With US Futures down 1.5-1.8%, many stocks are trading lower. The following represents stocks trading lower based on identified catalysts
Gapping down
In reaction to disappointing earnings/guidance:
- EDU -11%, SLCA -10.3%, MC -10%, LOGI -8.2%, MMM -7%, CAT -6.1%, DGX -5.4%, WAT -3.8%, AMTD -3.5%, HNI -3%, AVY -2.8%, GPK -2.6%, LMT -1.2%, ZION -0.8%, PHM -0.8%, SNV -0.8%, HXL -0.7%, FITB -0.5%
M&A news:
- ORCL -1.9% (Oracle to acquire DataFox)
- JNJ -0.8% (acquires Ci:z Holdings for JPY230 bln)
Other news:
- TLRY -11% (ongoing volatility; issued additional US$25.0 mln of its 5.00% Convertible Senior Notes due 2023 in a private placement to qualified institutional buyers pursuant to the Initial Purchasers' partial exercise of its 13-day over-allotment option)
- EIGR -10.1% (proposed public offering of common stock)
- AFMD -4.8% (files for $150 mln mixed securities shelf offering )
- PTI -4.6% (to offer 9 mln shares of common stock in an underwritten public offering)
- ANGI -2.8% (files for 7,482,167 share common stock offering by selling shareholders)
- PHG -1.8% (after closing more than 8% lower following earnings)
- CREE -0.9% (announces appointment of Darren Jackson to the position of Chairman of the Board, effective immediately)
Analyst comments:
- ASML -5.3% (downgraded to Neutral from Positive at Susquehanna)
- STX -4.9% (downgraded to Negative from Neutral at Susquehanna)
- AMAT -4.3% (downgraded to Neutral from Positive at Susquehanna)
- LRCX -3.7% (downgraded to Neutral from Positive at Susquehanna)
- MU -3.7% (downgraded to Neutral from Positive at Susquehanna)
- EBAY -3.1% (downgraded to Sector Perform at RBC Capital Mkts)
- NTAP -2.8% (downgraded to Neutral from Positive at Susquehanna)
- DISH -1.7% (downgraded to Underperform from Neutral at Macquarie)
- INN -1.7% (downgraded to Neutral from Buy at BofA/Merrill)
- SRCL -1.5% (initiated with a Underperform at BofA/Merrill)
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Gapping up
In reaction to strong earnings/guidance:
- AUDC +8.4%, CDNS +8.3%, SSNC +7.3% (sees Q3 earnings above estimates), HSTM +3.3%, ARCH +3.3%, CR +2.6%, ALKS +2%, HBAN +1.8%, HLX +1.4%, HOG +1.2%, RF +1%, UTX +0.5%, VZ +0.5%
M&A news:
- ARNC +2.6% (considering $11 bln offer from Apollo Group (APO), according to Reuters)
Other news:
- SENS +8.4% (Senseonics announced that Aetna (AET) is providing coverage for Eversense, effective immediately)
- TTPH +5.3% (presents data from two post-hoc analyses of pooled data from two Phase 3 IGNITE studies of XERAVA in patients with complicated intra-abdominal infections)
Analyst comments:
- PVTL +1.4% (initiated with Buy at Needham)
- ACRX +1.3% (initiated with a Buy at B. Riley FBR)
- LOW +0.5% (upgraded to Buy from Neutral at Citigroup)
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EXCLUSIVE-U.S. Justice Dept demands details from Glencore on intermediary firms - sources - Reuters News
23-Oct-2018 13:18:35
Glencore received subpoena for documents in July
Trading firm said probe relates to corrupt practices act
Sources identify three intermediaries in focus
By Dmitry Zhdannikov and Julia Payne
LONDON, Oct 23 (Reuters) - The U.S. Department of Justice is seeking documents from Glencore GLEN.L about intermediary companies that the commodities firm has worked with in the Democratic Republic of Congo, Venezuela and Nigeria, sources familiar with the matter said.
The investigation is not directed at Glencore's own activities or its senior executives, two sources told Reuters, giving no further detail about the type of information sought.
