Gapping down
In reaction to disappointing earnings/guidance:
In reaction to disappointing earnings/guidance:
- TIS -7.6%, (also does not declare dividend), CCRC -2.5%, DISH -1.5%
M&A news:
- GNW -6.4% (Genworth Financial and Oceanwide provide update on CFIUS application)
Other news:
- AEZS -63% (announces that the ZoptEC Phase 3 clinical study of Zoptrex did not achieve its primary endpoint)
- NTRP -50.8% (top-line results from its Phase 2 study (-202 Study) of Bryostatin-1)
- ITCI -41.4% (FDA has confirmed that the results of Study ITI-007-302 do not preclude them from submitting an NDA based on the efficacy studies they have conducted to date)
- MTNB -5.1% (entered into a Controlled Equity Offering Sales Agreement with Cantor pursuant to the registration statement on Form S-3)
- ANY -3.2% (files for 22,415,550 common share offering by holders)
- SIX -0.5% (to repurchase 5,060,628 shares of common stock from H Partners/affiliated funds at $61.36/share)
Analyst comments:
- WAIR -4.1% (downgraded to Neutral from Buy at Citigroup)
- SSW -3.7% (downgraded to Underperform from Neutral at Credit Suisse)
- WDC -1.5% (downgraded to Hold from Buy at Jefferies)
- SHOP -1.2% (downgraded to Neutral at Monness Crespi & Hardt)
Early premarket gappers
Gapping up:
- GRVY +13.3%, AEZS +4.5%, TWTR +3.7%, HBHC +2.8%, CLF +2.7%,FGP +2.7%, FSLR +2.6%, LC +2.6%, TIS +2.5%, DISH +1.6%, ILMN+1.2%, AMD +1.2%, DRYS +0.8%
Gapping down:
- MTNB -5.1%, SSW -3.7%, ANY -3.2%, CCRC -2.5%, GDX -0.9%, RDUS-0.8%, CAH -0.8%, ABX -0.6%, SIX -0.5%
Gapping up
In reaction to strong earnings/guidance:
In reaction to strong earnings/guidance:
- GRVY +13.3%, ARLP +7.1%, RDUS +2.4%, MRNS +2.1%, DO +1%, CAH +0.6%
M&A news:
- HBHC +2.8% (acquired assets and liabilities of First NBC Bank (FNBC) from the FDIC)
Other news:
- XXII +42.9% (FDA has granted the co authorization to conduct a clinical trial studying its BRAND B)
- ONVO +5.2% (announces a collaboration with the University of Virginia to develop 3D bioprinted tissues for volumetric muscle loss injury)
- TWTR +4.1% (CEO Jack Dorsey discloses the purchase of 574K shares; also to partner with Bloomberg for a streaming news service, according to the WSJ)
- MICT +4% (receives a purchase order valued at approximately $1,060,000 for its recently released TREQr5 product from a leading fleet management solutions provider)
- KERX +3.5% (announces that an additional large Medicare Part D plan sponsor has added Auryxia to its Medicare Part D plan formularies, effective June 1)
- FGP +2.7% (amends its revolving credit facility to provide covenant relief)
- AMD +0.9% (trading higher ahead of earnings after market close today)
Analyst comments:
- HESM +4.5% (initiated with a Buy at Goldman)
- LC +3.1% (upgraded to Positive from Neutral at Susquehanna)
- FSLR +1.9% (upgraded to Neutral from Underperform at Credit Suisse)
- BOLD +1.7% (initiated with a Outperform at Leerink Partners)
- ADSK +1.1% (upgraded to Overweight from Equal-Weight at Morgan Stanley)
- COF +0.6% (upgraded to Buy from Hold at Deutsche Bank)
- CNHI +0.5% (upgraded to Neutral from Underweight at JP Morgan)
Gapping down
In reaction to disappointing earnings/guidance:
In reaction to disappointing earnings/guidance:
- TIS -7.6%, (also does not declare dividend), CCRC -2.5%, DISH -1.5%
M&A news:
- GNW -6.4% (Genworth Financial and Oceanwide provide update on CFIUS application)
Other news:
- AEZS -63% (announces that the ZoptEC Phase 3 clinical study of Zoptrex did not achieve its primary endpoint)
- NTRP -50.8% (top-line results from its Phase 2 study (-202 Study) of Bryostatin-1)
- ITCI -41.4% (FDA has confirmed that the results of Study ITI-007-302 do not preclude them from submitting an NDA based on the efficacy studies they have conducted to date)
- MTNB -5.1% (entered into a Controlled Equity Offering Sales Agreement with Cantor pursuant to the registration statement on Form S-3)
- ANY -3.2% (files for 22,415,550 common share offering by holders)
- SIX -0.5% (to repurchase 5,060,628 shares of common stock from H Partners/affiliated funds at $61.36/share)
Analyst comments:
- WAIR -4.1% (downgraded to Neutral from Buy at Citigroup)
