>>> TradeGate Pre-MArket Indications

DAX:
  • Infineon (IFX TH) +0.5%
    • Infineon Raised to Buy at Bankhaus Metzler; PT 23 euros
  • Continental AG (CON TH) -0.6%
    • Watch Trade-Sensitive Stocks After Trump Warns of More Tariffs
  • SAP (SAP TH) -0.6%
  • BMW (BMW TH) -0.6%
  • Daimler (DAI TH) -0.7%
  • Lufthansa (LHA TH) -0.7%
    • Lufthansa, German Cabin Crew Reach Deal; No Further Strikes Seen
MDAX:
  • Bechtle (BC8 TH) +2.3%
    • Bechtle 3Q Rev. Beats Highest Estimate; Expects Record Year (1)
  • Deutsche Wohnen (DWNI TH) +1.5%
    • Deutsche Wohnen 9M Ebitda Rises, 2019 Guidance Confirmed
  • Scout24 (G24 TH) +0.9%
  • ProSieben (PSM TH) +0.6%
    • Mediaset CFO Excludes Any Takeover Plan for Germany’s ProSieben
  • Telefonica Deutschland (O2D TH) +0.5%
  • 1&1 Drillisch (DRI TH) -0.5%
  • Aareal Bank (ARL TH) -0.6%
    • Aareal’s Trend Diverging From Peer, Downgrade to Sell: Citi
  • Deutsche PBB (PBB TH) -0.8%
SDAX:
  • Schaeffler (SHA TH) +2.8%
  • Hamburger Hafen (HHFA TH) +2%
    • Hamburger Hafen Raises FY Rev. View to Significant Increase
  • SAF Holland (SFQ TH) +1.2%
  • Stroeer (SAX TH) +1.2%
    • Stroeer Sees FY Rev. Growth at Upper End of 3% to 7% Range (1)
  • Aixtron (AIXA TH) +1.1%

>>> US After Hours Summary: TWOU +14%, ADT +6%, YY +5% are higher, whi

After Hours Summary: TWOU +14%, ADT +6%, YY +5% are higher, while CSIQ -9%, SWKS -5% are lower following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: CDLX +24.2%, TWOU +13.7%, DDOG +13.1%, ADPT +5.8%, ADT +5.8%, YY +4.7%, HCAT +4.5%, HIIQ +3.1%, OMER +3%, RUN +2.9%, VRAY +2.8%, HUYA +2.9%

Companies trading higher in after hours in reaction to news: IO +4.4% (awarded "large" two-year ocean bottom nodal data processing and imaging contract by ARGAS), AMRN +2% (continued strength), CBPX +1.5% (Continental Building Products confirms plans to be acquired by Compagnie de Saint-Gobain S.A. [CODYY] for $37.00 per share in cash), RETA +1.2% (announces public offering of 2.0 mln shares of Class A common stock), REAL +0.9% (issues statement to "[set] the record straight on its authentication process"), JBLU +0.6% (initiated with a Buy at UBS), ADP +0.6% (authorizes purchase of $5 bln of its common stock)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: SSTI -12%, TVTY -11.9%, CPRX -11%, CSIQ -8.6%, SDC -7.5%, SWKS -5.3%, VREX -3.6%, HTHT -2.6%, TLRY -2.4%

Companies trading lower in after hours in reaction to news: NXTC -8.8% (files for 3.2 mln share common stock offering), BCRX -8.4% (announces public offering of $55 mln of its common stock), SE -4.8% (announces proposed offering of US$1 bln in aggregate principal amount of convertible senior notes due 2024), SWAV -4.8% (announces public offering of $75.0 mln of shares of its common stock), ET -3.1% (continued weakness after reports of pipeline approval investigation), I -2.9% (downgraded to Neutral from Overweight at JP Morgan), HALO -2.8% (proposes offering of $400 mln aggregate principal amount of convertible senior notes due 2024), RNG -2.7% (files for Class A Common Stock shelf offering; discloses issuance of 2,170,785 shares of its Class A common stock to Avaya in connection with strategic partnership), REPL -2.5% (proposes public offering of up to 5,000,000 shares of its common stock), AAL -0.4% (initiated with a Sell at UBS)

>>> Automotive News: FCA prodded dealers to absorb glut of unordered cars, repor

>>> Automotive News: FCA prodded dealers to absorb glut of unordered cars, report says

Fiat Chrysler Automobiles has been manufacturing more cars and trucks than its U.S. dealers are willing to accept, at one point creating a nationwide glut of about 40,000 unordered vehicles and stoking tension with some of its retailers.
Chrysler implemented sales banks in the run-up to the two times it needed rescues from the U.S. government, in 1980 and 2009. While FCA is nowhere near that sort of trouble -- it just reported record quarterly profit -- the surging supply of unassigned vehicles coincided with a period when the company was pursuing mergers. After efforts to combine with France’s Renault SA fell through, it announced a tie-up with Peugeot owner PSA Group last month.
Fiat Chrysler denies that it has restarted a sales bank. The company says it put a predictive analytics system in place early this year that aims to better align its supply chain and manufacturing plans with anticipated dealer orders

FT : AbbVie readies $27bn bond sale to finance Allergan takeover

AbbVie readies $27bn bond sale to finance Allergan takeover
Corporate issuance set to be among largest on record in US

Pharmaceutical company AbbVie prepared to sell one of the largest US corporate bond deals on record on Tuesday, as the company seeks to finance its takeover of former-rival Allergan.

