TheChek News Flow

Gapping down
In reaction to disappointing earnings/guidance:

• VRNS -16.9%, CSLT -16.9%, INST -12.3%, LL -10.8%, XOXO -10.3%, HLIT -10.1%, ACHC -9.5%, AKS -8.6%, TXRH -8.5%, NTRI -7.1%, AEIS -6.9% (also announces agreement to acquire LumaSense Technologies; shareholders of LumaSense will receive $85 mln), EFII -6% (also CEO Guy Gecht informs Board of intention to step down upon identification of successor), NLS -4.7%, RMBS -4.7%, I -4.2%, DENN -3.4%, CAMT -3.4%, PG -2.8%, TTM -2.6%, SBAC -2.5%, CURO -2.5%, MAS -2.5%, AMKR -2.1%, PES -2%, SIR -2%, APTV -1.6%, TNDM -1.4%, FDP -1.4%, MUX -0.9%, HRS -0.9%, FRAC -0.7%, PFE -0.6%

Other news:

• DFRG -7.7% (announces public offering of up to $75.0 mln of its common stock)
• SSC -5% (raised $26M from various leading strategic investors)
• X -1.5% (following AKS results)
• CMG -1.2% (lower on reports of Powell, Ohio restaurant illness)
• NRZ -1% (entered into $500 mln Distribution Agreement to sell shares of common stock through 'at-the-market' equity offering program )
• COR -0.8% (announced the sale of 2.25 mln shares of common stock by funds affiliated with The Carlyle Group), GT -0.7% (modestly lower in after hours as report circulates regarding potential RV Tire investigation)

Analyst comments:

• SOGO -4.4% (downgraded to Sell from Hold at Deutsche Bank)
• SIG -2% (downgraded to Neutral from Buy at Nomura)
• CX -0.7% (downgraded to Neutral from Outperform at Exane BNP Paribas)
• ATR -0.7% (downgraded to Sell from Hold at Vertical Research)

Gapping up
In reaction to strong earnings/guidance:

• MX +17%, MEDP +16.8%, IVAC +12.2%, CGNX +8%, CHGG +7.9%, IGT +7.6%, ILMN +7.2%, SPWR +6.8%, SSD +5.8%, RRC +4.7%, SANM +4.6%, RBBN +4.6%, KLAC +4.2%, PAGS +4.1%, ALSN +4%, ADM +3.6%, HUN +3.3%, OSK +3.3%, CS +3.2%, CMI +2.8%, APPF +2.6%, SNE +2.6%, BTE +2.2%, IDTI +1.8%, XYL +1.7%, BP +1.6%, HMC +1.6%, INCY +1.6%, SHOP +1.2%, TNET +1.1%, VNTR +1.1%, ETN +1%, RIG +0.9%, AMT +0.9%, EQC +0.8%, SHPG +0.8%

Other news:

• IMMP +5.8% (receives IND approval for eftilagimod alpha from FDA)
• PGNX +3.4% (FDA approved Azedra -- first treatment for rare adrenal tumors)
• QCOM +3% (commences modified Dutch auction tender offer to purchase up to $10 bln of shares of its common stock)
• CMI +2.8% (following ALSN results)
• NVCR +2.8% (publishes results from INNOVATE phase 2 pilot trial in Gynecologic Oncology)

Analyst comments:

• LEA +1.6% (upgraded to Overweight from Equal-Weight at Morgan Stanley)
• TWTR +1.1% (upgraded to Neutral from Reduce at Nomura)

Early premarket gappers

Gapping up:

• MX +17%, MEDP +16.8%, ILMN +7.9%, CHGG +7.9%, CGNX +7.1%, SPWR +6.8%, IVAC +6.7%, SSD +5.8%, ALSN +4.8%, RRC +4.7%, SANM +4.6%, KLAC +4.4%, INCY +2.9%, APPF +2.6%, CS +2.5%, HUN +2.3%, HUN +2.3%, ADM +2%, HMC +1.9%, IDTI +1.8%, SNE +1.3%, BP +1.2%, VNTR +1.1%

Gapping down:

• VRNS -16.6%, CSLT -12.4%, HLIT -10.1%, LL -9.8%, ACHC -9.6%, TXRH -9.4%, DFRG -7.7%, INST -7.2%, AKS -6.9%, AEIS -6.9%, EFII -6%, SSC -5%, NLS -4.7%, RMBS -4.7%, DENN -3.4%, TNDM -3.4%, SBAC -2.5%, CURO -2.5%, AMKR -2.1%, NTRI -2.1%, LOGI -1.7%, X -1.5%, FDP -1.4%, CMG -1.2%, NRZ -1%