- SSW -3.7% (downgraded to Underperform from Neutral at Credit Suisse)
- WDC -1.5% (downgraded to Hold from Buy at Jefferies)
- SHOP -1.2% (downgraded to Neutral at Monness Crespi & Hardt)
Food groups warned about overuse of antibiotics in supply chain
Big investors are concerned about ‘frightening’ health and financial consequences
Denny’s, Greene King and eight other food businesses have come under pressure from big investors to end the unnecessary use of antibiotics in their supply chains. Concerns are mounting that overuse of these drugs is damaging human health.
A coalition of 71 investors, which collectively oversee more than $2tn in assets, warned that excessive use of antibiotics in meat and poultry supply chains could have “frightening” health and financial consequences.
Papa John’s, the pizza company, Whitbread, the British company behind Costa Coffee, and the Cheesecake Factory, the US restaurant chain, will also be targeted by the coalition this year.
The fear is that regular use of the medicines in animals is leading to antibiotic resistance in humans, leaving food companies at risk of losses if governments attempt to tackle the growing threat to public health.
Jeremy Coller, chief investment officer of Coller Capital, the private equity house, said: “The potential cost of anti-microbial resistance to our health and wealth is truly frightening.”
The coalition, which includes Aviva Investors, the £319bn fund manager, and Boston Common Asset Management, the US investment house, has urged food and restaurant companies to introduce comprehensive public policies on antibiotics use across their meat and poultry supply chains.
The group wants restaurant and pub companies to prevent the routine use of antibiotics by their meat and poultry suppliers, particularly of so-called last line of defence antibiotics that are vital for human health.
A 2014 report by Public Health England estimated that, by 2050, the global cost of antimicrobial resistance will be as much as $100tn and will account for 10m deaths a year — more people than currently die from cancer.
Chickens, pigs and other animals that are raised in closed quarters are often given antibiotics to prevent infection, or to help increase growth. The fear is that eating them might boost antibiotic resistance in humans.
Clare Richards, campaigns manager at ShareAction, the responsible investment organisation that brought the investors together, said: “Sick animals should receive treatment, but medically important antibiotics should have no place in masking the symptoms of poor animal welfare conditions.
“Companies that fail to adequately address this risk are missing a trick: neglecting both their opportunity to offer leadership in the face of a public health crisis, plus the chance to positively differentiate themselves from their competitors.”
Lauren Compere, director of shareholder engagement at Boston Common, added that the EU and the US have already begun fighting the use of antibiotics for growth promotion. “[There is a] financial risk linked to companies not anticipating [regulatory changes]. As long-term investors, we have to think about the risks the [companies] face.”
This year’s campaign over antibiotics is an escalation of one that launched last year and which targeted McDonald’s, Domino’s Pizza and eight other food and restaurant businesses.
A spokesperson for Whitbread said its suppliers do not feed antibiotics to animals to prevent disease, and will only use the medicines when “absolutely necessary” to treat an ill animal.
Greene King said: “[We] work closely with our suppliers to ensure they comply with our policy to use antibiotics only when a bacterial infection is present and not as part of routine management or for cost benefits.”
Papa John’s, Denny’s and The Cheesecake Factory did not respond to a request for comment.
Elliott to court BHP's Australian shareholders on overhaul: sources
Elliott Management will meet with BHP Billiton's Australian shareholders this week as the activist investor pushes for strategic changes at the world's biggest miner, two sources familiar with the matter said on Monday.
