>>> US Close Dow-0,45% S&P-0,11% Nasdaq-0,91%

The stock market finished the Thursday session on a lower note with small caps leading the weakness. The Russell 2000 (-1.0%) and Nasdaq (-0.9%) posted comparable losses while the Dow Jones Industrial Average (unch) and S&P 500 (-0.1%) finished little changed after climbing off their lows during the last hour of action.

Equity indices began the day with modest gains, but were quick to slip into the red, where they remained for the rest of the session. Of the major averages, the Nasdaq faced the most aggressive selling due to the daylong weakness in biotechnology and an afternoon slump in the technology sector (-0.6%).

Biotechnology spent the entire session in a steady retreat that pressured the iShares Nasdaq Biotechnology ETF (IBB 234.71, -6.89) back below its 100-day moving average (238.12). The biotech ETF lost 2.9% while the broader health care sector lost 0.3%.

For its part, the technology sector was among the early relative strength leaders before turning into a laggard during the early afternoon. It is worth mentioning the early strength was bolstered by a big gain in Google (GOOG 569.74, +2.74), which underwent a 2:1 split. The stock was up more than 3.0% in the morning before surrendering most of its gain over the course of the session. Most other large tech names finished in the red while Intel (INTC 26.41, +0.52) held a solid gain throughout the day.

Elsewhere, the discretionary sector (-0.5%) was another notable laggard after finishing among the leaders on Monday and Tuesday. Large components like Amazon.com (AMZN 333.62, -8.34), Priceline.com (PCLN 1237.45, -29.21), and Netflix (NFLX 354.69, -8.19) fell between 2.3% and 2.4% while homebuilders held up relatively well. The iShares Dow Jones US Home Construction ETF (ITB 24.71, 0.00) ended flat.

On the upside, the energy sector (+0.6%) held a solid gain throughout the session while crude oil advanced 0.7% to $100.29/bbl.

Meanwhile, the other commodity-linked sector, materials (+0.1%) posted a modest gain, thanks to a boost from Monsanto (MON 117.04, +2.62), which gained 2.3% after being upgraded to ‘Overweight' from ‘Neutral' at JP Morgan.

Treasuries ended near the middle of their range with the benchmark 10-yr yield falling two basis points to 2.79%.

Participation was below average with 647 million shares changing hands at the NYSE.

Today's economic data included three reports:
The weekly initial claims level increased to 326,000 from a revised 310,000 (from 311,000). The consensus expected the initial claims level to increase to 320,000. After several months between 330,000 and 340,000, initial claims have broken those bounds and are now trending between 315,000 and 330,000. This range is more typical of a 200,000 monthly increase in nonfarm payrolls. We would not be surprised, given the strength of the claims data in March, if payrolls top 200,000 for the first time since November 2013.
The U.S. trade deficit increased to $42.30 billion in February from a slightly upwardly revised $39.30 billion (from $39.10 billion) in January. That was the largest deficit since reaching $43.40 billion in September 2013. The consensus pegged the trade deficit at $39.30 billion. The goods deficit rose to $61.70 billion in February from $59.50 in January, an increase of $2.20 billion. The services surplus fell $800 million to $19.40 billion in February from $20.20 billion.
The ISM Non-Manufacturing Index increased to 53.1 in March from 51.6 in February while the consensus expected an increase to 53.5. The increase in the headline index was mostly the result of a recovery in employment. The Employment Index, which contracted in February, increased to 53.6 in March from 47.5.
Tomorrow's data will focus on jobs with March Nonfarm Payrolls (consensus 195K), Private Payrolls (consensus 205K), Unemployment Rate (consensus 6.6%), Hourly Earnings (consensus +0.2%), and Average Workweek (consensus 34.4) all set to cross the wires at 8:30 ET.


