TheChek News Flow

After Hours Summary: SQNM +23.5%, OLED +17.2%, GPS +7.7%, AVG -9.9%, MNST -1.9% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: SNTS +37%, SQNM +23.5%, IL +22.5%, OLED +17.2%, MITK +15.5%, AIRM +14.3%, UBNT +12.9%, LCI +9.5%, SLXP +9.4%, FEYE +9.1%, ADEP +9%, ABTL +8.6%, AMRN +8.5%, PTIX +8.1%, GPS +7.7%, ARAY +7.1%, ACET +6.6%, ARNA +6.4%, CYTX +5.9%, MDRX +5.4%, NKTR +5.1%, PCYC +4%, SSTK +3.5%, ENSG +3.2%, CPST +2.7%, AREX +2.6%, ATW +2.6%, VVC +2.5%, UEPS +2.3%, NFG +2.2%

Companies trading higher in after hours in reaction to news: SNTS +37.0% (to be acquired by Salix Pharmaceuticals (SLXP) for $32 per share), GPS +7.9% (reported Oct same store sales +4% vs +0.6% Retail Metric consensus; also issued upside Q3 EPS guidance and reported Q3 sales above consensus), ARAY +7.1% (Two papers from a large multi-site study further demonstrate efficacy and quality of life benefits for prostate cancer patients treated with co's CyberKnife System), ARNA +6.6% (Co and Eisai expanded marketing and supply agreement for BELVIQ to include most countries worldwide; co also reported earnings), XONE +4.3% (announced it will open its seventh production service center), ENSG +3.2% (announced plan to separate its healthcare business and its real estate business into two separate and independent publicly-traded cos; adopted stockholder rights plan)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: NES -30.4%, TRMR -24.5%, MCZ -12.2%, AVG -9.9%, PXLW -8.9%, SYNM -7.7%, PODD -7.6%, FXEN -6.8%, SWIR -6.3%, SFM -5.4%, UNXL -5.1%, TEU -4.2%, ELON -4.1%, CLNE -4%, NVAX -3.6%, OPXA -3.2%, NSU -2.6%, MNST -1.9%, DIS -1.7%, PCLN -1.3%, TEP -1.3%, ALJ -1.1%, PGH -0.7%, TUMI -0.5%, XNPT -0.2%, MCP -0.2%, RP -0.2%, UEIC -0.2%, LUK -0.1%

Companies trading lower in after hours in reaction to news: SFM -5.4% (filed for 22.5 mln share common stock offering by selling shareholders), WYN -5.4% (completed $300 mln term securitization), ACPW -5.1% (disclosed it will restate its quarterly interim financial statements for first and second quarters of FY13), SLCA -4.6% (announced 10.5 mln share offering by selling stockholder), MRC -1.6% (priced secondary public offering of 17,489,233 shares of common stock by selling stockholders at $28.90 per share), CST -1.4% (priced public offering of 13,112,564 shares by selling stockholder at $31 per share), BCC -1.0% (announced pricing of secondary public offering of 7 mln shares of common stock at $22.50 per share)

Closing Market Summary: Nasdaq Leads Stocks Lower

The major averages ended on their lows after opening gains turned into broad-based losses. The S&P 500 fell 1.3% while the Nasdaq underperformed with a decline of 1.9%. Prior to the open, the European Central Bank cut its key interest rate by 25 basis points to 0.25% after recent data suggested the price level is moving away from the ECB's inflation target. The rate cut fueled a surge in the dollar while also sparking a risk bid. However, the equity gains were capped after a better-than-expected headline Q3 GDP reading (2.8% versus 2.5% consensus) fostered renewed speculation about a potential tapering announcement coming sooner rather than later. The immediate reaction in Treasuries also reflected a ‘taper on' trade as bonds sold off, sending the 10-yr yield from its low to a session high. However, Treasuries returned to their best levels of the day as weakness among equities redirected some flows into safe-haven assets. The 10-yr yield ended lower by four basis points at 2.61%. The Nasdaq paced today's decline as momentum names saw a continuation of yesterday's weakness. Facebook (FB 47.56, -1.56), LinkedIn (LNKD 211.47, -9.31), Priceline.com (PCLN 1022.89, -35.15), Tesla (TSLA 139.77, -11.39), and Yelp (YELP 61.83, -4.78), lost between 3.2% and 7.5% with Tesla seeing added pressure in reaction to reports of another car fire after the vehicle hit some debris on the road. The index was also pressured by Qualcomm (QCOM 67.09,-2.65) after the company reported disappointing results combined with cautious guidance. Even though the tech-heavy Nasdaq lagged, the traditional technology sector (-1.2%) ended ahead of the S&P along with two other top-weighted sectors—financials (-1.1%) and health care (-0.9%). Although equities registered broad losses, a pocket of strength could be found in the shares of Twitter (TWTR 44.90, +18.90), which began trading as a public company at $45.10 per share after pricing the IPO at $26. The social media stock ended the session below its opening price, but 72.7% above its IPO price. With stocks ending on their lows, the CBOE Volatility Index (VIX 13.90, +1.23)finished near its high. Today's selling invited above-average participation as more than 900 million shares changed hands on the floor of the New York Stock Exchange.