The sources, who could not be named because they were not authorised to speak publicly about the issue, told Reuters that Elliott was seeking feedback from other investors about its proposed overhaul of BHP.
Over the past year, Elliott has built up a 4.1 percent stake in BHP's British arm and last month told the company it had failed to deliver "optimal" value.
Elliott, led by U.S. financier Paul Singer, demanded BHP spin off its U.S. oil assets, ditch a corporate structure built on dual listings in London and Sydney and hand back more money to shareholders.
BHP swiftly rejected the approach, saying the costs of the changes would outweigh the benefits.
But Elliott could be gaining some traction according to investors.
Analysts said Elliott would likely push its case for a revamp of BHP's U.S. oil business, after BHP on April 26 said it was progressing the sale of onshore U.S. petroleum interests at two key fields.
BHP said the plan had been in the works prior to Elliott going public with its proposals.
"It's clear they (Elliott) aren't going to just give up," said Shaw and Partners analyst Peter O'Connor.
I'm not surprised they are here, they have been conspicuous in their absence," he added.
BHP declined to comment.
Oil prices were in retreat on Monday following a choppy week of trade and renewed concerns about supply.
Brent crude, the international benchmark, was down 0.3 per cent at $51.90 a barrel in a public holiday-dominated session for Asia: Australia and Japan were the only major markets open.
West Texas Intermediate was down 0.2 per cent at $49.24.
Brent finished Friday 0.6 per cent higher, but down 0.4 per cent for the overall week.
Confidence in oil markets has been rattled in recent weeks. Data showing US weekly gasoline inventories unexpectedly rose gave investors the chills, as did the number of oil rigs operating in US fields jumping to its highest since 2015. Recent figures have also showed a rebound in Libya’s crude production after pumping resumed following a halt there, which would boost global supply.
Gold was down 0.4 per cent at $1,263.63 an ounce.
Asia Mid-Session Market Update: China official PMIs slow to 6-month lows; Risk trade recovers on reports of US govt funding agreement
Mon, 01 May 2017 0:30 AM EST
***Friday US Session Highlights***
- (US) Q1 ADVANCE GDP ANNUALIZED Q/Q: 0.7% V 1.0%E; PERSONAL CONSUMPTION: 0.3% V 0.9%E
- (US) Q1 EMPLOYMENT COST INDEX (ECI): 0.8% V 0.6%E
- (US) APR CHICAGO PURCHASING MANAGER: 58.3 V 56.2E; new orders and employment show significant m/m growth
- (US) APR FINAL MICHIGAN CONFIDENCE: 97.0 V 98.0E
***Politics***
- (US) Congress negotiators from both parties said to have reached a tentative deal on $1.1T omnibus spending bill to fund the govt through Sept 30th - financial press
- (FR) French presidential candidate Le Pen indicating she would not rush to leave the euro if elected - press
- (US) Pres Trump signs Congressional stopgap funding to keep the govt open until May 5th
***Weekend US/EU Corporate Headlines***
- COH: Coach said to be interested in a possible offer for Jimmy Choo after failed takeover of Burberry - UK press
- TRCO: Fox and Blackstone said to be in talks to acquire Tribune Media - financial press
***Key economic data:***
- (CN) CHINA APR MANUFACTURING PMI (GOVT OFFICIAL): 51.2 (6-MONTH LOW) V 51.6E; NON-MANUFACTURING PMI: 54.0 (6-MONTH LOW) V 55.1 PRIOR
- (JP) JAPAN APR FINAL PMI MANUFACTURING: 52.7 V 52.8 PRELIM (confirms 8th straight month of expansion)
- (AU) AUSTRALIA APR MELBOURNE INSTITUTE INFLATION M/M: 0.5% (3-month high) V 0.1% PRIOR; Y/Y: 2.6% (highest since July 2014) V 2.2% PRIOR
- (AU) AUSTRALIA APR AIG MANUFACTURING INDEX: 59.2 V 57.5 PRIOR; 7TH MONTH OF EXPANSION
- (AU) AUSTRALIA APR CORELOGIC RPDATA HOUSE PRICES M/M: 0.1% V 1.4% (slowest gain in 16-months)
- (KR) SOUTH KOREA APR TRADE BALANCE: $13.3B V $8.6BE
***Asia Session Notable Observations, Speakers and Press***
- Asian trading is light to start the week despite the release of key data out of China, with most markets closed for May 1st Labor Day. April's official manufacturing and non-manufacturing PMIs both hit 6-month low on lower prices and lower demand - new export orders and employment components slumped to a 3-month low, while Input Prices are at a 10-month low. Risk-on flows were initially depressed with firmer JPY and lower US futures at the open before a mid-day reversal on reports that Congressional negotiators from both parties said to have reached a tentative deal on $1.1T omnibus spending bill to fund the govt through Sept 30th. The deal does not include funding for the border wall and was cheered by Senate Minority leader Schumer as a "good agreement".
