(BFW) BSkyB Placing 156.1m Shrs to Part Fund SkyD, Sky Italia Deals

BN 07/25 06:01 *BSKYB PLACING 156.1M SHRS TO PART FUND PROPOSED ACQUISITIONS
BN 07/25 06:01 *BSKYB PLACING OF 156.1M SHRS
BN 07/25 06:00 *BSKYB BSY PLACING OF NEW ORDINARY SHRS
BSkyB Placing 156.1m Shrs to Part Fund SkyD, Sky Italia Deals
2014-07-25 06:11:27.572 GMT


By Gaurav Panchal
July 25 (Bloomberg) -- BSkyB to place 156.1m new ordinary
shares, representing ~9.99% of BSkyB’s existing capital, with
both existing investors and new institutional investors to part
fund the acquistions of Sky Italia, Sky Deutschland.
* 21st Century Fox, the 39.14% shareholder in BSkyB, has
undertaken to subscribe for 61.1m placing shares so as to
maintain existing percentage shareholding in co.
* 21st Century Fox agrees that it will not exceed more
than 37.19% of voting rights at any time exercisable at
a general meeting of BSkyB
* Placing shares, other than the 21st Century Fox Placing
Shares, fully underwritten by Barclays and Morgan Stanley
* Statement:{NSN N997DI3HBS3O <GO>}
* Earlier: BSkyB to Buy 100% of Fox’s Sky Italia Stake, Swap
NatGeo Stake {NSN N997NJ6TTDSN <go>}
* BSkyB Offers EU6.75-Shr for Sky Deutschland {NSN
N997176TTDS1 <go>}

Link to Company News:{BSY LN <Equity> CN <GO>}
Link to Company News:{FOXA US <Equity> CN <GO>}
Link to Company News:{SKYD GR <Equity> CN <GO>}

For Related News and Information:
First Word scrolling panel: {FIRST<GO>}
First Word newswire: {NH BFW<GO>}

To contact the editor responsible for this story:
Gaurav Panchal at +44-20-7392-0511 or
gpanchal2@bloomberg.net

>>> Balfour Beatty and Carillion confirm merger talks; Goldman Sachs advising Ba

Balfour Beatty and Carillion confirm merger talks; Goldman Sachs advising Balfour Beatty, Lazard advising Carillion -
The listed UK-based construction companies Balfour Beatty and Carillion have confirmed that they are in talks regarding a potential merger. The statement posted on Balfour Beatty's website on 24 July follows:

Balfour Beatty plc (“Balfour Beatty”) and Carillion plc (“Carillion”) Possible Merger

In view of recent media speculation the Boards of Carillion and Balfour Beatty can confirm that, following an approach from Carillion to Balfour Beatty, they are engaged in preliminary discussions in relation to a possible merger of Carillion and Balfour Beatty.

The Boards of Carillion and Balfour Beatty believe that the merger of the two groups has the potential to create a market leading services, investments, and construction business of considerable depth and scale. Work is now underway to develop a strategy and outline business plan for a combined entity, underpinned by the evaluation of achievable synergies, future financing arrangements and a number of other essential supporting workstreams. In evaluating the merits of the merger, the two boards will, inter alia, wish to be satisfied that such a merger would lead to very significant value creation for the benefit of both sets of shareholders.

The two parties have agreed that Balfour Beatty’s publicly announced sale process for Parsons Brinckerhoff, which is already underway, will proceed unaffected by this announcement, subject to achieving acceptable value and terms.
The Boards of Carillion and Balfour Beatty note that they would only proceed with a merger if, inter alia, (i) both Carillion and Balfour Beatty were to conclude due diligence to their satisfaction; and (ii) the Boards of Carillion and Balfour Beatty were to recommend it to their shareholders. In accordance with Rule 2.5(c)(i) of the Code, Carillion and Balfour Beatty confirm that the pre-conditions referenced in (i) and (ii) above must be satisfied prior to the agreement of any transaction.

No final decision has been reached regarding the structure of any merger. Accordingly until further notice, for the purposes of the Code, both Balfour Beatty and Carillion will be treated as offeree companies.

