>>> US after Hours

After Hours Summary: LEDS -11.7%, PBY -6.4% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to news: FFCO +9.7% (co and and CB Financial Services agree to merge), UMPQ +1.5% (to replace SGMS in the S&P MidCap 400), SGMS +1.4% (to replace UMPQ in the S&P SmallCap 600), ARCW +0.9% (announced 1.5 to 1 stock dividend)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: LEDS -11.7%, PBY -6.4%

Companies trading lower in after hours in reaction to news: AXLL -1.9% (provided update on repairs at Lake Charles, Louisiana, chemicals facility: expected to reach full operating rates in May; co sees Q1 adjusted EBITDA of $65-70 mln), NGHC -0.6% (filed for 12.82 mln share common stock offering by selling shareholders)

>>> US Close Dow+0,91% S&P+0,82% Nasdaq+0,57%

Closing Market Summary: Stocks Climb But Momentum Names Remain Volatile

The major averages finished the Monday session on a modestly higher note, but they ended below their best levels of the day after volatility during the last two hours of action forced the indices to test their flat lines. The S&P 500 rose 0.8%, while the Nasdaq added 0.6% after being up as much as 1.3%.

The stock market began the session on an upbeat note, casting aside renewed concerns about the situation in Ukraine, where the country's army was called in over the weekend to deal with pro-Russian separatists in several cities in the Southeast.

Instead, the market rallied in the morning after Citigroup's (C 47.67, +1.99) above-consensus quarterly results, combined with a better-than-expected March Retail Sales report, invited buyers into the mix. In all likelihood, the early advance was assisted by some short-covering as many areas that displayed weakness in recent sessions, showed relative strength this morning.

Biotechnology was among the early leaders and the iShares Nasdaq Biotechnology ETF (IBB 215.37, -0.08) made a run at its 200-day moving average. The ETF made a brief appearance above that noteworthy level before spending the afternoon in a steady retreat that placed the group back in the red. The health care sector, meanwhile, added 0.5%.

Other momentum names traded in similar fashion to biotech with the likes of Google (GOOG 532.52, +1.92), Facebook (FB 58.89, +0.36), LinkedIn (LNKD 165.78, 0.00), and Yelp (YELP 61.94, +0.22) showing early strength before retreating from their highs during afternoon action. The technology sector (+1.1%), meanwhile, held up relatively well, but it too ended below its session high.

Elsewhere among cyclical groups, energy (+1.3%) outperformed throughout the session with support from Dow components Chevron (CVX 118.70, +1.67) and ExxonMobil (XOM 97.86, +1.14), both of which posted gains close to 1.3% apiece. The sector ended in the lead while crude oil rose 0.4% to $104.05/bbl.

The other commodity-related sector, materials, ended in line with the broader market. Miners and steelmakers displayed strength, with Market Vectors Gold Miners ETF (GDX 24.52, +0.30) and Market Vectors Steel ETF (SLX 47.41, +0.56) both gaining 1.2%. For its part, gold futures advanced 0.7% to $1327.70/ozt.

Treasuries posted slim losses, sending the benchmark 10-yr yield higher by one basis point to 2.64%.

Participation was below average as less than 680 million shares changed hands at the New York Stock Exchange.

Reviewing today's data: Retail sales increased 1.1% in March after increasing an upwardly revised 0.7% (from 0.3%) in February. The consensus expected retail sales to increase 1.0%. As expected from the motor vehicle sales data, auto sales contributed significantly to overall sales growth. Sales at motor vehicle and parts dealers increased 3.1% in March after increasing 2.5% in February. Excluding autos, retail sales still increased a solid 0.7% in March, up from a 0.3% gain in February. The consensus expected these sales to increase 0.5%. Sales were strong all around, but there wasn't much to suggest that the acceleration in spending was the result of pent-up demand from delayed winter spending. The March employment report showed a 0.7% increase in aggregate wages, which exactly matched spending after stripping out autos.  Business inventories increased 0.4% for a second consecutive month in February. The consensus expected inventories to increase 0.6%. Total inventories consist of manufacturers, merchant wholesalers, and retailers. Both manufacturers (0.7%) and wholesalers (0.5%) inventories were announced prior to the release. Only retailer inventories, which were flat in February after increasing 0.3% in January, were unknown.  Tomorrow, March CPI (consensus 0.1%) and the Empire Manufacturing Survey (consensus 7.5) for April will be released at 8:30 ET, while the February Net Long-Term TIC Flows report will cross the wires at 9:00 ET. The day's data will be topped off with the NAHB Housing Market Index (consensus 50) for April, which will be released at 10:00 ET.

