>>> Qihoo (QIHU) : +2.19% Pre-Market on Earnings

Qihoo 360 Tech. beats by $0.27, beats on revs; guides Q1 revs above consensus

Reports Q4 (Dec) earnings of $0.70 per share, excluding non-recurring items, $0.27 better than the Capital IQ Consensus Estimate of $0.43; revenues rose 115.3% year/year to $221.62 mln vs the $209.77 mln consensus.
Non-GAAP net margin was 43.5%, compared to 26.0% in the same period last year and 32.7% in the prior quarter. The year-over-year increase in non-GAAP net margin was also mainly due to leverage from strong revenue.
Co issues upside guidance for Q1, sees Q1 revs of $226-228 mln vs. $204.67 mln Capital IQ Consensus Estimate.


--> Stifel :
Stifel raises their QIHU tgt to $168 from $108; they continue to have great respect for management and the impressive strategy that has led them to a position of strength in the search industry in China. As Qihoo ramps up search monetization on increasing search query market share, we believe our target price may prove conservative

--> Jefferies and Morgan Stanley also out positive on QIHU following earnings last night

>>> Gap: Color on Feb sales GPS -3.64% Pre-MArket @ 40.75 vs 42.29

Gap: Color on Feb sales

* RBC notes that given the slow start to spring and a comp trend which could remain negative throughout 1Q, they remain on the sidelines with respect to the shares.
Stifel notes that despite the weak sales in February, we believe inventory is well controlled; enabling Gap to start Spring with a clean and fresh assortment. The company's continued focus on improving the omnichannel shopping experience and offering trend-right assortment is anticipated to drive comp gains long term; Buy.
* FBR capital notes GPS announced a comp of -7% well below FBR and consensus estimates of +1.1%. Given the Easter shift from March LY into April TY and storms and cold weather that continued into March, they don't see comp stabilization as likely until April. They believe there could be another uptick in promos/clearance when new product begins to flow in late March/Early April, pressuring AURs. Full 2014 EPS guidance is likely still conservative and investors could discount the Feb SSS miss as a one-time weather event. They remain on the sidelines until they see margin stabilization or a more attractive entry point.
* Mizuho attributes the weakness to closures of 15% of stores on weather and the shift of Super Cash into Jan. According to Planalytics, ~50% of the U.S. was covered by snow in Feb, up 10% from LY and 20% from 2012. With Feb ~20-25% of 1Q sales, they believe clean inventories, trend-right product, and its nimble operating model bode well when Spring arrives (March will be impacted by Easter shifting into April this year). In addition, they continue to believe GPS presents attractive LT growth drivers including Athleta and Int'l.


>>> US Gapping down

Gapping down

In reaction to disappointing earnings/guidance: NVTL -21.8%, ALSK -17.6%, BAXS -15.5%, VMEM -12.4%, PRGS -11.7%, ALOG -11.2%, APP -8.5%, BNFT -7.9%, TNDM -6.7%, QTWW -6.4%, WTI -5.2%, GPS -4.3%, AMBA -3.9%, FRM -3.8%, HYGS -3.3%, PSMT -2.3%, HRB -1.8%, TGD -1.3%, IDT -1.2%, LGP -1.1%, VNET -0.5%.

M&A news: SWY -2.3% (co and Albertsons announced definitive merger agreement; Safeway shareholders expected to receive total value estimated at $40 per share).

Select metals/mining stocks trading lower: GOLD -1.5%, VALE -1.5%, RIO -1.5%, FCX -0.7%, SLV -0.3%, BHP -0.2%

Select names trading lower following offerings: FEYE -6.9% (prices follow-on public offering of 14 mln shares of common stock at $82.00 per share by co and selling shareholders), LEI -4.3% (commenced public offering of 10 mln shares of its common stock held by the selling stockholders), APAM -1.6% (prices 8,073,337 shares of Class A common stock at $62.00 per share).

Other news: NLNK -12.1% (independent review committee recommends study continuation without modification after completion of first interim analysis of IMPRESS Phase 3 pancreatic cancer trial with algenpantucel-L), CKP -3.9% (announced delay in earnings release and conference call for Q4 and FY13), CDW -1.9% (announced it received a noncompliance notice from NYSE MKT; co also provided downside FY14 rev guidance), ZBB(E) -1.4% (announced NYSE MKT extended the co's compliance plan period to May 30, 2014), EAT -1.1% (announced Guy Constant has resigned as Executive Vice President, Chief Financial Officer and President of Global Business Development) .

