>>> Petrobras Brasileiro shares lower by 3% pre-market-- move attributed to WSJ

Petrobras Brasileiro shares lower by 3% pre-market-- move attributed to WSJ story suggesting that Brazil will resist plan by PBR to adjust fuel prices 

Article : Brazil Resists Petrobras's Plan to Adjust Fuel Prices

RIO DE JANEIRO--Brazil's government is resisting a plan by state-run oil company Petroleo Brasileiro SA (PBR, PETR4.BR), or Petrobras, to adjust local fuel prices because of its potential impact on already persistent inflation, the Folha de S.Paulo newspaper reported Tuesday. Petrobras is expected to present its plan for bringing local gasoline and diesel prices in line with international levels to the company's board Friday. Petrobras has seen its profits eroded in recent years because it sells expensive imported fuels at a loss in the domestic market. Brazil has been reluctant to pass along higher international prices to consumers because inflation, which is expected to end 2013 at 5.82%, is running above the central bank's 4.5% target. The government fears the plan, which would automatically raise or lower fuel prices based on a formula using foreign-exchange rates and international oil prices, could end up being used as a model for price indexing in other products across Latin America's largest economy, further inflaming inflationary pressures, Folha reported. Instead, the government is willing to raise gasoline prices 5% and diesel prices 10% this year, pushing the discussion about automatic adjustments into 2014, the newspaper said. Petrobras has said that it needs the regular fuel-price adjustments to ensure the company's revenues are sufficient to fund a $237 billion investment plan through 2017. Both Petrobras and a spokesman for President Dilma Rousseff declined to comment on the report.

>>> Barnes & Noble reports surprise profit on lower than expected revenue; reaff

Barnes & Noble reports surprise profit on lower than expected revenue; reaffirms guidance

Reports Q2 (Oct) earnings of $0.15 per share, $0.26 better than the Capital IQ Consensus Estimate of ($0.11); revenues fell 8.0% year/year to $1.73 bln vs the $1.76 bln consensus.

Guidance

The co reaffirms its previously issued full-year guidance, in which it expects Retail comparable store sales to decline in the high single digits, Core Retail comparable bookstore sales to decline in the low- to mid-single digits and College comparable store sales to decline in the low single digits.

By Segment

Retail The Retail segment, which consists of the Barnes & Noble bookstores and BN.com businesses, had revenues of $921 million for the quarter, a decrease of 7.5% from the prior year. The sales decrease, which was in-line with company expectations, was attributable to a comparable store sales decrease of 4.9% for the quarter, store closures and lower online sales. "Core" comparable bookstore sales, which exclude sales of NOOK products, decreased 3.7% for the quarter on lower store traffic and comparisons to the Fifty Shades of Grey trilogy a year ago. Retail generated EBITDA of $37 million in the quarter, increasing 21.2% as compared to a year ago as the sales decline was offset by strong expense management, including higher store productivity.

College The College segment had revenues of $738 million, decreasing 4.6% compared to a year ago. Comparable College sales decreased 3.6% for the quarter, impacted by a higher mix of lower priced used textbook rentals and lower textbook sales, partially offset by higher general merchandise sales. The second quarter includes the fall back to school rush season. Comparable College store sales reflect the retail selling price of new or used textbooks when rented. College EBITDA declined $3 million as compared to a year ago to $84 million. The decline is primarily attributable to higher textbook rental volume, where revenues received are deferred and amortized over the rental period, which generally spans the term of the semester. The co also continued to invest in digital product development. These factors were partially mitigated by increased store count, as well as higher margins associated with textbook rentals and a greater sales mix of general merchandise.

NOOK The NOOK segment, which consists of the co's digital business (including digital content, devices and accessories), reported revenues of $109 million for the quarter, decreasing 32.2% from a year ago. Digital content sales were $57 million for the quarter, a decline of 21.2% compared to a year ago, due to lower average selling prices and lower device unit sales. Device and accessories sales were $51 million for the quarter, a decrease of 41.3% from a year ago, due to lower unit selling volume and lower average selling prices. Despite the sales decline, NOOK EBITDA losses decreased $6 million as compared to a year ago to $45 million on lower device markdowns and reduced expenses.

>>> US Gapping down

Gapping down

In reaction to disappointing earnings/guidance: VNET -8.4%, NUAN -5.6%, CHS -5.1% (light volume), FSC -4.4%, JASO -3.1%, SFM -1.8% (also prices 17 mln shares of common stock by selling shareholders, including Apollo Global Mgmt ), DY -1.1%.

Select metals/mining stocks trading lower: RIO -1.5%, BBL -1.2%, VALE -1.1%, GOLD -1%, BHP -0.8%, AU -0.7%.

