>>> Weekly Update

Weekly Market Update: Earnings Season Shakes Up Big Tech; Data Strengthens Euro

Despite an extremely eventful week of news flow, the S&P finished largely flat, with volatility retrenching to the lowest levels in more than two decades before bouncing. Outside of latest failure on healthcare reform in Washington DC, most of the fireworks occurred in the NASDAQ, which remained prone to market moving swings emanating out from the mega-cap ‘FANG’ names. Q2 earnings season hit its high watermark on Thursday with a deluge of European and US corporate reports. European economic data continued to largely overshadow that of the US, and combined with a perceived relatively dovish FOMC statement, both perpetuated an emerging narrative that the ECB will look to play catch-up by joining the Fed in commencing and exit from QE in the second half. To that end, the Dollar index dropped to the lowest level since April 2016, with the Euro briefly trading above the 2015 high. Rates moved up on a global basis, helped by an early move into risk assets after the IMF raised its China growth outlook on Sunday. Copper broke out to the best levels since early 2015. Oil prices pressed higher, helped by continued drawdowns in stockpiles, with Brent gaining a foothold above $50 for the first time since late May. For the week the S&P500 was about flat, the DJIA added 1.2%, and the Nasdaq lost 0.2%.

In corporate news, as earnings season shifted into top gear, a few of the high-flying names sold off on decent earnings, having been seemingly priced to perfection. Investors in tech took profits off the table this week despite strong earnings reports from Alphabet and Facebook. Twitter plunged after reporting flat monthly active user growth, while Amazon was hit by a big earnings miss. Roughly three-quarters of earnings reports beat on the top line, which is higher than normal, but this occurred amid disturbing macro trends continuing to eat away at many brick-and-mortar companies. A notable example was Starbucks, which saw its shares drop 10% after earnings. In addition to issuing cautious financial guidance, Starbucks reported slowing growth in membership for its rewards card program and announced it would close all of its nearly 400 Teavana retail stores. Meanwhile, cigarette makers got rolled on Friday as the FDA announced plans for a ‘dialogue’ about lowering nicotine to non-addictive levelsin tobacco products.On the M&A front, Michael Kors announced it would acquire accessory fashion house Jimmy Choo for nearly $1.2B, and Scripps reportedly came to agreement with Discovery on an offer to be acquired for at least $90/share, mostly in cash.


SUNDAY 7/23
(HK) Hong Kong Monetary Authority (HKMA) said to have checked property developers' loans
IMF updates its World Economic Outlook (WEO): Maintains both 2017 and 2018 global GDP growth forecasts

MONDAY 7/24
*(FR) FRANCE JULY PRELIMINARY MANUFACTURING PMI: 55.4 V 54.6E (9th month of expansion and highest since Apr 2011)
*(DE) GERMANY JULY PRELIMINARY MANUFACTURING PMI: 58.3 V 59.2E (32nd month of expansion)
*(EU) EURO ZONE JULY PRELIMINARY MANUFACTURING PMI: 56.8 V 57.2E (48th month of expansion)
(US) JULY PRELIMINARY MARKIT MANUFACTURING PMI: 53.2 V 52.3E (highest since March)
(US) JUN EXISTING HOME SALES: 5.52M V 5.57ME
GOOGL Reports Q2 $8.90* v $8.15e, Rev $26.0B* (includes $5.09B in TAC) v $25.6Be
000660.KR Reports Q2 (KRW) Net 2.47T v 2.32Te; Op 3.05T v 2.93Te; Rev 6.69T v 6.82Te

