After Hours Summary: GRPN +24%, CRUS +15%, MRVL +9%, FB +4.5% on earnings/guidance, ALR +21% recouping late subpoena-related losses... INFN -31.5%, RRTS -17.5%, TER -8%, WFM -5% on earnings/guidanceAfter Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: PCMI +26% (light volume), OCN +25%, GRPN +23.8%, QTM +15.4%, CRUS +14.6%, LLNW +11.8%, MRVL +9.2%, PEIX +8.4%, MKSI +8.3%, AXTI +7.9%, ARRS +7.2%, NTGR +6.7%, VNR +6.1%, LM +6% (ticking higher), FB +4.5%, MMSI +3%, CDE +3%, PXD +2.5%, FOE +2% (also ends review of strategic alternatives, adds $25 mln to repurchase program), BKCC +2%, O +2%, ABCO +1.8%, CAKE +1.5% (also raises dividend by 20%, increases share repurchase authorization by 7.5 mln shares), MUR +1.3%, LRCX +1.1%, ESV +1%, GPRO +0.7%
Companies trading higher in after hours in reaction to news: ALR +20.8% (rebounding from late move lower on reports of DoJ subpoena - co has since confirmed receipt of a DOJ subpoena addressed to Alere Toxicology Services, Inc. on July 1), EVOK +15.1% (Intracoastal Capital discloses 6.4% passive stake), KITE +1.9% (enters into an exclusive, worldwide license with the NIH for intellectual property related to a fully human anti-CD19 chimeric antigen receptor-based product candidate directed against B-cell malignancies), BMRN +1.9% (BioMarin Pharm confirms FDA accepted its BLA for Cerliponase Alfa for CLN2 disease, form of batten disease; PDUFA action date is January 27 2017), BID +1.7% (ticking higher; Taikang Life Insurance discloses 13.52% active stake), MA +0.7% (MasterCard and PayPal announce a multi-year extension of the PayPal Extras Mastercard co-branded consumer credit card program in the U.S. and Puerto Rico)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: INFN -31.5%, RRTS -17.5%, RCII -14.4%, WSTL -11.3% (preliminary consolidated revenue for 1Q17 of $14.8 mln vs Cap IQ Consensus of $21.03 mln; announces plans to to reduce annual expenses by ~$11.0 mln), KONA -9.8%, MMLP -8.4%, ECHO -8.2%, TER -7.8%, SCKT -7.5% (thinly traded), DLB -6.2%, INT -5.6%, (also corrects previously reported financials due to accounting of taxes), WFM -5.2%, WLL -5.2%, SPRT -5.2%, ORC -5.1%, NATI -4.9% (light volume), IAC -4.7% (ticking lower), NOW -4.5%, ELY -4.1%, GG -4.1%, MCK -4%, KRA -3.4%, WFT -2.6%, CBI -2.3%, VRTX -2.1%, CA -1.6% (ticking lower; also CFO news), MAR -1.5%, ORLY -1.1%, KGC -1%, TYL -0.9%, AMGN -0.8%, AGNC -0.8% (also decreases monthly dividend to $0.18/share from $0.20/share), HOLX -0.8%, NE -0.7%, ABX -0.7%
Companies trading lower in after hours in reaction to news: ARGS -17.6% (provides corporate update in conjunction with proposed offering of common stock and warrants), IVTY -11.2% (announces proposed public offering of common stock; details not disclosed), CIEN -10.2% (INFN sympathy), EXAS -4% (to sell 7 mln shares of common stock in an underwritten public offering), RGLS -2% (Regulus Therapeutics announces that, as anticipated, it received written communication from the FDA outlining information required to resolve the clinical hold for its IND for RG-101), AA -0.7% (announces plan for 1-for-3 reverse stock split)
Closing Market Summary: Averages End Mixed After Fed StatementThe stock market ended Wednesday on a mixed note, responding to a positive bottom-line reading from top-weighted Apple (AAPL 103.03, +6.36) and the latest policy statement from the Federal Open Market Committee. Other contributing factors impacting today's trade included weakness from the oil patch, softening in the dollar, and the outperformance of the heavily-weighted health care (+0.4%) and technology (+0.8%) sectors. The Nasdaq Composite (+0.6%) ended ahead of the Dow Jones Industrial Average (UNCH) and the S&P 500 (-0.1%).