Taking another look at today's data, GDP increased 2.8% in the third quarter. That is up from a 2.5% increase in Q2 2013 and matches the best gain since Q3 2012. The consensus expected GDP to increase 1.9%. Final sales were up 2.0%, down slightly from a 2.1% increase in the second quarter. Overall, the economy performed in the third quarter in a similar fashion to how it performed in the second quarter. Inventories contributed slightly more to growth (0.8 percentage points vs. 0.4 percentage points), which was the main difference between the two quarters. Inventories have now increased for three consecutive quarters and are due for a normal pullback soon. That could leave headline GDP growth coming in weaker in the coming quarters.

Separately, the weekly initial claims level declined to 336,000 from an upwardly revised 345,000 (from 340,000). The consensus expected the initial claims level to fall to 335,000. The Department of Labor stated that there were no unusual factors in the initial claims data. After two months of biases from computer glitches and the government shutdown, the initial claims report is giving a clean reading of the labor situation.

Unfortunately, the claims level is almost exactly where it was prior to the problems in the claims data. Layoff levels have remained steady and the private sector is very comfortable with its current labor needs.

Tomorrow, October non-farm payrolls, September personal income, personal spending, and core PCE prices will all be reported at 8:30 ET while the preliminary reading of the November Michigan Sentiment Survey will be released at 9:55 ET.

o Nasdaq +27.8% YTD o Russell 2000 +27.1% YTD o S&P 500 +22.5% YTD o DJIA +19.0% YTD

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Telecom Italia Lowers FY Ebitda Target; Net Misses Est. 2013-11-07 17:51:16.598 GMT

By Sam Chambers and Jim Silver Nov. 7 (Bloomberg) -- 3Q net income EU505m vs est. EU525m, keeps FY forecast for stable sales. * Sees mid single-digit Ebitda decline y/y, previously saw low single-digit Ebitda decline y/y * 3Q sales EU6.63b vs est. EU6.64b * 3Q Ebitda EU2.7b vs est. EU2.71b * At end of Sept., adj. net debt was EU28.2b vs EU28.8b q/q * Statement * Preview * NOTE: TIM Brasil reported 3Q results on Oct. 29

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

--Editor: Louisa Fahy

To contact the reporters on this story: Sam Chambers in London at +44-20-7673-2021 or schambers7@bloomberg.net; Jim Silver in New York at +1-212-617-7342 or jsilver@bloomberg.net

To contact the editor responsible for this story: James Ludden at +44-20-7673-2645 or jludden@bloomberg.net

OGX Petroleo e Gas Participacoes SA ISDA determines a bankruptcy event occurred and an auction should be held - reference: {http://dc.isda.org/documents/2013/11/ogx-petroleo-e-gas-participacoes-s-a-110713-dc-decision.pdf}

Joy Global sees quick pop as takeover rumor makes the rounds 

Gapping down

In reaction to disappointing earnings/guidance: INWK -29.4%, (light volume), NVTL -27.8%, ALDW -15.2%, PCOM -14.1%, PEIX -14.1%, NSM -14.1%, RST -12.5%, (light volume), WFM -9.1%, SCTY -8.6%, BIOS -8.2%, NDLS -7.9%, CECO -7.8%, (light volume), IO -7%, WEN -6.5%, PMT -6.1%, (light volume), CSUN -5.2%, G -5%, (light volume), ERII -4.3%, (light volume), QCOM -4.2%, FOXF -4.1%, (light volume), EVC -4.1%, EZPW -3.4%, CTL -3.4%, MDLZ -3%, (light volume), AMTG -2.8%, TS -2.3%, FTK -2.2%, ATVI -2%, PDLI -1.9%, (light volume), NLY -1.5%, RSOL -1.4%, CBS -0.6%.

