>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: AN -5%, SNH -3.5% (light volume).

Select oil/gas related names showing early weakness: NE -12.2% (downgraded to Hold from Buy at Deutsche Bank), DO -4.9% (downgraded to Sell from Hold at Deutsche Bank), RIG -2.3% (downgraded to Sell from Hold at Deutsche Bank), CVX -0.9%, SDRL-0.9%, CVX -0.4% (downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt raised to $140 from $135).

Other news: INSM -20.3% (provides regulatory update for ARIKAYCE; Filing Marketing Authorization Application with European Medicines Agency for NTM Lung Disease and CF Indications; confirms US development plan for NTM Following FDA guidance),ZGNX -7% (announces Departure of Chief Commercial Officer), ARMH -2.2% (still checking), VNR -1.5% (to acquire natural gas, oil and natural gas liquids assets in North Louisiana and East Texas for $278 mln from Hunt Oil; immediately accretive to distributable cash flow at closing, TWTR -1.2% (reports that users do not view ads), CCL -1.2% (still checking), JPM -0.8% (has reached a $4.5 bln mortgage trust related settlement, according to reports), DAN -0.7% ( announces additional $400 million share repurchase authorization, pays dividends on common stock and final dividends on series b convertible preferred stock) QCOR -0.5% ( Institutional Shareholder Services Inc. and Glass Lewis recommend that shareholders of Mallinckrodt and Questcor vote for Mallinckrodt's acquisition of Questcor), SODA -0.4% ( Soros liquidated stake, according to reports), MCD -0.3% (to resume full China menu in some cities this week, according to reports).

Analyst comments: DEI -1.2% (downgraded to Sell from Hold at Stifel ), AEP -0.6% (downgraded to Equal Weight from Overweight at Morgan Stanley), RPXC -0.6% (downgraded to Equal Weight from Overweight at Barclays), QLGC -0.2% ( downgraded to Equal Weight from Overweight at Barclays ),

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: KORS +3.3%, HSBC +1.8%, BRK.B +1.5%.

M&A related: PIKE +38% (Pike Shareholders to receive cash of $12.00 per share in transaction led by Court Square Capital Partners), EVR +1.7% (following late weakness -- Evercore confirmed plans to to acquire ISI Group and the remaining 40% interest in Evercore's Institutional Equities business; co will issue up to ~ 8 mln share equivalents in the two transactions; transaction expected to be accretive to Adjusted Pro Forma EPS in first year and has potential to be meaningfully accretive starting in 2016), GSK +1% SNY +0.5% (PE firms may purchase older drug brands of GSK and Sanofi (SNY), according to reports),

Drug names/biotech trading higher: TKMR +34.9% (strength attributed to Ebola related fears/plan), LGND +8% (still checking), AZN +0.9% (higher despite reports indicating Hedge funds betting against AZN takeover bid ), ANIP +2.4% (acquires Vancocin capsules and additional vancomycin assets from Shire ), AMGN +1.3% (announces Phase 3 ASPIRE trial of Kyprolis In Patients With Relapsed Multiple Myeloma met primary endpoint; Kyprolis helped patients Live 8.7 months longer without their disease worsening)

Other news:PT +4.8% (traded higher overseas), LOCO +3.9% (still checking), MBLY +3.2% (continued strength/volatility from IPO), DHI +2.9% ( ticking higher on positive Barron's story), INFY +2.8% (traded higher overseas on weaker rupee), EMC +1.2% (Barron's profiles positive view), GPRO +1% (still checking), AAPL +0.8% (still checking), LOGI +0.8% (still checking), SCTY +0.7% (appoints semiconductor veteran Brad Buss as CFO), HLF +0.6% (Barron's report defends name), PSEC +0.6% (exits AirMall at a gross 16.7% internal rate of return and 1.61x cash-on-cash return) .