- In other key datapoints, Japan Apr Manufacturing PMI was confirmed at an 8-month high, as Markit economist noted growth is supported by strengthening overall demand across the South East Asia region with exports as a key driver of growth. Australia MI inflation also trended hotter, reaching July-2014 highs, while Aussie manufacturing expanded for 8th straight month.
- Geopolitical tensions around the Korean peninsula remained an issue following a missile test late on Friday. Even though the projectile had reportedly failed, landing within North Korean territory, US CIA director Pompeo was said to be meeting with South Korea's national security officials about the buildup of nuclear capability of the North. Also out over the weekend, US National Security Advisor McMaster assured South Korea that US is paying for THAAD despite Pres Trump claiming Seoul should pay a $1B for deployment.
Japan
- (JP) According to Kyodo poll 49% favor changing Article 9 of Japan constitution (outlaws war as a means to settle international disputes involving the state) v 47% opposed
Australia / New Zealand
- (AU) Australia Treasurer Morrison did not commit for ruling Coalition to return govt to surplus by 2021; Looking to lower living costs in upcoming May 9th budget - press
- (NZ) RBNZ seeks views on capital adequacy framework for banks
- (NZ) New Zealand Treasury: Inflation to hold near 2% over 2017 in absence of any additional shocks - press
Korea
- (KR) CIA director Pompeo said to have met South Korea National Security officials in Seoul - Korean press
- (KR) South Korea Fin Min Yoo: Already working with US on reducing trade surplus - press
- (KR) US National Security Advisor McMaster said to have spoken with South Korea chief Kim Kwan-jin; Assured him that US will pay for THAAD system deployment - press
***Asian Equity Indices/Futures (00:00ET)***
- Nikkei +0.4%, Hang Seng closed, Shanghai closed, ASX200 +0.3%, Kospi closed
- Equity Futures: S&P500 flat; Nasdaq +0.1%, Dax closed, FTSE100 closed
***FX ranges/Commodities/Fixed Income (00:00ET)***
- EUR 1.0890-1.0910; JPY 111.20-111.75; AUD 0.7465-0.7490; NZD 0.6850-0.6880; GBP 1.2900-1.2940
- June Gold -0.3% at 1,264/oz; June Crude Oil -0.2% at $49.24brl; July Copper -0.4% at $2.60/lb
- (AU) Australia MoF sells A$300M 2.75% 2035 bonds, avg yield 3.1375%, bid-to-cover 3.59x
***Asia equities / Notables / movers***
Australia
- RCG Corp (RCG) -21.7%; Cuts FY17 Underlying EBITDA guidance to A$74-80M (prior A$85-88M)
- Saracen Mineral (SAR) +2.9%; Canaccord Genuity Raised SAR.AU to Buy from Hold
Japan
- Sojitz (2768) +3.2%; FY16/17 results
- Sharp (6753) +2.7%; FY16/17 results
- Ricoh (7752) -7.3%; FY16/17 results
- Fujitsu (6702) +9.0; FY16/17 results
- ANA (9202) -2.8%; FY16/17 results
- JAL (9201) -7.3%; FY16/17 results
- Honda (7267) +0.3%; FY16/17 results
- Tokyo Electron) +13.3%; FY16/17 results