TheChek News Flow

After Hours Summary: PRGS +6%, KLIC +3%, SHLM / WOR +2%, PIR -11% following earnings/guidance... nearly every financial name is higher following CCAR results/capital plan updates

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: PRGS +6.1% (also acquires Kinvay a privately-held company based in Boston and leader in Backend as a Service (BaaS) technology, for $49 mln in cash), KLIC +3.4%, SHLM +1.9%, WOR +1.8%

Companies trading higher in after hours in reaction to news: SPEX +15.2% (continued momentum), NXTD +11.4% (continued strength; also its Fit Pay will be providing payment capabilities for Token), MBUU +7.6% (to acquire Cobalt Boats for aggregate purchase price of $130 mln; expected to be accretive to Malibu's EPS; will host a conference call June 29 at 8:30 am ET), GEMP +5.9% (announces top-line data on the LDL-C primary endpoint from the completed open label Phase 2b COBALT-1 trial; Gemcabene achieves primary endpoint), SRPT +2.5% (appoints Douglas Ingram as president and CEO), VRX +1.9% (Salix announced FDA accepted the New Drug Application for NER1006 (PLENVU); expects FDA decision in first-quarter 2018), SPLS +1.5% (Staples confirms definitive agreement to be acquired by Sycamore Partners for $10.25 per share in cash, or ~$6.9 bln), LULU +1.4% (Director/co-Chair Glenn Murphy disclosed purchase of 100K shares worth more than $5.5 mln), NTNX +0.9% (extending this afternoon's move higher; confirms .NEXT Conference updates)

Financial names trading higher following CCAR results/capital plan update: FITB +3.1% (Fed approves capital plan to raise dividend to $0.16/share from $0.14/share and increase buyback), STI +2.6% (Fed has no objections to planned capital actions including 54% increase in the quarterly common stock dividend and authorization to repurchase $1.32 bln of outstanding common stock), DFS +2.6% (plans to increase quarterly dividend to $0.35 per share and to repurchase up to $2.23 bln of common stock), PNC +2.5% (plans approved to increase the quarterly cash dividend and share repurchase programs of up to $2.7 bln), RF +2.5% (proposed capital actions include increasing dividend, $1.47 bln stock repurchase program), C +2.4% (increases dividend to $0.32 per share from $0.16; $15.6 bln share repurchase totaling $18.6 bln in returns), BK +2.2% (ticking higher; Board approved the repurchase of up to $2.6 bln of common stock and plans to increase dividend 26%), HBAN +2% (proposed capital actions include a 38% increase of the quarterly dividend and the repurchase of up to $308 mln of common stock), CFG +1.9% (ticking higher; receives positive CCAR result, with continued increasing return of capital to shareholders highlighted by a nearly 30% increase in our dividend next quarter and sizable share repurchases), DB +1.8%, JPM +1.7% (to increase dividend to $0.56/share from $0.50/share and authorizes $19.4 bln share repurchase), WFC +1.6% (expects to increase the third quarter 2017 common stock dividend to $0.39 per share from $0.38 per share), BAC +1.5% (Bank of America confirms Federal Reserve did not object to Bank of America's capital plan to increase quarterly common stock dividend by 60 percent to $0.12 per share beginning in Q3 and authorized the repurchase of $12 bln in common stock), ZION +1.5% (increasing the common dividend to $0.24 per share and up to $465 mln of common stock redemption), MS +1.5% (announces $5 bln buyback and increases dividend), KEY +1.2% (announces CCAR capital plan which includes two common stock dividend increases and new share repurchase authorization), AXP +1.2% (Federal Reserve did not object to its adjusted capital plan to increase quarterly dividend by 9% and buy back up to $4.4 bln of common shares through Q2 2018), GS +1.2%, CMA +1% (light volume; capital plan includes equity repurchases of up to $605 mln), USB +1% (announces $2.6 bln stock buyback and plans to increases dividend)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: PIR -10.8%

Companies trading lower in after hours in reaction to news: INPX -18.8% (launches underwritten public offering), BLCM -6.5% (files for $150 mln mixed securities shelf offering; files for 5,032,313 share common stock offering by the selling stockholders), AKBA -5.2% (proposes public offering of common stock), DOC -4.2% (commences public offering of 20 mln common shares of beneficial interest; increases Acquisition guidance to $1.2-1.4 bln from $0.8-1.0 bln; Announces acquisition of 18 medical office facilities for $735 mln), HTGM -3.3% (launched its new HTG EdgeSeq PATH Assay for sale in the U.S. and Europe), CRZO -2.6% (to acquire Delaware Basin properties for $648 mln in cash; expects second quarter production to exceed the high-end of its previously-provided guidance range; also commenced public offering of 15.6 mln shares of its common stock and announces offering of $250 mln of Senior Notes Due 2025), WHLR -2.3% (thinly traded; closes sale of an outparcel located at Rivergate Shopping Center and Carolina Place; reports May AFFO of $0.15/share)