As required by Rule 2.6(a) of the Code each of Carillion and Balfour Beatty are required, by not later than 5.00 p.m. on 21 August 2014, to either announce a firm intention to undertake a transaction in accordance with Rule 2.7 of the Code or announce that they do not intend to undertake a transaction, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. Either deadline may be extended with the consent of the Panel in accordance with Rule 2.6(c) of the Code.

A further announcement will be made in due course, as appropriate. In the meantime, there can be no certainty that any offer will be made by either Carillion or Balfour Beatty or as to the terms on which any such offer might be made.

Background:

A Sky News report on 24 July prior to Balfour Beatty and Carillion’s statement said the investment bank Goldman Sachs is advising Balfour Beatty, while Lazard is advising Carillion. Spokespersons for Balfour Beatty and Carillion refused to comment, the item said.

Balfour Beatty’s market capitalisation stood at GBP 1.60bn (EUR 2.01bn) at the close of trading in London on 24 July, while Carillion’s market capitalisation stood at GBP 1.45bn.

>>> What to look at today - 25/07/2014

US Market Closed near the flat line, mkt open higher on strong data & perf from China, none sector made a real difference today, volume were ligth again @ 615mil shares...FB +5.2% on better earnings was a name who helped Tech to performed...VIX @ 11.84 +2.78%...US After Hours : DTLK +19%, BIDU +6.1%, DECK +5.6%, CERN +2.9%, LSCC-15.6%, WCG -15.3%, P -10.5%, AMZN -10.2% following earnings/guidance...- Another set of disappointing numbers from Japan is further indicative of the rising possibility of Abenomics hitting the skids. Following a 2nd consecutive drop in exports overnight, the trend of steady growth in CPI also appears to be waning, adding to pressure on the BOJ to take more action to meet its targets...Among some of the more notable Asian companies reporting quarterly earnings, BIDU was up nearly 7% in the after-market following a solid beat on the top and bottom line. Q3 sales guidance was also very impressive...Nikkei +1.01% Hang Seng -0.05% Shanghai +0.61%

Eur$ 1.3468 S&P -0.06% EuroStoxx -0.21% FTSE -0.15% DAX -0.18% SMI -0.08%

Macro :
- Italy Unlikely to Meet 0.8% GDP Target, Renzi Tells Corriere
- Emerging-Market ETF Flows in U.S. Turn Positive for 2014

