TheChek News Flow

After Hours Summary: JAG +7% and FDP +6% higher on S&P SmallCap 600 addition news, VSI -10.4% after ending negotiations with competing bidder

After Hours Gainers:

Companies trading higher in after hours in reaction to news: JAG +7% (will replace NorthStar Realty Europe in the S&P SmallCap 600), FDP +5.9% (will replace Cray in the SmallCap 600), LGF.A +2% (initiated with Outperform at Wells Fargo), SCCO +1.1% (upgraded to Equal-Weight from Underweight at Morgan Stanley), GME +0.8% (light volume; Director Teffner disclosed the purchase of ~21K shares), DIS +0.6% (initiated with Outperform at Wells Fargo; tgt $173)

After Hours Losers:

Companies trading lower in after hours in reaction to news: VSI -10.4% (Vitamin Shoppe ended negotiations with bidder during the "go-shop" period; Board reaffirms recommendation in favor of pending merger with Franchise Group), VER -2.4% (announces public offering of 71.0 mln shares of common stock), PDD -2.1% (announces offering of US$875 mln in aggregate principal amount of convertible senior notes due 2024), PLMR -2% (launches secondary public offering of 5.0 mln shares of common stock by selling stockholders), UNVR -1.4% (announces sale of 11,594,268 shares of common stock by Clayton, Dubilier & Rice)

Closing Stock Market Summary

The S&P 500 finished flat on Monday in a mixed, and tight-ranged, session. Disappointing flash manufacturing PMI readings out of the eurozone kept many buyers sidelined, but encouraging manufacturing activity in the U.S. helped abate early selling pressure. The Dow Jones Industrial Average (+0.1%), Nasdaq Composite (-0.1%), and Russell 2000 (-0.1%) finished little changed. 

The session began on a lower note, largely in response to those weaker-than-expected PMI readings overseas. Most notably, Germany's flash PMI for September fell deeper into contraction territory to its lowest reading (41.4) since 2009. The good news was that the Markit's flash manufacturing PMI reading for the U.S. increased to 51.1 from 50.3, reflecting the continued resiliency of the U.S. economy. 

The S&P 500 was down just 0.3% at its session low and crossed into positive territory as soon as European markets closed for trading at 11:30 a.m. ET. The broader market maintained this positive disposition throughout the afternoon but faded into the close. 

Most S&P 500 sectors finished within 0.3% of their unchanged marks. The consumer staples sector (+0.4%) outperformed the broader market, while the health care (-0.6%) and communication services (-0.4%) sectors underperformed. 

Apple (AAPL 218.72, +0.99, +0.5%) and most stocks within the Philadelphia Semiconductor Index (+1.0%) showed relative strength throughout the day. The semiconductor space bounced back from Friday's decline following reports indicating that officials from the U.S. and China described last week's trade talks as "productive" and "constructive," respectively.

In corporate news, American Express (AXP 118.25, +1.45, +1.2%) announced a 120 million share repurchase program and increased its quarterly dividend 10%. Lululemon athletica (LULU 195.18, +5.88, +3.1) rose 3% after the stock was initiated with an Overweight rating at Piper Jaffray.

The U.S. Treasury market reflected some lingering growth concerns as increased demand pushed yields lower. The 2-yr yield declined three basis points to 1.67%, and the 10-yr yield declined six basis points to 1.71%. The U.S. Dollar Index increased 0.1% to 98.62. WTI crude rose 1.0%, or $0.60, to $58.64/bbl. 

Investors did not receive any notable economic data on Monday. Looking ahead, investors will receive the Conference Board's Consumer Confidence Index for September, the FHFA Housing Price Index for July, and the S&P Case-Shiller Home Price Index for July on Tuesday.

• Nasdaq Composite +12.3% YTD
• S&P 500 +19.3% YTD
• Russell 2000 +15.8% YTD
• Dow Jones Industrial Average +15.6% YTD

Gapping down
In reaction to disappointing earnings/guidance:

• UXIN -7.7%

Select EU financial related names showing weakness:

• BBVA -3.6%, RBS -3.2%, DB -3%, ING -2.6%, LYG -1.9%, CS -1.5%, BCS -1.1%, HSBC -0.7%

Select metal producer stocks trading lower:

• MT -4.3%, SCHN -4%, X -3.3%, BBL -1.4%, BHP -1.2%

Other news:

• ALV -4.1% (announces that Christian Hanke notified the Company of his intent to resign as the Interim CFO and Vice President Corporate Control to pursue another opportunity)
• PCG -0.9% (executes definitive agreement to resolve all insurance subrogation claims arising from the 2017 Northern California wildfires and 2018 Camp ) .

Analyst comments:

• AKS -5.3% (downgraded to Underweight from Overweight at JP Morgan)
• CLF -3.4% (downgraded to Neutral from Overweight at JP Morgan)
• AA -2.4% (downgraded to Neutral from Buy at Goldman)
• CLX -0.8% (downgraded to Underweight from Equal Weight at Barclays)

Gapping up
In reaction to strong earnings/guidance:

• N/A.

Select metals/mining stocks trading higher:

• DRD +5.9%, SAND +3.7%, CDE +3.4%, HL +3%, AG +2.1%, SLV +1.8%, PAAS +1.7%

Other news:

• AVDL +22.3% (FDA agreement to reduce the sample size for the ongoing pivotal Phase 3 study for once-nightly FT218)
• MNK +16.4% (announces 'positive' top-line results from its pivotal Phase 3 clinical trial of its investigational StrataGraft regenerative tissue)
• PSMT +7.7% (to join S&P SmallCap 600)
• EXAS +6.5% (receives FDA approval for Cologuard for eligible average-risk individuals ages 45 and older)
• GWPH +5.3% (EC has approved the marketing authorisation for EPIDYOLEX )
• VIA +5.2% (acquires rights to Seinfeld)
• TELL +4.4% (MOU with Petronet LNG)
• MDR +2% (continued volatility in pre-mkt)
• OSTK +1.3% (continued volatility in pre-mkt)
• NVO +1.2% (Rybelsus the first GLP-1 in a tablet approved in the US)
• SALT +1.1% (sells two Ultramax vessels)

Analyst comments:

• CHWY +2.9% (upgraded to Buy from Neutral at Nomura)
• AEIS +1.2% (upgraded to Buy from Neutral at Citigroup)