>>> US Gapping down



Gapping down
In reaction to disappointing earnings/guidance:

  • ONVO -17.2%, RSYS -15.3%, YELP -9.7%, UBNT -9.6%, CATM -7.3%, CERN -7%, MX -6.6%, SGEN -6.5%, IPAS -6.3%, MPWR -5.6%, CYBR -5.4%, MCFT -5%
  • ZNGA -4.8%, ZAYO -3.2%, APTI -3.2%, SANW -3.2%, ALDW -2.6%, EGAN -2.4%, P -1.8%, TBBK -1.7%, CARB -1.4%, MHK -1.3%, AXL -0.9%, .

Select financial related names showing weakness:

  • DB -2.2%, SAN -2.2%, RBS -2%, ING -1.7%, CS -1.6%, LYG -1.2%

Other news:

  • MJN 5.2% (to be acquired by Reckitt Benckiser (RBGLY) for $90 per share)
  • BSTG -37.6% (prices public offering with expected total gross proceeds of approx. $8.0 mln at $0.40/share)
  • TCON -17.5% ( reports top-line results from a randomized Phase 2 clinical trial of TRC105 in recurrent glioblastoma (GBM) funded and conducted by the Clinical Therapy Evaluation Program (CTEP) of the National Cancer Institute )
  • ICPT -11.3% (will provide an update on the Phase 3 REGENERATE trial of obeticholic acid in NASH patients with liver fibrosis during a conference call today)
  • NDLS -9% (completes $18.5 mln private placement of Series A Convertible Preferred Stock and warrants to L Catterton, amends credit facility, and preannounces in-line Q4 revs; commences common stock offering; size not disclosed)
  • BTX -8.6% (commences common stock offering)
  • CLF -5.8% (upsizes offering by 5 mln shares and prices 55 mln shares of common stock at $10.75 per share)
  • NBIX -0.8% (Neurocrine Biosci and BIAL enter into an exclusive licensing agreement for the development and commercialization of opicapone in North America)

Analyst comments:

  • TWTR -1.9% (downgraded to Sell from Neutral at Citigroup)
  • TEVA -1.1% (downgraded to Neutral from Buy at Mizuho)
  • GBDC -0.9% (downgraded to Mkt Perform from Outperform at Raymond James)
  • SBUX -0.6% (downgraded to Hold from Buy at Argus)

(BofA-ML) The Flow Show - Flowing Up

--> a week of solid asset market inflows...$13bn into bonds, $6bn into equities, $2bn into gold

>>> Asset Class Flows
- Bonds: 7 straight weeks of inflows ($13.3bn)
- Equities: 6 straight weeks of inflows ($6.3bn) ($7.8bn ETF inflows vs $1.4bn mutual fund outflows)
- Precious metals: $1.9bn inflows (inflows in 3 of past 4 weeks)
- Money-markets: $10.2bn outflows

>>> Equity Flows
- EM: 5 straight weeks of inflows ($1.0bn)
- Japan: 5 straight weeks of inflows ($3.4bn)
- Europe: small $0.1bn inflows (3 straight weeks)
- US: $1.6bn outflows (outflows in 4 of past 5 weeks)
- By sector: $1.9bn inflows to US value funds vs $1.0bn outflows from US growth funds; 4 straight weeks of outflows from REITs ($0.4bn); inflows to materials in 13 of past 14 weeks ($2.4bn); inflows to energy in 9 of past 10 weeks ($0.4bn)

>>> Fixed Income Flows
- Inflows to HY bond funds in 10 of past 11 weeks ($1.9bn)
- Inflows to EM debt funds in 5 of past 6 weeks ($2.5bn)
- 7 straight weeks of IG bond inflows ($7.6bn)
- 13 straight weeks of inflows to bank loan funds ($1.2bn)
- 9 straight weeks of inflows to TIPS funds ($1.0bn)
- $0.9bn outflows from govt/tsy funds