S&P 500 +2.2% YTD
Russell 2000 +1.6% YTD
Nasdaq Composite +1.5% YTD
Dow Jones Industrial Average -0.02% YTD

>>> Kellog +6% today - no specific news - Volume is 4 times Avg volume

Kellogg shares trading 6% higher in late trading today
K
Kellogg April, May and June 65 call options seeing notable interest today as well, along with relative strength/breakout in stock (64.92 +2.26)
Options Activity: K calls seeing interest with calls outpacing puts by a factor of 4.6:1; most notable are the May 65 calls (trading 3620 contracts versus open interest of 200)

>>> Micron beats by $0.09, beats on revs

Micron beats by $0.09, beats on revs 

Reports Q2 (Feb) earnings of $0.85 per share, excluding non-recurring items, $0.09 better than the Capital IQ Consensus Estimate of $0.76; revenues rose 97.6% year/year to $4.11 bln vs the $4.02 bln consensus.
Revenues from sales of Trade NAND Flash products were 11 % higher in the second quarter of fiscal 2014 compared to the first quarter of fiscal 2014 primarily due to a 35 % increase in sales volume offset by an 18 % decrease in average selling prices.
Revenues from sales of DRAM products were essentially unchanged in the second quarter of fiscal 2014 compared to the first quarter of fiscal 2014 as both sales volumes and average selling prices remained stable.
The company's overall consolidated gross margin was 34 % in the second quarter of fiscal 2014 compared to 32 % in the first quarter of fiscal 2014 as a result of a higher DRAM gross margin.
Cash flows from operations for the second quarter of fiscal 2014 were $1.39 bln, while investments in capital expenditures were $565 mln. The company ended the second fiscal quarter with cash and marketable investments of $5.06 bln.

(MergerMarket) Scania minorities still in talks but ability to block VW bid ques

Scania minorities still in talks but ability to block VW bid questioned
Some of Scania's [STO:SCV-A] minority shareholders are continuing discussions over Volkswagen’s [ETR:VOW] SEK 200 per share offer to buy out the remaining shares in the Swedish truck maker it does not already own.

But a question remains over whether this investor coalition, dubbed “Friends of Scania”, holds enough to block the deal, which is conditional on 90% acceptances, said Albin Rannar of the Swedish Shareholders Association.

The group of investors comprises AMF, AP4, Alecta, Swedbank Robur and Skandia, Mats Andersson, AP4's CEO, told this news service. He said that the five investors have had discussions along the way and if they were to come to the same conclusion, they could block the deal.

Both Andersson and Rannar said they thought the “Friends of Scania” group controlled 6-7% of shares, but this cannot be verified.

On Monday, AMF was the first of Scania’s investors to publicly reject the bid. This decision was based on both its own analysis and the advice of Scania’s independent committee, according to AMF’s head of corporate governance, Anders Oscarsson.

AMF holds 7m Scania shares representing 0.83% of the share capital, according to Oscarsson, while AP4 holds over 0.5% of the shares, Andersson said. Alecta is believed to have 2.04% and Swedbank Robur 1.8%.

Oscarsson believes that it might take a week or two for other shareholders to make a decision as “we all have different processes”. All members of the group may not necessarily reach the same decision.

Rannar said he was awaiting Scania’s quarterly report, set to be published next Friday 11 April, before issuing any advice to the private individual investors that his association represents. Private shareholders held around 5% of Scania’s shares until recently, but some may have sold their positions on the market, said Rannar.

A wider group made up of around 15 institutional shareholders formed a group last year to express concerns at Scania’s 2013 AGM about the dissolution of the company's nomination committee. It is not clear whether this larger group is in discussions over Volkswagen’s bid.

The group controls around 12.5%, according to Oscarsson, while Peter Lundkvist of AP3 thought the figure was closer to 10%.

One investor of this wider group, Nordea, which owns 6.4m shares, said that it thought SEK 200 was a fair bid. Other members of the group, AP2 and AP3, said they were yet to reach a decision, while Llanego said it had sold its shares. Didner & Gerge declined to comment.

