>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance:
  • INOV -37.4%, ( lowers FY16 guidance due to inability to enter into expected collaboration agreement as a result of unforeseen circumstances impacting counter-party)
  • PPHM -5.4%, PAY -3.1%, WWE -3%, (raised the low end of its projected range of average paid WWE Network subs for Q4 and reaffirmed its 2016 adj. OIBDA and Operating income guidance; to offer $175 mln convertible senior notes due 2023 in a private placement )
Other news:
  • PRTO -70.8% (Phase 3 clinical trial with investigational vonapanitase did not meet its primary endpoint)
  • BDSI -19.8% (announces that its Phase 2b clinical study assessing the efficacy and safety of Clonidine Topical Gel for the management of painful diabetic neuropathy failed to show a statistically significant difference in pain relief)
  • ELGX -10% (receives notice from its Notified Body in the EU that the Company would be receiving a suspension of the CE Mark for the AFX system within a few days)
  • ARI -4.7% (offering of 10.5 mln shares of common stock for gross proceeds of about $180 mln )
  • NSA -3.6% (prices 4.5 mln shares of common stock for gross proceeds of $94.5 mln)
  • HBHC -3.4% (announces an underwritten public offering of 5 mln shares of its common stock)
  • STAY -3% (prices secondary offering of 12.5 mln Paired Shares by selling shareholders)
  • UNVR -2.2% (prices 12,500,000 shares of Univar's common stock at $25.25/share by selling shareholders)
  • RPRX -2% (announces it has requested a meeting to discuss Phase 3 requirements for the development of Proellex for the treatment of symptomatic uterine fibroids; anticipates meeting in 1H of 2017 )
  • MIK -1.8% (Michaels Stores announces secondary offering of 12 mln shares of common stock by selling stockholders and repurchase by the company of a portion of such common stock)
  • ABUS -1.7% ( reports new results from the ongoing Phase II study of ARB-1467 in chronically infected HBV patients on stable nucleos(t)ide therapy )
Analyst comments:
  • GNC -2.9% (downgraded to Underweight from Equal Weight at Barclays)
  • CERN -2.7% (downgraded to Underweight from Equal-Weight at Morgan Stanley)
  • DDR -1.7% (downgraded to Underweight from Equal Weight at Morgan Stanley)
  • VIAB -1% (downgraded to Underperform at RBC Capital Mkts)
  • ALXN -0.8% (downgraded to Equal-Weight from Overweight at Morgan Stanley)
  • KO -0.7% (downgraded to Hold from Buy at Deutsche Bank)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: UEC +3.6%, LFVN +1%

M&A news: BUD +1.5% (to divest SABMiller's Central and Eastern European Business to Asahi (ASBRF) for EUR7.3 bln)

Select EU financial related names showing strength: DB +2.7%, BBVA +1.9%, SAN +1.8%, CS +1.3%, BCS +1.1%, HSBC +1%

Select oil/gas related names showing strength: KEY +3.7%, WTI +2.7%, CEO +2.6%, NE +2.5%, CHK +2%, ESV +2%,RIG +1.7%, WLL +0.7%, XOM +0.7%

Other news:
  • IDXG +32.2% (launches a multi-site study to provide further evidence of the Clinical Utility of the ThyGenX/ThyramiR tests)
  • AKAO +13% (following ~150% move higher; commences 5.75 mln common stock offering)
  • APRI +11.7% (following ~50% move higher)
  • SCYX +7.6% (has identified an IV formulation and dose regimen that, pending discussions with the FDA, co plans to test in the upcoming clinical trials of SCY-078)
  • ATNM +7.2% (submits an application w/ the EMA seeking Orphan Designation for Actimab-A)
  • AUPH +6.2% (receives the final End of Phase II meeting minutes from the FDA)
  • RVNC +5.3% (announces positive interim results from its U.S. Phase 2 open-label, dose-escalating clinical study of DaxibotulinumtoxinA Injectable (RT002) to treat moderate-to-severe isolated cervical dystonia in adults)
  • LIFE +2.7% (clinical results from exploratory trials assessing the safety and potential activity of Resolaris)
  • LVS +2.1% (Japan upper house approves gambling bill)
  • MGM +1.9% (Japan upper house approves gambling bill)
  • NVCR +1.7% (will present data from its phase 2 pilot PANOVA clinical trial at its R&D day on Dec. 12 suggesting that TTFields plus first-line chemotherapies nab-paclitaxel and gemcitabine may be tolerable and safe in patients with advanced pancreatic cancer)
  • BA +1.5% (increases quarterly dividend to $1.42/share from $1.09/share; replaces existing share repurchase program with a new $14 billion authorization )
Analyst comments:
  • UN +1.3% (upgraded to Buy from Hold at Jefferies )
  • O +0.8% (upgraded to Overweight from Equal-Weight at Morgan Stanley)
  • FDX +0.6% (initiated with a Overweight at JP Morgan)