Keep an eye on :
- ABG LN : African Barrick Posts 1H Profit; FY Output Guidance Raised
- AF FP : Air France 2Q Ebit Beats, Rev. Misses Est.; Repeats Ebitda Goal
- AZA IM : Alitalia May Propose Capital Boost of Up to EU250m: Reuters Link
- BP/ LN : Delta Ends BP Fuel Contract at Trainer Refinery: Reuters Link
- BSY LN : Murdoch Said Poised to Sell European Sky Stakes for $9.3b
- CABK SM : CaixaBank 1H Net EU305 Mln; Analyst Est. EU262.8 Mln , Puts EU900M of Real Estate Up for Sale: Expansion
- BN FP : Danone 1H Trading Oper. Income Misses Ests., Confirms Forecast
- DB1 GY : Deutsche Boerse 2Q Net EU159.3m vs Est. EU158m
- DBK GY : Deutsche Bank May Expand Efficiency Efforts, Wants Added Savings of EU2.5b:: Handelsblatt
- ERICB SS : Ericsson Looking at Add-On Acquisitions, Dagens Industri Reports
- GLJ GY : Grenkeleasing 1H Net Income Rises 40%; Raises 2014 Forecast
- LG FP : Lafarge 2Q Ebitda EU812m vs Estimate EU816m; Confirms Outlook
- LLOY LN : Lloyds Said to Be Set to Announce Up to GBP300m Libor Fines: FT
- LUX IM : Luxottica 2Q Oper. Inc. Beats, Sees Strong 3Q Sales
- MC FP : LVMH 1H Rev., Profit Recurring Ops Miss Ests, 1H Fashion/Leather Organic Sales Growth Misses Ests.
- NEX FP : Nexans 1H Op Margin EU77m From EU75m Y/y; Confirms 2014 Target
- NXI FP : Nexity 1H Rev. EU1.11b vs Est. EU1.13b
- PRS SM : Prisa 2Q Net Loss EU2.12B Vs EU159.39M Loss a Yr Earlier
- SAN FP : Sanofi Drugs Sale Said to Interest Blackstone, KKR
- SBRY LN : Bid talks around
- SKYD GY : BSkyB bid 6.75/share
- SOP FP : Sopra 2Q Total Revenue Growth Up 7.1%, Organic Growth Up 4.7%
- RIA FP : Steria 1H Sales Rise 8%; Net Falls 30%
- STL NO : Statoil 2Q Adj. Net NOK9.9b vs Est. NOK10.9b; Div. NOK1.8/Share, 2Q Pretax Profit NOK33.2b vs Est. NOK35.9b, CEO Says ‘More Skeptical’ on Europe Shale Gas Volume
- TFI FP : TF1 1H Ad Rev. Falls; Says Conditions Remain Tough
- HO FP : Thales 1H Sales Miss Ests.; Confirms 2014 Outlook
- TL5 SM : Prisa Sells 8.5% Mediaset Espana Stake for EU307.5m
- TCH FP : Technicolor 1H Sales Drop, Net Income Rises; Confirms Targets
- UNR1V FH : Uponor 2Q Sales, Profit Miss Ests.; Keeps 2014 Outlook Intact
- FR FP : Valeo 1H Net Misses, Rev. In Line
- VOD LN : Vodafone 1Q Organic Sales Growth Beats Estimates

>>> Brokers Upgrades & Downgrades - 25/07/2014

>>> Up
*BODYCOTE RAISED TO BUY VS HOLD AT BERENBERG
*DECKERS OUTDOOR RAISED TO BUY AT JEFFERIES
*MOBISTAR RAISED TO HOLD AT JEFFERIES
*WAWEL RAISED TO HOLD VS SELL AT ING

>>> Down
*ASTARTA CUT TO SELL VS HOLD AT ING
*DASSAULT SYSTEMES CUT TO NEUTRAL FROM OUTPERFORM AT EXANE
*KERNEL CUT TO HOLD VS BUY AT ING
*KINGFISHER CUT TO NEUTRAL VS BUY AT CITI
*REXAM CUT TO HOLD AT JEFFERIES

>>> PT Change


>>> Initiation~
*INTERSERVE RATED NEW BUY AT BERENBERG, PT 750P
*LENZING AG RATED NEW SELL AT CITI, PT EU43
*MORPHOSYS RATED NEW BUY AT BOFAML, PT EU85
*RICARDO RATED NEW BUY AT BERENBERG, PT 735P
*TOPPS TILES RATED NEW BUY AT BERENBERG, PT 170P

>>> Call

(BFW) *BSKYB OFFERS 6.75 EUROS/SHARE FOR REST OF SKY DEUTSCHLAND

vs 6.66 on the close ...poor 1.35% premium
BFW 07/25 05:51 *BSKYB OFFERS 6.75 EUROS/SHARE FOR REST OF SKY DEUTSCHLAND
BN 07/25 05:50 *BSKYB OFFERS 6.75 EUROS/SHARE FOR REST OF SKY DEUTSCHLAND
BN 07/25 05:50 *KRONEN TAUSEND985 ENTERED SHR BUY PACT WITH 21ST CENTURY FOX
BFW 07/25 05:49 *KRONEN TAUSEND985 OFFERS EU6.75/SHR FOR SKY DEUTSCHLAND
BFW 07/25 05:49 *SKY BROADCASTING GROUP SUBSIDIARY BIDS FOR SKY DEUTSCHLAND
BN 07/25 05:49 *KRONEN TAUSEND985 OFFERS EU6.75/SHR FOR SKY DEUTSCHLAND
BN 07/25 05:49 *KRONEN TAUSEND985 IS UNIT OF BRITISH SKY BROADCASTING GROUP
BN 07/25 05:48 *CASH CONSIDERATION OF EU6.75 PER SKYD-SHARE
BN 07/25 05:48 *KRONEN TAUSEND985 OFFERS CASH CONSIDERATION EU6.75/SKYD-SHARE
BN 07/25 05:48 *BIDDER HAS ALSO ENTERED INTO A SHR BUY PACT W/ 21ST CENTURY FOX
BN 07/25 05:48 *KRONEN PUBLIC TAKEOVER OFFER TO HOLDERS OF SKY DEUTSCHLAND
BN 07/25 05:48 *KRONEN TAUSEND985 OFFER FOR SKY DEUTSCHLAND
BN 07/25 05:47 *SKY DEUTSCHLAND TAKEOVER OFFER
BN 07/25 05:47 * TAKEOVER OFFER; <DE000SKYD000>
DGAP-WpÜG: Takeover Offer; <DE000SKYD000>
2014-07-25 05:47:40.407 GMT