>>> What to look at today - 10th of February 2017

Dow +0.59% S&P +0.58% Nasdaq +0.58% Russell +1.46%
US MArket Closed Higher. Visions of tax reform drove today's advance after President Trump promised to make a "phenomenal" tax-related announcement in the coming weeks. positive response today was grounded more in psychology than economics because, again, there were no details given. Equity indices remained near their highs, shrugging off comments from Chicago Fed President Charles Evans, who reiterated that three rate hikes in 2017 may be reasonable. Mr. Evans is a voting member on this year's FOMC. Financials were strong. Energy (+0.9%) also outpaced the benchmark index thanks in part to an uptick in crude oil. The energy component closed 1.2% higher at $52.98/bbl. Utilities (-0.8%) and materials (unch) were the only two spaces to finish Thursday lower. Nine of eleven spaces are higher for the week going into Friday's session with materials and energy showing week-to-date losses of 0.9% and 1.4%, respectively. US After Hours ATVI +9.7%, INFN +9.6%, SKX +8.9% higher following earnings... YELP -9%, MPWR -7.9%, CATM -7.6%, UBNT -7.2%, CERN -5.7% following earnings/guidance. ruling by the 9th Court of Appeals - all 3 judges ruled to uphold suspension of his travel ban. China trade surplus beat expectations in both USD and Yuan terms, while components were much stronger than consensus. BOJ acted in its QE operations to stem the rally in bond yields on the long end, slightly increasing its purchases of 10-25yr maturity. Japan leaders are head to Washington to meet with US officials this weekend.

Nikkei +2.49% Hang Seng +0.42% CSI +0.45% Shanghai +0.35%

Eur$ 1.0660 CNH 6.8629 CNY 6.8757 JPY 113.66 GBP 1.2510 CHF 1.0020 RUB 58.8522 WTI$

S&P +0.17% EuroStoxx +0.34% FTSE +0.24% DAX +0.42% SMI +0.47%

Macro :
- Deutsche Bank Says Trump Rally Hasn't Even Begun: Markets Live
- Dombrovskis Says EU, U.K. Commit to Regulatory Cooperation
- Greece’s Creditors Said to Prepare Proposal for Bailout Deal
- Steve Cohen Said to Back Macro Fund of Ex-Brevan Partner Melkman
- Swiss Should Scrap Corporate Tax Breaks Fairly Soon: OECD in NZZ
- China Jan. Exports Rise 7.9% Y/y in Dollar Terms; Est. 3.2%, China Jan. Exports Rise 15.9% Y/y in Yuan Terms; Est. 5.2%
- Hedge Funds Gained 1.2% in January, Led by L/S Equity: eVestment
- ECB May Send Bank Stress Test Scenarios by Mid Feb.: Expansion