Equity indices gained at the start of the session as investors responded to better-than-expected quarterly results from Apple (AAPL 103.03, +6.36) and further easing measures from Japan. Top-weighted Apple boosted the influential technology sector (+0.8%) after reporting above-consensus bottom-line results and issuing better-than-expected guidance for the fourth quarter. Separately, Japan's Nikkei (+1.7%) paced the advance overseas after Prime Minister Shinzo Abe unveiled a fiscal stimulus package totaling JPY28 trillion. The terms of the stimulus package are expected to be compiled next month, but there are doubts about how much direct stimulus will be involved.
The major averages pulled back from their opening highs shortly after the release of a disappointing weekly inventory report from the Department of Energy. The report showed a surprise increase in crude oil inventories (+1.67 million barrels; estimated: -2.25 million barrels) while gasoline stockpiles (+0.45 million barrels; consensus +0.03 million) also missed their mark. In response, the energy component fell from the $43.00/bbl price level, ending its day lower by 2.4% ($41.90/bbl; -$1.01).
The broader market hovered near its session low through the afternoon as investors looked ahead to the release of the FOMC's July policy statement. The statement struck a somewhat hawkish tone, indicating that near-term risks to the economic outlook had diminished. However, investors appear somewhat skeptical of the potential for a rate hike by the end of the year. The fed funds futures market currently reflects the implied probability of an interest rate hike at the December meeting at 46.8%, ticking down from yesterday's estimate of 51.5%.
The benchmark index ended off its low as technology (+0.8%), telecom services (+0.7%), and health care (+0.4%) led the advance. On the flipside, consumer staples (-1.5%), utilities (-1.2%), and energy (-1.0%) rounded out the board.
The influential technology sector (+0.8%) demonstrated relative strength as large cap component Apple (AAPL 103.03, +6.36) rallied 6.6%. Additionally, heavily-weighted Facebook (FB 123.34, +2.12) jumped 1.8% ahead of this evening's earnings report. The high-beta chipmakers finished ahead of the broader market as Cavium Networks (CAVM 46.84, +3.11) topped the price-weighted index. The company reported an in-line quarter, but raised its earnings estimates above consensus.
Biotechnology outperformed in the health care space (+0.4%) evidenced by the 2.4% gain in the iShares Nasdaq Biotechnology ETF (IBB 287.03, +6.75). Allergan (AGN 260.24, +11.29) helped lead the ETF after Teva Pharmaceuticals (TEVA 55.16, +0.85) announced that its acquisition of Allergan's generic division should close next week.
The Dow Jones Transportation Average (-1.5%) displayed relative weakness as rail names and freight companies underperformed. Norfolk Southern (NSC 90.14, -2.61) fell 2.8% after reporting that overall volume declined 7.0% year-over-year. However, the company did top bottom-line estimates. Separately, C.H. Robinson (CHRW 38.35, -3.79) lost 5.3% after quarterly revenue failed to meet analysts' estimates. The company reported that its top line shrank 6.9% year-over-year.
In the consumer staples sector (-1.5%), beverage names underperformed as Coca-Cola (KO 43.40, -1.48) lost 3.3%. The company lowered its full-year earnings estimates below consensus. SABMiller (SBMRY 56.25, -1.40) ended lower by 2.4% amid reports that the company has ordered employees to halt integration work with Anheuser-Busch InBev (BUD 121.94, -4.66). The move followed yesterday's revised bid for the company.
The U.S. Dollar Index (96.81, -0.36) finished near its session low as the euro and the pound gained against the greenback. The single currency gained 0.6% against the dollar (1.1054) while cable jumped 0.5% (1.3195). The two currencies notched highs against the dollar after the release of the FOMC's July policy statement. Separately, the dollar/yen ended higher by 0.5% (105.20).
Treasuries ended higher as yields declined throughout the complex. The yield on the 10-yr note slipped six basis points to 1.51%.
Today's trading volume was below the recent average as fewer than xxx million shares changed hands on the NYSE floor.
Today's economic data included the weekly MBA Mortgage Index, Durable Orders for June, and Pending Home Sales for June:
- The weekly MBA Mortgage Index showed a seasonally adjusted decrease of 11.2% in mortgage applications after declining 1.3% in the prior week.