DGAP-WpÜG: Takeover Offer; <DE000SKYD000>


Target company: Sky Deutschland AG; Bidder: Kronen tausend985 GmbH

Dissemination of an announcement according to the German Securities
Acquisition and Takeover Act (WpÜG), transmitted by DGAP - a company of
EQS Group AG.
The bidder is solely responsible for the content of this announcement.

(BFW) *SKY BROADCASTING GROUP SUBSIDIARY BIDS FOR SKY DEUTSCHLAND

BN 07/25 05:50 *KRONEN TAUSEND985 ENTERED SHR BUY PACT WITH 21ST CENTURY FOX
BFW 07/25 05:49 *KRONEN TAUSEND985 OFFERS EU6.75/SHR FOR SKY DEUTSCHLAND
BFW 07/25 05:49 *SKY BROADCASTING GROUP SUBSIDIARY BIDS FOR SKY DEUTSCHLAND
BN 07/25 05:49 *KRONEN TAUSEND985 OFFERS EU6.75/SHR FOR SKY DEUTSCHLAND
BN 07/25 05:49 *KRONEN TAUSEND985 IS UNIT OF BRITISH SKY BROADCASTING GROUP
BN 07/25 05:48 *CASH CONSIDERATION OF EU6.75 PER SKYD-SHARE
BN 07/25 05:48 *KRONEN TAUSEND985 OFFERS CASH CONSIDERATION EU6.75/SKYD-SHARE
BN 07/25 05:48 *BIDDER HAS ALSO ENTERED INTO A SHR BUY PACT W/ 21ST CENTURY FOX
BN 07/25 05:48 *KRONEN PUBLIC TAKEOVER OFFER TO HOLDERS OF SKY DEUTSCHLAND
BN 07/25 05:48 *KRONEN TAUSEND985 OFFER FOR SKY DEUTSCHLAND
BN 07/25 05:47 *SKY DEUTSCHLAND TAKEOVER OFFER
BN 07/25 05:47 * TAKEOVER OFFER; <DE000SKYD000>
DGAP-WpÜG: Takeover Offer; <DE000SKYD000>
2014-07-25 05:47:40.407 GMT


DGAP-WpÜG: Takeover Offer; <DE000SKYD000>


Target company: Sky Deutschland AG; Bidder: Kronen tausend985 GmbH

Dissemination of an announcement according to the German Securities
Acquisition and Takeover Act (WpÜG), transmitted by DGAP - a company of
EQS Group AG.
The bidder is solely responsible for the content of this announcement.

