>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance:
  • QADA -13.7%, ZOES -10.5%, GME -7%, SPLK -5.1%
Other news:
  • SPI -12.4% (modestly pulling back)
  • TPIC -9.1% (TPI Composites was notified by General Electric International, Inc. (GE) that GE does not intend to extend its supply agreement)
  • TRIL -7.3% (commences offering of its common shares and Series II Non-Voting Convertible First Preferred Shares)
  • TRGP -4.5% (prices 17 mln shares of common stock at $46.10 per share)
  • CGIX -3.8% (files for $100 mln mixed securities shelf offering)
  • HGV -2.3% (Hilton Grand Vacations files for 15,008,689 share common stock offering by the selling stockholders)
Analyst comments:
  • JKS -5.9% (downgraded to Underweight at Morgan Stanley; to Sell at Citi)
  • SHPG -2.2% (downgraded to Mkt Perform from Outperform at Bernstein)
  • TRIP -1.2% (downgraded to Underperform from Neutral at Macquarie)
  • E -1% (downgraded to Underperform from Neutral at Exane BNP Paribas)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance:
  • NTNX +16.8%, DECK +12.3%, BIG +8.2%, EGHT +6.8%, VEEV +5.8%, TOUR +4.8%, LGF.A +3.7%, ULTA +2.7%, COST +1.7%, CAL +1.3%, FND +0.9%,VNET +0.9%
Other news:
  • AFSI +8.4% (will issue common equity to raise gross proceeds of $300 million through a private placement with members of the Karfunkel family)
  • BIG +8.2% (following COST earnings and ahead of its own earnings release)
  • SQNS +5.3% (extending this afternoon's move higher)
  • CLNE +3.4% (awarded a renewable natural gas (RNG) contract)
  • MTDR +2.7% (will replace Western Refining in the S&P MidCap 40)
  • CDXC +2.2% (announced the closing of the $16.4 million second tranche of the strategic investment of up to $25 million led by Hong Kong business leader Mr. Li Ka-shing)
  • AERI +1.9% (prices $75 mln (upsized from $50 mln) common stock offering at $53.75/share)
  • ICPT +1.8% ( announces that Health Canada has granted a conditional approval for Ocaliva for the treatment of primary biliary cholangitis )
  • MNK +1.1% (highlights first patients in company-sponsored prospective observational registry on the use of H.P. Acthar Gel following acute multiple sclerosis relapse)
  • BBRY +0.7% (reaches agreement w/ Qualcomm (QCOM); arbitration panel has issued a final award providing for the payment by Qualcomm to BlackBerry of a total amount of $940 mln for calendar 2016 and 1Q17)
  • NEWR +0.5% (featured on Thursday's Mad Money)
Analyst comments:
  • INFN +3.5% (upgraded to Outperform from Market Perform at Wells Fargo)
  • RRGB +1.4% (upgraded to Buy from Hold at Canaccord Genuity)
  • NCLH +1% (upgraded to Outperform from Neutral at Wedbush)

>>> Weibo's controlling shareholder SINA board authorized and approved the distr

Weibo's controlling shareholder SINA board authorized and approved the distribution of shares of Weibo to the shareholders on a pro rata basis (77.57)
  • SINA will distribute one Weibo Class A ordinary share to the holder of each ten SINA ordinary shares. Holders of SINA ordinary shares that are settled through DTC will receive Class A ordinary shares represented by Weibo ADSs. The Weibo share distribution will be payable on or about July 10, 2017, to shareholders of record as of the close of business on June 7, 2017.
  • Following the distribution of the Weibo shares, SINA's equity stake in Weibo will decrease from ~49% (or ~74% by voting power) currently to ~46% (or ~72% by voting power)

>>> Etihad set to hire advisors to review Air Berlin stake - report

Etihad set to hire advisors to review Air Berlin stake - report
26 MAY 2017
Air Berlin [AB1:DE] shareholder Etihad Airways is on the verge of appointing advisors to review options for its shareholding in the German carrier, according to a newswire report.
Bloomberg, citing unidentified individuals, said the look at strategic options, including a potential divestment, forms part a wider look into the Middle East group's stakes in troubled airlines. The Abu Dhabi-based carrier could still opt to retain the 29.2% stake, the people said.
Air Berlin's market market early afternoon on Friday was about EUR 107m.
Including bonds and loans, Etihad's exposure to the German airline is almost EUR 2bn.

>>> US Early premarket gappers

Early premarket gappers
Gapping up: NTNX +18.4%, DECK +13%, AFSI +8.6%, BIG +7.5%, BIG +7.5%,EGHT +6.1%, VEEV +5.4%, SQNS +5.3%, ZSAN +4.5%, MTDR +4%, LGF.A +3.7%,ULTA +3%, CDXC +2.2%, COST +1.9%, ICPT +1.8%, CAL +1.3%, MNK +1.1%, FND+0.9%, VNET +0.9%

Gapping down: QADA -13.7%, ZOES -10.8%, TPIC -9.1%, TRIL -7.3%, SPLK-5.4%, GME -5%, TRGP -4.5%, CGIX -3.8%, HGV -2.3%, NEWT -0.9%, TOUR -0.5%