TUESDAY 7/25
(FR) FRANCE JULY BUSINESS CONFIDENCE: 108 V 106E; MANUFACTURING CONFIDENCE: 109 V 108E
(DE) GERMANY JULY IFO BUSINESS CLIMATE: 116.0 V 114.9E (post-German reunification high); CURRENT ASSESSMENT: 125.4 V 123.8E
(UK) JULY CBI INDUSTRIAL TRENDS TOTAL ORDERS: 10 V 12E
C Targets 2020 EPS CAGR 15-20%, Rev CAGR 3%+/-, ROTCE ~11%; ROTCE ex-DTA around 13% - comments ahead of analyst day
GM Reports Q2 $1.89 v $1.72e, Net Rev $37.0B v $37.4B y/y
CAT Reports Q2 $1.49 v $1.26e, Rev $11.3B v $10.9Be
GM Exec: Will cut Q3 and Q4 North America production by 150K vehicles compared to H1 - media call
FCX Reports Q2 $0.17 v $0.20e, Rev $3.71B v $3.68Be
C CEO: Believe have crossed inflection point on path to growth and stronger returns - analyst day
(US) JULY RICHMOND FED MANUFACTURING INDEX: 14 V 7E
*(US) JULY CONSUMER CONFIDENCE: 121.1 V 116.5E
(US) Senate has sufficient votes to approve motion to proceed on GOP healthcare legislation
TXN Reports Q2 $1.03 v $0.95e, Rev $3.69B v $3.55Be
(US) Pres Trump: steel dumping measures are coming 'fairly soon'; steel tariffs may be waiting until we finish up health care, taxes and infrastructure - financial press interview (update)
(AU) AUSTRALIA Q2 CONSUMER PRICES (CPI) Q/Q: 0.2% V 0.4%E; Y/Y: 1.9% V 2.2%E; TRIMMED MEAN Q/Q: 0.5% V 0.5%E ; Y/Y: 1.8% V 1.8%E

WEDNESDAY 7/26
PTR Guides H1 (CNY) Net 9-11B v 528M y/y
(UK) Q2 ADVANCE GDP Q/Q: 0.3% V 0.3%E; Y/Y: 1.7% V 1.7%E
F Reports Q2 $0.56 v $0.44e, Rev $39.9B v $37.9Be
*(US) JUN NEW HOME SALES: 610K V 615KE
(US) Association of American Railroads weekly rail traffic report for week ending July 22nd: 534.2K carloads and intermodal units, +1.1% y/y (28th straight week of gains)
*(US) FOMC HOLDS TARGET RATE RANGE AT 1.00-1.25%, AS EXPECTED; BALANCE SHEET UNWIND TO START 'RELATIVELY SOON'
FB Reports Q2 $1.32 v $1.14e, Rev $9.32B v $9.17Be
*(BR) BRAZIL CENTRAL BANK (BCB) CUTS SELIC TARGET RATE BY 100BPS TO 9.25%; AS EXPECTED
005930.KR Reports final Q2 (KRW) Net 10.8T v 9.8Te; Op 14.07T v 14.0T prelim; Rev 61.0T v 60.0T prelim; to buy back KRW1.67T of shares