(BFW) Murdoch Said Poised to Sell European Sky Stakes for $9


BN 07/24 23:42 Murdoch Said Poised to Sell European Sky Stakes for $9.3 Billion
Murdoch Said Poised to Sell European Sky Stakes for $9.3b
2014-07-24 23:48:20.578 GMT


By Tim Smith
July 25 (Bloomberg) -- To sell satellite-TV interests in
Italy, Germany, people with knowledge of the matter told
Bloomberg’s Kristen Schweizer and Anousha Sakoui, gaining funds
to raise an $80 billion takeover bid for Time Warner Inc.
* The sale to British Sky Broadcasting Plc may be announced as
soon as today, said the people, who asked not to be named
because the deal isn’t public
* With assistance from Cornelius Rahn in Berlin and Daniele
Lepido in Milan

Story Link:NSN N98PUC6KLVS6<GO>

For Related News and Information:
Murdoch Said Open to Offer More Than $75 Billion for Time Warner
NSN N8TQH76S972H <GO>
Murdoch Said to Mull Sky Proceeds to Boost Time Warner Bid
NSN N92E5R6S9732 <GO>
BSkyB in Talks to Buy Fox’s Pay-TV Units in Germany, Italy
NSN N5HAF26JTSEF <GO>
Top Stories: TOP <GO>
Top Media Stories: TOP MED <GO>
Top Technology Stories: TTOP <GO>
Top Deal Stories: DTOP <GO>

--With assistance from Cornelius Rahn in Berlin and Daniele
Lepido in Milan.

To contact the reporter on this story:
Tim Smith in Sydney at +61-2-9777-8678 or
tsmith58@bloomberg.net
To contact the editors responsible for this story:
Jan Dahinten at +65-6212-1164 or
jdahinten@bloomberg.net

>>> Asian Update

Asian Market Update: New Zealand business confidence slumps; Japan inflation slows amid softer exports and consumption

***Economic Data***
- (NZ) NEW ZEALAND JULY ANZ ACTIVITY OUTLOOK: 45.1 V 45.8 PRIOR; ANZ BUSINESS CONFIDENCE: 39.7 (14-month low; 5th consecutive decline) V 42.8 PRIOR
- (JP) JAPAN JULY TOKYO CPI Y/Y: 2.8% V 2.8%E; CPI EX FRESH FOOD Y/Y: 2.8% V 2.7%E
- (JP) JAPAN JUN NATIONAL CPI Y/Y: 3.6% V 3.5%E; CPI EX FRESH FOOD Y/Y: 3.3% (first slower CPI in 9 months) V 3.3%E
- (JP) JAPAN JUN CORPORATE SERVICE PRICE INDEX Y/Y: 3.6% (11th consecutive rise) V 3.6E
- (UK) UK JUL HOMETRACK HOUSING SURVEY M/M: 0.1% V 0.3% PRIOR; Y/Y: 5.8% V 6.0% PRIOR

***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 +0.6%, S&P/ASX -0.3%, Kospi +0.2%, Shanghai Composite +0.4%, Hang Seng -0.1%, Sept S&P500 -0.1% at 1,979

***Commodities/Fixed Income/Currencies***
- Aug gold +0.1% at $1,292, Sept crude oil -0.1% at $101.98/brl, Sept Copper -0.3% at $3.25/lb
- GLD: SPDR Gold Trust ETF daily holdings fall 3.6 tonnes to 801.8 tonnes
- (JP) BOJ offers to buy ¥400B in CP and ¥3T in T-bills
- (AU) Australia MoF (AOFM) sells A$600M in 3.25% bonds due 2024; Avg yield: 3.528%; Bid-to-cover: 2.86x
- (US) Weekly Fed Balance Sheet Total Assets Week ending July 23rd: $4.41T v $4.40T prior; Reserve Bank Credit: $4.37T v $4.36T prior; M1 y/y change: 11.8% v 11.1% w/w; M2 y/y change: 6.8% v 6.6% w/w
- USD/CNY: (CN) PBoC sets yuan mid point at 6.1597 v 6.1579 prior setting (weakest setting since July 8th, 3rd consecutive weaker setting)

***Market Focal Points/Key Themes***
- Another set of disappointing numbers from Japan is further indicative of the rising possibility of Abenomics hitting the skids. Following a 2nd consecutive drop in exports overnight, the trend of steady growth in CPI also appears to be waning, adding to pressure on the BOJ to take more action to meet its targets. Analysts noted that Japanese yen has not been weak enough to spur more overseas demand, and consumption still remains hamstrung by the higher sales tax. Moreover, some of the more pessimistic watchers note that the 2nd half of the year will be just as challenging, as wage inflation has not fully discounted the rise in consumer prices.