>>> Drillisch to review United Internet offer within two weeks

Drillisch to review United Internet offer within two weeks
26 MAY 2017
In connection with the proposed acquisition of 1&1 Telecommunication SE by Drillisch AG, today United Internet AG, the parent company of 1&1, published the offer document for the concurrent voluntary public tender offer for Drillisch. In response, a spokesman for Drillisch stated:
"Drillisch has taken notice of the publication of the offer document for the concurrent tender offer by United Internet. In compliance with their statutory obligations, the Management Board and the Supervisory Board will thoroughly review the offer and expect to issue a reasoned statement within two weeks. The publication of the offer document initiates an intermediate stage of the overall transaction. The first step of the acquisition of 1&1 was successfully completed with the registration of the Capital Increase I in the commercial register on May 16, 2017. However, the expected growth opportunities and synergies can only be realized for the shareholders of Drillisch in case of a successful conclusion of the overall transaction. Therefore, we are continuously working towards the second step of the acquisition of 1&1 and ask our shareholders for approval at the extraordinary general meeting scheduled July 25, 2017."

(UBS) is Goldilocks Back ?

* Is "Goldilocks" Back?

Yes. The confluence of an economy that looks poised to grow in 2017 at the Fed's 2.1% estimate (UBSe 2.2%) bolstered by a 2Q tracking near 4% while yields remain low, employment strong and energy prices anchored within a range around $50/bbl. have created ideal conditions for consumers and businesses alike, resulting in all-time highs in the S&P 500 and all-time lows in market volatility (Figure 1).

* Sell (Vol) in May and Go Away?

No. Volatility, VIX, by its very nature is mean reverting, with a long run average of around 19. While we cannot know the timing and the nature of the next period of higher volatility, historically inexpensive option prices make attractive limited risk/theoretically unlimited reward stock replacement strategies as well as portfolio hedges to protect against the 5-10% corrections which have occurred regularly over the past three years.

* Tech – Party Like It's 1999?

For now. Technology continues to be an overweight UBS Strategy sector whose valuation is not yet near prior extremes on an absolute or a relative basis. Nevertheless, such concentrated outperformance by a handful of stocks amid signs of crowded positioning is cause for concern coming into a time of year where reduced liquidity has exerted pressure on "consensus trades."

* What is the "Sum of No Fears"?

Can the economy, earnings and markets remain not too hot, not too cold, but just right? What are the current concerns which, typically overcome, have propelled stocks higher these past eight years? Valuations, market "internals," surprises, and the shape of the yield curve figure prominently in a list of investor preoccupations.

>>> Pre-Market Indications

BofAML EMEA Indications
SPIRAX - $415m acquisition of Chromalox immediately earnings enhancing(5576)+5%
RESTAURANT GR - 20 wk sales -1.5% but still expects PBT to be inline (323)..+2%
INFORMA - Reassuring we trading inline & small disposals in pipeline (656)..+1%
SAFRAN - We UPGRADE to Buy, with a FV of e90 from e78 (we are RSTR ZC)(79)+0.5%
HAMMERSON - Small disposal in Kent, valn £80m or initial yield of 6.5% (580)u/c
CAIRN ENERGY - We DOUBLE UPGRADE to Buy from U/P & take our PO to 265 (211).u/c
SPIRE - Trading update all reads inline and FY guidance reiterated (338)....u/c
KINNEVIK - We DOWNGRADE to Neutral reducing our PO to SEK265 from 275 (238).-1%
MINERS - Copper -0.25%, Iron Ore fut +0.25% with BHP OZ -2.1%, RIO OZ -1.7%.-1%
FERRAGAMO - We DOWNGRADE to Neutral and lower PO to €28 post strong run (25)-1%
INTERTEK - 4mth update inline & on track to achieve solid org growth (4225).-2%
DNO - We DOWNGRADE to Neutral from Buy, with a new PO of NOK 9.5 (7.91).....-5%
GENEL - We DOWNGRADE to U/P on declining oil prodn & refinancing risk (79.3)-5%
PREMIER OIL - We DOWNGRADE to U/P from neutral and take our PO to GBp50 (60)-5%

Shore
BRITVIC - Pepsi sells 11.8mill shares @ 695p/share (4% discount)............-2%
HAMMERSON - sells Westwood&Westwood Gateway for £80m,net yield on sale 6.5%.UNCH
INTERTEK - 1Q rev GBP883.5mill,sales rise 14%,benefit from weak £,+ve FLS....+2%
SPIRAX-SARCO - acquires Chromalox(provider of electrical products)for $415m.UNCH
RESTAURANT GRP - Total sales-1.5%.Sees pbt for fy in line with estimates.....+5%
EAGLE EYE - Propsosed placing to raise up to £6m............................MKT
SAFECHARGE - signs partnership with Chase,gives access to card payments in US+1%
SPIRE HEALTHCARE - overall trading in line,reits guidance...................UNCH
CAFFYNS - rev+14%,PBT+40%,new car sales+9.3%,cautious stance for yr ahead...UNCH

CS
Aryzta M/P Announce a new Independent Non-Executive Director
Informa +1% Says good progress in 2017, confirms FY expectations
Intertek M/P Organic growth 0.9%, CSe H1 0.7%, guidance inline
Logitech +3% Positive read across from Best Buy numbers
Miners -0.5-1% Copper -0.45%, Brent -3.60%, Iron Ore +0.40%, China
-0.10%
Oils -2% Brent -3.6% to $51.2, WTI -3.5% to $48.6
Restaurant Gp +3% No's slightly light, outlook inline and upgraded away
Spire +1% Numbers inline and reiterates FY guidance
Spirax +3% Acquisition of Chromalox for US$415m