>>> US Gapping down

Gapping down

In reaction to disappointing earnings/guidance: IDN -22.7%, GIII -7.3%.

Other news: AI -3.5% (announces 2.75 mln common stock offering), BGC -2.2% (may be attributed to block trade pricing), PFSI -2% (announces commencement of secondary public offering by selling stockholder), COMM -1.8% (announces secondary offering of 17.5 mln shares of common stock by an affiliate of The Carlyle Group), SQI -1.4% (announces 3 mln share common stock offering), VEEV -1.4% ( files amended S-1: Veeva offering 890k shares, selling stockholders offering 11.11 mln shares of common stock), SWHC -1.2% (announces vertical integration of precision plastic molding supplier), SGY -1.1% (light volume, Millennium Management discloses 6.0% stake in SC 13G filing).

Analyst comments: HIMX -7.1% (downgraded to Underperform from Buy at BofA/Merrill), ACI -4.1% (downgraded to Hold from Buy at Jefferies), PHM -2.6% (downgraded to Underweight from Equal Weight at Barclays), MT -0.9% (downgraded to Reduce from Hold at Kepler), T -0.8% (downgraded to Neutral from Overweight at HSBC) .

>>> US Gapping up

Gapping up

In reaction to strong earnings/guidance: VTNR +8.3%, SONC +6.8%, SOL +4.9% (also upgraded to Buy from Neutral at ROTH Capital), EXA +3.5% (thinly traded), WAG +0.3%, (light volume).

M&A related: RBS +1.1% (Mitsubishi Financial also considering bid for Citizens Group, according to reports, DIS +0.4% (to acquire Maker Studies for total consideration of $500 mln and a performance-linked earn-out of up to $450 mln).

Select financial related names showing strength: NBG +2.7%, DB +1.2%, ING +0.8% (to pay EUR 1.225 billion to Dutch State), BAC +0.3% (Barron's profiles positive view).

Metals/mining stocks trading higher: RIO +2.3%, ABX +1.5%, BHP +1.4%, AU +1.4%, IAG +1.4%, GDX +1.2%, GOLD +1.1%, SLV +0.7%.

Select solar related names showing strength: RGSE +3.3%, TSL +2.7%, JKS +2.2%.

Other news: OFIX +8.9% (announces filing of restated financial statements ), CCIH +8.8% (was added to NASDAQ Golden Dragon China Index yesterday), WUBA +7.8% (announced offering yesterday), HALO +5.9% (announces positive results from Phase 1/2 Clinical Trial In Cellulite With HTI-501), RLD +4.5% (RealD and Wanda Cinema sign agreement to add 780 RealD 3D Cinema Systems across China), PLUG +4.4% (lifting premarket on positive blog comments), LUX +3% (to develop and distribute a new breed of eyewear for Glass), CPRX +1.8% (announced that the independent Data Monitoring Committee overseeing the Co's ongoing pivotal Phase 3 clinical trial evaluating Firdapse for the treatment of Lambert-Eaton Myasthenic Syndrome recommended that the trial be continued as planned), UN +1.4% (still checking), AWAY +1.2% (announces proposed $350 mln offering of convertible senior notes due 2019), TWTR +1.1% (still checking), BUD +1% (still checking), WEN +0.9% (announces completion of its System Optimization initiative with sale of 104 restaurants in four U.S. markets), FEYE +0.8% (modestly rebounding; also initiated in-line at Imperial Capital;), NFX +0.7% (after appearance on Mad Money), RDS.A +0.6% ( plans to focus on large projects amid spending cuts, according to reports).