THURS 7/27
ROG.CH Reports 1H (CHF) Net 5.58B v 5.47B y/y; Core Op 10.1B v 9.86Be, Rev 26.3B v 26.1Be
BAS.DE Reports Q2 EPS €1.63 v €1.19 y/y, EBIT (before items) €2.25B v €2.20Be, Rev €16.3B v €16.3Be
NOK1V.FI Reports Q2 adj Net €441M v €171M y/y, adj Op €574M v €460Me, Rev €5.63B v €5.62Be
MT.NL Reports Q2 Net $1.32B v $1.11B y/y, EBITDA $2.11B v $2.20Be, R$17.2B v $16.9Be
ABI.BE Reports Q2 $0.95 adj v $1.14e, EBITDA $5.35B v $5.28Be, R$14.2B v $14.5Be
AIR.FR Reports Q2 EPS €1.16 v €0.76e; Adj EBIT €859M v €878Me, Rev €15.72B v €15.99Be
ORA.FR Reports Q2 EBITDA €3.38B v €3.3Be, Rev €10.21B v €10.1Be
BAYN.DE Reports Q2 Net €1.22B (adj) v €1.38B y/y, EBITDA adj €3.06B v €2.99Be, Rev €12.2B v €12.6Be
BN.FR Reports H1 Net €1.05B v €935M y/y, Op Profit €1.72B v €1.48B y/y, Rev €12.13B v €11.1B y/y
SU.FR Reports H1 adj EBITA €1.72B v €1.67Be; Rev €12.17B v €12.2Be
(DE) AUG GFK CONSUMER CONFIDENCE: 10.8 V 10.6E (highest since Oct 2001)
RDSA.NL Reports Q2 adj Profit $3.71B v $3.36Be, basic CCS EPS $0.44 v $0.40e, Rev $72.1B v $58.4B y/y
AZN.UK Reports Q2 Core EPS $ 0.87 v $0.80e, Rev $5.05B v $5.00Be
LLOY.UK Reports Q2 PBT £2.41B v £1.98Be, Underlying profit £4.9B v £4.16B y/y, Total Income £9.30B v £8.87B y/y
DGE.UK Reports FY17 EPS 108.5p v 89.4p y/y, EBIT £3.60B v £3.60Be, Rev £12.1B v £11.96Be; Approves £1.5B sharebuyback; Raises final dividend 5% to 62.2p/shr
(EU) EURO ZONE JUN M3 MONEY SUPPLY Y/Y:5.0 % V 5.0%E
POT Reports Q2 $0.16 adj* v $0.17e, Rev $1.12B v $936Me
DOW Reports Q2 $1.08 v $1.01e, Rev $13.8B v $13.7Be
*(TR) TURKEY CENTRAL BANK (CBRT) LEAVES BENCHMARK REPURCHASE UNCHANGED AT 8.00%; AS EXPECTED
TWTR Reports Q2 $0.08 v $0.05e, Rev $573.9M v $537Me
UPS Reports Q2 $1.58 v $1.47e, Rev $15.8.B v $15.5Be
(UK) BOE names David Ramsden as Dep Gov for Markets and Banking
NESN.CH Exec:Seeing week consumer environment in NA and Europe - analyst call
*(US) JUN PRELIMINARY DURABLE GOODS ORDERS: 6.5% V 3.7%E; DURABLES EX TRANSPORTATION: 0.2% V 0.4%E
NYT Reports Q2 $0.18 v $0.13e, Rev $407.1M v $394Me
(US) Atlanta Fed raises Q2 GDP to 2.8% from 2.5% on 7/19
AMZN Reports Q2 $0.40 v $1.40e, Rev $38.0B v $37.2Be
BIDU Reports Q2 $2.36 adj v $1.42e, Rev $3.08B v $2.78Be
SBUX Cuts FY17 $2.05-2.06 adj v $2.10e, Rev to low end of 8-10% y/y, implies low end of R$23-23.4B v $22.7Be (prior 2.08-2.12, Rev +8-10%) - earnings call
(US) US House Speaker Ryan: Prepared to go to conference on healthcare bill; Senate must vote first on any conference agreement produced
(CN) China banks said to be increasing rates on mortgages - Economic Information Daily

