>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: SNMX -41.5%, (also notes that PepsiCo will not be proceeding with launch of reformulated Mug Root Beer containing Sweetmyx ), CEMP -17.2%, MCK -15.7%, EHTH -14.3%, (announces the outcome of its 100-day strategic review process; plans to migrate and focus its business activities on the Medicare and small business insurance markets ), YRCW -13.9%, NVO -13.8%, SYNA -11.4%, CENX -11%, NSR -11%,ATEN -9.9%, (also Board authorizes a $20 mln share repurchase program),KONA -7%, GT -6.7%, ARAY -6.5%, TDOC -6%, ABBV -5.6%, AMZN -5.4%, BOFI-5.1%, ASGN -4.7%, BGS -4.7%, CBOE -4%, MLNX -3.8%, ABEV -3.7%, LITE-3.6%, AMGN -3.5%, AMGN -3.5%, BUD -3.3%, DRAD -3.1%, MOH -2.9%, AUY-2.8%, OII -2.8%, NWL -2.6%, TLGT -2.3%, SPCB -2.3%, TEN -2.3%, IRT -2%,RBS -1.9%, XRX -1.8%, SIMO -1.7%, XOM -1.4%, EGO -0.9%, COG -0.9%, APO-0.8%, MGI -0.8%, .

Select metals/mining stocks trading lower: SBGL -3.7%, GFI -2%, AU -1.7%,DRD -1.5%, .

Other news:
  • STON -35.5% (Reduces quarterly distribution to $0.33/unit from $0.66/unit )
  • DRYS -14.1% (Board has determined to effect a one-for-15 reverse stock split of the Company's issued common shares; will take effect November 1, 2016 )
  • CAH -10.8% (following MCK results)
  • ABC -9.4% (following MCK results)
Analyst comments:
  • NOK -3.8% (downgraded to Neutral from Outperform at Exane BNP Paribas)
  • AMFW -3.7% (downgraded to Neutral from Buy at Goldman)
  • AUO -2.4% (downgraded to Neutral from Buy at Nomura)
  • GNC -1.8% (downgraded to Underperform from Neutral at BofA/Merrill)

>>> Alphabet A: Color on Qtr - GOOGL +1% pre-open 22k shares traded

Alphabet A: Color on Qtr
28/10/2016 à 08:46:53 ET
  • Stifel Research raises tgt to $950 from $925. GOOGL beat 3Q revenue / profitability estimates as it continues to see strength from mobile search, video, programmatic, and Google Play. Alphabet has successfully comp'ed the first full quarter of the addition of a third mobile ad unit and continues to see runway for growth in its core ad business, while investing in other areas such as Google Cloud and hardware. Traffic Acquisition Costs (TAC) as a percentage of gross advertising revenue increased +5% q/q as higher TAC for mobile search offset the benefit from the mix-shift from Network to Sites. Management also noted marketing spend will likely be elevated in 4Q as new Google hardware products are promoted over the holidays. Alphabet authorized a ~$7B share buyback program this quarter.
  • Needham Research notes Alphabet delivered 3Q16 upside, highlighted by solid Google Website's growth and cost controls. Mobile search and video were the key growth driver in Q3 with programmatic supplementing the strong growth. Firm believes the company is well positioned to deliver strong results in 4Q16 from these focus areas. Mobile search and YouTube continued to lift paid clicks, but weighed on CPC rates. Management highlighted that desktop and tablet search also continued to grow. Management also reported strong growth in Google Play and the Google Cloud with the latter a key investment area.
  • Mizuho Securities raises tgt to $1025 from $1020. Firm notes GOOGL remains top pick after a solid 3Q beat. Despite tough comps, Google was able to grow its revenue by 23% ex-FX to $22.5b, vs. 25% in 2Q, on continued advertising strength from mobile, YouTube and Programmatic. GOOGL remains unique among large caps - there are very few companies with a revenue base of ~$90b growing 20%+ YoY with operating margins of 40%+. Firm remains optimistic as we move into 4Q as improved ad formats, new AI-based hardware, and cloud services, should drive ~20%+ revenue growth.
  • Pivotal Research notes Alphabet reported very good 3Q16 results with better-than expected top and bottom-line results once again. Capital expenditure growth was also constrained. Valuation on Alphabet stock at $1,090 per share on a YE2017 basis and maintain Buy recommendation. EBITDA margins were up from 31.9% in the year-ago quarter to 32.8% during this one led by reduced expenditures at "Other Bets." Capital expenditure spending growth was once again relatively constrained in the quarter. Although the company calls out its expansion in mobile search, video and programmatic advertising activity as leading sources of growth, firm sees mobile search growth as generally cannibalizing its own non-mobile search activity and see programmatic advertising as cannibalizing non-programmatic sales of its display network GDN. Does appear to us that YouTube is making progress in capturing share of online video while also making an increasingly plausible case for capturing traditional television budgets. Overall, retain favorable view on Alphabet.
Shares of GOOGL are trading higher by 1% in pre-market.

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: DAIO +19.1%, SMCI +10.9%, VCRA +10.9%, AMCC +10.3%, GRVY +9.9%, OSIS+9.4%, GIMO +9%, (also announces that Mr. Rex S. Jackson is joining the company as CFO effective today ), CYTK +7.7%,GSB +7.6%, CRUS +7.2%, LOGM +6.7%, (also declares special cash dividend of $0.50/share), SNY +6.6%, ARLP +6.2%, HBI+5.7%, NSIT +5.6%, RCL +5.1%, NGD +4.5%, BIDU +3.9%, SHOR +3.7%, CLD +3.2%, PXLW +3.1%, SRCL +2.8%, HUN+2.8%, SYK +2.5%, CY +2.4%, ACTG +2.4%, ENVA +2.2%, UBS +2.2%, DECK +2%, EMN +2%, SKYW +1.9%, IART+1.8%, (also recommends increase in the number of authorized shares and two-for-one stock split), FTNT +1.8%, LPNT +1.8%,MA +1.8%, CBI +1.7%, POWI +1.6%, GOOG +1.6%, AZPN +1.5%, HSY +1.4%, EXPE +1.2%, SGEN +1.1%, GLPG +1%,HIG +1%, (also announces new buyback and raises dividend 10%), EW +0.9%, VTR +0.9%, .

