have a l ook - 109 could be the next level.
Gapping up
In reaction to strong earnings/guidance:
In reaction to strong earnings/guidance:
- CLNE +19.2%, OPGN +15.4%, ADVM +12.7%, YELP +12.6%, SUNW +10.7%, VRNS +9.6%, DXPE +8.9%, BBSI +8.6%,COTV +7.7%, DHT +7.7%, NH +7.3%, YRD +7.3%, HCHC +7%, WATT +6.7%, (also announces $20 mln private placement), RL +6.6%, INFI +5.6%, CDXS +5.3%
- LITE +4.9%, HALO +4.8%, RYI +4.4%, JD +4.1%, XONE +3.7%, CEL +3.7%, OXLC +3.4%, HLIT +3.3%, CRME +3.2%, (also XYDALBA has been approved by the EMA for administration as a single, 30 minute, 1500mg infusion), AG +3.1%, ICLD+2.9%, CPRX +2.8%, ARMK +2.7%, PUK +2.5%, EDIT +2.4%, TCS +2.4%
- TAHO +1.9%, OTIV +1.8%, WAGE +1.7%, RBCN +1.7%, ICL +1.5%, PTLA +1.1%, AEZS +1.1%, IEC +1%
Select metals/mining stocks trading higher: EGO +4.9%, MUX +4.4%, BTG +4%, GFI +3.9%, KGC +3.9%, SWC +3.3%,CDE +3.2%, HL +3.1%, FCX +3%, SLV +2.9%, ABX +2.8%, GDX +2.7%, GOLD +2.6%, AU +2.6%, GG +2.5%, AUY +2.3%,NEM +2.2%, MT +1.6%, BHP +1.5%, IAG +1.2%, GLD +1.1%
Other news:
Other news:
- APRI +27.9% (announces that Ferring Pharmaceuticals, the Company's new partner in Germany, has received the German marketing authorization for Vitaros)
- VTVT +15.5% (announces 'positive' topline results from a Phase 2b study of TTP399; achieves primary endpoint)
- CBMX +12.3% (announces that Universal Diagnostic Labs will market and distribute its chromosomal microarray miscarriage analysis test in both Northern and Southern California)
- VSAR +11.5% (Versartis and Teijin LImited enter into an exclusive license and supply agreement for the development and commercialization of somavaratan in Japan; will receive an upfront payment of $40 million )
- PLX +11.1% (announces additional 'positive' data from its phase I/II clinical trial of PRX-102 for the treatment of Fabry disease)
- OCN +7.9% (S&P raised its ranking on Ocwen Loan Servicing LLC Commercial Servicer, Ocwen Loan Servicing LLC Residential Master Servicer to Average)
- KTOV +6.8% (receives US patent for its lead drug candidate KIT-302)
- TOPS +5.9% (announces delivery of sixth newbuilding vessel & completion of six-vessel newbuilding program)
- JBLU +1.6% (reports July 2016 prelim traffic)
Analyst comments:
- ZIOP +6.4% (upgraded to Market Perform from Underperform at Wells Fargo
- SSL +3.1% (upgraded to Overweight from Equal Weight at Morgan Stanley)
- ASPS +2.7% (upgraded to Buy at Compass Point)
- PHG +2.2% (upgraded to Buy from Neutral at UBS)
Gapping down
In reaction to disappointing earnings/guidance:
In reaction to disappointing earnings/guidance:
- GEVO -32.6%, MYGN -30%, SPWR -29%, (also announces restructuring due to industry conditions), WGBS -24.8%, TDW-17%, (updates status of discussions with lenders / noteholders ), PRGO -12.7%, YUME -10.2%
- SIF -9.4%, GALE -7%, CYBR -5.5%, DPLO -5.1%, LSCC -4.8%, ARWR -4.5%, OHRP -4.4%, CALL -4.3%, ALDX -4.2%,KORS -4.2%, SEDG -3.8%, OA -3.8%, WEN -3.8%, CALA -3.4%, VSAT -3.3%
- OMER -2.8%, SPPI -2.1%, NVAX -2%, HTM -1.8%, CTSO -1.8%, (thinly traded), DIS -1.4%, (also Acquires Minority Stake in BAMTech; Disney Investment will Accelerate Growth of Leading Technology and Direct-To-Consumer Video Streaming Company), MATR -1.4%, SPHS -1.4%, JAZZ -1%
Other news:
- GBSN -9.1% (discloses further issuance of shares to certain holders of its 2015 Notes)
- RPRX -8.6% (light volume; enters into equity distribution agreement to offer and sell up to $10 mln in shares of common stock)
- CSIQ -5.5% (following SPWR earnings/guidance/restructuring news)
- X -4.2% (priced 18.9 mln shares common stock offering (upsized from 17 mln) at a public offering price of $23/share), FSLR-3.6% (following SPWR earnings/guidance/restructuring news)
- CLF -3.4% (announces underwritten public offering of $300 mln of its common shares)
- JKS -3.2% (in sympathy with SPWR earnings)
- ZBH -3.1% (pricing of a ~7.44 mln share secondary common stock offering at $129.75/share by selling shareholders)
- LY -2.9% (updates on Monarch 2 phase 3 trial of Abemaciclib; an independent Data Monitoring Committee recommended to continue the study without modification as the interim efficacy criteria were not me)
- VWR -2.8% ( commences 8 mln common stock offering by selling stockholder Varietal Distribution Holdings )
- LOAN -1.8% (prices underwritten public offering of 672,269 common shares at a price to the public of $5.95 per share)