- New Zealand remained in focus among currency traders after yesterday's crushing blow on the kiwi by RBNZ Gov Wheeler. Today's July business confidence survey from ANZ justified the caution falling to a 14-month low, as economists pointed to a big drop in commodity prices and more contained housing having limited impact on the elevated NZD. Earlier, Westpac chief economist Stephens said NZD is expected to fall over the next few weeks by a substantial amount as markets anticipate a more proactive central bank that is growing much more intollerant of high exchange rate. NZD briefly fell below $0.8560 early in the session - a 6-week low.

- Among some of the more notable Asian companies reporting quarterly earnings, BIDU was up nearly 7% in the after-market following a solid beat on the top and bottom line. Q3 sales guidance was also very impressive at $2.16-2.22B v $2.0Be, as online marketing revenue rose nearly 60%. On a conference call, Baidu CFO said the Mobile segment has now achieved 70M daily users, and cloud storage activity has risen by over 30% in just the last quarter. Korean automakers are unimpressive, with Kia posting a 32% slide in operating profit due to the recent strength in KRW. Shares were still slightly higher however, as company announced it intends to lower costs and lift its high-margin premium cars to help reduce currency exposure.

***Equities***
US markets:
- LOGM: Reports Q2 $0.29 v $0.24e, R$55.0M v $51.7Me; +12.1% afterhours
- ECHO: Reports Q2 $0.22 v $0.18e, R$305.1M v $275Me; +10.8% afterhours
- BIDU: Reports Q2 $1.63 v $1.24e, R$1.93B v $1.80Be; CEO Robin Li: Mobile Baidu now has 70M Daily Active Users (DAUs) - conf call; +6.2% afterhours
- DECK: Reports Q1 -$1.07 v -$1.31e, R$212M v $191Me; raises outlook; +5.6% afterhours
- RFMD: Reports Q1 $0.24 v $0.17e, R$316.3M v $305Me; +4.9% afterhours
- CERN: Reports Q2 $0.40 v $0.40e, R$852M v $810Me, Raises FY14 $1.64-1.67 v $1.65e; +2.9% afterhours
- UHS: Reports Q2 $1.51 v $1.25e, R$2.02B v $1.95Be; Board approves share repurchase for up to $400M (4.1% of market cap), Raises FY14 guidance by 15-16%; +2.1% afterhours

- IM: Reports Q2 $0.54 v $0.53e, R$10.9B v $10.6Be, Op Margin 0.90% v 1.10% y/y; -1.0% afterhours
- FLEX: Reports Q1 $0.25 v $0.22e, R$6.6B v $6.27Be, Guides Q2 $0.22-0.26 v $0.25e, R$6.2-6.6B v $6.52Be; -1.7% afterhours
- SBUX: Reports Q3 $0.67 v $0.66e, R$4.15B v $4.16Be; Exec: Sees long-term EPS growth of about 15-20%; -2.5% afterhours
- V: Reports Q3 $2.17 v $2.09e, R$3.16B v $3.16Be, Guides FY14 EPS +17.5-18.5%, Rev +9-10%, FX impact 2% (prior EPS mid to high teens, Rev growth up in low double digits, FX impact -2%); -3.0% afterhours
- KLAC: Reports Q4 $0.80 (adj) v $0.90e, R$734M v $749Me; Guides Q1 $0.34-0.54 v $0.90e, R$590-650M v $746Me - conf call; -4.1% afterhours
- P: Reports Q2 $0.04 v $0.03e, R$219M v $219Me; -10.5% afterhours
- AMZN: Reports Q2 -$0.27 v -$0.13e, R$19.3B v $19.3Be; CFO: Discount pricing decisions in the US is impacting Q3 guidance - conf call; -10.6% afterhours
- MXIM: Reports Q4 $0.43 v $0.46e, R$642M v $650Me; raised dividend 8%; -11.2% afterhours
- WCG: Reports Q2 -$0.07 adj v $0.88e, Rev $1.8B v $3.0Be; Cuts FY14 EPS guidance; -12.8% afterhours