>>> US Early premarket gappers

Early premarket gappers

Gapping up: APRI +14%, RVNC +5.3%, SDRL +5.3%, ABUS +5.1%, NE +5.1%, SBGL +4.5%, UEC +3.6%, CHK +3.4%, DB +2.7%, SHPG +2.3%, MTL +2.1%, ESV +2%, LVS +2%, MGM +1.9%, BBVA +1.9%, BA +1.8%, NVCR +1.7%, WLL +1.7%, CS +1.7%, NVS +1.7%, ATW +1.6%, SAN +1.6%, BUD +1.5%, PFE +1.5%, AZN +1.2%, HSBC +1%, XOM +1%, GSK +1%, BCS +0.9%, LFVN +0.8%, URBN +0.8%

Gapping down: INOV -33.3%, PPHM -5.5%, ARI -5.4%, AKAO -4.8%, NSA -4.7%, PAY -4.6%, STAY -3.1%, CERN -3%, WWE -3%, GNC -2.9%, MIK -2.1%, RPRX -2%, UNVR -1.9%, VALE -1.7%, DRD -1.1%, HMY -1%, ABX -0.9%, POT -0.8%, AU -0.6%

>>> What to look at today - 13th of December 2016

Dow +0.20% S&P -0.11% NAsdaq -0.59% Russell -1.08%
US Mkt closed slightly lower. Crude oil surged on Saudi cut news, notching an overnight high near $54.50/bbl. The energy component pulled back throughout the day, ending its pit session with a 2.6% gain at $52.83/bbl. The technology sector contributed to the relative weakness in the Nasdaq, but biotechnology also weighed on the tech-heavy index. IBB -0.8% with ALXN dived 12.9% after two top executives resigned from the company.PHLX -0.8% after MU falling 2.4% after the company warned that the memory market may be flooded by China within a few years. Volume were above average with 1.2bil shares. US After Hours URBN +2% following comps update, BA higher following dividend / buyback news -- and despite reports of additional 777 cuts... INOV -33%, PAY -4.5% following earnings/guidance. Asian indices mixed with Shanghai Composite remaining under most direct pressure despite the better than expected set of November economic data; USD majors largely in narrow ranges with little reaction to China figures for AUD, as traders more inclined to await the expected Fed decision to hike rates this Wednesday and assess the accompanying statement for tightening inclination next year. China industrial output at a 3-month high and retail sales at a 11-month high. ADB cuts developing Asia 2016 GDP to 5.6% from 5.7% and Maintains 2017 GDP at 5.7%. US press speculates BOJ is considering raising its economic assessment for the first time since May 2015, while former BOJ member Shirai says central bank will have to raise its 10-yr JGB yield target and also reduce JGB purchases next year to adjust to post-Trump rising of US Treasury rates and lower JPY. Moody's: China banks are facing increasing risks in asset quality; due to rising leverage in the system.

Nikkei +0.50% Hang Seng -0.03% CSI -0.18% Shanghai +0.02%

Eur$ +0.07% CNH 6.9279 CNY 6.90 JPY 115.20 GBP 1.2680 CHF 1.0127 RUB 61.0203 WTI$ 52.83

S&P +0.11% EuroStoxx +0.10% FTSE +0.18% Dax +0.12% SMI +0.07%

Macro :
- EU to Propose New Security Rules for Messaging Services: Reuters - http://reut.rs/2hmA6Hz

