>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance:
  • SPWH +12.3%, ADSK +12%, MCK +8.7%, DE +7%, SB +6.8%, GPS +4.4%, ROST +3.8%, CRM +2.5%, AMAT +2%, HCC +0.9%
M&A news:
  • DYN +20.5% (Vistra Energy (VST) is in talks to purchase DYN, according to WSJ)
  • PXLW +2% (Pixelworks to acquire ViXS in an all-stock transaction consisting of ~3.7 million shares of Pixelworks common stock valued at ~$20.2 million)
Select Brazil related names bouncing in pre-mkt following yesterday's declines:
  • BSBR +5.4%, PBR +4.1%, VALE +3.9%, GOL +3.7%, BBD +2.1%, GGB +1.9%
Select metals/mining stocks trading higher:
  • HMY +4%, AU +3.5%, GFI +3.2%, MT +1.4%, RIO +1.2%, BHP +1%
Other news:
  • GLYC +8.2% (seeing continued strength in after hours - being attributed to positive Suntrust comments)
  • FBIO +5.8% (receives NOA from the USPTO for an application describes and claims a dosing regimen of intravenous (IV) 50 mg tramadol)
  • SNGX +5% (indicated higher after Randal J. Kirk - in joint filing with Third Security/Intrexon- disclosed slightly increased active stake to 7.9%)
  • CNHI +4.9% (in sympathy with DE)
  • GBT +4.5% (announces new data supporting its GBT440 program in sickle cell disease will be presented at the upcoming 22nd Congress of the European Hematology Association)
  • FOLD +3.6% (on track to report top-line data from the ESSENCE study during)
  • SYF +1.9% (Synchrony Financial plans to increase quarterly common stock dividend to $0.15 per share and approval of a $1.64 billion share repurchase program through June 30, 2018)
  • CAT +1.8% (in sympathy with DE)
  • SHOP +1.8% (prices offering of 5.5 mln shares of Class A subordinate voting shares at $91.00 per share)
  • BABA +1.5% (slightly rebounding after yesterday's declines)
  • EGLT +1% (presents data from a harm reduction model at the 36th American Pain Society annual meeting)
  • DAR +0.9% (CFO disclosed purchase of 19710 shares worth nearly $300K)
Analyst comments:
  • ARNA +16.5% (initiated with a Outperform at Leerink Partners; tgt $5 )
  • PRTK +12.1% (initiated with Strong Buy at Raymond James; tgt $36)
  • VTL +9.6% ( initiated with Outperform at Raymond James; tgt $6)
  • LL +5.7% (upgraded to Outperform from Perform at Oppenheimer)
  • AXSM +5.5% (initiated with a Buy at BTIG Research; tgt $14 )
  • PANW +3.6% upgraded to Buy from Hold at Jefferies)
  • NVDA +2.4% (initiated with Outperform at Bernstein)
  • TMUS +1.8% (added to Conviction Buy List at Goldman)
  • WMT +0.5% (upgraded to Market Perform from Underperform at BMO Capital Markets)

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance:
  • FL -8.6%, CPB -5%, GLOB -1.8%, QSII -0.6%
Other news:
  • XBIT -10.4% (received a negative opinion from the European Medicines Agency's CHMP for its Marketing Authorization Application for its lead product candidate in Europe)
  • HALO -8.2% (prices 10 mln shares of common stock at $12.50 per share)
  • GSBD -3.4% (prices 3.25 mln share common stock offering at $22.50/share)
  • RSPP -3.3% (commences secondary offering of 15 mln shares of its common stock by Silver Hill Energy Partners Holdings; also files for 27,876,089 share common stock offering by holders)
  • NKE -0.7% (in sympathy with FL)
Analyst comments:
  • COF -1% (Wells Fargo downgrades Credit Card sector to Market Weight from Overweight)

>>> US Early premarket gappers

Early premarket gappers
Gapping up:
  • DYN +20.1%, PTXP +19.3%, ADSK +11.1%, SPWH +9.9%, VTL +9.6%, MCK +8.2%, SB +7.8%, DE +7.4%, GLYC +6.8%, GBT +6.4%, SNGX +5%, CNHI +4.9%, BBD +4.7%, PBR +4.4%, GPS+4.1%, PRTK +4%, GOL +3.7%, HMY +3.5%, AU +3.3%, PANW +3.2%, AMAT +2.9%, GFI +2.7%, VALE +2.5%, CAT +2.2%, CRM +2.2%, NVDA +2.1%, PXLW +2%, GGB +1.9%, CHK +1.6%,RBS +1.6%, BABA +1.6%, MT +1.4%, ROST +1.4%, RIO +1.2%, EGLT +1%, DAR +0.9%, BHP +0.9%, HCC +0.9%, BSBR +0.8%
Gapping down:
  • HALO -9.6%, XBIT -9.3%, FL -7.7%, CPB -5.2%, GSBD -3.8%, ASNA -2.9%, GLOB -2.9%, QSII -2.4%, ACHN -1.6%, SYMC -1.1%

(MS) Food Retailing ; Quantifying European grocers'exposure to Brazil

* What's new? 
Following the publication by Brazilian newspaper El Globo of an article on bribery allegations at the government level, the Brazilian market pulled back significantly (Ibovespa down -9% at the time of writing) and so did the Brazilian Real vs. the major currencies (down -6.5% against the Euro at the time of writing). In this short note, we quantify European grocers' exposure to Brazil.

* Bottom line: 
Three of the top sixth grocery retailers in Brazil are controlled by European-based retailers: Carrefour is the largest grocer with a market share estimated at 17%, CBD Pao de Acucar (controlled by Casino) is a close second with a share of ~16%. As for DIA, it has a more modest market share (slightly above 2%), but given the size of the Group, Brazil is nevertheless an important market for the retailer. While Brazil represents a great share of consolidated sales and EBIT for Casino, Brazil is actually more significant for Carrefour when looking at a sum of the parts valuation, given significant differences in ownership: Casino has an economic interest of only 33.2% of its Brazilian subsidiary, while Carrefour owns 88% of its subsidiary in the country. We are Underweight Casino shares and Equal-weight Carrefour's and DIA's.

RTRS - RWE, ENGIE STUDYING ALLIANCE INVOLVING INNOGY - BANKING SOURCES

RTRS - RWE, ENGIE STUDYING ALLIANCE INVOLVING INNOGY - BANKING SOURCES
RTRS - FRENCH GOVERNMENT SOURCE CONFIRMS TALKS ABOUT AN ENGIE-RWE ALLIANCE, CAUTIONS THEY MAY NOT SUCCEED
RTRS - ONE SCENARIO INVOLVES RWE SWAPPING PART OR ALL OF ITS 77 PCT INNOGY STAKE FOR A STAKE OF UP TO ONE THIRD IN ENGIE – SOURCES
RTRS - ANY DEAL WOULD HAVE TO WAIT FOR GERMAN GENERAL ELECTIONS IN SEPTEMBER - SOURCES