Financial names trading lower following CCAR results/capital plan update: COF -1.3% (expects to maintain quarterly dividend of $0.40 per share; authorized the repurchase of up to $1.85 bln of shares)

Closing Market Summary: Stocks Bounce Back from Tuesday's Tumble

Wall Street registered a solid win on Wednesday as the top-weighted financials (+1.6%) and technology (+1.3%) sectors carried the S&P 500 (+0.9%) back to its flat line for the week. The Nasdaq (+1.4%) outperformed the benchmark index while the Dow (+0.7%) lagged, but all three major averages settled near the top of the day's trading range. The small-cap Russell 2000 added 1.5%.

The heavily-weighted financial sector (+1.6%) led Wednesday's session from start to finish, extending its week-to-date gain to 2.7%, which was undoubtedly a positive for investor sentiment considering the group's important role in driving economic activity. However, the bounce-back performance of the top-weighted information technology sector (+1.3%), which suffered back-to-back losses on Monday and Tuesday, was just as important in fueling the stock market's advance.

Tech stocks were lagging in pre-market action, but then showed signs of life after the European Central Bank said that the market misjudged yesterday's remarks from ECB President Mario Draghi, which were originally deemed as hawkish. The tech-heavy Nasdaq tested its 50-day simple moving average (6,234) in the opening minutes and then quickly moved higher, most likely on the back of some short-covering activity, after the key technical level held.

Most other cyclical groups also finished solidly higher, including consumer discretionary (+1.0%), industrials (+0.9%), energy (+0.6%), and materials (+0.8%). The consumer discretionary space benefited from broad strength, but homebuilders showed particular resolve after KB Home (KBH 24.06, +1.24) beat both top and bottom line estimates and issued upbeat guidance. The iShares U.S. Home Construction ETF (ITB 34.05, +0.56) added 1.7%.

Transports helped underpin the industrial sector, sending the Dow Jones Transportation Average higher by 1.4%. Industrial heavyweight Caterpillar (CAT 106.45, +2.52) also pitched in, adding 2.4%.

For the energy sector, the bullish bias stemmed from the crude oil futures market, which advanced for the fifth session in a row after the Department of Energy reported that U.S. crude inventories increased by 0.1 million barrels (consensus -2.6 million barrels) and gasoline stockpiles decreased by 0.9 million barrels for the week ended June 23. WTI crude recovered the last leg of last week's swoon, climbing 1.1% to $44.73/bbl.

Meanwhile, on the countercyclical side, the influential health care sector (+0.5%) struggled to keep pace with the broader market as some of its top components by market cap, including Johnson & Johnson (JNJ 133.82, -1.19) and Pfizer (PFE 33.75, -0.02), weighed. However, most components finished in the green. Biotech stocks bounced back from their two-day swoon, sending the iShares Nasdaq Biotechnology ETF (IBB 316.88, +5.99) higher by 1.9%.

Like health care, the consumer staples (+0.4%) and telecom services (+0.4%) groups underperformed, but still finished in the green. Meanwhile, the real estate group finished just a tick below its unchanged mark while the utilities space settled lower by 1.0%.

Outside of the equity market, the U.S. Dollar Index (95.72, -0.46) slipped for the second day in a row, losing 0.5%, as the euro (1.1383) added 0.4% on the greenback. The British pound (1.2929) did even better, adding 0.9% against the U.S. dollar, after Bank of England Governor Mark Carney noted that the time for removing some stimulus may be close at hand.

U.S. Treasuries settled mixed in a curve-steepening trade, which helped underpin the financial sector. The 10-yr yield climbed one basis point to 2.22% while the 2-yr yield slipped two basis points to 1.36%. For the week, the 2yr-10yr spread has increased by five basis points to 86 basis points.

Reviewing today's economic data, which included May Pending Home Sales, the Advance Report for International Trade in Goods for May, and the weekly MBA Mortgage Applications Index:

• Pending Home Sales for May declined 0.8% (consensus +0.5%). Today's reading follows a revised 1.7% decrease in April (from -1.3%).
• The Advance Report for International Trade in Goods for May showed a deficit of $65.9 billion, down from a revised deficit of $67.1 billion for April (from -$67.6 billion).
• The weekly MBA Mortgage Applications Index declined 6.2% to follow last week's 0.6% increase.

On Thursday, investors will receive Initial Claims (consensus 241,000) and the third estimate of first quarter GDP (consensus 1.2%). Both reports will be released at 8:30 ET.

• Nasdaq Composite +15.8% YTD
• S&P 500 +9.0% YTD
• Dow Jones Industrial Average +8.6% YTD
• Russell 2000 +5.0% YTD