FRI 7/28
(US) Senate votes on amendment to healthcare bill; lacks vote on Skinny repeal plan - financial press
BNP.FR Reports Q2 Net €2.4B v €1.91Be, Rev €10.9B v €11.3B y/y
*(FR) FRANCE Q2 ADVANCE GDP Q/Q: 0.5% V 0.5%E; Y/Y: 1.8% V 1.6%E
BARC.UK Reports Q2 adj net £354M v £803M y/y, adj pretax £1.4B* v £1.2Be, Core Net rev £5.1B v £5.23Be
(FR) FRANCE JULY PRELIMINARY CPI M/M: -0.3% V -0.4%E; Y/Y: 0.7% V 0.7%E
(DE) GERMANY JULY CPI SAXONY M/M: 0.3% V 0.2% PRIOR; Y/Y: 1.7% V 1.7% PRIOR
(DE) GERMANY JULY CPI NORTH RHINE WESTPHALIA M/M: 0.4% V 0.1% PRIOR; Y/Y: 1.8% V 1.6% PRIOR
*(EU) EURO ZONE JULY BUSINESS CLIMATE INDICATOR: 1.05 V 1.14E; CONSUMER CONFIDENCE: -1.7 V -1.7E
(DE) GERMANY JULY PRELIMINARY CPI M/M: 0.4% V 0.2%E; Y/Y: 1.7% V 1.5%E
(RU) RUSSIA CENTRAL BANK (CBR) LEAVES 1-WEEK AUCTION RATE UNCHANGED AT 9.00%; AS EXPECTED
MRK Reports Q2 $1.01 v $0.87e, Rev $9.93B v $9.79Be; Cyber attack from June still impacting operations
*(US) Q2 EMPLOYMENT COST INDEX (ECI): 0.5% V 0.6%E
(US) Q2 ADVANCE GDP ANNUALIZED Q/Q: 2.6% V 2.7%E; PERSONAL CONSUMPTION: 2.8% V 2.8%E
*(US) Q2 ADVANCE GDP PRICE INDEX: 1.0% V 1.3%E; CORE PCE Q/Q: 0.9% V 0.7%E
(US) FDA plans to begin dialogue about lowering nicotine levels in combustible cigarettes to non-addictive levels; new enforcements to also affect newly-regulated tobacco products such as cigars and e-cigarettes
*(US) JULY FINAL UNIVERSITY OF MICHIGAN CONFIDENCE: 93.4 V 93.2E
(US) New York Fed Nowcast: raises Q2 GDP forecast to 2.1% from 2.0% on 7/21; cuts Q3 GDP forecast to 1.9% from 2.0% on 7/21
(US) Weekly Baker Hughes US Rig Count: 958 v 950 w/w (+0.8% w/w)
(KR) US military spokesman: Joint Chiefs and head of Pacific Command spoke to South Korean counterparts, discussed military response optionsto North Korea ICBM test

>>> US Close Dow +0.15% S&P -0.12% Nasdaq -0.13% Russell -0.30%

Closing Market Summary: Stocks Settle Mixed Following Amazon Earnings

Equity indices finished Friday's session mixed; the Dow (+0.2%) advanced to a new record high for the third day in a row while the S&P 500 (-0.1%) and the Nasdaq (-0.1%) settled a tick below their unchanged marks. All three major averages finished near their best marks of the day. For the week, the S&P 500 finished flat.

The Nasdaq opened Friday's session with a sizable loss of 0.7% after one of its most influential components--Amazon (AMZN 1020.04, -25.96)--missed earnings expectations. The online retailer was down as much as 4.3% in early action, but, like the Nasdaq, the company was able to trim its loss a bit, eventually settling lower by 2.5%.

Amazon's negative performance took a toll on the consumer discretionary sector (-0.7%), which finished near the bottom of the day's leaderboard. In addition, coffee giant Starbucks (SBUX 54.00, -5.50) weighed on the consumer discretionary space--plunging 9.2% to its lowest level in six months--after the company missed top-line estimates and issued disappointing guidance.

The consumer staples sector (-0.9%) finished at the very bottom of the sector standings with tobacco giant Altria (MO 66.94, -7.02) leading the retreat. MO shares sold off sharply after the U.S. Food and Drug Administration announced a plan to reduce nicotine levels in cigarettes. Altria reclaimed a chunk of its initial decline, but still ended the day with a solid loss of 9.5%.

Meanwhile, the energy sector (-0.2%) settled roughly in line with the broader market despite a solid performance from crude oil, which climbed 1.4% to $49.74/bbl. For the week, WTI crude advanced 8.7%, which marks its biggest one-week rally of the year. 