After Hours Summary: MX +15%, CGNX / ALSN +8%, ILMN +7%, SPWR +6%, KLAC +4%, RRC +3% are higher, while TXRH -12%, AKS -8%, RMBS -5% are lower following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: MX +14.7%, CHGG +8%, CGNX +7.9%, ALSN +7.6%, ILMN +6.9%, SPWR +6.2%, KLAC +4.4%, RRC +3%, IDTI +1.8%, RIG +1.3%

Companies trading higher in after hours in reaction to news: INCY +2.9%, ADM +2% (ahead of earnings), CBS +0.8% (Board confirmed before the close that it is in the process of selecting outside counsel to conduct an independent investigation; determined to postpone Aug 10 annual meeting of stockholders), AMD +0.6% (among names mentioned positively on MadMoney)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: HLIT -17.5%, VRNS -15.4%, TXRH -11.7%, AKS -8%, ACHC -7.2% (light volume), INST -6.1%, EFII -6% (also CEO Guy Gecht informs Board of intention to step down upon identification of successor), RMBS -4.7%, AEIS -4.6% (also announces agreement to acquire LumaSense Technologies), CSLT -4.5%, CURO -2.5%, AMKR -2.1%, NTRI -2.1%, TNDM -1.4%

Companies trading lower in after hours in reaction to news: SSC -8.7% (says it raised $26 mln from various leading strategic investors), DFRG -7.7% (announces public offering of up to $75.0 mln of its common stock), CMG -3.8% (lower on reports of Powell, Ohio restaurant illness), X -1.5% (following AKS results and ahead of its own earnings release on Aug 1 after the close), COR -0.5% (announced the sale of 2.25 mln shares of common stock by funds affiliated with The Carlyle Group)

Closing Market Summary: Tech Pulls S&P Lower For Third Straight Session

Stocks dropped for a third straight session on Monday, with tech shares again pacing the retreat. Both the S&P 500 and the Dow Jones Industrial Average lost 0.6% apiece, while the tech-heavy Nasdaq Composite tumbled 1.4%. The averages opened flat, but slipped into the afternoon, settling just above session lows.

The technology sector -- which is the heaviest sector by weight, representing a quarter of the broader market -- was undoubtedly the worst-performing group on Monday, losing 1.8%. More than half of its components shed at least 1.0%, with Twitter (TWTR 31.38, -2.74) losing 8.0%, Netflix (NFLX 334.96, -20.25) dropping 5.7%, and Facebook (FB 171.06, -3.83) tumbling 2.2%.

Monday's tech tumble followed similar declines on Thursday and Friday -- which were set in motion by Facebook's 19% plunge last Thursday following disappointing earnings/guidance -- and points to continued profit taking following a strong run ahead of earnings season; the tech sector added 7.9% from July 3 to July 25.

Elsewhere, Amazon (AMZN 1779.22, -38.05, -2.1%) fell with its FAANG peers, helping to secure a loss for the consumer discretionary sector (-0.8%). The industrial sector (-0.9%) also struggled following an intraday reversal from Caterpillar (CAT 139.75, -2.81), which went from +2.8% to -2.0% despite reporting upbeat earnings and guidance.

On a positive note, the energy sector (+0.8%) advanced, helped by a rise in crude prices; WTI crude climbed 2.1% to $70.10/bbl. The lightly-weighted telecom sector (+2.0%) also had a solid performance, helped by AT&T (T 32.00, +0.92), which jumped 3.0% after being upgraded at Bank of America/Merrill Lynch. Financials (unch) and health care (+0.1%) also outperformed.

Away from equities, U.S. Treasuries finished flat to modestly lower, pushing the back end of the yield curve slightly higher; the yield on the benchmark 10-yr Treasury note climbed two basis points to 2.98%. Meanwhile, the U.S. Dollar Index dropped 0.3% to 94.16, and the CBOE Volatility Index spiked 8.8% to 14.19, a three-week high.

Reviewing Monday's economic data, which was limited to Pending Home Sales for June:

• Pending Home Sales increased 0.9% in June (consensus +0.2%). Today's reading follows an unrevised 0.5% decrease in May.

On Tuesday, investors will receive several economic reports, including the Employment Cost Index for Q2, PCE Prices for June, Personal Income and Personal Spending for June, the S&P Case-Shiller Home Price Index for May, the Chicago PMI for July, and the Conference Board's Consumer Confidence Index for July.

• Nasdaq Composite +10.5% YTD
• Russell 2000 +7.7% YTD
• S&P 500 +4.8% YTD
• Dow Jones Industrial Average +2.4% YTD