>>> Atlanta Fed GDPNow: raises Q3 GDP forecast to 2.1% from 2.0% on Oct 19th The

Atlanta Fed GDPNow: raises Q3 GDP forecast to 2.1% from 2.0% on Oct 19th 
The GDPNow model forecast for real GDP growth (seasonally adjusted annual rate) in the third quarter of 2016 is 2.1 percent on October 27, up from 2.0 percent on October 19. The forecast of the contribution of net exports to third-quarter real GDP growth increased from -0.15 percentage points to 0.07 percentage points after yesterday's Advance Economic Indicators release from the U.S. Census Bureau. This was partly offset by a decline in the forecast of the contribution of inventory investment to third-quarter real GDP growth from 0.23 percentage points to 0.03 percentage points after the Census Bureau's Advance Economic Indicators release and its advance durable manufacturing report this morning.

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance:
  • CYH -32.9%, (reports prelim Q3 results; cites lower than anticipated results caused by lower than expected volume / larger than anticipated reductions to reimbursement; lowers 2016 adj EBITDA guidance)
  • RWLK -22.5%, (also commences an underwritten public offering of units, which consist of ordinary shares of the Company and warrants to purchase ordinary shares)
  • TREE -16.7%, ASPS -16.3%, RCII -14.1%, CLF -13.7%, ESND -11.7%, AXTI -10.6%, PRXL -10.5%, (also approves new $200 mln stock repurchase)
  • ABMD -10.4%, INFN -10.1%, GNC -9.6%, CMPR -9.5%, GRPN -8.9%, KRA -7.9%, RHI -7.8%, RHI -7.8%, NOK -7.4%,ARRS -6.9%, ABB -6.4%, NTGR -6.3%
  • TRN -5.4%, FISV -5%, TILE -4.8%, SBGL -4.1%, EXLS -3.9%, CRI -3.3%, LKQ -3.3%, PPC -3.2%, MMLP -2.6%, APD-2.3%, BGCP -2.3%, ECHO -2.2%, TDC -2.1%
  • LLNW -2%, AXTA -1.9%, O -1.7%, MUR -1.7%, CMO -1.6%, SEE -1.6%, TIS -1.5%, PSA -1.5%, WLL -1.5%
  • VAR -1.4%, (also announces that Elisha W. Finney to retire as CFO; Varian Medical and McKesson (MCK) Specialty Health announce a strategic agreement for the deployment and servicing of Varian advanced radiotherapy equipment and software over a three-year period)
  • BT -1.4%, ALLE -1.3%, CME -1.1%, ORLY -1%
M&A news:
  • MPC -0.9% (plans to offer to dropdown MPLX (MPLX) assets contributing to approx. $350 mln of annual EBITDA by the end of 2017 and evaluate changes to its internal financial reporting)
Other news:
  • TBPH -15.1% (commences public offerings of $100 mln of ordinary shares and $150 mln convertible senior notes due 2023; also files mixed securities shelf offering ), AKS -8% (prices 65 mln shares of common stock at $4.90 per share)
  • ABEO -6.7% (commences common stock offering)
  • LOGI -4% (pulling back following yesterday's post-earnings strength)
  • THC -3% (CYH sympathy)
  • HLX -2.4% (to offer approx. $125 mln of Convertible Senior Notes due 2022)
  • BHP -1.3% (announces that Chief Commercial Officer Dean Dalla Valle will leave the Company at the end of March 2017)
  • VSI -0.9% (in sympathy with GNC)
Analyst comments:
  • NWSA -1.6% (downgraded to Underperform from Neutral at BofA/Merrill)
  • NCLH -1% (downgraded to Neutral from Overweight at JP Morgan)
  • FOSL -0.8% (initiated with a Underperform at Buckingham Research)
  • RCL -0.8% (downgraded to Neutral from Overweight at JP Morgan)
  • PSO -0.8% (downgraded to Equal-Weight from Overweight at Morgan Stanley)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance:
  • BVX +16.1%, OCN +13.6%, UCTT +10.1%, STM +9.7%, STM +9.7%, TTMI +9.6%, PCMI +8.3%, CAKE +8.1%, CSII+7.1%, PLNT +7%, SFLY +7%, FFIV +6.9%
  • TER +6.3%, SQNS +6.2%, NOW +5.8%, (also Chairman Paul Barber resigns; CEO Frank Slootman selected as replacement ), PTC +5.6%, VMW +5.6%, QTM +5.3%
  • BWLD +4.9%, TWTR +4.9%, YNDX +4.7%, BOOT +4.5%, WDC +4.4%, XRS +4.4%, MB +4.2%, BMY +4%, TSLA+3.8%, EGHT +3.7%, BCS +3.7%, ALXN +3.6%
  • CELG +3.6%, ESV +3.2%, QCOM +3%, IPGP +2.9%, TCK +2.7%, DPS +2.7%, NOV +2.6%, SIRI +2.6%, TPH +2.3%,NXPI +2.1%, EPE +2%, ATNI +2%,
  • ABX +2%, STO +2%, STO +2%, TPX +2%, CRY +1.8%, SU +1.7%, POT +1.5%, TMO +1.5%, SRPT +1.4%, VALE+1.4%, AEM +1.2%, DOW +1.2%, RTN +1.2%
  • DLB +1.1%, JBT +1.1%, LAZ +1.1%, VC +1.1%, CDE +1%, EFX +1%, UFI +1%, AET +0.9%, XL +0.8%, SJW +0.8%,HBP +0.7%, COP +0.7%, AG +0.5%
M&A news:
  • QCOM +2.9% (acquiring NXPI for $110/share)
  • NXPI +1.9% (to be acquired by Qualcomm (QCOM) for $110/share in cash; also reported earnings)
Select large pharma names showing strength: SNY +1.9%, NVO +1.7%, AZN +1.4%, NVS +1%, SHPG +0.9%

