>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: GPN +5.4%, DRI +0.8%

M&A news: WLT +5.8% (may be an acquisition target by BHP (BHP), according to reports)

Select semiconductor stocks trading higher:UMC +2%, STM +1.6%, MU +1.4%, ASML +1.4%, AMD +1.2%, .

Other news: ESPR +33.4% (announces positive top-line Phase 2b results for ETC-1002, an investigational therapy for patients with hypercholesterolemia ), RLD +21.9% (Starboard raises stake to 9.9% and delivered a letter to the Board proposing to acquire the company for $12 per share), ARIA +10.2% (announces AP26113 has received Breakthrough Therapy designation by the FDA), LEU+8.8% (elects Williams as Chairman; begins process for CEO Transition; Chief Restructuring Officer John Castellano named interim CEO; John Welch to step down later this month), BTU +7% (WLT peer, may be in sympathy), DRL +6.2% (provided an update on status of its capital plan: co maintains readily available liquidity sources of ~$1 bln), SPEX +5.4% (cont momentum), GRMN +5% (announces Honda (HMC) has selected Garmin as the navigation provider for future Civic and CR-V models in Europe, Russia and South America), NBG +3.8% (still checking), TSLA +3.6% (Elon Musk tweets 'About time to unveil the D and something else'; suggesting Model D introduction on Oct 9), DTV +1.4% (Co and NFL extended and expanded DIRECTV's exclusive rights to carry NFL SUNDAY TICKET), ARG +1.3% (to increase argon prices by up to 15%, effective November 1 or as contracts permit), QIHU +1.1% (announces $200 mln Share Repurchase Plan), TKMR +1% (ebola play that was +18% yesterday)

Analyst comments: NDAQ +4.4% (upgraded to Buy from Hold at Deutsche Bank), ADSK +3.3% (upgraded to Outperform from Mkt Perform at Cowen), AKS +2.9% (upgraded to Buy from Hold at Deutsche Bank), TWTR +2.3% (upgraded to Overweight from Neutral at JP Morgan), JBLU +2% (upgraded to Mkt Perform from Underperform at Raymond James), RUBI +1.6% (initiated with a Buy at B. Riley & Co), P +1.5% (upgraded to Buy at Topeka Capital Markets), THRM +0.9% (upgraded to Outperform from Mkt Perform at Barrington Research ), ICE +0.7% (upgraded to Buy from Hold at Deutsche Bank), EXXI +0.7% (upgraded to Buy from Neutral at Guggenheim), BMS +0.7% (upgraded to Neutral from Underperform at BofA/Merrill), HBI +0.6% (initiated with a Outperform at Credit Suisse), VLO +0.5% (initiated with a Outperform at RBC Capital Mkts), BAC +0.5% (upgraded to Buy from Neutral at UBS)

>>> CNBC - MadMoney

Zillow among stocks with positive commentary on Wednesday's Mad Money
Stocks with favorable mention: ENB, MTW, SLXP, Z

Stocks with unfavorable mention: ANGI, EBAY, F, GTLS, HAR, K, LAZ, NYCB, PG

>>> Gartner raises forecast for 2014 global semiconductor sales to $338B, +7.2%

Gartner raises forecast for 2014 global semiconductor sales to $338B, +7.2% y/y (previously saw +6.7%); cites strong Q3, holiday related demand and robust iPhone 6 demand 
- Semiconductor revenue set an all-time record in the third quarter of 2014, fueled by a strong electronics build for the holiday season
- Demand for the iPhone 6 and iPhone 6 Plus has been robust
- Forecasts 2014 unit production of smartphones and ultramobiles to increase 27.0 percent and 18.9 percent, respectively.
- Sees 2014 DRAM Rev growth of 26.3%
- The semiconductor market is expected to grow 5.8 percent in 2015, with high inventories in the first quarter of 2015 emerging as the largest concern. 
- The semiconductor market is expected to grow by 1.0% in 2016 on expected oversupply for DRAM; Predicts the next big memory oversupply downturn will hit in 2016, causing DRAM revenue to plummet 25.5 percent