Within the energy sector, Dow components Exxon Mobil (XOM 79.60, -1.23) and Chevron (CVX 108.12, +2.01) saw a mixed response to their latest earnings reports; CVX jumped 1.9% after reporting better than expected revenues while XOM dropped 1.5% after missing earnings expectations. 

The top-weighted technology sector (-0.1%) also finished roughly in line with the broader market. Intel (INTC 35.31, +0.34) advanced 1.0% after beating both top and bottom line estimates and issuing upbeat guidance. However, the PHLX Semiconductor Index dropped 0.4% despite Intel's positive performance. 

In total, eight of the eleven sectors finished in the red with losses ranging from 0.1% to 0.9%. The health care (+0.5%), financials (unch), and industrials (+0.2%) spaces were the three advancers.

Merck (MRK 64.11, +0.42) helped the health care sector finish at the top of the leaderboard after the company reported better than expected earnings and revenues; MRK shares settled higher by 0.7%. It's also worth noting that the Senate failed to pass a 'skinny' repeal of the Affordable Care Act in a tight 49-51 vote.

As for industrials, transports bounced back on Friday after sending the Dow Jones Transportation Average on a 3.1% plunge in the prior session. The DJTA finished Friday higher by 0.4%.

It's also worth noting that North Korea launched another intercontinental ballistic missile (ICBM) on Friday, marking Pyongyang's 11th ballistic missile test this year. Stocks did not react to the news.

Outside of the stock market, Treasuries rallied in a curve-flattening trade, leaving the 2-yr yield (1.36%) and the 10-yr yield (2.29%) lower by one basis point and three basis points, respectively. Meanwhile, the U.S. Dollar Index (93.15, -0.62) dropped 0.7% to a fresh 15-month low. 

Reviewing Friday's economic data, which included the advance estimate for second quarter GDP, the second quarter Employment Cost Index, and the final reading of the University of Michigan Consumer Sentiment Index for July:

  • Advance second quarter GDP pointed to an expansion of 2.6%, while the consensus expected a reading of 2.8%. The second quarter GDP Deflator came in at 1.0%, which is below the consensus of 1.3%.
    • The key takeaway from the Q2 GDP report, then, is that the average for the first half of 2017 was subpar at 1.9%, which should continue to keep any concerns about the prospect of a near-term rate hike from the Fed under wraps.
  • The second quarter Employment Cost Index rose 0.5%, while the consensus expected an increase of 0.6%.
    • The key takeaway from the report is that there was a moderation in year-over-year growth rates for wages and salaries, reflecting the lack of wage-based inflation pressure that has helped keep consumer spending activity modest and overall inflation low.
  • The final reading of the University of Michigan Consumer Sentiment Index for July rose to 93.4 (consensus 93.1) from 93.1 in the preliminary reading.
    • Despite the small decline, the key takeaway from the report is the indication that the Sentiment Index is still higher in the first seven months of 2017 than in any other year since 2004.

On Monday, investors will receive just two pieces of economic data--July Chicago PMI (consensus 60) and June Pending Home Sales (consensus 1.1%). The two reports will be released at 9:45 ET and 10:00 ET, respectively.

  • Nasdaq Composite +18.4% YTD
  • S&P 500 +10.4% YTD
  • Dow Jones Industrial Average +10.5% YTD
  • Russell 2000 +5.3% YTD

>>> MAKOR EQUITY RESEARCH: WIX (WIX: US) 2Q17 - Strong numbers, expecting m

WIX (WIX: US) 2Q17 results:

Strong numbers expecting more, Reiterating Hold;

 

After a few consecutive quarters of beat & raise, 2Q was "just” an in-line quarter, resulting with negative share reaction on the afterhours (-8 %). Collections of $117.1m were modestly above the high end of the company’s prior guidance ($116-$117m), and revenues of $103.5m slightly beat market consensus ($102m). Management reaffirmed its guidance for 2017. We expect negative share reaction today as we believe WIX share price reflects higher expectations for the rest of the year.  We note that we don’t believe this quarter changes anything in WIX thesis, though we will be following more closely on a few key metrics over the coming quarters.