Other news:
  • PRQR +30.1% (announces that clinical study PQ-010-002 demonstrated that QR-010 restored CFTR function in a cohort of homozygous F508 cystic fibrosis (CF) patients; meets primary endpoint)
  • VNR +26.8% (made the approximate $15 mln semi-annual interest payment on its 7.875% Senior Notes due 2020; entered into limited waiver and amendment to its reserve-based credit facility)
  • GALE +6.7% (shareholders approve amendment to effect a reverse stock split at a ratio of not less than 1 for 2 and not greater than 1 for 20)
  • HCA +4.2% (announces agreement to terminate hospital lease and associated Joint Operating Agreement in Oklahoma)
  • SCTY +3.6% (on TSLA earnings)
  • SN +2.3% (gives Q3 production results; oil production of 51,500 Boe/d was at high end of 50K-52K guidance)
Analyst comments:
  • PGNX +2.1% (initiated with a Buy at Aegis Capital)
  • AMAG +1.2% (initiated with a Buy at Needham)

>>> Early premarket gappers

Early premarket gappers
Gapping up: VNR +25.5%, BVX +16.1%, TER +11.2%, UCTT +10.1%, OCN +9.9%, TTMI +9.6%, STM +8.6%, PCMI +8.3%, CAKE +8.1%, CSII +7.1%, SFLY +7%,GALE +6.7%, WDC +6.2%, PLNT +5.8%, FFIV +5.8%, NOW +5.8%, PTC +5.6%, TSLA +4.9%, BWLD +4.7%, YNDX +4.7%, BOOT +4.5%, BMY +4.5%, XRS +4.4%,TWTR +4.3%, QTM +4.2%, MB +4.2%, VMW +3.8%, SCTY +3.6%, ESV +3.5%, EGHT +3.4%, NXPI +3%, ABX +2.9%, TCK +2.9%, DOW +2.6%, QCOM +2.6%, SIRI+2.6%, STO +2.6%, SN +2.3%, POT +2.3%, TPH +2.3%, EPE +2%, ATNI +2%, BCS +2%, CRY +1.8%, NVO +1.6%, SNY +1.6%, AZN +1.6%, AEM +1.5%, SDRL+1.3%, AMAG +1.2%, NVS +1.2%, DLB +1.1%, JBT +1.1%, LAZ +1.1%, VC +1.1%, SHPG +1%, CDE +1%, EFX +1%, UFI +1%, AET +0.9%, RTN +0.9%, XL +0.8%,SJW +0.8%, HBP +0.7%, AG +0.5%

Gapping down: CYH -32.2%, RWLK -22.5%, ESND -11.7%, AXTI -11.3%, PRXL -10.5%, AKS -9.5%, CMPR -9.5%, GRPN -9.3%, TBPH -9.1%, PPC -8%, RHI-7.8%, NOK -7.2%, KRA -7.1%, ARRS -6.9%, TREE -6.9%, RCII -6.6%, ABB -6.4%, NTGR -6.3%, INFN -6.2%, ABEO -6%, LOGI -5.6%, TRN -5.4%, FISV -5%,TILE -4.8%, SBGL -4.4%, ABMD -3.2%, GNC -3.1%, ORLY -2.9%, CRI -2.8%, THC -2.6%, MMLP -2.6%, HLX -2.4%, ECHO -2.2%, TDC -2.1%, LLNW -2%, BT-1.9%, BBL -1.8%, CL -1.8%, O -1.7%, MUR -1.7%, CMO -1.6%, BHP -1.5%, F -1.5%, VAR -1.4%, HCA -1%, TIS -0.7%, DRQ -0.7%, NEM -0.6%, ALGT -0.6%,VSI -0.5%

>>> Mead Johnson Nutrition beats by $0.01, reports revs in-line; guides FY16 EPS

Mead Johnson Nutrition beats by $0.01, reports revs in-line; guides FY16 EPS in-line, revs above consensus
  • Reports Q3 (Sep) earnings of $0.87 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.86; revenues fell 4.1% year/year to $937.5 mln vs the $929.82 mln Capital IQ Consensus.
    • In Asia, sales were 3% below the prior year quarter on a reported basis. Sales were negatively impacted by adverse foreign currency translation, mainly in China.
    • In Latin America, sales were 13% below the prior year quarter on a reported basis. Sales were negatively impacted by adverse foreign currency translation, primarily in Argentina and Mexico.
    • In North America/Europe, sales were 1% below the prior year quarter on a reported basis.
  • Co lowers guidance for FY16, sees EPS of $3.43-3.50 (prior $3.48-3.60), excluding non-recurring items, vs. $3.49 Capital IQ Consensus Estimate; sees FY16 revs of decline of 6-7% to $3.79-3.83 bln (prior guidance: Low end of down 5-7% to ~$3.78-3.87 bln) vs. $3.78 bln Capital IQ Consensus Estimate.
    • Sales may be lower due to market share weaknesses in several markets, notably in the U.S., as well as continued macroeconomic challenges in several emerging markets.
  • "Given known headwinds over the next year, we anticipate only modest improvements to both our underlying sales and earnings per share in 2017. In this context, continued strong performance against our expense reduction targets will support our investment in longer term growth initiatives and protect our 'best in class' level of profitability. In the longer term, underlying fundamentals for our core category are still supportive of our growth ambitions. Hence, we remain committed to making the necessary investments in our future."