Notable movers by sector:
- Consumer Discretionary: Zhejiang Kaier New Materials 300234.CN +2.9% (H1 guidance); CyberAgent 4751.JP -13.9% (9-month results)
- Financials: AIA Group 1299.HK +1.5% (H1 operating results); Bank of Ningbo 002142.CN +1.3% (shareholder raises stake)
- Materials: Itochu Corp 8001.JP +2.2% (announces share sale, repurchase)
- Industrials: Fanuc 6954.JP +4.0% (Q1 results); IHI Corp 7013.JP +1.9% (press speculation on H1 results); Kia Motors 000270.KR +1.8% (Q2 results); Hyundai Motor 005380.KR -0.4% (Q2 results)
- Technology: Luxshare Precision Industry 002475.CN +3.2% (H1 results); Obic 4684.JP +3.5% (Q1 results); LG Electronics 066570.KR +0.1% (Q2 results)
- Healthcare: Chugai Pharmaceutical 4519.JP +4.9% (H1 results)
- Utilities: China Datang Renewable Power 1798.HK -3.7% (H1 guidance); Oki Electric Industry 6703.JP +5.5% (press speculation on Q1 results)
- Telecom: ZTE Corp 000063.CN +0.9% (exec comments on H1 smartphone shipments)

>>> US After Hours

After Hours Summary: DTLK +19%, BIDU +6.1%, DECK +5.6%, CERN +2.9%, LSCC -15.6%, WCG -15.3%, P -10.5%, AMZN -10.2% following earnings/guidance

After Hours Gainers: Companies trading higher in after hours in reaction to earnings: DTLK +19%, ACTG +12.5%, ECHO +11.3%, LOGM +10.6%, AWAY +10.3%, QLIK +8.6%, TORM +8.4%, MLNX +6.3%, BIDU +6.1%, ALGN +6%, DECK +5.6%, ATRC +5.6%, MKTO +5.2%, RFMD +4.4%, PFPT +3.7%, CERN +2.9%, COLM +2.7%, CTCT +2.4%, CBI +1.8%, RVBD +1.2%, MPWR +1%, SPSC +0.9%, BLDR +0.9%, N +0.9%, VRSN +0.8%, BJRI +0.8%, BCR +0.7%, MITK +0.6%, ALTR +0.6%, MSCC +0.4%

Companies trading higher in after hours in reaction to news: MGNX +6.3% (co's Dual-Affinity Re-Targeting candidate IND for colorectal cancer, MGD007, cleared to start enrolling patients; triggers $5m milestone payment from Servier), ATLS +4.0% (declared 6.5% increased quarterly distribution of $0.49 per common unit), KERX +2.3% (co announced Zerenex (ferric citrate) long-term Phase 3 study results were published in the Journal of the American Society of Nephrology), 

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: LSCC -15.6%, WCG -15.3%, BCOV -14.3%, MXIM -12%, INFA -10.6%, P -10.5%, AMZN -10.2%, FSL -4.8%, KLAC -4.8%, EPR -4.8%, MTSN -4.1%, WIRE -4.1%, CB -3.5%, V -3%, SBUX -2.9%, GIMO -2.3%, FLEX -1.7%, IM -1%, ISBC -0.8%, SWFT -0.8%, QLGC -0.5%, IG -0.4%, MTD -0.3%

Companies trading lower in after hours in reaction to news: GS -0.6% (James J. Schiro retires from the Board of Directors of Goldman Sachs to undergo treatment after a diagnosis of multiple myeloma), RAD -0.3% (Darren Karst appointed Executive Vice President and Chief Financial Officer)

>>> US Close Dow -0,02% S&P +0,05% NAsdaq -0,04%

Closing Market Summary: Stocks End Flat Despite Upbeat Earnings

The stock market maintained a narrow trading range on Thursday before ending the session essentially where it began. The S&P 500 added less than a point, while the small-cap Russell 2000 (-0.2%) underperformed.