M&A news:
  • VCRA +10.9% (acquires Extension Healthcare for approximately $55 million in an all-cash transaction)
  • BHI +8.7% (surging higher in after hours on reports of General Electric acquisition talks)
  • BBU +5.1% (thinly traded; to acquire a 70% controlling stake in Odebrecht Ambiental for $768 mln)
  • AZPN +1.5% (acquires Mtelligence Corporation for $37 million)
  • FHN +0.7% (to acquire Coastal Securities for an undisclosed amount; transaction is expected to be immediately accretive to co's EPS)
Other news:
  • GNCA +12.5% (presents 12 month immunogenicity data from the Phase 2a trial of its genital herpes immunotherapy GEN-003)
  • GNK +5.1% (Genco Shipping & Trading enters into an agreement with certain investors for the purchase of Series A Convertible Preferred Stock in an aggregate amount of $38.6 million at a price of $4.85 per share )
  • NGD +4.5% (entered into an earn-in agreement with Rimfire Pacific Mining)
  • AERI +3.7% (reports its Rocket 4 Phase 3 clinical trial of Rhopressa achieves Primary Efficacy Endpoint; separately has withdrawn the Rhopressa NDA)
  • WFT +3% (higher with BHI)
  • YNDX +2.4% (continued strength)
  • GRPN +2.4% (favorable commentary on Thursday's Mad Money)
  • CCL +1.4% (in sympathy with RCL earnings)
Analyst comments:
  • AKS +2.3% (upgraded to Buy from Hold at Jefferies )
  • LC +2.1% (upgraded to Buy from Hold at Craig Hallum)
  • WLL +1.9% (upgraded to Strong Buy from Outperform at Raymond James)
  • BTI +1.5% (upgraded to Buy at Societe Generale)
  • QCOM +1.1% (upgraded to Market Perform from Underperform at BMO Capital Markets)
  • TWTR +0.9% (upgraded to Perform from Underperform at Oppenheimer)

>>> Chevron beats by $0.29, misses on revs

Chevron beats by $0.29, misses on revs

  • Reports Q3 (Sep) earnings of $0.68 per share, $0.29 better than the Capital IQ Consensus of $0.39; revenues fell 12.2% year/year to $30.14 bln vs the $30.58 bln Capital IQ Consensus
Upstream:
  • Worldwide net oil-equivalent production was 2.51 million barrels per day in third quarter 2016, compared with 2.54 million barrels per day from a year ago
  • Production increases from major capital projects, shale and tight properties, and base business were more than offset by normal field declines, the effect of asset sales, maintenance-related downtime primarily reflecting a major planned turnaround at Tengizchevroil, the effects of civil unrest in Nigeria and production entitlement effects in several locations
  • U.S. upstream operations incurred a loss of $212 million in third quarter 2016 compared with a loss of $603 million from a year ago
  • The improvement was due to lower operating and depreciation expenses, and lower tax items, partially offset by lower crude oil realizations
Downstream:
  • U.S. downstream operations earned $ 523 million in third quarter 2016 compared with earnings of $1.25 billion a year earlier. The decrease in earnings was primarily due to lower margins on refined product sales and lower earnings from the 50 percent-owned Chevron Phillips Chemical Company LLC
Co said, "Third quarter results, though down from a year ago, reflect an improvement from the first two quarters of this year. Our operational performance in the third quarter was strong. Our refineries continued to run well and Tengizchevroil completed the largest turnaround in its history ahead of schedule and under budget. We have had steady LNG production and cargo shipments from Gorgon Train 1, and we recently started LNG production from Gorgon Train 2. In light of these milestones, we expect December production between 2.65-2.70 million barrels per day in oil-equivalent."

>>> Exxon Mobil beats by $0.03, misses on revs

Exxon Mobil beats by $0.03, misses on revs
  • Reports Q3 (Sep) earnings of $0.63 per share, $0.03 better than the Capital IQ Consensus of $0.60; revenues fell 12.9% year/year to $58.68 bln vs the $60.6 bln Capital IQ Consensus
  • Earnings results reflect lower refining margins and commodity prices
  • Upstream earnings were $620 million in the third quarter of 2016, down $738 million from the third quarter of 2015
    • Lower liquids and gas realizations decreased earnings by $880 million, while volume and mix effects increased earnings by $80 million
    • All other items, including lower expenses partly offset by unfavorable foreign exchange effects, increased earnings by $60 million
    • On an oil-equivalent basis, production was down compared with the third quarter of 2015
    • Volumes for the quarter declined 3% to 3.8 million oil-equivalent barrels per day compared with a year ago, due to unplanned downtime, primarily in Nigeria, and field decline partially offset by increased production from recent project start-ups.
  • Downstream earnings were $1.2 billion, down $804 million from the third quarter of 2015
    • Weaker margins, mainly in refining, decreased earnings by $1.6 billion while favorable volume and mix effects increased earnings by $170 million
    • All other items increased earnings by $580 million, including lower maintenance expenses and gains from divestments in Canada
    • Petroleum product sales of 5.6 million barrels per day were 203,000 barrels per day lower than the prior year mainly due to divestment of the Torrance, California, and Chalmette, Louisiana, refineries