AbbVie is looking to borrow in the region of $27bn, according to people familiar with investor conversations. The debt will be split across 10 different maturities from 1.5-years up to 30-years.

At that size, it will be the same size as Comcast’s $27bn bond sale in October 2018, to become the joint-fourth largest deal ever. The largest deals on record are Verizon’s $49bn deal in 2013 and Anheuser-Busch InBev’s $46bn bond sale in 2016. CVS issued $40bn in March 2018.

Bank of America, Barclays and Morgan Stanley are bookrunners for the bond sale.

Despite the hefty debt raising, AbbVie is expected to cling on to its investment-grade bond rating due to commitments to bring it’s leverage down from 3.4 times debt to Ebitda to 2.5 times by the end of 2021, according to people familiar with the company’s plans.

The new issuance will take Abbvie’s total debt to around $90bn, making it one of the most indebted companies in the world and further increasing the debt held by triple-B rated companies that sit just above becoming junk rated.

“I do think it will give investors a positive view that they will deleverage over time,” said Andrew Forsyth, a portfolio manager at BNP Paribas Asset Management. “On a megadeal it really depends on the prospects for the companies that are combining. In this case it’s reasonably positive.”

>>> US Gapping down

Gapping down

In reaction to disappointing earnings/guidance:

  • FLNT -26%, OGI -21.8%, HBM -11.2%, TDW -6.7%, TSN -6%, UGI -5.9%, IIVI -5%, AAP -4.6%, CVET -4%, EPC -3.7%, EGRX -3.7%, RETA -3.4%, TME -2.8%, FTK -1.1%

Other news:

  • SLDB -65.7% (discloses that the FDA has notified the company that the IGNITE DMD Phase I/II study of SGT-001 has been placed on clinical hold)
  • RETA -3.4% (announces top-line year one results from Phase 3 portion of CARDINAL study)
  • JCOM -0.6% (announces proposed private offering of $500.0 mln aggregate principal amount of convertible senior notes), .

Analyst comments:

  • AMRX -4.2% (downgraded to Underweight from Neutral at JP Morgan)
  • CSX -1.7% (downgraded to Hold from Buy at Deutsche Bank)
  • BOX -1.2% (downgraded to Mkt Perform from Mkt Outperform at JMP Securities)

>>> US Gapping up

Gapping up

In reaction to strong earnings/guidance:

  • SAGE +24.2%, FOE +16.8%, APYX +13.3%, ICUI +11.2%, SE +10.1%, ROK +7.8%, GO +7.5%, GTT +6.3%, INFN +4.4%, FNV +3.5%, VOD +3.1%, DHI +3%, PSN +2.5%, DXC +2.1%, CRON +2%, LIN +1.6%, JMIA +1.5%, FGEN +1%, EDIT +0.8% (also - Editas Medicine & Celgene (CELG) amend collaboration, Editas to receive payment of $70 mln)

M&A news:

  • BREW +122.8% (Craft Brew Alliance shares to be purchased by Anheuser-Busch (BUD) for $16.50/share in cash)
  • LTS +22.4% (to be acquired by Advisor Group for $3.50/share in cash)
  • KEM +12.5% (Yageo will acquire all of the outstanding shares of KEMET's common stock for US$27.20 per share in an all-cash transaction valued at US $1.8 billion)
  • BUD +1.2% (Craft Brew Alliance shares to be purchased by Anheuser-Busch (BUD) for $16.50/share in cash)

Other news:

  • KDMN +20.4% (announces that KD025 met primary endpoint at interim analysis of pivotal trial in chronic graft-versus-host disease; call today at 5:00 p.m. Eastern Time), RKDA +6.3% (attributed to HB4 soybean approval in Paraguay)
  • BZUN +1.4% (total order value settled through payment gateways on all of the Company's e-commerce channels reached a record RMB10.06 bln on Singles Day 2019)
  • TUP +1.2% (names Christopher D. O'Leary interim CEO)

Analyst comments:

  • CRWD +3.5% (upgraded to Neutral from Sell at Goldman)
  • RCII +2.1% (upgraded to Buy from Hold at Stifel)
  • LYV +1.2% (upgraded to Outperform from In-line at Evercore ISI)
  • XRX +0.6% (upgraded to Neutral from Underweight at JP Morgan)
  • PANW +0.6% (initiated with a Buy at Goldman)