Analyst comments: VMEM -12.4% (downgraded to Underperform from Buy at BofA/Merrill), ANR -4.2% (downgraded to Sell from Neutral at Goldman), HMHC -3.4% (downgraded to Neutral from Buy at Goldman; removed from America's Buy list, downgraded to Hold at Stifel), KIN -2.4% (downgraded to Neutral from Buy at ROTH Capital), ALU -1.4% (downgraded to Sell from Hold at Berenberg), MTGE -1.1% (downgraded to Hold from Buy at Deutsche Bank), CYS -1.1% (downgraded to Hold from Buy at Deutsche Bank), HUM -0.7% (downgraded to Hold from Buy at Jefferies).

>>> US Gapping up

Gapping up

In reaction to strong earnings/guidance: SKUL +22.5%, BIG +15.5%, EBS +5.5%, FL +5.2%, KFY +4.8%, CMTL +4.3%, PNY +3.8%, IPWR +2.7%, ASTI(F) +2.7%, PRTS +2%, JMBA +1.6%, QIHU +1.3%, XGTI +1.1%.

M&A news: AUQ +2.9% (announced tender offer for any and all of its outstanding 3.50% convertible notes due 2016; announces offering of $300 mln senior notes due 2022), TRQ +1.4% (seeing reports that Rio Tinto is considering making a bid for the company).

Other news: DLIA +10.9% (Tiger Global Management files 13G noting 6.3% stake), GURE +8.8% (still checking), INCY +3.6% (reports positive top-line results from Phase III study of Ruxolitinib in patients with polycythemia vera), PLUG +3.3% (CEO to make appearance on CNBC later today), GOGO +2.9% (S.A.C. Capital disclosed 5.1% passive stake), SGMO +2.8% (mentioned positively by Jim Cramer; co's CEO made appearance on Mad Money.

Analyst comments: CNAT +7.3% (initiated with a Buy at ROTH Capital), GTAT +6.6% (upgraded to Outperform from Neutral at Credit Suisse), CCRN +6.4% (upgraded to Buy from Neutral at Citigroup, upgraded to Buy from Hold at Cantor Fitzgerald), TFM +4.4% (upgraded to Buy from Neutral at UBS), PVG +2.4% (resumed with an Outperform at BMO Capital Mkts ), PLCM +2.2% (upgraded to Buy from Neutral at Citigroup), YELP +1.7% (target raised to $115 at Pacific Crest), TEVA +1.6% (upgraded to Overweight from Equal Weight at Barclays), CLH +1% (upgraded to Strong Buy from Mkt Perform at Raymond James
)

(BFW) Telecom Italia CEO Sees Possibility to Combine Tim Brasil, GVT

but not ongoing talk on GVT, TIM Brasil

+------------------------------------------------------------------------------+

BN 03/07 12:42 *TELECOM ITALIA CEO PATUANO ENDS CONF. CALL BFW 03/07 12:35 *TEL ITALIA CEO: NO ONGOING TALKS ON GVT, TIM BRASIL BN 03/07 12:28 *TEL ITALIA CEO: NO ONGOING TALKS ON GVT, TIM BRASIL BN 03/07 12:27 *TEL ITALIA CEO: `NOT OUR PRIORITY' TO COMBINE GVT, TIM BRASIL BN 03/07 12:26 *TELECOM ITALIA CEO SEES POSSIBILITY TO COMBINE GVT, TIM BRASIL

+------------------------------------------------------------------------------+

Telecom Italia CEO Sees Possibility to Combine Tim Brasil, GVT 2014-03-07 12:42:00.254 GMT

By Daniele Lepido and Tommaso Ebhardt March 7 (Bloomberg) -- Telecom Italia SpA CEO Patuano says “no ongoing negotiations” to combine Tim Participacoes SA with Vivendi’s GVT unit. * Marco Patuano says GVT is “very good fixed-line asset and Tim Brasil a very good mobile one”. * Telecom Italia CEO says “not our priority” to combine GVT and Tim Brasil * Telecom Italia comments in conference call with analysts * NOTE: Telecom Italia Scraps Dividend to Save Cash as Losses Mount NSN N229JS6JTSEW <GO>

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

To contact the reporters on this story: Daniele Lepido in Milan at +39-02-8064-4266 or dlepido1@bloomberg.net; Tommaso Ebhardt in Milan at +39-02-8064-4231 or tebhardt@bloomberg.net To contact the editors responsible for this story: Kenneth Wong at +49-30-70010-6215 or kwong11@bloomberg.net Dan Liefgreen

>>> US Early premarket gappers

Early premarket gappers

Gapping up: SKUL +23.8%, BIG +10.4%, CCRN +6.5%, FL +6.2%, EBS +5.5%, KFY +4.8%, CMTL +4.3%, TRQ +4.1%, QTWW +4.1%, PNY +3.8%, AUQ +2.9%, IPWR +2.7%, ASTI +2.7%, SGMO +2.4%, GOGO +2%, PRTS +2%, JMBA +1.6%, QIHU +1%