Analyst comments: ECYT +10.3% (added to Best Ideas List at Wedbush), NPSP +5.3% (initiated with a Buy at Goldman), VRNS +4.1% (several analyst initiations), RAX +3.3% (light volume, upgraded to Overweight from Equal Weight at Morgan Stanley), ARIA +2% (Ariad Pharm resumed with a Buy from Neutral at HC Wainwright; tgt $14), PANW +1.7% (upgraded to Outperform from Mkt Perform at FBR Capital), SINA +1.6% ( attributed to positive JPMorgan comments related Weibo), SAPE +1% ( initiated with a Buy at Sun Trust Rbsn Humphrey), ORAN +1% (upgraded to Hold from Reduce at Kepler), CVG +1% (initiated with a Buy at Sun Trust Rbsn Humphrey), E +0.8% (upgraded to Outperform from Market Perform at Raymond James)

>>> Novartis Heart Failure Drug Shouldn’t Be Approved: FDA Reviewer


Novartis AG FDA publishes staff notes


**Note on March 27th, the FDA Cardiovascular and Renal Drugs Advisory Committee will discuss biologics license application 125468, serelaxin injection, submitted by Novartis, as a treatment to improve the symptoms of acute heart failure through reduction of the rate of worsening of heart failure.


Novartis’s serelaxin shouldn’t be approved for proposed use to reduce symptoms of acute heart failure, FDA clinical reviewer said in report.
  • FDA clinical reviewer cites “insufficient evidence” to support use, says no signficant safety concerns were identified that preclude approval
  • NVS expects data in 2016 from separate Phase 3 study of serelaxin to reduce death risk
    • Co. decided to seek approval based on data from single study, even though two pivotal studies are usually required for approval: Rob Kowalski, NVS’s global head of drug regulatory affairs, in Feb. interview
  • FDA advisory panel will review findings at March 27 meeting
    • Review initially scheduled for Feb. 13 was postponed because of weather
  • Bloomberg Industries est. Pdufa date is in May; serelaxin received breakthrough status from FDA in June 2013
  • Analysts est. 2018 serelaxin sales $523.1m: Bloomberg data; Endo has Canadian rights to drug
    • Other cos. developing drugs for acute heart failure include Forest Labs/Trevana, Amgen/Cytokinetics/Servier: BI
    • NOTE: NVS appealing EU panel’s recommendation against serelaxin in Jan., seeking conditional approval to sell drug contingent on larger mortality study showing benefit

(BFW) Lufthansa Won’t Pursue SAS Takeover, Spokesman Says

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

MORE: Lufthansa Won’t Pursue SAS Takeover, Spokesman Says 2014-03-25 11:58:02.841 GMT

By Peter Levring March 25 (Bloomberg) -- Buying SAS or any other airline isn’t option as Lufthansa is focused on bringing own house in order, has no space to add complexity from acquisitions, spokesman Martin Riecken says at Copenhagen press conference. * EARLIER: Lufthansa Says ‘Confident’ in Deal With Pilots to Avoid Strike

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

To contact the reporter on this story: Peter Levring in Copenhagen at +45-33-457-122 or plevring1@bloomberg.net To contact the editors responsible for this story: Christian Wienberg at +45-33-457-121 or cwienberg@bloomberg.net Gelu Sulugiuc

>>> Emerson discloses February 2014 Order update; underlying orders increased 4%

Emerson discloses February 2014 Order update; underlying orders increased 4% 

Trailing three-month orders growth continued to reflect slightly improving global macroeconomic conditions, with mixed demand among geographies and markets. Excluding unfavorable currency translation of 2 percentage points, underlying orders increased 4 percent, as all segments reported growth and four of five improved sequentially. Market conditions remained favorable in Asia, with solid demand in China, while political instability in Russia and the Ukraine has dampened demand in that region. The harsh weather in the U.S. continued to adversely affect orders and sales in February, which are expected to be recovered over the next several months.

>>> Walgreens misses by $0.01, revs in-line with March 5 preannouncement; raises

Walgreens misses by $0.01, revs in-line with March 5 preannouncement; raises Alliance Boots synergy target

