after a 3.3% rise in Aug. AUD/USD was also down about 130pips from pre-FOMC levels around $0.8770

***Equities***
US markets:
- LAKE: Provides update on business activity relating to Ebola Crisis; secured new orders from govt to fight against Ebola spread; +29.7% afterhours
- TCS: Said to be targeted by Apex Capital - financial press; +8.4% afterhours
- TTWO: Reports Q2 -$0.44 v -$0.48e, R$135.4M v $112Me, guides FY15 higher $1.05-1.30 v $1.06e, R$1.4-1.5B v $1.42Be; +5.5% afterhours
- SLCA: Reports Q3 $0.79 v $0.68e, R$241.3M v $232Me; +5.4% afterhours
- DWA: Reports Q3 $0.14 v $0.04e, R$180.9M v $168Me; +5.2% afterhours
- PPC: Reports Q3 $0.99 v $0.85e, R$2.27B v $2.37Be; +4.6% afterhours
- V: Reports Q4 $2.18 v $2.11e, R$3.23B v $3.19Be; Adds $5B (3.7% of market cap) to buyback plan; +4.2% afterhours
- JDSU: Reports Q1 $0.14 v $0.10e, R$433.6M v $416Me; +3.9% afterhours
- ACHC: To acquire CRC Health Group; financial terms not disclosed; +3.8% afterhours
- ESV: Reports Q3 $1.87 v $1.62e; R$1.26B v $1.23Be; +3.3% afterhours
- FFIV: Reports Q4 $1.57 v $1.48e, R$465.3M v $460Me; +2.9% afterhours
- LVLT: To enter SP500 index, replacing JBL; +2.9% afterhours
- CAR: Reports Q3 $1.91 v $1.80e, R$2.5B v $2.55Be; +2.9% afterhours
- CRUS: Reports Q2 $0.68 v $0.56e, R$210.2M v $194Me; +2.6% afterhours
- VPRT: Reports Q1 $0.86 v $0.57e, R$333.9M v $333Me; +2.6% afterhours
- MET: Reports Q3 $1.60 v $1.38e, R$17.9B v $17.5Be; +1.8% afterhours
- EQIX: Reports Q3 $0.81 v $0.88e, R$620.4M v $615Me, guides Q4 Rev $627-631M v $627Me; +1.3% afterhours
- LOCK: Reports Q3 $0.16 v $0.15e, R$123.0M v $120Me; +1.2% afterhours
- ABX: Reports Q3 $0.19 adj v $0.17e, R$2.60B v $2.48Be; +0.9% afterhours
- FLEX: Reports Q2 $0.26 v $0.24e, R$6.53B v $6.43Be; +0.7% afterhours

- BIDU: Reports Q3 $1.90 (ex compensation) v $1.62e, R$2.20B v $2.15Be; -1.0% afterhours
- BGC: Reports Q3 $0.30 v $0.39e, R$1.47B v $1.52Be; To Shed Asia ops; To search for replacement CEO; -1.4% afterhours
- TWTR: VP of engineering said to be in plans to leave company; another key engineer also plans to resign as engineering team is in conflict over Twitter's direction - CNBC's Fortt; -1.4% afterhours
- RRTS: Reports Q3 $0.40 v $0.38e, R$498.1M v $476Me, guides Q4 $0.33-0.37 v $0.38e, R$475-500M v $512Me; -2.3% afterhours
- KRFT: Reports Q3 $0.74 (incl items*) v $0.75e, R$4.40B v $4.52Be; -2.8% afterhours
- AKAM: Reports Q3 $0.62 v $0.57e, R$498M v $490Me, expect significant FX headwinds to create $6M neg impact vs Q3 - conf call; -3.5% afterhours
- TRLA: Reports Q3 -$0.08 v -$0.08e, R$67.1M v $69.5Me; -6.5% afterhours
- RGR: Reports Q3 $0.34 v $1.44 y/y, R$98.3M v $170.9M y/y; -9.9% afterhours