(BFW) *MARCHIONNE SAYS ‘DOUBTS’ ON EUROPE CAR SALES RECOVERY

BN 10/02 09:18 *FIAT CEO MARCHIONNE SAYS NO PLAN TO SELL POLISH PLANT
BN 10/02 09:14 *MARCHIONNE SAYS `DOUBTS' ON EUROPE CAR SALES RECOVERY
BN 10/02 09:09 *MARCHIONNE SAYS EUROPE CAR MKT NOT IN ROSY SITUATION
BN 10/02 09:08 *MARCHIONNE REITERATES FIAT TO DISCUSS CAPITAL ISSUES END OF OCT
BN 10/02 09:08 *MARCHIONNE SAYS WILL DISCUSS 2014 TARGETS AFTER 3Q RESULTS
BN 10/02 09:07 *FIAT CEO MARCHIONNE SPEAKS AT PARIS CAR SHOW
BN 10/02 09:07 *FIAT CEO MARCHIONNE CONFIRMS 2014 TARGETS FOR NOW
BN 10/02 09:07 *MARCHIONNE SAYS CAPITAL INCREASE NOT NECESSARY
*MARCHIONNE SAYS ‘DOUBTS’ ON EUROPE CAR SALES RECOVERY
2014-10-02 09:19:20.272 GMT

--BRIAN LYSAGHT

-0- Oct/02/2014 09:19 GMT

(Citi) Philips - HealthTech Should drive re-rating

* Reiterate Buy, Raise TP to €33 — In this report we look in depth at HealthTech
and provide findings from our proprietary healthcare capex surveys. Philips is a key
Buy across our sector and is part of the Citi Focus List Europe. YTD Philips has
underperformed the market (DJSTOXX) by >6% on the back of significant
consensus downgrades (cut by 23% and 19% for 2014 and 2015 respectively). We
believe that Philips is at a cross roads and expect outperformance. Following the
announcement of a break-up into two companies by 2016: HealthTech, and Lighting
Solutions, we set our €33 target price at our SOTP fair value.

* Downgrades are Nearing the Bottom — Philips at their CMD has confirmed that
the first products from the Healthcare Cleveland factory are now being shipped (the
ramp up will be back-end loaded). The recent FX moves have become a tailwind for
the first time since 3Q 2013. Our proprietary US and European Hospital Capex
Surveys point to improved growth outlook and our China Healthcare analysts in
their recent report conclude that despite the near-term caution, hospital
procurement demand looks to remain solid and suppressed demand may drive an
improved market in 2015

* Health Tech — On our 2015E forecasts the HealthTech company should generate
pro-forma sales of €14.7bn and an Adj EBITA margin 14.6% (excluding central
costs) improving towards 15.5% by 2016E (the company is guiding for 14-15.5%)
including cumulative savings of €300m under the new structure. We think the
business merits a multiple of 12x EV/EBITA implying an EV of c.€25.7bn. The new
structure could realize a total EV of €29bn, implying substantial upside potential.

* Attractive Valuation — On our 2015 forecasts, Philips is trading on a P/E of 12.5x
and EV/EBIT of 9.2x vs. its 10-year historical averages of 14.5x and 12.0x
respectively. Relative to the sector Philips is trading on a >15% discount on P/E and
EV/EBIT basis. An EV/Sales of 1.0x also looks attractive against our 12% EBITA
margin forecast in 2016 (company guidance: 11-12%).

(GS) Africa Oil : Compelling opprtunity on M&A & Exploration - CL Buy (

* Source of opportunity
We reiterate our CL-Buy; our new 12m PT of SKr52.6 implies 66% upside.
Despite lowering our TP to reflect the most punitive CGT scenario on assets
we deem to be strategic, we continue to believe the stock offers a
compelling risk/reward opportunity on M&A and exploration potential,
particularly given its recent underperformance. We believe Africa Oil offers
exposure to a strategic asset which has potential to obtain a premium
valuation. In a M&A scenario; excluding exploration, we estimate 58%
upside to the current share price even when modelling a CGT. We also see a
number of funded & potentially material exploration catalysts approaching.

* Catalyst
We are positive on Africa Oil’s frontier exploration activities in Kenya which
have the potential to unlock a new basin, resulting in significant ‘blue sky’
upside potential (valuation based on fully de-risking one basin implies c.98%
upside). We expect a key driver for the stock will be exploration success in
one of these basins given that, on our estimates, no risked value is currently
being ascribed to it by the market. We expect four frontier basins to be tested
by end 1Q15: Central Kerio, North Kerio, West Omo and North Turkana.
Despite the introduction of capital gains tax, we believe M&A remains a key
catalyst for the stock, particularly given its funding requirement from mid-
2015. We continue to see a potential sale of the company, an asset disposal, a
farm-down or equity placing as potential options.

* Valuation
Our 12-month SOTP-based price target decreases to Skr52.6 (from Skr61.8),
using a long-run oil price assumption of $100/bl. Within our SOTP, our
valuations of assets we deem to be strategic in nature include a 50% weighing
for M&A. These valuations are lower now as we incorporate a 37.5% capital
gains tax in our M&A valuations and make other minor adjustments.

* Key risks
Key downside risks include exploration/appraisal failure and lack of M&A.