S&P 500 -1.0% YTD  Dow Jones Industrial Average -2.4% YTD  Nasdaq Composite -3.7% YTD  Russell 2000 -4.0% YTD

>>> US Large Movers

Large Cap Gainers

- BSX (13.23 +4.26%): Upgraded to Buy from Neutral at BofA/Merrill - C (47.6 +4.21%): Beat quarterly EPS by $0.15 ($1.30 vs $1.15 estimate), revs fell 0.6% yoy to $20.12 bln vs $19.46 bln estimate; upgraded to Hold from Sell at Rafferty - STX (55.09 +3.18%): Upgraded to Buy from Hold at Argus

Large Cap Losers

- NBG (4.66 -10.90%): Reuters and Bloomberg reporting that co is planning a EUR 2.1 bln capital raise - AR (60.73 -3.94%): Reported Q1 avg net daily gas equivalent production is estimated to be 783 to 787 MMcfe/d, a 105% increase over the prior year quarter and 16% sequentially; avg net daily liquids production is estimated to be 16,000 to 16,500 Bbl/d, a 580% increase over the prior year quarter and 45% sequentially; avg realized natural gas price before hedging is estimated to be $5.02 to $5.06 per Mcf, an approximate $0.08 to $0.12 premium to NYMEX after Btu upgrade - ERIC (12.8 -2.51%): Announced that Douglas Gilstrap will resign from his role as Senior Vice President and Head of Group Function Strategy and leave Ericsson's Executive Leadership Team

Mid Cap Gainers

- EW (82.48 +13.03%): Federal court granted a preliminary injunction limiting the sale of Medtronic's (MDT) CoreValve system in the United States; Upgraded to Buy from Fair Value at CRT Capital, target raised to $87 from $79; upgraded to Neutral from Underweight at JP Morgan - AHL (43.7 +11.00%): Board of Directors rejected unsolicited proposal from Endurance (ENH) to acquire the company at $47.50/share, believes proposal undervalues the co and is a strategic mismatch - HLF (55.57 +7.94%): Rebound following sharp declines seen prior to close last Friday on reports that co is under investigation by the FBI Mid Cap Losers - CZR (18.21 -2.78%): Co's Caesars Growth Properties Holdings unit sees Q1 (Mar) revs of $280-305.5 mln; mentioned cautiously at Barron's STM (8.55 -2.51%): Downgraded to Sell from Neutral at UBS - ENH (52.98 -1.56%): Trading lower following rejection of offer to acquire Aspen Insurance for ~$47.50 per share

>>> Aspen Insurance Holdings Limit Receives offer from Endurance Specialty Holdi


Aspen Insurance Holdings Limit Receives offer from Endurance Specialty Holdings to be acquired at $47.50/shr; valued at $3.2B in cash and stock

- Each Aspen shareholder will have the right to receive for their Aspen shares, at their election: all cash ($47.50 per Aspen share); all Endurance common shares (0.8826 Endurance shares for each Aspen share); or a combination of cash and Endurance common shares. The election will be subject to a customary proration mechanism to achieve an aggregate consideration mix of 40% cash and 60% Endurance common shares. 

- Endurance expects the combined company to generate synergies exceeding $100 million annually, resulting in significant ROE and EPS accretion in 2015. These synergies will include cost savings, underwriting improvements, capital efficiencies and enhanced capital management opportunities. - Endurance: "Despite our repeated attempts since late January to engage in confidential and friendly discussions, Aspen's Board and management have rebuffed our proposal and refused to engage with us, thereby denying Aspen's shareholders the ability to understand and attain the clear financial, operational and strategic benefits of this transaction. We are fully committed to this transaction and are confident that Aspen's shareholders will recognize the value of our proposal and actively encourage their Board to begin constructive discussions with Endurance without delay, with the goal of reaching a negotiated transaction,"

>>> US Gapping down

Gapping down

Solar names lower following disappointing TSL guidance: TSL-2.9% (lowers Q1 shipment guidance; estimates its solar module shipments to be in the range of 540 MW to 570 MW, including 20 MW to 30 MW for its downstream projects), JKS -2.6%, CSIQ -4.4%, CSUN -2.8%.

Select European financial related names showing weakness: NBG -14% (planning EUR 2.1 billion capital raise, according to reports), ING -2.2%, BCS -1.4%, BBVA -0.8%.