- CONE -1.7% (CyrusOne commenced the public offering of 6.8 mln shares of common stock-including 3.4 mln by the Forward Purchaser or its affiliate in connection with the forward sale agreement )
- PANW -1.2% (following CYBR earnings)
- TSL -1.1% (following SPWR earnings/guidance/restructuring news)
Analyst comments:
- NE -2.4% (downgraded to Sell from Hold at Argus)
- RBS -0.8% (downgraded to Hold from Buy at Investec)
Bank of England to Make Up Bond-Purchasing Shortfall After Auction Hiccup
The BOE revived its crisis-era bond-buying program as part of a package of measures to support the economy in the wake of Brexit
LONDON—The Bank of England said Wednesday it plans to make up a shortfall in its bond-purchase program later this year after it couldn’t find enough bonds to buy in a Tuesday auction, an unusual hiccup that analysts say probably won’t become the norm.
The BOE revived its crisis-era bond-buying program on Thursday as part of a package of measures to support the economy in the wake of voters’ decision to exit the European Union. It said it would buy £60 billion ($78 billion) of U.K. government bonds, or gilts, over the next six months, a policy known as quantitative easing. The aim is to drive down long-term interest rates and prod investors into riskier assets, making borrowing cheaper and easier for businesses and households.
The BOE’s first foray into the market in its latest round of QE went off Monday without a hitch. But on Tuesday, it said that it was only able to buy £1.12 billion of the £1.17 billion of the bonds it had hoped to scoop up.
On Wednesday, it said the roughly £50 million shortfall would be made up in the second half of its six-month buying spree.
The reason for the shortfall wasn’t entirely clear. Analysts said on Wednesday the snafu probably reflected in part the nature of the bonds the BOE was trying to buy. The central bank holds auctions for bonds of different maturities on different days; on Tuesday it wanted to buy bonds maturing in 15 years or more.
Such bonds are highly prized by pension funds and other long-term investors, which covet them to match their future liabilities as they fall due, said Luke Hickmore, senior investment manager at Aberdeen Asset Management PLC. That might make them “challenging to get hold of,” Mr. Hickmore said.
Others offered more mundane explanations. Alan Clarke, director of fixed income research at Scotiabank, said the traditional mid-August lull in London’s financial markets probably meant some senior bond dealers were away from their desks, leaving decisions in the hands of junior staff unsure how to deal with the central bank. He added bond prices will likely rise as the BOE’s purchases get into full swing, so dealers won’t have felt in any rush to sell in the first days of the six-month program.
“Why sell early on and miss out on the upside?” he said.
U.K. government bond prices rose on Wednesday following the auction mishap, driving yields higher. After falling below 0.6% Tuesday for the first time in history, yields on 10-year U.K. sovereign bonds touched a new record-low of 0.523% Wednesday.
The BOE is due to purchase 10-year gilts Wednesday as part of a basket of assets maturing between seven and 15 years. The outcome of the so-called reverse auction, where the BOE sellers to submit bids and rejects those it doesn’t like, will be published later Wednesday. The BOE will seek 15-year debt again next week.
RL +5.24% @ 100.05 vs 95.07
Ralph Lauren beats by $0.17, beats on revs; guides Q2 rev above consensus; reaffirms FY17 outlook
- Reports Q1 (Jun) earnings of $1.06 per share, excluding non-recurring items, $0.17 better than the Capital IQ Consensus of $0.89; revenues fell 4.1% year/year to $1.55 bln vs the $1.53 bln Capital IQ Consensus. The decline in reported net revenues was in line with the guidance provided in June of a mid-single digit revenue decline.
- On a reported basis, international net revenue rose 10% in the first quarter, offset by an 11% decline in North America.
- Wholesale Revenue. In the first quarter of Fiscal 2017, wholesale segment revenue decreased 5% on both a reported and constant currency basis to $607 million, driven by a decline in North America as the U.S. department store channel continued to experience challenging traffic trends, partially offset by an increase in Europe.