A few oil/gas related names showing early weakness: PBR -3%, RIG -0.9%, SDRL -0.5%

Other news: ATAX -7.5% (announces public offering of shares representing assigned limited partnership interests), TTWO -3.7% (Announces Repurchase of the 12.02 Million Shares Held By Icahn Group at Yesterday's Closing Price ), BITA -3.4% ( files for $100 mln Ordinary Share offering), TWGP -3.4% (disclosed triggering events that accelerate or increase a direct financial obligation or an obligation under an off-balance sheet arrangement), YGE -3.4% (following JASO results), WPC -2.7% (still checking), LGF -1.9% (continued weakness), DEO -0.4% (Diageo plc plans to sell Whyte & Mackay business, according to reports), .

Analyst comments: MEOH -1.8% (downgraded to Market Perform from Outperform at Raymond James), WAT -0.7% (downgraded to Neutral from Buy at Goldman), TFM -0.5% (downgraded to Neutral from Buy at Goldman)

>>> US Gapping up

Gapping up

In reaction to strong earnings/guidance: WDAY +10.3% (also upgraded to Outperform at Robert W. Baird), PANW +9%, PWRD +7.1%, TIF +6.8%, LDK +3.5%, NPD +3.4%, DSW +1.7%, MOV +1.2%, PLL +0.3%.

M&A news: JOSB +10.7% and MW +6% (Men's Wearhouse proposes to acquire Jos. A. Bank for $55 per share in cash), ITW +0.6% (PE firms BX, CG, APO may be bidding for ITW's packaging segment, according to reports).

Select financial related names showing strength: PBR +-3%, NBG +2.1%, ING +1.3%, BCS +1.2%, CS +1%, UBS +0.9%,

Select biotech stocks seeing continued strength: ARIA +7.2%, APPY +4.7%, OREX +2.4%.

Other news: HBIO +10.2% (still checking), BLRX +8.1% (announces new positive results in phase 2a trial for orally available inflammatory bowel disease treatment; new results show BL-7040 to reduce pro-inflammatory cytokine levels and improve colon histology in IBD patients), MACK +7.6% (MM-121 demonstrates positive signal in two Phase 2 ER/PR+ Breast Cancer Studies; Metastatic Breast Cancer Study Reinforces Biomarker Findings From Previously Reported MM-121 Study in Ovarian Cancer; Merrimack Pharma and Actavis (ACT) announce nanotechnology collaboration), BIOF +6.1% (issues statement in announced sale of plants), UNXL +4.5% (addresses market speculation), OLED +4.1% (Universal Display and Philips Technologie GmbH Announce Collaboration and Evaluation Agreement for OLED Lighting), QCOM +3.5% (finalizes sale of Omnitracs to Vista Equity Partners; will result in an estimated $0.22 to $0.25 per share gain in Q1), LGND +3.2% ( LGND to replace SHFL in the S&P SmallCap 600), CSTM +3% (still checking), RYAAY +2.2% (still checking), TTS +2.1% ( S.A.C. Capital discloses 5.0% passive stake in 13G filing), VJET +2.1% (still checking), EGY +1.7% (CEO bought 33.6K shares at $6.05 on 11/22, worth ~$200K), JONE +1.7% (to acquire assets in the Andarko Basin for $195 mln), JKS +1.6% (following LDK results), AXE +1.5% ( declares special dividend of $5.00 per common share), AG +1.3% (still checking), JCP +1.2% (J. C. Penney CEO Ullman buys 112K shares at $8.95), FFIV +1.2% (following positive mention on MadMoney and Board authorized an additional $300 mln for the co's common stock share repurchase program), MU +0.3% (Greenlight Capital discloses new position in MU as of 9/30 - amended 13F filing ), .

Analyst comments: GALE +5.2% (initiated with an Outperform at Oppenheimer), HUN +2.3% ( upgraded to Buy from Neutral at Goldman), INN +1.4% (upgraded to Outperform from Market Perform at BMO), ASML +1% (upgraded to Buy from Hold at Societe Generale), BTU +0.7% (upgraded to Outperform from Neutral at Macquarie), ALV +0.5% ( upgraded to Neutral from Sell at Citigroup ), PSEC +0.4% ( initiated with an Outperform at BMO Capital Mkts), FEYE +0.4% (upgraded to Overweight from Equal Weight at Barclays), DHR +0.4% (upgraded to Buy from Neutral at Goldman), FRX +0.3% (upgraded to Neutral from Underweight at Piper Jaffray ), MO +0.3% (initiated with a Outperform at RBC Capital Mkts)