"The investigation focuses on intermediaries," one source familiar with the probe said. A banker working with Glencore also said the focus was on three intermediary firms.
In mining and other extractive industries, intermediaries are firms or individuals paid a fee by producers, buyers or both for services such as brokering deals.
Glencore said on July 3 it had been subpoenaed for documents relating to its business in the three countries since 2007, sending its shares down 13 percent and leaving investors guessing about the direction of the investigation. (Full Story)
The Switzerland-based firm had said the subpoena related to compliance with the U.S. Foreign Corrupt Practices Act and money-laundering statutes but did not indicate the Department of Justice was focused on intermediaries or give further details.
Glencore, which said on July 11 it would cooperate with the U.S. authorities after receiving the subpoena, declined to offer additional comment for this article. The Department of Justice declined to comment. (Full Story)
A third source, who was familiar with the Nigerian element of the probe but not other areas, said the Department of Justice wanted Glencore to hand over documents related to associates of former Nigerian oil minister Diezani Alison-Madueke, namely the owners of Nigeria-based Atlantic Energy Holdings.
The U.S. authorities are investigating alleged bribery of the former minister and alleged money-laundering by her associates, who include Olajide Omokore and Kolawole Aluko, according to U.S. court documents seen by Reuters.
Glencore was a buyer of oil from Atlantic Energy Brass Development, a subsidiary of Atlantic Energy Holdings, which was owned by Omokore and Aluko.
Glencore declined to comment on its oil dealings with Atlantic Energy. A lawyer representing both Atlantic Energy and Omokore also declined to comment.
A lawyer for Alison-Madueke requested Reuters send questions by email, but did not respond when that email was sent.
A lawyer for Aluko could not be identified, as court documents did not name a representative and other lawyers involved in the case could not offer guidance.
Nigeria's government referred requests for comment to the justice minister, who is also attorney general. He did not respond to requests for comment.
For Congo, the U.S. authorities were seeking documents from Glencore relating to Israeli billionaire Dan Gertler, while for Venezuela they wanted documents from Glencore relating to Miami-based trading firm Helsinge Inc, the first source and the banker said.
The sources declined to disclose any more information about the probe into these two intermediaries.
Gertler, who was a partner in Glencore's cobalt and copper mines in Congo until 2017, could not be reached for comment. His spokesman in London declined to comment. (Full Story)
Congolese government spokesman Lambert Mende said Gertler had business in Congo and that any investigation into his activities had nothing to do with the government.
For Venezuela, Helsinge acted as an intermediary for Glencore's fuel sales to state energy firm PDVSA, according to PDVSA's internal trade documents seen by Reuters.
Helsinge did not respond to telephone or email requests for comment about the Department of Justice probe.
A spokesman for PDVSA did not immediately respond to a request for comment.
Early premarket gappersGapping up:
- CDNS +10.8%, SENS +9.5%, AUDC +8.4%, SSNC +7.3%, HOG +4.8%, HSTM +3.3%, ARCH +3.3%, ARNC +2.6%, CR +2.6%, PVTL +1.4%, HLX +1.4%, TTPH +1.3%, SLCA +0.9%, ZION +0.8%
Gapping down:
- EDU -11.5%, MC -10%, LOGI -7.9%, TLRY -6.2%, EIGR -4.8%, PTI -4.6%, DGX -4.1%, AFMD -3.2%, ANGI -2.8%, AVY -2.8%, PETX -2.5%, WAT -2.4%, ORCL -1.9%, PHG -1.8%, PHM -1.8%, EBAY -1.7%, DISH -1.7%, OMER -1.4%, AMTD -1.2%, JNJ -1.1%, SNV -0.8%, HXL -0.7%
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Approché par Natixis, le leader des terminaux de paiement annonce ce mardi avoir confié à un comité d'administrateurs indépendants "le réexamen des options stratégiques de la société et de l’évolution de sa gouvernance". Ingenico abaisse sa prévision d'excédent brut d'exploitation annuel et lance un plan d'optimisation de sa branche "banques et acquéreurs".