Analyst comments: HIMX +4.3% (upgraded to Buy from Hold at Lake Street), BYI +2.7% (Bally Technologies upgraded to Neutral from Sell at Goldman), X +2% ( upgraded to Buy from Hold at Deutsche Bank; upgraded to Buy from Hold at KeyBanc Capital Mkts ), MT +1% (upgraded to Neutral at Exane BNP Paribas), VOD +1% (upgraded to Buy from Neutral at Redburn ), ALU +0.9% (upgraded to Overweight from Equal-Weight at Morgan Stanley ), STLD +0.4% (upgraded to Buy from Hold at KeyBanc Capital Mkts), OXY +0.3% (upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $120 from $110)

>>> US Michael Kors beats by $0.10, beats on revs; guides Q2 EPS below consensus

Michael Kors beats by $0.10, beats on revs; guides Q2 EPS below consensus, revs below consensus; raises FY15 EPS above consensus, revs above consensus; Q1 comps +24.2% (81.83)
Reports Q1 (Jun) earnings of $0.91 per share, $0.10 better than the Capital IQ Consensus Estimate of $0.81; revenues rose 43.9% year/year to $887 mln vs the $851.31 mln consensus.
  • Co issues downside guidance for Q2, sees EPS of $0.85-0.87 vs. $0.89 Capital IQ Consensus Estimate; sees Q2 revs of $950-960 mln vs. $960.58 mln Capital IQ Consensus Estimate.
  • Co issues raised guidance for FY15, sees EPS of $4.00-4.05 from $3.85-3.91 vs. $3.96 Capital IQ Consensus Estimate; raises FY15 revs to $4.25-4.35 bln from $4.04-4.1 bln vs. $4.2 bln Capital IQ Consensus Estimate.
  • KORS reported Q1 comps of +24.2% versus Street expectations of just over 20%.
  • Gross profit increased 43.9% to $571.6 million, and as a percentage of total revenue increased to 62.2% compared to 62.0% in the first quarter of fiscal 2014.
  • "We saw continued strength across our retail, wholesale, and licensing segments, as well as in both the North American and International markets during the first quarter. In North America, revenue increased 30%, with comparable store sales growth of 18.7%. In addition, the 30% growth in our North American wholesale segment reflects ongoing momentum in our brand as well as the continued benefit from our shop-in-shop conversions. In Europe, we were extremely pleased with our revenue growth of 128%, which was driven by a comparable store sales increase of 54.2%, as well as strength in our wholesale business. Lastly, revenue in Japan increased 89%, driven by comparable store sales growth of 48.8%. We remain extremely excited about our future growth potential as we continue to solidify Michael Kors' position as a leading global luxury lifestyle brand."

>>> US Early premarket gappers

Early premarket gappers
Gapping up: TKMR +34.9%, LOCO +3.9%, HSBC +3.1%, DHI +2.9%, INFY +2.8%, TSEM +2.8%, ANIP +2.4%, EVR +1.7%, X +1.1%, GSK +1%, GPRO +1%, AAPL +0.8%, LOGI +0.8%, HLF +0.6%, SNY +0.5%

Gapping down: ZGNX -7%, ARMH -2.2%, TWTR -1.2%, CCL -1.2%, UBS -1%, CVX -0.9%, GOLD -0.9%, JPM -0.8%, JPM -0.8%, RIG -0.6%, DB -0.6%, MCD -0.3%

(BFW) *BANCO ESPIRITO SANTO SUBORDINATED CDS QUOTED AT 500 BPS: CMA

BFW 08/04 09:54 *BANCO ESPIRITO SANTO SUB CDS QUOTED AT 24% UPFRONT LAST WEEK
BN 08/04 09:53 *BANCO ESPIRITO SANTO SUB CDS QUOTED AT 24% UPFRONT LAST WEEK
BN 08/04 09:53 *BANCO ESPIRITO SANTO SUBORDINATED CDS QUOTED AT 500 BPS: CMA
*BANCO ESPIRITO SANTO SUBORDINATED CDS QUOTED AT 500 BPS: CMA
2014-08-04 09:54:24.204 GMT

--BRIAN SWINT

-0- Aug/04/2014 09:54 GMT

>>> BES PL - Banco Espírito Santo has been split into “good” and “bad” banks as

BES PL - Banco Espírito Santo has been split into “good” and “bad” banks as part of a €4.9bn rescue of the distressed Portuguese lender that protects taxpayers and senior creditors but leaves shareholders and junior bondholders holding only toxic assets. The rescue, which will destroy much of the value of investments made by equity and subordinated debt holders, is seen as a test case for a tougher stance by EU regulators, who have promised to protect taxpayers from the cost of bailing out mismanaged banks.