Some institutions have a more political view on the offer than others, noted a source close to Scania.

While Volkswagen may be standing firm now, its position may change closer to the 25 April deadline, the source said, noting that US group McKesson [NYSE:MCK] upped its bid for German peer Celesio earlier this year.

If Volkswagen’s offer were to be blocked by minority shareholders representing at least 10% of Scania’s capital, the German company could extend the offer and possibly start buying on the market, Andersson said. But a VW spokesperson said that the company is not buying Scania shares in the market and has no plans to do so.

The 14 March offer document states that neither Volkswagen nor any related parties had acquired any shares in Scania for the prior six months. The automaker holds 62.64% of Scania’s shares and controls 89.18% of the voting rights.

>>> Anadarko Petro shares spiking on increased volume; headlines crossing that E

Anadarko Petro shares spiking on increased volume; headlines crossing that EPA and DoJ set to announce deal with APC today; related to settlement in TROX case 

For some background: On March 21st, Co issued the following statement in response to today's favorable ruling in the Deepwater Horizon Trial. "Today's ruling is consistent with previous Court determinations that we were not at fault for the Deepwater Horizon event. We look forward to seeing the Clean Water Act portion of the trial resolved soon."

>>> Rémy Cointreau / Brown Forman spéculation

{http://betaville123.blogspot.co.uk/2014/04/in-discreet-mayfair-hotel-cigar-bars.html?m=1}

JD...and Cognac In discreet Mayfair hotel bars men in dark glasses are talking about Remy Cointreau. But it's not because they like drinking expensive Cognac.

There is a theory rattling around the hedge fund districts of London, Paris and Geneva that Remy Cointreau is takeover target for US drinks giant Brown-Forman, owner of Tennessee whiskey Jack Daniel's.

The idea is that Brown-Forman is desperate to get hold of Remy Cointreau because it doesn't want to get left behind in the global consolidation game that re-ignited at the beginning of the year when Japan's Suntory snapped up US bourbon specialist Beam for $16 billion.

Since the Beam deal Remy Cointreau shares have been under pressure on fears the slowdown in China will continue to hit the French company's Cognac sales.

In early January, the maker of the luxury brand Louis XIII cognac issued a profit warning, saying sales fell sharply during the last three months of 2013 as Chinese demand for its products continued to shrink. The worse-than-expected financial performance has triggered several analysts downgrades.

Now, then, may be an 'opportune' time for Brown-Forman to strike at Remy Cointreau - which can trace its roots back to the Remy Martin business founded in 1724 - as the French company's stock is in the doldrums.

I checked the theory out with excellent sources. In some ways, the tale is credible. I understand that over the last couple of months Brown-Forman has been working with a few investment banks, including Goldman Sachs, on how it might be able to purchase Remy Cointreau.

Tentative discussions have been held between investment banking advisers to both companies, with Lazard said to be representing Remy Cointreau and its controlling shareholders.

However, that is about as advanced as the potential "deal" has got to at the moment, said sources close to the matter. And I expect it will be difficult to move the transaction further forward.

This is because France's Heriard Dubreuil family speak for about 60pc of the listed company, populate the board and manage the business. Francois Heriard Dubreuil, the chairman, took control as chief executive after Frederic Plfanz resigned earlier in the year.

Not a lot is known about the Heriard Dubreuil family as its members are highly secretive although not necessarily averse to M&A. Indeed, the family backed the merger of its Remy Martin business with Cointreau, which was owned by the Cointreau family, in the early 1990s.

However, given the Heriard Dubreuil members have been involved with Remy Cointreau for several decades, I understand it will take a huge offer from Brown-Forman - in the region of 85 Euros a share - just to even get the family to the negotiating table, especially as there is a social stigma in France about selling French companies to "les Americains".

Bonne chance, Brown-Forman.