Notable movers by sector:
- Technology: Renesas Electronics Corp. 6723.JP +6.7% (H1 results); Yahoo! Japan Corp 4689.JP -6.1% (H1 results); Toshiba TEC Corp 6588.JP +6.1% (H1 results)
- Energy: Kansai Electric Power 9503.JP +3.2% (H1 results)
- Materials: Nippon Synthetic Chemical Industry 4201.JP -5.8% (H1 results); Toho Titanium 5727.JP +7.3% (raises FY14/15 Net guidance); Samsung Electronics 005930.KR +4.1% (final Q3 results)
- Industrials: NSK Ltd 6471.JP -3.7% (H1 Results); Mitsubishi Motors 7211.JP -5.3% (H1 results, cuts FY14/15 Rev guidance); Makita Corp 6586.JP +3.0% (raises H1 guidance); Misumi Group Inc 9962.JP +3.4% (H1 results, raises FY14/15 guidance); Daido Steel 5471.JP -3.7% (H1 results, lowers FY14/15 guidance); China Railway Group 601390.CN +9.7%, China Railway Construction Group 601186.CN +6.6% (momentum on CSR, CNR merger); BYD Corp 1211.HK -7.7% (Q3 results)
- Consumer discretionary: Capcom Co. Ltd. 9697.JP +4.9% (H1 results, reaffirms FY14/15 guidance); Keyence Corp 6861.JP +5.6% (H1 results)
- Energy: CNOOC 883.HK -4.8% (Q3 results)
- Financials: National Australia Bank +0.6% (FY14 results)

>>> US Close Dow-0,19% S&P-0,14% Nasdaq -0,33%

Closing Market Summary: Stocks Register Slim Losses After Final Taper Announcement

The stock market ended the midweek session on a modestly lower note. The Nasdaq Composite (-0.3%) was the weakest performer while the S&P 500 shed 0.1% with seven sectors ending in the red.

The benchmark index held a slim gain at the start, but spent the day in a slow retreat that featured a brief afternoon spike to lows after the Federal Open Market Committee released its latest policy statement. As expected, the statement called for the final $15 billion taper, thus putting a stop to scheduled purchases of Treasuries and mortgage-backed securities.

Meanwhile, the commentary on rates was little changed from previous directives with the Fed maintaining its reference to keeping the fed funds rate at its current level for a ‘considerable time.' Minneapolis Fed President Kocherlakota was the lone dissenter, voting to keep the asset purchase program intact.

Equities handled the initial impact of the announcement relatively well with the S&P 500 finishing about two points above its pre-FOMC levels. Treasuries, meanwhile, ended mixed. The FOMC announcement sent the complex to lows, but the 30-yr bond surged to new highs ahead of the close to pressure its yield one basis point to 3.05%. For its part, the 10-yr note reclaimed its post-FOMC losses with the benchmark yield ending higher by two basis points at 2.32%. Also of note, the 2-yr note settled near its low with its yield higher by six basis points at 0.49%.

The dollar was also on the move, rallying against all other major currencies. The Dollar Index (85.99, +0.59) gained 0.7% to end within a point of its October high (86.87).

Seven sectors finished in the red with the spike in short-term rates helping financials (+0.2%) settle in the lead. Most of the remaining cyclical groups ended behind the broader market while technology (-0.2%) finished near the S&P 500. The top-weighted sector component, Apple (AAPL 107.34, +0.60), added 0.6% while social media names lagged after Facebook (FB 75.86, -4.91) reported earnings. Shares of FB plunged 6.1% with above-consensus earnings being overshadowed by concerns about increased spending plans and slowing revenue growth. Peers Twitter (TWTR 42.08, -1.70), LinkedIn (LNKD 199.51, -5.84), and Yelp (YELP 56.68, -2.43) also lagged, falling between 2.8% and 4.1%.

Elsewhere among cyclical sectors, the materials space (-1.3%) spent the entire session at the bottom of the leaderboard while energy (-0.2%) outperformed. The growth-sensitive group received a helping hand from crude oil, which climbed 1.0% to $82.18/bbl. On the earnings front, Hess (HES 82.89, +0.94) rallied 1.2% in reaction to better than expected results.