La direction d'Ingenico veut reprendre la main. Dix jours après la manifestation d'intérêt de Natixis, le spécialiste des terminaux de paiement, qui serait également courtisé par Edenred, a annoncé ce mardi 23 octobre que son conseil d'administration avait décidé de confier à un comité d'administrateurs indépendants "le réexamen des options stratégiques de la société et de l'évolution de sa gouvernance".
Le groupe français a publié un chiffre d'affaires de 687 millions d'euros au titre du troisième trimestre, en croissance de 15% (de 8% en données comparables). Il a révisé à la baisse sa prévision d'excédent brut d'exploitation (Ebitda) annuel à 510 millions d'euros contre au moins 545 millions anticipés initialement
La révision de nos objectifs 2018 est exclusivement liée à la performance décevante de la division Banks & Acquirers, en dépit de son retour à la croissance" fait valoir le Pdg, Philippe Lazare, dans un communiqué."L'année 2018 illustre le basculement du centre de gravité du groupe vers les activités Retail, entrainant un profil de revenus plus récurrents. Elle confirme à la fois le bien-fondé de la stratégie d'acquisitions et de développement menée par le groupe, mais aussi l'évolution différenciée de ses deux activités. Comme indiqué lors de notre dernière communication, Ingenico mène une revue de ses options stratégiques au niveau du groupe et de ses deux divisions afin d'améliorer le profil de création de valeur du groupe".
Dans le cadre de son approche d'Ingenico, Natixis envisagerait plusieurs scénarios, dont la création d'une co-entreprise dans le paiement et/ou la mise en Bourse de ces activités.
Au cours actuel, Ingenico vaut un peu plus de 4 milliards d'euros. L'action accuse un recul de 25% depuis janvier.
Asia Market Update: Equities significantly weaker after a banner day yesterday; Japan reiterates sales tax hike plans; China not worried about trade war with US
Tue, 23 Oct 2018 1:35 AM EST
General Trend:
- Asian equity markets trade generally lower
- Chinese automaker BAIC Motor trades at record low, reported 9-month results
- Australian equities weighed down by Utilities, Energy and Financial shares
- Shipping and Iron/Steel companies underperform in Japan
- Asian steelmaker earnings in focus
- Tokyo Steel declines ahead of expected earnings report
- South Korean steelmaker Posco declines ahead of expected earnings report
- Samsung Biologics declines over 4% ahead of expected earnings report
-China govt official Zhang Qingli reportedly told US investors at meeting that 'We don't fear a trade war with the US'
- US companies expected to report earnings on Tuesday (including afterhours) include 3M, Arch Coal, Biogen, Caterpillar, Corning, Harley Davidson, Lockheed Martin, McDonald’s, Pulte Homes, Texas Instruments and Verizon
***Headlines/Economic Data***
Japan
-Nikkei 225 opened -0.9%
- 7202.JP Reportedly to partner with Nvidia on self-driving trucks and large commercial vehicles - Nikkei
- (JP) Japan to end new official development assistance to China - Japanese Media
-(JP) Former BOJ gov Shirakawa: Growing global debt may lead to the next economic crisis - Japan press
-(JP) Japan Fin Min Aso: 'In principle' the sales tax increase will happen as planned, some disruption expected when it takes place but will not delay for that
- Nomura: Planning to set up ¥100B fund with China sovereign wealth fund CIC - Japan press
Korea
-Kospi opened -0.7%
- (KR) According to economists South Korea needs to quickly take measures to prevent a possible interest rate hike next month from making a deeper dent in the country’s economic growth and employment - Korean press
- (KR) South Korea Sept PPI M/M: 0.3% v 0.5% prior; Y/Y: 2.7% v 3.0% prior
- (KR) South Korea Fin Min Kim: domestic financial and FX markets are stable
- Posco, 005490.KR Reports Q3 (KRW) Net 1.1T v 910Be; Op 1.5T v 1.4Te; Rev 16.4T v 16Te; Expect steel prices to remain solid due to China winter production cuts
China/Hong Kong
-Hang Seng opened -0.5%, Shanghai Composite -0.1%
- (CN) China govt official Zhang Qingli reportedly told US investors at meeting that 'We don't fear a trade war with the US'