Keep an eye on :
- AF FP : Air France Softens Stance on Ways to Lower Pilot Pay at Boost
- AF FP : EU Could Impose Duties on Non-EU Airlines Under Proposal: Rtrs
- AMUN FP : Amundi 4Q Net Climbs 17%; Assets Under Management Climb 10% Y/Y
- APAM NA : Aperam 4Q Ebitda $133m, Est. $131m
- MT NA : ArcelorMittal FY16 Sales Misses Est.
- MT NA : ArcelorMittal S. Africa Loss Narrows; Sees Subdued Steel Demand
- ASC LN : U.K. Retail Sales Shifted Online at Faster Pace in Jan, BDO Says
- BPC PL : Banco Comercial Confirms It Has Repaid Portuguese State CoCos
- BMPS IM : Monte Paschi 4Q Net Loss EU2.53b vs EU196.6m Loss Yr-Earlier
- BRG NO : Borregaard 4Q Operating Rev Beats Highest Est.; Div NOK3.5/Share
- BZU IM : Buzzi Unicem Rises After Boosting FY Ebitda Forecast
- AFX GY : Carl Zeiss Meditec 1Q Rev. EU280.0m, Ebit Up on Asset Sale Gain
- COFB BB : Cofinimmo Profit Forecast Trails Ests.; FY Rental Income Misses
- DAI GY : Daimler Trucks Chief Bernhard Said to Leave the Company
- DB1 GY : Deutsche Boerse Shareholders Support Kengeter: Sueddeutsche Z.
- ELE FP : Euler Hermes FY Rev Slips 2.6%; Net Income Misses Estimates
- ELE SM : Endesa in Talks to Buy Renovalia Energy: El Confidencial
- ELTEL SS : Carnegie Sells Its Stake in Eltel, Dagens Industri Reports
- EMSN SW : EMS-Chemie 2016 Result Above Previous Year, Increases Dividend
- FLU AV : Flughafen Wien to File Appeal Over Court Ruling on Third Runway
- GAM SM : Gamesa Secures Debut Order for G126-2.625 MW Turbine
- HEIA NA : Heineken Said to Eye Bid for 11% Stake in United Breweries: TOI
- HMB SS : H&M CEO Sees Additional Concepts Within Five Years, DI Says
- BAER VX : Julius Baer Contests CHF422m Claim Against Bank in Court
- MMB FP : Lagardere FY Sales Climb 2.7%, Lifts Outlook for Ebitda
- KN FP : Natixis 4Q Net EU496M; Global Markets Rev. Rises 28%
- NOD NO : Nordic Semiconductor 4Q Revenue, Ebit Miss Estimates
- OR FP : L’Oreal FY Results Meet Ests., to Explore Body Shop Options
- LIN GY : Linde’s Belloni Confident of Praxair Merger Amid Criticism: HB
- OCDO LN : U.K. Retail Sales Shifted Online at Faster Pace in Jan, BDO Says
- OHL SM : OHL Prepares Job Cuts in Spanish Operations, Expansion Reports
- UG FP : PSA ‘Surprised’ by Decision to Send Diesel Probe to Prosecutor
- RI FP : Pernod Ricard could make further acquisitions and brand disposals - MergerMarket
- RB/ LN : *RECKITT BENCKISER TO BUY MEAD JOHNSON FOR $90/SHR IN CASH
- RNO FP : Renault 2016 Op Income Beats Estimates; 2022 Strategic Plan Set
- CFR VX : Vacheron Constantin Makes Online Debut With $45,000 Watches (1)
- ROTH FP : Rothschild & Co. 3Q Revenue Stable; 9-Month Revenue Climbs 11%
- RUI FP : Rubis 4Q Rev. Rises 1%, Lifted by Distribution, Oil Trading
- 486 HK : Prokhorov Said to Consider Sale of Rusal Stake in Equity Market
- SANN SW : Santhera Issues Convertible Bond to Fund Raxone Market Entry
- SAP GY : SAP CEO Says Co. Won’t Surprise This Year With Large Deals
- GLE FP : SocGen’s Oudea Confident for Markets Business in 2017: Les Echos
- STL NO : Statoil, Total, Shell Said to Eye Stake in Amplus Energy: Mint
- UHR VX : Swiss Watchmaker Corum Breaks Even, Sees 2017 Sales Up 10%: TdG
- TKTT FP : Tarkett FY Earnings Beat Estimates; Proposes Dividend Increase
- TEF SM : KKR Said Nearing Agreement to Buy Telxius Stake for Over EU1B
- TIT IM : Italy Regulator Reviewing Telecom Italia, Fastweb Fiber Accord
- UBI FP : Ubisoft Cuts FY Sales Forecast as 3Q Revenue Falls 5.7%
- UNI IM : Unipol Group Consol. 2016 Net EU535m; Dividend EU0.18/Share
- VOW3 GY : VW Brand Works Council Urges Management to Stick to Labor Deal
- VOW3 GY : Piech May Testify Before German Parliament Panel: Sueddeutsche Z