Other news: STP -16.7% (continued weakness), INCY -8% (Announces Proposed Offering of $700 Million of Convertible Senior Notes; Notes to be offered in Two $350 Million Series, Due in 2018 and 2020), MRC -5.2% ( announces secondary public offering of 17,489,233 shares of common stock by selling stockholders), HPT -3.9% (Announces Proposed Public Offering of 8,000,000 Common Shares), TSLA -3.4% (still checking), IART -2.8% (prices 3.5 mln shares of common stock at $40.00 per share ), TFM -2.7% (following WFM results), KAR -2.2% ( prices secondary offering of 23,896,583 shares at $27.60 per share ), RCL -1.1% (still checking), TSL -1% (still checking), CSIQ -1% (still checking), AWI -0.7% (announces secondary public offering of 6 mln common shares of the co held by The Armstrong World Industries Asbestos Personal Injury Settlement Trust and Armor TPG Holdings), KR -0.6% (following WFM results), BCOV -0.6% (filed for a $100 mln mixed securities shelf offering), TXN -0.3% (following QCOM results), GPOR -0.3% (Gulfport Energy prices offering of 6.5 mln shares of common stock at $56.75 per share; prices offering of 2 mln shares of common stock of Diamondback Energy (FANG) for net proceeds of ~ $102.6 mln).

Analyst comments: ANF -1% (Abercrombie & Fitch downgraded to Underperform from Buy at BofA), DE -0.4% ( downgraded to Cautious from Neutral at ISI Group), CAT -0.3% ( downgraded to Neutral from Buy at ISI Group)

Ryanair has vowed to improve its service and Airbus has called for wider economy seats to give passengers a better night’s sleep. Is flying about to become more pleasant? In your dreams.

Ryanair’s service promise came after shareholders criticised the abrasive style of Michael O’Leary, its chief executive. The airline, Europe’s leading low-cost carrier, this week cut its profit forecast for the second time in two months. Ryanair says it will improve its website, relax its aggressive approach to carry-on luggage and give customers 24 hours to correct mistakes made when booking online. I have long been ambivalent about Mr O’Leary. Other low-cost airlines are more polite and some, such as Southwest Airlines of the US, with its rapping cabin crew, and South Africa’s Kulula, with its dark onboard humour, manage to be funny. (“Welcome to Johannesburg,” went a Kulula announcement I once heard. “If you are visiting, we hope you enjoy your stay. If you are returning home, we hope your car is where you left it.”) On the other hand, Mr O’Leary’s approach struck me as being an instance of truth in advertising. Flying is awful, he seemed to say. Rather than pretending we love you, we offer ridiculously low prices. Flying is awful. Why? Mostly because you have so little room. Apart from rush-hour train commutes, which generally don’t last that long, there is nowhere else those of us lucky enough to live above the poverty line have to sit in such proximity to strangers. Low-cost flights, at least, generally take place during the day. They are bad enough, but overnight flights are dreadful. Some people seem to be able to drop off. For those of us who struggle to sleep even in our own beds, a night in the air is purgatory. Airbus says a slightly wider seat would improve our in-flight sleep. It cited research by the London Sleep Centre, which simulated flying conditions, including background sounds, in-flight entertainment and catering, while measuring the brainwaves, eye, abdominal, chest and leg movements of six volunteers. It found that the sleep quality of those in 18-inch seats was 53 per cent better than those in 17in seats. So is Airbus going to widen its seats to 18in? It doesn’t need to. Its long-haul economy seats are already 18in. Why the research and the press release? Because “other manufacturers” – who can they mean? – “are eroding passenger comfort standards by going back to narrower seat widths”. So this is a bit of intercompany needle. I recently flew on an Airbus A380 for the first time and admired the ingenuity that produced the world’s biggest aircraft. But I slept fitfully. It is not seat width that bothers me; it is the lack of leg room. Passengers who slam their seats into the fully-reclined position make it worse. Most airlines aren’t about to widen the gaps between seats. To understand why, look at the industry’s projected 2013 profit figures. According to the International Air Transport Association, the world’s airlines are expected to make an $11.7bn profit on revenues of $708bn. That is a margin of 1.7 per cent. Many airlines struggle to survive. Alitalia is battling to stave off bankruptcy. The European Commission recently allowed the monopoly-creating takeover of Olympic Air by Aegean Airlines, a fellow Greek carrier, because Olympic would otherwise have gone out of business. Ryanair faces increasing competition from low-cost rivals and is cutting fares further. Mr O’Leary says: “If a couple of competitors get blown up as part of that process – well and good.” He is being a little less nasty to the customers, who have more choice, not to the competition. I don’t think we will see more legroom in his aircraft. I have talked only about economy. As I work for a lean, cost-conscious company, I haven’t flown business class for 15 years. I walk past the business class lot as they settle into their soon-to-unfolded beds. They look pleased with themselves. But really: those beds look as narrow as ironing boards and there is a stranger sleeping across a small partition. You get more privacy in a youth hostel. Business class is not comfortable either. It just feels that way compared with the wretches at the back.