- (CN) Brokerage firms in China to establish CNY21.0B asset management plan - China Securities Times
-(CN) China PBoC Open Market Operation (OMO): To inject CNY120B in 7-day reverse repos v CNY120B prior: Net: CNY120B injection v CNY120B prior
-(CN) China PBOC sets Yuan Reference Rate: 6.9338 v 6.9236 prior
-(CN) China Industry Ministry (MIIT) Official: China vehicle sales may grow slowly in the future
-(CN) China PBOC funds release from re-lending is not QE - China 21st
Australia/New Zealand
-ASX 200 opened flat
- (AU) New polling analysis shows collapse in support for Australia PM Morrison's Coalition in every mainland state since the leadership change - The Australian
- WPP.AU Cuts FY18 EPS tracking below current guidance of +3% y/y, now expects -15% to -13% y/y; Rev -2% to -1% y/y; CEO Mike Connaghan resigns, effective Dec 31st [-28%]
- BXB.AU Reports Q1 Rev $1.42B, +6% y/y at cc [-0.8%]
- HSO.AU Receives A$2.36/share cash offer from BGH Consortium; board to assess the proposal [+21%]
- (AU) Australia PM Morrison: Energy retailers to set price benchmarks for bills
- (AU) Australia ANZ Roy Morgan Weekly Consumer Confidence: 112.3 v 119.5 prior
- (AU) Rabobank sees Australia Winter 2018/19 wheat harvest at 29.3M tons, -23% y/y - Winter Crop Production Outlook
Other Asia
-(SG) Singapore Sept CPI M/M: 0.0% v 0.1%e; Y/Y: 0.7% v 0.8%e
North America
- US equity markets ended mixed: Dow -0.5%, S&P500 -0.4%, Nasdaq +0.3%, Russell -0.2%
- (US) President Trump seeking extra tax cut of 10% for middle income Americans
- TRPX FSD Pharma Signs Binding LOI to Acquire Therapix Biosciences, TRPX shareholders to receive $48M [+70% afterhours]
-(US) President Trump: Drug prices will soon be "plunging"
Europe
- (UK) OBR underestimate on tax receipts gives Finance Ministry a £13B/yr windfall in budget to ease pressure on National Health Service (NHS) - FT
- Bayer [BAYN.DE]: San Francisco judge in 'Roundup' case Ramos Bolanos ruled the $250M in punitive damages awarded by jury must be cut to match the ~$39.3M in compensatory damages - US financial press
***Levels as of 01:30ET***
- Hang Seng -2.2%; Shanghai Composite -1.3%; Kospi -2.8%; Nikkei225 -2.4%; ASX 200 -1.1%
- Equity Futures: S&P500 -0.8%; Nasdaq100 -0.9%, Dax -0.8%; FTSE100 -0.6%
- EUR 1.1468-1.1452; JPY 112.49-112.84 ; AUD 0.7059-0.7084;NZD 0.6537-0.6612
- Dec Gold +0.2% at $1,227/oz; Dec Crude Oil -0.3% at $69.19/brl; Dec Copper -0.1% at $2.77/lb
After Hours Summary: CDNS +11%, SSNC +7%, ZION +3% are higher, while MC -11%, AMTD -1.7% are lower following earnings/guidanceAfter Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: CDNS +10.6%, SSNC +7.1% (sees Q3 earnings above estimates), ZION +2.9%, CR +1.3%
Companies trading higher in after hours in reaction to news: SENS +8.7% (announced that Aetna is providing coverage for Eversense effective immediately), SGH +4.7% (still checking), PVTL +1.4% (initiated with Buy at Needham), RH +0.6% (initiated with Outperform at Wedbush)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: MC -11%, AMTD -1.7% (also raises dividend)
Companies trading lower in after hours in reaction to news: AFMD -3.2% (files for $150 mln mixed securities shelf offering ), PTI -2.4% (to offer 9 mln shares of common stock in an underwritten public offering), EIGR -1.9% (proposed public offering of common stock), ANGI -1.9% (files for 7,482,167 share common stock offering by selling shareholders), KR -1.4% (still checking), TLRY -0.9% (ongoing volatility; issued additional US$25.0 mln of its 5.00% Convertible Senior Notes due 2023 in a private placement to qualified institutional buyers pursuant to the Initial Purchasers' partial exercise of its 13-day over-allotment option), EBAY -0.7% (downgraded to Sector Perform at RBC Capital Mkts), SRCL -0.5% (initiated with a Underperform at BofA/Merrill)
Closing Market Summary: S&P 500 Squanders Opening Gains Despite Strength in High-Growth StocksThe S&P 500 closed Monday modestly lower after squandering opening gains and trading mostly in negative territory throughout the day. Another round of disappointing investor response to earnings, possibly rooted in the belief that corporations are at, or near, peak earnings growth, dampened any attempt for a rebound.