Staying on the earnings theme, Gilead Sciences (GILD 110.75, -2.70), which is a major component of the iShares Nasdaq Biotechnology ETF (IBB 290.63, -3.32), fell 2.4% after beating estimates on below-consensus sales of one of its major drugs. Biotechnology weighed on the Nasdaq Composite while the health care sector (+0.03%) registered a slim gain.

Economic data released this morning was limited to the weekly MBA Mortgage Index, which fell 6.6% to follow last week's 11.6% spike.

Tomorrow, weekly Initial Claims (consensus 284,000) and the advance reading of Q3 GDP (consensus 3.0%) will both be released at 8:30 ET.

* Nasdaq Composite +8.9% YTD  * S&P 500 +7.3% YTD  * Dow Jones Industrial Average +2.4% YTD  * Russell 2000 -1.5% YTD

>>> FOMC

Fed monthly total purchases pared to $0b; est. $0b ? Total bond purchases cut from $15b per month ? Treasury purchases to fall to $0b per month; est. $0b ? Mortgage-backed securities purchases to fall to $0b per month; est. $0b ? Federal funds target rate remains unchanged at 0.25 percent ? Fed sees ‘solid job gains’ with lower unemployment ? Fed: underutilization of labor resources gradually diminishing ? Fed repeats risks to economy, job outlook ‘nearly balanced’ ? Fed says lower energy prices to hold down inflation near term ? Fed repeats risk of below-target inflation diminished somewhat ? Fed says current fed funds rate remains appropriate

>>> Fiat : JPM First Comment

FCA: looks like three steps (i) place 10% of Ferrari and distribute remaining stock to Fiat shareholders (ii) raise 2.5bn USD mandatory convertible (iii) FCA anticipates that it will offer up to 100 million FCA common shares including 35 million common shares currently held in treasury by FCA and approximately 54 million common shares that will be issued by FCA to replenish the share capital canceled following the exercise by Fiat S.p.A. Call at 1400
On Ferrari:
-Broker estimates average value between €3.3.bn and €5.4bn with a median of €4.3bn
-EBITDA at 10000 units p.a. is well in excess of €1bn

Fiat owns 90% of Ferrari, with founder Pietro Ferrari owning 10%. Fiat will first sell 10% in an IPO to raise cash, then distribute proportionally the remianing 80% to its own shareholders (like a dvd in-specie). Exor will end up with c.24% of the equity (double voting rights). The Fiat rump is going to be left even more leveraged, having distributed the most valuable asset, but the proceeds from 10% sale and the $2.5bn mandatory convertible will help.

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: CARA +15.6%, ZLTQ +10.9%, ICAD +9.9%, X +8.1%, EXTR +7.6%, ACCO +6.9%, TQNT +6.8%, EGL +4.2%, (enters into definitive agreement to acquire TASC for ~$1.1 bln, , including the assumption of net debt; expected to be significantly accretive to 2016 adjusted EPS; co stockholders to receive special dividend of ~$11.40 per share in cash ), IPHI +3.7%, CHRW +3.7%, MRCY +3.6%, AMC +3.5%, SWI +3.5%, DLR +3.3%, ULTI +3%, AUO +3%, XCO +2.5%, GPRE +2.5%, JLL +2.5%, EA +2.2%, WES +1.7%, (to acquire Nuevo Midstream), WLP +1.7%, SKYW +1.5%, CAP +1.3%, ETN +1.3%, HES +1.3%, PSX +1.3%, EXP +1.2%, WYNN +0.9%, WEX +0.9%