Equity indices displayed early strength thanks in part to an overnight boost from better than expected economic data in China and Europe. Specifically, China's HSBC Manufacturing PMI surged to an 18-month high (52.0 from 50.7), while Eurozone Manufacturing PMI (51.9; expected 51.7) and Services PMI (54.4; expected 52.7) also surpassed estimates.

In addition to upbeat data from overseas, participants received a batch of better than expected earnings, but the market had a difficult time building on its early gain. The S&P 500 surrendered its opening advance during the initial minutes, but was able to follow that with a rally to a fresh record high (1991.39). The index could not hold that level into the afternoon and slipped back to its flat line by the close.

None of the sectors were able to distinguish themselves with several groups spending time atop the leaderboard. When it was all said and done, consumer staples (+0.4%), utilities (+0.4%) and consumer discretionary (+0.3%) occupied the top three spots.

The staples sector drew strength from beverage stocks with Dr Pepper Snapple (DPS 60.98, +2.54) surging 4.4% in reaction to its bottom-line beat. Peer PepsiCo (PEP 91.91, +1.09) advanced 1.2% after being upgraded to ‘Buy' from ‘Hold' at Stifel Nicolaus.

For its part, the utilities sector erased its week-to-date loss, but could only narrow its July decline to 3.4%. Despite the recent weakness, the rate-sensitive group holds a year-to-date gain of 12.5% versus a 7.6% increase for the S&P 500.

Elsewhere, the discretionary space was supported by retailers. Under Armour (UA 69.55, +8.92) spiked 14.7% to a new record high after delivering an above-consensus quarterly report, while the SPDR S&P Retail ETF (XRT 85.33, +0.55) rallied 0.7%. The strength among retailers outweighed the broad losses among homebuilders.

The industry group was pressured by a disappointing report from a major builder—DR Horton (DHI 21.94, -2.86)—and the June New Home Sales report, which fell short of expectations (406K; Briefing.com consensus 475K). The iShares Dow Jones US Home Construction ETF (ITB 23.38, -0.83) lost 3.4%.

Other high-beta groups like biotechnology and chipmakers did not fare much better. The iShares Nasdaq Biotechnology ETF (IBB 255.45, -3.89) tumbled 1.5%, while the health care sector (-0.2%) lagged throughout the session.

For its part, the PHLX Semiconductor Index lost 0.8% with Qualcomm (QCOM 76.17, -5.43) registering the largest drop. The stock fell 6.7% after its below-consensus Q4 earnings guidance overshadowed better than expected results.

Meanwhile, another tech stock—Facebook (FB 74.98, +3.69)—soared 5.2% after beating earnings and revenue expectations.

Treasuries retreated, making the bulk of their move ahead of the New York open. The 10-yr note lost 11 ticks, sending its yield higher by four basis points to 2.51%.

Participation was below average with a bit over 615 million shares changing hands at the NYSE.

Economic data was limited to initial claims and the New Home Sales report for June:
  • The initial claims level fell to 284,000 from an upwardly revised 303,000 (from 302,000), while the consensus expected an increase to 308,000 
    • The drop in claims brought the overall level to its lowest point since February 2006 and pressured the four-week moving average to its lowest level since May 2006 
    • The Department of Labor said there were no special factors associated with the report, but did note that claims tend to be volatile around this time of the year 
  • New home sales fell 8.1% in June to 406,000 from a downwardly revised 442,000 (from 504,000) in May, while the consensus expected a reading of 475,000 
    • Sales were also revised lower for April (408,000 from 425,000) and March (403,000 from 410,000) 
    • Median new home prices increased 5.3% y/y in June to $273,500 
Tomorrow, the Durable Orders report (consensus 0.3%) will be released at 8:30 ET. On the earnings front, AbbVie (ABBV 54.08, -0.40), LyondellBasell (LYB 102.42, -0.08), and American Electric Power (AEP 54.01, +0.04) will report their results ahead of the opening bell.
  • S&P 500 +7.6% YTD 
  • Nasdaq Composite +7.1% YTD 
  • Dow Jones Industrial Average +3.1% YTD 
  • Russell 2000 -0.6% YTD