Other news: CVM -12.6% (announces proposed public offering of common stock and six month warrants), NQ -9.4% (Muddy Waters Research tweets that NQ Mobile Q4 was 'dismal'), MDT -5.4% ( Federal Court orders preliminary injunction on U.S. Sales of Medtronic's infringing Transcatheter Valve; downgraded to Neutral from Overweight at JP Morgan ), ALU -4.5% (still checking), ERIC-4% (announces change in Executive leadership team), ABBV -3.1% (presents late-breaking results from TURQUOISE-II study in chronic HepatitisC patients with cirrhosis ), BBRY -1.9% (still checking), ASML -1.8% (still checking), YY -1.6% (still checking), AA -1.5% (downgraded at Fitch ), CCL -1.4% (still checking), NOK -1.3% (still checking), ABB -1.2% (still checking), YNDX -1.1% (Russia names were under pressure), BP -0.9% (still checking), MSFT -0.8% (fined $731 mln by EU over browser miscue. according to reports ; downgraded to Hold from Buy at Deutsche Bank ), NUS -0.6% (following late move lower on HLF concerns), JNJ -0.4% (plans to end plans for anti-wrinkle treatment that was to challenge Allergan's Botox, according to reports out Friday prior to close; downgraded to Hold from Buy at Jefferies), GSK -0.3% (may face criminal investigation in Poland, according to reports ).

Analyst comments: STM -2.5% (downgraded to Sell from Neutral at UBS), GLW -0.9% ( downgraded to Hold from Buy at Stifel).

>>> US Gapping up

Gapping up

In reaction to strong earnings/guidance: WBMD +5.4%, C +2%.

M&A news: NBS +13% ( to acquire California Stem Cell; agreement provides for the issuance of an aggregate of up to ~ 5.33 mln shares of NBS common stock in exchange for all of the CSC outstanding stock and options), CHDX halted (Chindex Announces Receipt of Superior Proposal to acquire all of the outstanding shares of Chindex common stock for $23 per share in cash).

Select financial related names showing strength boosted by C results: MS +1.8% (modestly higher following C results and on reports that the co may divest Learning Care unit in near term), WFC +1.5%, GS +1.0%, USB +0.9%, JPM +0.5% (Barron's profiles positive view on JP Morgan), .

Select metals/mining stocks trading higher: HMY +2.5%, GOLD +2.2%, GG +2.1%, ABX +1% .

European consumer discretionary names trading higher: DEO +3.1% BUD +1.8% and UL +1.8%, UN +1.4% .

Other news: LXRX +19.5% (announces positive, top-line results in a Phase 2 clinical trial of LX4211 in type 1 diabetes, which achieved the primary endpoint of reducing mealtime insulin use as well as several secondary endpoints, including improved glycemic control ), MSTX +16.4% (announces new data supporting MST-188 In Sickle Cell Disease; MST-188 decreased a marker of inflammation and red blood cell aggregation), HTM +15.6% ( has acquired geothermal property for evaluation of a new project at Vale, Oregon), EW +12.4% (Federal Court orders preliminary injunction on U.S. Sales of Medtronic's infringing Transcatheter Valve; Edwards Lifesciences upgraded to Neutral from Underweight at JP Morgan), GDP +8.7% (announces completion of its Blades 33H-1 (66.7% WI) well in Tangipahoa Parish, Louisiana; well has achieved a peak 24-hour average production rate to date of 1,270 BOE per day, comprised of 1,250 barrels of oil and 115 Mcf of gas on a 14/64 inch choke from an ~ 5,000 foot lateral), CYTX +6.7% ( announces publication of safety and efficacy data from a 36 month European clinical trial of Cytori Cell Therapy in patients with chronic ischemic heart failure; PRECISE data demonstrate sustained safety and benefit and 18 months), JASO +4.6% (expects total shipment volume in the first quarter of 2014 to exceed 620 MW, ahead of its previously announced guidance of 580 MW to 610 MW), RDNT +3.2% (still checking), ICPT +2.3% (reports additional positive data from POISE Trial at EASL late-breaker session), RAD+2.3% (positive comments on Friday's Mad Money), DDD +1.9% (announced a partnership with Staples in a pilot of 3D printing services in two Staples stores in New York City and Los Angeles; initiated with a Neutral at Goldman; tgt $63), S +1.8% (Sprint and Spotify plan streaming music partnership, according to reports ), JCP +1.3% (still checking), HLF +0.8% (following late sell-off on reports of criminal investigation), VNO +0.5% (discloses spin off of its shopping center business), TOT +0.5% (Total and its JV partners launch development of Kaombo, an ultra-deep offshore project).