- Durable goods orders declined 4.0% in June (consensus -1.0%) on top of a downwardly revised 2.8% decline in May (from -2.2%).
- Excluding transportation, orders were down 0.5% (consensus +0.2%) on the heels of a downwardly revised 0.4% decline in May (from -0.3%).
- The June report was particularly disappointing since it revealed order declines in just about every category -- and a number of categories, including primary metals, registered a second consecutive monthly decline in orders.
- The notable exception in June was orders for motor vehicle and parts, which increased 2.6%. The only other area to see in an increase in orders was electrical equipment, appliances and components (+0.8%).
- Nondefense capital goods orders, excluding aircraft, were up 0.2% after a 0.5% decline in May.
- This metric is seen as a proxy for business spending, so it holds a little silver lining for June; however, it would be remiss not to mention that they are down 3.8% year-over-year.
- Shipments of these goods, which factor into GDP computations, declined 0.4% in June after falling 0.5% in May.
- On a year-over-year basis, durable goods orders are unchanged. Excluding transportation, they are down 1.1%.
- Pending Home Sales for June rose by 0.2% while the consensus expected an uptick of 1.1%. Separately, the May decline was unrevised at 3.7%.
Tomorrow's economic data will include weekly initial claims (consensus 260k) and June International Trade in Goods (consensus -$61.2 billion), which will each cross the wires at 8:30 ET.
- Russell 2000 +7.3% YTD
- Dow Jones +6.0% YTD
- S&P 500 +6.0% YTD
- Nasdaq Composite +2.6% YTD
Facebook beats by $0.15, beats on revs
Reports Q2 (Jun) earnings of $0.97 per share, $0.15 better than the Capital IQ Consensus of $0.82; revenues rose 59.2% year/year to $6.44 bln vs the $6 bln Capital IQ Consensus.
Second Quarter 2016 Operational Highlights
* Daily active users (DAUs)- DAUs were 1.13 billion, better than expected, on average for June 2016, an increase of 17% y/y; Q1 +16%, Q4 +17%
Mobile DAUs- Mobile DAUs were 1.03 billion on average for June 2016, an increase of 22% y/y; Q1 was +24%, Q4 was +25%
* Monthly active users (MAUs)- MAUs were 1.71 billion, better than expected, as of June 30, 2016, an increase of 15% /y-
Mobile MAUs were 1.57 billion as of June 30, 2016, an increase of 20% year-over-year; Q1 and Q4 was 21%
* Mobile advertising revenue- Mobile advertising revenue represented approximately 84% of advertising revenue (Expectations were for approx 82.7%) for the second quarter of 2016, up from approximately 76% of advertising revenue in the second quarter of 2015.
* Capital expenditures- Capital expenditures for the second quarter of 2016 were $995 million.
From: LAURA ANREDER (OSCAR GRUSS & SON IN) At: 07/27/16 20:25:27
Subject: Fwd:(BN) SABMiller Orders Halt to AB InBev Integration, No Contact (3)
SABMiller’s board is still reviewing AB InBev’s improved offer and has not decided to walk away from the deal, different people familiar with the matter said. Advisers to the two brewing companies are still working on the transaction, the people said.
*SABMILLER SAID TO ORDER HALT TO ITS AB INBEV INTEGRATION WORK
Dan Loeb Compares Managing Money In 2016 To A "Game Of Thrones" Slaughter
After a poor start to the year, Dan Loeb's Third Point redeemed itself in the second quarter, in which it posted a 4.6% return, bringing the YTD net P&L to +2.2%
South Africa's PIC in talks with SABMiller over improved offer by AB Inbev - Reuters News
27-JUL-2016 16:00:21
JOHANNESBURG, July 27 (Reuters) - South Africa's Public Investment Corporation (PIC) is in talks with SABMiller SAB.L over an improved offer from Anheuser-Busch Inbev ABI.BR, the state pension fund said on Wednesday.
"We are in discussions with SABMiller on the offer price and would not like to make our view public at this point in time," PIC Head of Corporate Affairs Deon Botha said in response to emailed questions.
The PIC is SABMiller's fourth largest shareholder.
AB InBev raised its $100 billion-plus bid for rival brewer SABMiller on Tuesday in an attempt to quash investor dissent over an offer made less attractive by a post Brexit vote fall in the pound.