 

Results summary:WIX reported revenues of $103.5m and collections of $117.1m, an increase of 51% and 44% y/y. Growth was driven primarily by the U.S market and Europe, and by continued adoption of vertical offerings (the company noted on the call that ~30% of new subs now purchase vertical offering vs ~15% two years ago). Free cash flow for 2Q17 was $17.4m (+71% y/y).

 

Management reaffirmed its May guidance for revenues in the range of $421-$423m (+45.5% y/y at mid-point), Non-GAAP free cash flow of $67-$68m and Collections of $473-$477m (+38.5% y/y at mid-point). For 3Q17 management guided revenues in the range of $109m-$110m roughly in line with the street estimate (+47.5% y/y at mid-point), and collections in the range of $117m-$118m (+43% y/y growth at mid-point). Consistent with the end of 1Q, fully diluted share count is expected to be 57-58m shares.  We note that the guidance implies collections growth will decelerate to 30% y/y in 4Q17 vs 46% in 4Q16.

 

Valuation and Rating:We maintain our $78 PT which is based on 7x EV/Non-GAAP revenues 2018E (collections). This multiple reflects a premium of ~20% to peers (SAAS companies) which we believe is appropriate, given WIX strong performance and its unique and innovative product offering. We also reaffirm our Hold rating as we believe large part of its future growth is already priced into the shares and following yesterday’s results and the launch of WIX Code (which supported the recent positive momentum), we don’t see for now  near term catalysts for further multiple expansion.

 

WIX Code: Two days prior to the earnings release the company unveiled its new product WIX Code (in beta) –  a new platform for web developers that will allow to easily build advanced web pages with complex functionalities such as dynamic pages, database connectivity, and application forms. The new platform aims to enter WIX into a whole new fragmented market which is currently dominated by open source technologies. Though WIX Code is probably not going to impact 2017 results (and its pricing is still not known), we believe it has a huge potential going forward.

 

Second quarter highlights:

  • Subscriptions Add – WIX added 192k premium subscribers in 2Q compared to 208k in 1Q17 and 183k in 2Q16 making it WIX’s second highest quarter ever. We would like to remind that 1Q is traditionally the strongest quarter in terms of seasonality, and we didn’t expect subscription adds in 2Q to exceed the record number of 1Q17. However, 2Q adds reflect only ~5% increase y/y due to tough comps (+22% in 1Q) and brings the total number of premium subscribers to 2.9m (+35% y/y).

 

  • Strong cohort retention – in 2Q 37% of new subscriptions were from users registered in the current quarter (vs 41% in 1Q17), while 63% came from prior quarter user cohorts, demonstrating continued cohort retention behavior. Registered users grew by ~5.5 million users to 109m total at the end of the quarter (+24% y/y). Collections per new annual sub in the U.S was consistent with 1Q17 and reflects an increase of 8% y/y (vs 11% y/y in 1Q17).

 

  • Operational performance– Non-GAAP S&M expenses were 39% of collections, ~400 basis point lower y/y. Management reaffirmed sales and marketing spending of 40% to 41% of collections for the full year 2017, (vs 44% in 2016). R&D in the quarter was 25% of collections vs. 26% in 2Q16. The strong leverage resulted with free cash flow of $17.4m, (+71% y/y). As of June, the company has a net cash balance of ~185m.

 

  • Annual vs monthly subscriptions - Annual (or longer) subscriptions accounted for 67% of new subscriptions (65% in 1Q17). Of the total subscription base, 82% are annual, consistent with 1Q17.

 

Main risks – Slowdown in subscriptions adds, increased S&M spending in order to add registered users and convert them to subscriptions (such as heavy promotional discounts), increased competition and currency fluctuations.

 

 

 

Full report attached!