Remy Cointreau and Brown-Forman both declined to comment. Ben Harrington at 17:12 Share

(BFW) Vivendi Free to Choose Its Preferred SFR Bid, CDC’s Jouyet Says

Vivendi Free to Choose Its Preferred SFR Bid, CDC’s Jouyet Says
2014-04-03 17:10:57.190 GMT


By Fabio Benedetti-Valentini and John Simpson
     April 3 (Bloomberg) -- Vivendi’s board free to choose buyer
for its SFR phone unit even as state-owned Caisse des Depots et
Consignations backs one of two bidders, CDC CEO Jean-Pierre
Jouyet says.
  * “Vivendi’s board is autonomous and we will respect its
    decision,” Jouyet tells journalists in Paris
  * Bouygues and Altice have put in bids for SFR; Vivendi on
    March 14 picked Altice over Bouygues for exclusive talks
    that end tomorrow
  * On March 20, Bouygues came back with a sweetened offer that
    included an investment by CDC
Story Link:NSN N3GSBI6K50XU<GO>

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

To contact the reporter on this story:
John Simpson in Toronto at +1-416-203-5726 or
jsimpson12@bloomberg.net
To contact the editors responsible for this story:
Andrea Snyder at +1-202-624-1831 or
asnyder5@bloomberg.net
Courtney Dentch

>>> US Notable movers of interest


Notable movers of interest

Large Cap Gainers
  • GOOG (578.1 +1.96%): Trading higher following Class C share dividend, resulting in a 2:1 split effective today.
  • MON (117.04 +2.29%): Upgraded to Overweight from Neutral at JP Morgan.
  • KKR (23.68 +2.69%): Initiated with an Outperform at Bernstein; tgt $33; reports out that co is buying shipping loans and may be interested in Lloyds (LYG) tranche.
Large Cap Losers
  • SJR (23.32 -3.72%): Downgraded to Sector Perform from Sector Outperform at CIBC Wrld Mkts.
  • IVZ (36.79 -2.36%): Trading lower following reports that St James plans to move fund management mandates.
  • ADSK (48.53 -2.12%): Mentioned unfavorably on Mad Money.
Mid Cap Gainers
  • RPM (44.01 +4.36%): Beat on EPS by $0.03, missed on revs; raised FY14 EPS guidance.
  • NFX (32.63 +3.85%): Upgraded to Buy from Neutral at UBS; tgt raised to $37 from $26.
  • ONNN (9.86 +3.84%): Co to acquire Truesense Imaging for ~$92 mln in cash; expected to be immediately accretive to margins and earnings.
Mid Cap Losers
  • QUNR (29.7 -7.99%): Weakness in Chinese ADRs (SFUN, YY, WUBA also lower).
  • SPLK (67.01 -5.78%): Upgraded to Outperform from Underperform at Credit Agricole; tgt lowered to $80 from $100.
  • SCTY (60.96 -4.38%): Priced offering by its subsidiary, SolarCity LMC Series II, of $70.2 mln with an interest rate of 4.59% and an anticipated repayment date of April 2022.

(TechCrunch) Report Claims Google Is Exploring Offering Wireless Carrier Service

Google is exploring launching a wireless carrier service, according to The Information. The report cites a meeting between Google and Verizon officials in which the possibility of a Google MVNO was discussed.

At this point, with Google Fiber and ever-expanding Nexus brand, it would be irresponsible for Google not to explore the possibility of a launching such a service.

In 2013, Google reportedly talked to Sprint to launch a wireless carrier service that leaned on Sprint’s network. Google had long worked with Sprint, offering a complete Google Voice package on its wireless devices.

This time around, Google could look to Verizon or T-Mobile to piggyback on.

If a Google MVNO does come to fruition, while the end game could be to take on major wireless carriers, chances are the initial offering would be small like in the case of Google Fiber. If the interest is there, Google would likely ramp up the offering to better compete. If anything, Google is not afraid to fail.