Analyst comments:AKBA +14.5% (initiated by several analysts), STX +4% (upgraded at Argus), BSX +2.4% (upgraded to Buy from Neutral at BofA/Merrill), PANW +2.2% (upgraded to Overweight from Equal Weight at Barclays), SSYS +2% (initiated with a Buy at Goldman; tgt $146), YHOO +1.6% (Yahoo upgraded to Buy from Neutral at SunTrust), MA +1.2% ( upgraded to Outperform at Robert W. Baird), V +0.7% (upgraded to Outperform at Robert W. Baird ), RIG +0.6% (upgraded to Hold from Sell at Deutsche Bank),

>>> Citigroup beats by $0.15, beats on revs --> +3.33% 800k shares traded

Citigroup beats by $0.15, beats on revs

Reports Q1 (Mar) earnings of $1.30 per share, $0.15 better than the Capital IQ Consensus Estimate of $1.15; revenues fell 0.6% year/year to $20.12 bln vs the $19.46 bln consensus. CVA/DVA was $7 million ($4 million after-tax) in Q1, compared to negative $319 million (negative $198 million after-tax) in the prior year period. Excluding CVA/DVA, first quarter revenues of $20.1 billion were down 2% from the prior year period. Excluding CVA/DVA and the tax item, first quarter 2014 earnings were $1.30 per diluted share, representing a 1% increase y/y.