 

 

Dafna Yagur | Head of Research (Israel)

Makor Capital

Direct    +972 3 5453747

Mobile  +972 54 6655357

Fax         +972 3 7162680

 

 

 

               

 

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance:
  • ELLI -22.7%, BOJA -12.1%, NUVA -11.6%, (also CFO Quentin Blackford is resigning to pursue another opportunity outside the spine industry effective August 25; President and COO Jason Hannon is stepping down from his position to pursue other interests), PDFS -11.6%, MOBL-10.8%, FLS -10.7%, (also identified in Q2 accounting errors which were primarily limited to two of its non-U.S. sites), WIX -10%, CRAY -10%,KMDA -9.2%, (also commences common stock offering), GT -8.4%,EGHT -8.1%, KNL -7.8%, ECHO -7.8%, SBUX -7%, MULE -6.7%, FLEX-6.4%, MSTR -6%, INT -5.2%, ATEN -4.9%, WDC -4.2%, GHL -4%, BJRI-3.7%, ACTG -3.6%, BVN -3.6%, BVN -3.6%, AMZN -3.2%, EA -3.1%, UBS-3.1%, YNDX -3%, DECK -2.7%, BOFI -2.6%, (also enters into an agreement with H&R Block to be the exclusive provider of interest-free Refund Advance loans to their customers during the 2018 tax season), HRC -2.6%, ATUS -2.4%, BT -2.3%, ATR -1.7%, XPER -1.5%,TNDM -1.3%, MSCC -1.1%, MTD -0.9%
M&A news:
  • DEST -22.3% (Destination Maternity terminates merger agreement with Orchestra-Prémaman S.A. entered into in December of 2016)
Other news:
  • ATNM -29.8% (to offer common shares and warrants)
  • TTPH -5.3% (prices 10 mln shares of common stock at $6.50 per share)
  • WWE -5% (attributed to block trade pricing)
  • ATVI -1.1% (in sympathy with EA)
Analyst comments:
  • X -3.4% (downgraded to Sell from Neutral at Citigroup)
  • VC -1% (downgraded to Hold from Buy at Gabelli & Co)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance:
  • TVTY +16.9%, SAM +15.2%, PFG +12.5%, FSLR +12.1%, IMGN +9.5%,GIMO +9.3%, AGRX +8.7%, ALDW +8.6%, LOGM +7.6%, UCTT +6.4%, (also President and CEO Jim Scholhamer to take leave of absence starting July 31 for approximately 2 months to address a treatable medical condition), AAN +5.9%, BIDU +5.4%, PTX +5.2%, COHU +4.4%,ALGN +4%, COLM +4%, LYB +3.6%, KTOS +3.1%, TACO +3%, TRP +2.8%,CLD +2.6%, SNMX +2.6%, CPLP +2.6%, CY +2.5%, LAD +2.4%, GLPG+2.2%, SC +2.2%, FBP +2.2%, EXPE +2%, (Expedia and Traveloka Holding a leading Southeast Asian online travel company, announced today that Expedia made a $350 million primary minority investment in Traveloka), DAIO +1.8%, CS +1.8%, MITK +1.5%, HIG +1.4%, COL +1.3%,INTC +1.2%, IMPV +1.1%, CVA +1.1%, LPLA +1%, CPT +1%, TRVG +1%,ERJ +1%
M&A news:
  • WOW +2% (ticking higher on reports that Verizon is in talks to acquire WideOpenWest's Chicago fiber network)
  • ICHR +1.2% (acquires Cal-Weld; expected to be immediately accretive to earnings)
Select Solar related names showing strength after FSLR earnings:
  • SPWR +3.5%, CSIQ +3.4%, JKS +2.4%, RGSE +2.2%, TAN +2.1%, VSLR+0.9%,
Select metals/mining stocks trading higher:

Select oil/gas related names showing strength:

Other news:
  • KOOL +13.4% (USPTO issues the co patent that 'significantly strengthens' the intellectual property position surrounding its proprietary automation technology)
  • CYCC +10.5% (Eastern Capital discloses 29.7% active stake)
  • AGRX +8.7% (FDA has accepted for review the Company's NDA resubmission for Twirla (AG200-15), an investigational low-dose combined hormonal contraceptive patch)
  • NLNK +2.4% (updates on its clinical development program for indoximod; also reported earnings)
  • KANG +1.3% (announces its partnership with BAHEAL Intelligent Technology to introduce IBM Watson for Oncology cognitive computing solutions into iKang service platform)
Analyst comments:
  • DPZ +0.9% (upgraded to Buy from Neutral at Longbow)
  • VFC +0.7% (upgraded to Positive from Neutral at Susquehanna)

>>> Chevron reports Q2 (Jun) results, beats on revs

Chevron reports Q2 (Jun) results, beats on revs (106.11)
  • Reports Q2 (Jun) earnings of $0.77 per share, including impairments and other non-cash charges totaling $430 mln, partially offset by gains on asset sales of $160 mln, may not be comparable to the Capital IQ Consensus of $0.87; revenues rose 17.8% year/year to $34.48 bln vs the $32.77 bln Capital IQ Consensus
  • Co said it's delivering higher production with lower capital and operating expenditures
Upstream:
  • Worldwide net oil-equivalent production was 2.78 mln barrels per day in second quarter 2017, compared with 2.53 mln barrels per day from a year ago
  • Production increases were noted from major capital projects, base business, and shale and tight properties, and lower maintenance-related downtime. These impacts were partially offset by normal field declines, production entitlement effects in several locations and the effect of 2016 asset sales
  • U.S. upstream operations incurred a loss of $102 mln in second quarter 2017 compared with a loss of $1.11 bln from a year earlier
  • The improvement reflected lower impairment charges, higher crude oil and natural gas realizations, higher gains on asset sales, and lower operating expenses
  • The company's average sales price per barrel of crude oil and natural gas liquids was $41 in second quarter 2017, up from $36 a year earlier. The average sales price of natural gas was $2.32 per thousand cubic feet in second quarter 2017, compared with $1.21 in last year's second quarter
  • International upstream operations earned $955 mln in second quarter 2017 compared with a loss of $1.35 bln a year ago
  • The increase in earnings reflected lower impairment charges, partially offset by higher depreciation expenses from increased production. The improvement also included lower tax items, higher natural gas sales volumes, higher crude oil realizations and volumes, and lower operating expenses. Foreign currency effects decreased earnings by $4 mln in the 2017 second quarter, compared with an increase of $329 mln a year earlier. The average sales price for crude oil and natural gas liquids in second quarter 2017 was $45 per barrel, up from $40 a year earlier. The average price of natural gas was $4.39 per thousand cubic feet in the quarter, compared with $3.93 in last year's second quarter
Downstream:
  • U.S. downstream operations earned $634 mln in second quarter 2017 compared with earnings of $537 mln a year earlier
  • The increase in earnings was primarily due to higher margins on refined product sales and lower operating expenses. Partially offsetting these effects were the absence of second quarter 2016 asset sale gains and higher tax items
  • Refinery crude oil input in second quarter 2017 decreased 3 percent from the year-ago period to 928,000 barrels per day. Refined product sales of 1.24 mln barrels per day decreased 2 percent from second quarter 2016
  • International downstream operations earned $561 mln in second quarter 2017 compared with $741 mln a year earlier
  • The decrease in earnings was primarily due to the absence of second quarter 2016 gains on asset sales. Higher margins on refined product sales partially offset the decrease in earnings. Foreign currency effects increased earnings by $3 mln compared with a decrease of $26 mln in last year's second quarter. Refinery crude oil input of 726,000 barrels per day in second quarter 2017 decreased 38,000 barrels per day from the year-ago period mainly due to crude unit maintenance at the Star Petroleum Refining Company in Thailand and a major planned turnaround at the company's refinery in Cape Town, South Africa