As for the other major averages, the blue-chip Dow Jones Industrial Average lost 0.5% and the small-cap Russell 2000 lost 0.2%, while the tech-heavy Nasdaq Composite added 0.3%.
Stocks opened slightly higher on Monday following a positive performance in China, where the Shanghai Composite rallied 4.1%. The jump, which extended Friday's notable gain, came on the back of verbal intervention from Chinese officials aimed at restoring investor confidence. President Xi, for instance, vowed to provide unwavering support for the private sector.
In Europe, Moody's dropped Italy's debt rating to Baa3 from Baa2, yet that is still an investment-grade rating. The fact that Italy's debt was able to avoid a "junk" status helped underpin markets within the region for awhile, but European stocks eventually settled Monday in the red. Italy's MIB lost 0.6%, while the Euro Stoxx 50 dropped 0.7%.
Back on Wall Street, relative strength in high-growth names within the information technology (+0.8%), consumer discretionary (+0.5%), and communication services (unch) sectors kept losses in check on Monday. The FANG bunch had an overall strong showing. Facebook (FB 154.78, +154.78), Apple (AAPL 220.65, +1.34), Amazon (AMZN 1789.30, +25.27), and Alphabet (GOOG 1101.16) all posted gains between 0.4% and 1.4%. Looking ahead, notable companies within these spaces that will report earnings later this week include Alphabet, Amazon, and Microsoft (MSFT 109.63, +0.97, +0.9%).
Nevertheless, the heavily-weighted financials sector (-2.1%) led the S&P 500 lower. Several small banks mirrored their bigger bank peers by beating earnings estimates on Monday, but the positive results were unable to foster much buying interest for the group, which is now down 5.4% in October. In total, nine of eleven sectors finished Monday in the red.
The energy sector (-1.1%) was another notable laggard, with oilfield services provider Halliburton (HAL 36.40, -1.14) losing 3.0% after the company issued below-consensus guidance, which overshadowed its better-than-expected earnings. In addition, the materials (-0.9%), real estate (-1.4%), health care (-0.8%), and consumer staples (-0.8%) sectors all underperformed.
Also of note, toy-maker Hasbro (HAS 95.01, -3.03) lost 3.1% after it missed top and bottom line estimates, blaming the bankruptcy of Toys "R" Us for its declining revenue.
Looking at other markets, U.S. Treasuries were dormant, as the yields on the 2-yr and 10-yr notes remained unchanged at 2.90% and 3.20%, respectively; the U.S. Dollar Index ended 0.3% higher at 96.00; and West Texas Intermediate crude settled 0.1% higher at $69.42/bbl.
In Washington, President Trump said that his administration is working on a major middle-class tax cut to be introduced at the beginning of November.
Investors did not receive any economic data on Monday and will not receive any data on Tuesday.
- Nasdaq Composite +8.2% YTD
- S&P 500 +3.1% YTD
- Dow Jones Industrial Average +2.4% YTD
- Russell 2000 +0.3% YTD