Other news: CARA +15.6% (announces positive results from human abuse liability trial of peripheral Opioid for acute pain, I.V. CR845; met the trial's primary endpoint), ARNA +6.4% (announced positive top-line results of a pilot study to assess the safety of lorcaserin HCl and phentermine HCl), SPF +6% ( announces share repurchase program of up to $100 mln of the company's common stock), AKS +5.6% ( announces price increase for carbon steel products; co today that it will increase current spot market base prices for all carbon flat-rolled steel products by a minimum of $20 per ton, effective immediately with new orders), RFMD +5.2% (following TQNT results), EGL +4.2% (entered into an agreement to acquire TASC for ~$1.1 bln, including the assumption of debt),RGLS +2.8% (prices 5,294,118 shares of its common stock at a price to the public of $17.00 per share by co and existing shareholder Isis Pharmaceuticals (ISIS)), IDT +2.6% (declared a special dividend of $0.68 per share), SANM +1.9% (announced the start of production for Raytheon missile systems electronic assemblies), CYBR +1.8% (following 8% decline yesterday), LECO +1.7% (Board approved a 26% quarterly dividend increase to $0.29 per share and raised its 2014 share repurchase target 20% to $300 mln), JKS +1.6% (to supply 19 MW of solar modules for a PV project in Chile), CNHI +1.5% (still checking), PLUG +1.1% (commissions site at Golden State Foods; Deploys GenDrive hydrogen fuel cells at new regional distribution center), GRPN +1% (product chief to leave the company, according to reports), VGGL +1% (secures $30 million in investment to fuel innovation for its marketing and rewards platform), GPRO +1% (cont vol pre-mkt)

Analyst comments: UNIS +11.9% (target raised to $9 from $5 at Jefferies), AVNR +2.2% (initiated with a Buy at BofA/Merrill), JMBA +1.6% (upgraded to Outperform from Neutral at Wedbush), CBS +1.5% (added to Franchise Pick list at Jefferies), AMZN +0.9% (initiated with a Overweight at Morgan Stanley

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: INVN -19.7%, KEYW -14.5%, ARCP -14.3%, XOOM -12.6%, (to launch cross-border bill pay; Xoom Bill Pay is scheduled to launch in November with cross-border bill pay to Mexico, Guatemala, El Salvador, Nicaragua and the Dominican Republic), AMCC -10.6%, STM -10.2%, SM -8%, FB -6.7%, BLDP -5.4%, MTSC -5.2%, HSY -4.7%,SODA -4.2%, NVMI -4.1%, BBSI -3.3%, GILD -2.9%, PNRA -2.9%, RYAM -2.7%, COT -2.5%, DB -2.3%, VRTX -1.8%, AZPN -1.8%, OI -1.8%, WDC -1.7%, HTS -1.6%, TRN -1.2%, GAIN -1.2%, MCK -1.1%, FISV -1%, WEC -1%, XRAY -1%, TEL -0.9%, PAG -0.9%

M&A news: APA -0.8% (following late move higher on reports of interest in Apache's Wheatstone stake), LORL -0.2% (following late move higher on potential new offer)

Other news: ARCP -14.3% (announces non-reliance on previously issued financial statements and changes in accounting personnel), HIVE -11.8% (disclosed that in response to the market reaction to their PR yesterday), IBIO -11.2% (cont vol pre-mkt), NBG -6.9% (may be related to wte earnings from a couple of EU perifery banks in last cpl days), SNY -5% (Statement from Sanofi Board of Directors; removes CEO), UBA -3.8% (is offering 2,500,000 shares of its Class A common stock in a public offering), VNDA -2.2% (proposes public offering of common stock ), TRUE -1.5% (filed for a 1 mln share offering of common stock by selling shareholders; co also provided Q3 guidance),, PRU -1.5% (entered into an MoU with Inversiones La Construccion S.A. to acquire ownership stake in Administradora de Fondos de Pensiones Habita), AMAT -1.4% (completion of Tokyo Elec (TOELY) may extend into the first calendar quarter of 2015 ), TRN -1.2% (may be required to have mediation talks over guardrail lawsuit, according to reports), TWTR -0.8% (in symp with FB earnings)

Analyst comments: TLK -1.4% (downgraded to Neutral from Overweight at JP Morgan ), NTT -1.4% (downgraded to Neutral from Buy at Goldman ), SNCR -1.1% (downgraded to Outperform from Strong Buy at Raymond James), EBAY -1% (initiated with a Underweight at Morgan Stanley), KORS -0.9% (downgraded to Neutral from Buy at Janney), DTE -0.9% (downgraded to Hold from Buy at ISI Group)