Gapping up

In reaction to strong earnings/guidance: OME +22.6%, DXCM +15.6% (upgraded to Market Perform from Under Perform at Northland Capital ), TPX +13.9%, AWAY +13.4%, WSTL +13%, (thinly traded), AEO +12.6%, FLTX +12.5%, LPSN +11.5%, DVR +9.1%, (light volume), OSUR +8.9%, MELA +8.7%, (thinly traded), SFUN +7.9%, GOLD +7.5%, GNK +5.7%, (light volume), ALSK +4.6%, VE +4.6%, RIG +4.2%, SSYS +4.1%, LHCG +4%, ACLS +3.1%, (light volume), JCP +3.1%, UHAL +2.9%, (light volume), SI +2.9%, APA +2.9%, DEG +2.5%, SLCA +2.3%, (light volume), CODI +2%, (light volume), OAS +1.8%, WAC +1.6%, (light volume), ONCY +1.6%, (light volume), TOL +1.5%, CXO +0.5%, PRU +0.3%, (light volume).

M&A news: RDA +12.5% (RDA Microelectronics confirms receipt of acquisition proposal from Tsinghua Unigroup of $18 per share).

Other news: AGEN +29.2% (HerpV therapeutic vaccine for genital herpes meets primary endpoint in randomized Phase 2 trial), NURO +25.7% (still checking, saw upside move yesterday), OREX +9.9% (enters into agreement with Sanofi (SNY) to manufacture Contrave for territories outside North America), GOLD +8.4% (still checking), OXGN +8.1% (continued strength), MT +5.1% (rcelorMittal may have interest in ThyssenKrupp's U.S. plant, according to reports), RPT +5% ( announces 4.5 mln common share offering), ZIXI +5% ( announces share repurchase program of up to $15 mln), BTU +3.9% (still checking), SNE +3.1% (still checking), SCSS +2.4% (following TPX results), ARO +2.4% (following AEO guidance), PXD +2.2% (still checking), CS +2% (still checking), NXST +1.5% (to acquire seven television stations in four markets for $87.5 mln in accretive transaction), TOL +1.5% (announces offering of 6.25 mln shares of its common stock), HUM +0.7% (Barron's profiles positive view on Humana ), EPIQ +0.6% (approves share repurchase program of up to $35 mln beginning Jan 1, 2014), URBN +0.1% (following AEO guidance), CSCO +0.1% (Barron's profiles positive view on Cisco).

Analyst comments: TWO +1.4% (Two Harbors Investment upgraded to Buy from Neutral at Sterne Agee)

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BFW 11/07 12:46 *ECB DEPOSIT FACILITY RATE UNCHANGED AT ZERO PERCENT BFW 11/07 12:46 *ECB CUTS MARGINAL RATE TO 0.75%

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*ECB LOWERS BENCHMARK INTEREST RATE TO 0.25% 2013-11-07 12:45:50.187 GMT

Economic Release Details : {EURR002W Index ECOD<GO>}

--CRAIG STIRLING

-0- Nov/07/2013 12:45 GMT