Citigroup
  • Citigroup revenues of $20.1 billion in Q1 declined 1% from the prior year period. Excluding CVA/DVA in both periods, revenues declined 2% y/y. This decrease was driven by a 5% decline in Citicorp revenues, primarily due to a decline in Fixed Income Markets revenues in Institutional Clients Group (ICG) and lower U.S. mortgage refinancing activity in North America Global Consumer Banking (GCB), which was partially offset by higher Citi Holdings revenues.
  • Citigroup's net income rose to $3.9 billion in Q1 from $3.8 billion in the prior year period. Driven by lower expenses and lower net credit losses, partially offset by the lower revenues and a higher effective tax rate.
  • Operating expenses of $12.1 billion were 1% lower y/y. Operating expenses in Q1 included $945 million of legal and related expenses, compared to $710 million in the prior year period, and $211 million of repositioning charges, compared to $148 million in the prior year period. Citigroup's cost of credit in the first quarter 2014 was $2.0 billion, a decrease of 20% y/y due to improvement in net credit losses.
  • Citigroup's allowance for loan losses was $18.9 billion at quarter end, or 2.87% of total loans, compared to $23.7 billion, or 3.70% of total loans in prior year.
  • As of quarter end, book value per share was $66.25 and tangible book value per share was $56.40, 6% and 8% increases, respectively y/y. Citigroup's estimated Basel III Tier 1 Common ratio was 10.4%, up from 9.3% in the prior year period, driven by growth in retained earnings and deferred tax asset (DTA) utilization, partially offset by an increase in risk-weighted assets. C added approximately $56 billion of operational RWA as part of its transition to Basel III "advanced approaches" effective in 2Q14.
Citicorp
  • Citicorp revenues of $18.7 billion in Q1 declined 3% y/y. Corporate/Other revenues were $141 million versus $6 million in the prior year period.
  • Citicorp net income decreased 8% y/y to $4.2 billion.
  • Citicorp operating expenses decreased 2% from the prior year period to $10.6 billion primarily reflecting efficiency savings, partially offset by higher regulatory and compliance costs, legal and related expenses and repositioning charges in the current quarter. Citicorp cost of credit of $1.6 billion in Q1 declined 4% y/y. The decline reflected both a 1% decline in net credit losses as well as a higher net loan loss reserve release, which increased 10% y/y.
Global Consumer Banking
  • GCB revenues of $9.3 billion declined 5% from the prior year period, as significantly lower U.S. mortgage refinancing activity and continued spread compression globally more than offset the impact of the Best Buy portfolio acquisition and ongoing volume growth in most international businesses.
  • North America- GCB revenues declined 6% to $4.8 billion versus the prior year period driven mainly by lower retail banking revenues, partially offset by higher retail services revenues. Citi-branded cards revenues were roughly flat versus the prior year period at $2.0 billion, reflecting improvement in net interest spreads and growth in purchase sales, offset by a 3% decline in average loans.
  • International GCB revenues declined 3% versus the first quarter 2013 to $4.5 billion on a reported basis. On a constant dollar basis, international GCB revenues were up 3% versus the first quarter 2013 driven by growth in Latin America and Asia, partially offset by a decline in EMEA. International GCB net income declined 6% from the prior year period to $700 million on a reported basis and declined 2% in constant dollars. On a constant dollar basis, higher expenses and higher credit costs more than offset the higher revenues.
Citi Holdings
  • Citi Holdings revenues in the first quarter 2014 increased 61% versus the prior year period to $1.5 billion. Revenues in the first quarter 2014 included CVA/DVA of $14 million (compared to negative $9 million in the prior year period). Excluding CVA/DVA, Citi Holdings revenues increased 58% to $1.4 billion primarily driven by the absence of repurchase reserve builds for representation and warranty claims in the first quarter 2014, as well as higher levels of mark-to-market gains, lower funding costs versus the prior year period and a one-time gain on a debt transaction. As of the end of the quarter, total Citi Holdings assets were $114 billion, 23% below the prior year period, and represented approximately 6% of total Citigroup assets. Citi Holdings net loss was $284 million in the first quarter 2014 compared to a net loss of $804 million in the prior year period, driven by the higher revenues and lower net credit losses.
ICG revenues declined 4% from the prior year period to $9.2 billion. Excluding the impact of the negative $7 million of CVA/DVA in the first quarter 2014 (compared to negative $310 million in the prior year period), revenues were $9.2 billion, 7% lower than the prior year period, primarily reflecting a decline in Fixed Income Markets and Investment Banking revenues, partially offset by higher Equity Markets, Corporate Lending and Private Bank revenues.
  • Banking revenues of $4.1 billion increased 1% from the prior year period, primarily reflecting growth in Corporate Lending and Private Bank revenues, partially offset by lower Investment Banking revenues. Investment Banking revenues decreased 10% versus the prior year period, driven by a 19% decline in debt underwriting revenues to $578 million and a 14% decline in advisory revenues to $175 million, partially offset by 20% growth in equity underwriting revenues to $299 million. Private Bank revenues increased 6% to $668 million from the prior year period (excluding $3 million of CVA/DVA, versus negative $1 million in the first quarter 2013), driven by growth in investments and capital markets products. Corporate Lending revenues increased 28% to $398 million, including $17 million of mark-to-market losses on hedges related to accrual loans compared to a $24 million loss in the prior year period. Corporate Lending revenues rose 24% versus the prior year period to $415 million as higher loan balances and lower funding costs were partially offset by lower loan yields. Treasury and Trade Solutions revenues increased 1% versus the prior year period as growth in fees and volumes were partially offset by the ongoing impact of spread compression globally.
  • Markets and Securities Services revenues of $5.2 billion (excluding negative $10 million of CVA/DVA, versus negative $309 million in the first quarter 2013) declined 12% from the prior year period. Fixed Income Markets revenues of $3.9 billion in the first quarter 2014 (excluding negative $26 million of CVA/DVA) declined 18% from the prior year period, reflecting the uncertain global macro environment as well as strong performance in the prior year in securitized products and local markets rates and currencies. Equity Markets revenues of $883 million (excluding $16 million of CVA/DVA) were up 13% versus the prior year period, driven by improved derivatives revenues.

>>> US Earnings Preview for the week of April 14 - 17



Earnings Preview for the week of April 14 - 17
Of the companies reporting earnings for the week of April 14 - 17 some of the bigger names include:

Monday:
Pre Market - C, JBHT, MTB
After Hours - PBY
Tuesday:
Pre Market - JNJ, KO, INFY, NTRS, CMA
After Hours - INTC, CSX, YHOO, LLTC, IBKR
Wednesday:
Pre Market - BAC, ABT, USB, PNC, GWW, ASML, STJ, HBAN
After Hours - IBM, GOOG, AXP, COF, KMI, KMP, CCK, STLD, SNDK, NE, URI, ALB, SLM, UFPI, KSU, PLXS, HNI, EPB, PBCT
Thursday:
Pre Market - TSM, WIT, GE, UNH, PEP, SLB, DD, HON, GS, MS, PM, BHI, UNP, DHR, AN, BAX, SAP, PGG, BLK, SHW, BBT, DOV, FITB, BX, COL, ADS, SON, KEY, MAT, CMG
After Hours - AMD, HUBG, SCSS