Keep an eye on :
- AAPL US : Apple Held Talks to Invest in Softbank’s $100b Tech Fund: DJ
- BA US : Boeing Boosts Qtrly Div. by 30%, Sets New $14b Share Buyback
- BPE IM : BPER Says Minimum Common Equity Tier 1 Ratio Set at 7.25%
- BPOS BB : Bpost to Buy Dynagroup of the Netherlands; Terms Not Given
- BMPS IM : Monte Paschi Seen Eligible for Precautionary Recap: Official
- CABK SM : CaixaBank Announces Revision of Pilar III Related Info: Filing
- CDA FP : Compagnie Des Alpes FY Net Climbs 11%; Ski Reservations Rise
- DBK GY : Deutsche Bank Could Opt for Merger: Handelsblatt
- EDF FP : EDF Targets Nuclear Plant Availability Above 90% in January
- FUR NA : Fugro Holder Boskalis Offering Up to 12.7m Shares
- GEN DC : Genmab Gets EU Approval for Arzerra Combo to Treat Relapsed CLL
- GLEN LN : Glencore, Nippon Steel Said to Settle 1Q17 Met Coal at $285/Ton
- MS IM : Vivendi Says It Owns 3.01% Of Mediaset, Eyeing a 10%-20% Stake
- MOR GY : MorphoSys Starts Phase 2 Trial of MOR208 in Combo With Zydelig
- NHH SM : NH Hotel Targets 2017 Revenue Between EU1.54b- 1.57b
- SKY LN : Fox Set to Propose Guarantees for Sky Deal Approval: Telegraph
- SON PL : Sonae Agrees to Sell Some Real Estate Assets in Troia, Portugal
- SYNN VX : Fertilizer Sector ‘Never Looked More Expensive’: Scotiabank
- TEL NO : Telenor Board Says Considers Case Closed on Brekke’s Handling
- TOM2 NA : Garmin Sues Flir’s Raymarine Over Patents for Boat Navigator
- UBI IM : UBI Says Minimum CET1 Phased in Requirement for 2017 Is 7.5%
- UCG IM : Unicredit Said Set to Announce $13.8B Share Sale Soon as Tuesday, UniCredit Plans to Raise Up to EU13b in Rights Offer
- UCG IM : UniCredit Says 2017 CET1 Requirement Set at 8.75% by ECB

>>> Europe : Brokers Upgrades & Downgrades - 13th of December 20

>>> Up
*Adecco Raised to Buy at Citi, PT CHF77
*Assa Abloy Raised to Hold at SEB Equities
*Assa Abloy Raised to Overweight at Barclays, PT SEK200
*Britvic Raised to Buy at SocGen, PT 630p
*Buenaventura Raised to Buy at HSBC
*Drax Raised to Sector Perform at RBC, PT 320p
*Electrolux Raised to Buy at SEB Equities, PT SEK260
*Glencore Raised to Buy at SocGen, PT 370p
*InterContinental Raised to Equal-Weight at Morgan Stanley
*LVMH Raised to Neutral at BofAML, PT EU175
*Mediaset Raised to Outperform at Macquarie, PT EU4
*Philips Lighting Raised to Overweight at Barclays, PT EU27
*Randstad Raised to Buy at Citi, PT EU60
*Rexel Raised to Overweight at Barclays, PT EU18.50
*RBC Bearings Raised to Outperform at William Blair
*Richemont Raised to Hold at Berenberg, PT CHF60
*Saipem Raised to Overweight at Morgan Stanley
*Suedzucker Raised to Buy at Bankhaus Lampe
*Unilever Raised to Buy at Jefferies, PT EU44

>>> Down
*ABB Cut to Underperform at Jefferies, PT $18
*A.G. Barr Cut to Neutral at JPMorgan, PT 490p
*Andritz Cut to Neutral at UBS
*Axa Cut to Hold at Deutsche Bank
*Balder Cut to Hold at DNB Markets, PT SEK185
*Cenovus Energy Cut to Hold at Edward Jones
*DNB CUT TO HOLD VS BUY AT ARCTIC SECURITIES
*Grifols Cut to Neutral at UBS, PT EU18
*Metro Cut to Underweight at Morgan Stanley, PT EU26
*Skanska Cut to Hold at DNB Markets, PT SEK235
*SKF Cut to Hold at SEB Equities
*SKF Cut to Underweight at Barclays, PT SEK155
*Swisscom Cut to Neutral at BofAML, PT CHF490
*Standard Life Cut to Hold at Deutsche Bank, PT 370p
*Wood Group Cut to Equal-Weight at Morgan Stanley

>>> PT Change


>>> Initiation
*Aldermore Group Rated New Buy at Liberum, PT 245p
*Allianz Rated New Neutral at Credit Suisse, PT EU175
*Axa Rated New Outperform at Credit Suisse, PT EU28.50
*Close Brothers Rated New Hold at Liberum, PT 1400p
*Generali Rated New Underperform at Credit Suisse, PT EU13.50
*Ingenico Group Rated New Outperform at Macquarie, PT EU81.36
*Nets Rated New Neutral at Macquarie, PT DKK117
*Norwegian Cruise Rated New Equal-Weight at Morgan Stanley
*OneSavings Bank Rated New Buy at Liberum, PT 395p
*Paragon Rated New Hold at Liberum, PT 395p
*Shawbrook Group Rated New Buy at Liberum, PT 290p
*Worldpay Rated New Outperform at Macquarie, PT GBP2.93
*Zurich Ins. Rated New Outperform at Credit Suisse, PT CHF330

>>> Call
>> Stock
*SKY REMOVED FROM CITI FOCUS LIST EUROPE; KEPT AT BUY
**DIAGEO ADDED TO ANALYST FOCUS LIST AT JPMORGAN