Gapping down: NVTL -18.6%, ALSK -15.3%, BAXS -13.7%, PRGS -11.7%, VMEM -11.3%, ALOG -9.9%, APP -8.5%, BNFT -7.9%, TNDM -6.7%, FEYE -5.5%, WTI -5.2%, GPS -4.8%, CDW -4.5%, LEI -4.3%, CKP -3.9%, HRB -3.4%, SWY -3%, AMBA -1.7%, ZBB -1.4%, XGTI -1.4%, IDT -1.2%, EAT -1.1%, LGP -1.1%, VNET -0.5%

RTR - Pimco's Gross declares El-Erian is 'trying to undermine me'


Gross told Reuters that he had "evidence" that El-Erian "wrote" a February 24 article in the Journal, which described the worsening relationship between the two men as Pimco's performance deteriorated last year, including a showdown in which they squared off against each other in front of more than a dozen colleagues at the firm's Newport Beach, California headquarters.

Gross, who oversaw more than $1.91 trillion in assets as of the end of last year and who is known on Wall Street as the 'Bond King', said in a phone call to Reuters last Friday: "I'm so sick of Mohamed trying to undermine me."

When asked if Reuters could see the evidence about El-Erian and the allegation he was involved in the article, Gross said: "You're on his side. Great, he's got you, too, wrapped around his charming right finger."

He said he knew that El-Erian, who had been widely seen as the heir apparent to Gross but is now due to leave in mid-March, had been in contact with Reuters as well as the Wall Street Journal.

Gross indicated he had been monitoring El-Erian's phone calls.

A Pimco spokesman said in an emailed statement: "Mr. Gross did not make the statements Reuters attributes to him. He categorically denies saying this firm ever listened in on Mr. El-Erian's phone calls or that Mr. El-Erian 'wrote' any previous media article."

He added: "As a regulated company, PIMCO is required to retain records of its employees' communications to help ensure compliance with the firm's policies."

Pimco's owner, German financial services company Allianz SE, was not available for comment.

El-Erian, who was named to a part-time position as chief economic adviser to Allianz last week, could not be reached for comment.

When asked about Gross's claim that El-Erian "wrote" the article, a spokeswoman for Dow Jones, the publisher of The Wall Street Journal, said: "This is an astoundingly incorrect claim about a thoroughly reported article that was in the best tradition of The Wall Street Journal."

El-Erian signed a non-disclosure agreement as part of his Pimco departure terms, according to a source close to him. Reuters couldn't ascertain the details of his exit package, including its confidentiality aspects or the size of his payout.

The February 24 Journal article detailed the unraveling of the once vaunted investment and management partnership between Gross and El-Erian. The article revealed the increasing strains between the two executives over Gross's combative management style and whether he should trust other investment managers more.

"I have a 41-year track record of investing excellence," Gross told El-Erian one day last June, according to the Journal article, which cited two witnesses as its source. "What do you have?"

"I'm tired of cleaning up your s---," El-Erian responded, referring to conduct by Gross that he felt was hurting Pimco, these two people recalled, according to the article.

A source who was present at the time confirmed to Reuters that the report of the exchange was accurate.

SOME PIMCO INVESTORS ON EDGE

The latest signs of a rift between Gross and El-Erian, who once praised each other fulsomely, come as Gross is grappling with clients who are also turning their backs on the very asset class that has made him famous.

That is happening partly because the Federal Reserve continues to reduce its controversial bond buying that has provided stimulus to the U.S. and world economies.

Pimco saw its assets under management shrink by $80 billion in 2013 due to outflows and negative returns, according to Morningstar.

In February, Gross's flagship Pimco Total Return Fund had $1.6 billion of net outflows, its 10th consecutive month of outflows, and it lagged 71 percent of its peers with a return of just 0.52 percent last month, according to Morningstar. In 2013, it suffered a negative total return of nearly 2 percent.

In mid-February, Gross sought to reassure the firm's clients about the new leadership structure he has put in place since Pimco's announcement of El-Erian's departure on January 21.

Gross called his announcement of six new deputy chief investment officers a "significant improvement" from Pimco's previous structure, which concentrated nearly all investment strategy decision making onto the shoulders of Gross and El-Erian.

"I've never seen Bill and Pimco scrutinized like this before. This is the most attention I have seen on them," said Eric Jacobson, Morningstar senior analyst who has covered Pimco for nearly two decades. "A couple of high-profile stumbles and mediocre showings, coupled with some outflows - and with no identified successor for life after Bill - clearly has some investors on edge."

Still, Jacobson said that Gross holds one of the best records in the bond industry with the Pimco Total Return fund's 10-year and 15-year annualized returns at 6.04 percent and 6.68 percent, respectively. The fund's returns are beating 96 percent of its peers for those time periods, he added.