Reports Q2 (Feb) earnings of $0.91 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of $0.92; revenues rose 5.1% year/year to $19.61 bln (in-line with March 5 preannouncement) vs. the $19.54 bln consensus.
  • Front-end comparable store sales (those open at least a year) increased 2.0% in the second quarter, customer traffic in comparable stores decreased 1.4% and basket size increased 3.4%, while total sales in comparable stores increased 4.3%.
  • GAAP total gross profit dollars increased $43 million, or 0.8%, compared with the year-ago second quarter, with gross profit margins decreasing 1.3 % points versus the year-ago quarter to 28.8 as a%age of sales. Adjusted gross profit dollars increased $22 million, or 0.4%, compared with the year-ago second quarter. Pharmacy gross profit dollars were primarily impacted by the shift in the generic drug wave from a peak in the prior year to a trough in the first half of fiscal 2014. A less severe flu season in this year's second quarter compared with a year ago also negatively impacted pharmacy gross profit dollar growth. Front-end margins decreased as the company invested in promotions. The LIFO provision was $51 million in this year's second quarter versus $72 million last year.
  • "Our second quarter performance, in spite of expected headwinds from slower generic drug introductions, comparisons with last year's flu season and severe weather, was marked by solid top-line growth driven by record quarterly sales and record second-quarter prescriptions filled," said President and CEO Greg Wasson. "We also continued to gain prescription market share while we maintained a firm hold on our costs. "We head into the second half of the year with nearly 80 million active members in our Balance® Rewards loyalty program and with expectations that the generic drug headwind that affected the first half will ease and turn around by the end of the year.
  • In addition, our joint synergy program with Alliance Boots is expected to exceed its second-year estimate, and we are bringing critical elements of the Well Experience to additional stores." The combined synergies for Walgreens and its strategic partner, Alliance Boots, in the first half of fiscal 2014 were ~$236 million. The joint synergy program is now estimated to deliver second-year combined synergies of $375-$425 million, an increase from the previous second-year estimate of $350-$400 million. Alliance Boots contributed 8 cents per diluted share to Walgreens second quarter 2014 adjusted results. The co estimates that the accretion from Alliance Boots in the third quarter of fiscal 2014 will be an adjusted 13 to 14 cents per diluted share. This estimate does not include amortization expense, the impact of AmerisourceBergen warrants or one-time transaction costs, and reflects the company's current estimates of IFRS to GAAP conversion and foreign exchange rates.

>>> Fed's Plosser (hawk, voter): Fed did not really change its position on rate

Fed's Plosser (hawk, voter): Fed did not really change its position on rate hikes at the last FOMC meeting; 6-month time frame not an unexpected time frame for rate hike after taper ends - CNBC

- Was surprised by market reaction after Yellen press conference
- Given the current schedule of the taper, bond purchases would end in Nov
- Once the taper is over, Fed will be assessing economic conditions before hiking rates.

>>> HP: We have solved 3D printing’s biggest problems. Just wait until June

--> CEO Meg Whitman said the company will make a big announcement about its first 3D printer in June. She said it’s fast and prints at a higher quality.

HP will issue a major update later this year on its first 3D printer, which will supposedly print faster and at a higher quality than current printers, CEO Meg Whitman told shareholders at an annual meeting Wednesday, according to PCWorld. HP clarified on March 24 that the announcement will occur by October 31 instead of in June, as originally stated by Whitman.

Whitman said 3D printing is currently “like watching ice melt,” and the surface quality of 3D printed objects needs improvement. She did not say how HP plans to increase PRINTING speed, but Wired reported last year that HP is developing its own polymer for printing.

HP will enter the 3D printing market in phases, according to PCWorld. It will first target businesses with employees that need to print prototypes and finished products. Other business-oriented printers generally cost at least $5,000, if not $10,000 or $100,000. Whitman said that HP was also focusing on cost when news of an HP 3D printer first broke in October. The most innovative business 3D printers of late have been on the cheaper end of that spectrum, so the company will need to target that $5,000 mark to be truly competitive.

There’s no word yet on exactly when HP will begin selling its first printer. But if the 2D printing veteran really has solved the speed problem, it will be major news in the 3D printing industry.

Quality and cost have improved consistently, but no one has really been able to significantly speed up the process of printing in plastic. That could be HP’s big chance to leapfrog over market-leading 3D printing companies Stratasys and 3D Systems.

This post was updated on March 24 to include a revised statement from HP that the announcement will occur by the end of the company’s fiscal year in October.