- Retail Revenue. Retail segment revenue decreased 3% on both a reported and constant currency basis to $907 million in the first quarter, driven by a comparable store sales decline that was partially offset by non-comparable store sales growth. Consolidated comparable store sales decreased 6% on a reported basis and 7% in constant currency during the first quarter, primarily due to lower traffic trends.
- Co sees Q2 rev down mid to high single digits vs. -10% consensus; Operating margin for the second quarter of Fiscal 2017 is expected to be 200-250 basis points below the comparable prior year period. Initiatives under the Way Forward Plan are expected to have a greater impact in the second half of Fiscal 2017 than the second quarter.
- For Fiscal 2017, the co continues to expect consolidated net revenues to decrease at a low-double digit rate due to a proactive pullback in inventory receipts, store closures, pricing harmonization and other quality of sale initiatives, combined with the weak retail traffic and a highly promotional environment in the U.S. Based on current exchange rates, FX will have minimal impact on revenue growth in Fiscal 2017. The co continues to expect operating margin for Fiscal 2017 to be ~10%, as cost savings are expected to be offset by growth in new store expenses, unfavorable foreign currency impacts, infrastructure investments and fixed expense deleverage.
Walt Disney: Color on Quarter -- >DIS -1.4% premarket testing support near $95.
- Macquarie upgraded to Outperform.
- RBC: Disney's overall results were incrementally positive but structurally neutral. Solid (but not leading) EPS growth + sentiment overhang = Sector Perform as they maintain their $103 price target. Disney is now trading at a P/E discount to the S&P500, which arguably reflects ongoing negative sentiment around cord-cutting, which has resulted in Media being largely left behind in the market rally. Disney is near the bottom end of their expected range of $95-105. They have an upward bias for now, as they think $95 is a support level and Parks fears should abate. They maintain their price target of $103, as they have yet to see the EPS acceleration that would make them structurally more positive.
- Pivotal Research Group lowers their DIS tgt to $118 from $122. Results were punctuated by soft growth in cable affiliate revenues alongside news that the co would be investing in the technology division of MLBAM (BAM Tech) for $1bn. Concurrently, ESPN announced it will launch an OTT service. Incorporating slightly lighter long-term affiliate fee growth trends vs. prior expectations among other changes, they continue to see long-term value in Disney and recognize that investor sentiment is still too negative on the stock.
- FBR & Co notes Disney paired F3Q16 earnings with the announcement of the oft-reported plan to take a 33% stake in Major League Baseball Advanced Media (MLBAM) for $1B. Disney coupled this with news of plans for an over-the-top version of ESPN later this year, meant to complement (not replace) the TV channel, and the disclosure that Disney's main channels will be part of DirecTV's planned over-the-top offer. Otherwise, segment profits topped their estimate, mainly because of margin upside at parks.
- Needham notes pofits were driven primarily by the film segment, which offset underdelivery in TV and Consumer Products. What they liked most about FY3Q included: 1) the purchase of a 33% stake for $1B in BAMTech (slightly dilutive) 2) ESPN will be in DirecTV's skinny bundle; 3) the Sony Vue skinny bundle originally launched without ESPN. After mediocre adoption, they added ESPN and now have 100,000 subs. What they worry most about is: 1) Film and Parks strength (capital intensive, hit-driven) are offsetting weakness at TV and Consumer Products profits (high margin, lower risk), which suggests falling ROICs; and 2) Frozen comps suggest y/y declines in consumer products throughout FY16; Hold.
Disney is investing $1 billion in streaming tech and will launch a streaming sports network — but it won’t include ESPN
If cord-cutting ever gets bad, Disney now has an easier way to go direct to consumer.
Disney is buying a one-third stake in streaming video company BAM Tech for $1 billion and will eventually launch what it calls an ESPN-branded subscription streaming service that — here’s the important part — won’t include ESPN.
The deal values BAM Tech, backed by Major League Baseball, at $3 billion.
We told you about a potential deal between the two earlier this year, and now it’s official. The company also said the investment gives it the option to buy a majority stake down the road, which shows it’s pretty serious about streaming video.
Disney already sells some of its channels, including ESPN, to online streaming services like Dish’s Sling. But with its new investment Disney can stream stuff on its own and plans to sell a bunch of ESPN-type channels in a new subscription video service at some point in the future.
Crucially, it won’t include regular ESPN since that’s the channel that makes the most money for Disney, and selling it directly to consumers would hurt its standing with the cable and satellite distributors that already pay Disney a lot of money to carry the network.
But by owning a piece of the tech, Disney has an easy way to sell more of its content directly to consumers, and if cord-cutting ever gets really bad, it can include ESPN in the mix.